Egypt preparing strategic fiscal policies to bolster investment, production, exports: Finance Ministry

Cairo – September 18, 2024: Egypt’s Ministry of Finance is developing new fiscal policies aimed at enhancing investment, production, and export flows within a stable economic framework, explained Yasser Sobhi, Deputy Minister of Finance, during the first annual conference of the General Organization for Export and Import Control, titled “Developing Concepts for a Competitive Leap”.

The policies will focus on further improving fiscal discipline in the state’s budget indicators, a crucial component for fostering economic growth and ensuring effective long-term planning.

Sobhi emphasized the ministry's commitment to supporting the business community in expanding its operations, which is essential for achieving rapid increases in productivity and enhancing the competitiveness of Egyptian products in the global marketplace.

The focus on boosting non-oil exports is particularly important, as it aims to diversify income sources while promoting sustainable development and social spending in both the medium and long term.

Sobhi explained that to facilitate this, the ministry is expediting the refund of Value Added Tax (VAT) across all tax authorities as part of a comprehensive package of tax facilitations.

In collaboration with the Ministry of Investment and Foreign Trade, the finance ministry is also working to improve the export support program, which includes a streamlined process for the quick and consistent refund of export-related costs. An essential aspect of this initiative is the digitization of the Export Development Fund, designed to enhance governance in refunding export burdens, he said.

The ministry is developing an advanced system for reconciling investors’ dues with their government obligations, which aims to ensure sufficient liquidity to drive local investment, production, and export activities.

Sobhi reported that since 2019, over LE 67 billion has been disbursed to approximately 3,000 exporting companies across various sectors, underscoring the government’s commitment to addressing export burdens.

He added that the Ministry of Finance is actively digitizing the customs system and improving risk management strategies to facilitate intercountry trade. These efforts are intended to reduce customs clearance times, lower production costs, and enhance the overall competitiveness of Egypt’s business environment, ultimately attracting increased local and foreign investments.