ANNOUNCEMENT 18 Jul 2019
On 18 July 2019, The Egyptian Export Development Fund (EDF) approved a new program to refund export burdens for the fiscal year 2019/2020 with a budget of EGP 6bn (USD 361,076,006.50).
NUMBER OF INTERVENTIONS
The Board of Directors of the Export Development Fund approves the new program to refund exports burdens with a budget of 6 billion pounds. Ministry of Trade and Industry Press Releases. 18 July 2019. Arabic. Available at http://www.mti.gov.eg/Arabic/MediaCenter/News/Pages/%D8%A8%D8%AD%D8%B6%D9%88%D8%B1-%D9%88%D8%B2%D8%B1%D8%A7%D8%A1-%D8%A7%D9%84%D8%AA%D8%AC%D8%A7%D8%B1%D8%A9-%D9%88%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D8%A9.aspx
On 18 July 2019, The Egyptian Export Development Fund (EDF), which follows the Ministry of Trade and Industry, approved a new program to refund export burdens for the fiscal year 2019/2020 with a budget of EGP 6bn (USD 361,076,006.50).
EDF has announced that this new subsidy scheme aims to:
According to a press release by the Ministry, "40 percent of the total sum of the subsidies, EGP 2.4 bn (USD 144,430,402.60), will be disbursed as a cash payment to exporters, while another 30 percent of the disbursement, EGP 1.8 bn (USD 108,322,801.95), will be deducted from financial liabilities that exporters owed to the Ministry of Finance. The remaining EGP 1.8 bn will be used to boost the infrastructure and capacities of export operations."
The export subsidies will be allocated to 13 exporting sectors (i.e. food industry, spinning, and weaving, ready-made garments, household furnishings, engineering and chemical industries, fertilizers, building materials, metal industries, construction, packaging, pharmaceutical industries, leather, furniture, handicraft industries) and will be reviewed every six months.
The press release also indicated that exports that are not under covered under the umbrella of the new program will benefit from other subsidies directed to enhance Egypt's export logistics and marketing sectors. It specified an EGP 40 mn (USD 2,407,173.38) to Africa Shipping Program; an EGP 100 mn (USD 6,017,933.44) to the national carrier EgyptAir; and about EGP 100 mn (USD 6,017,933.44) to the Export Development Authority (EDA) in order sustain the work of pooled fairs through a transitional phase until the end of 2019.