Cairo: Finance Minister Ahmed Kouchouk and Minister of Industry Khaled Hashem announced that the Cabinet has approved expanding the preferential financing initiative for priority industrial sectors. This marks the launch of its second phase, which includes additional sectors and industrial activities.
According to State Information Service Egypt, the ministers issued a joint statement indicating that the initiative aims to finance the acquisition of machinery, equipment, and production lines for priority industries. These industries are identified by the Ministry of Industry and the Industrial Development Authority (IDA), in collaboration with the Federation of Egyptian Industries (FEI). The goal is to enhance the quality and competitiveness of Egyptian products, aligning them with the latest international standards, thereby localizing domestic industry and accessing new export markets.
The expanded framework increases the maximum financing limit per client to EGP 100 million, up from EGP 75 million. For cases involving related parties, the ceiling is now EGP 150 million, increased from EGP 100 million. The available credit for each client is determined based on business volume and applicable banking regulations. The initiative's first phase, launched in January 2025, had a total cap of EGP 30 billion.
Priority is given to projects in areas most in need of development and those with high employment rates, such as southern Giza, the Suez Canal region governorates of Port Said, Ismailia, and Suez (east of the Canal), border governorates including the Red Sea south of Safaga, and Upper Egypt governorates. Beneficiaries receive a concessional interest rate below 15 percent annually, which decreases further as the level of local value added increases. This lower rate also applies to new industries not previously produced locally and those with high import volumes.
The five-year concessional rate period begins with the initiative's launch, with the Ministry of Finance covering the difference between the market rate and the subsidized rate throughout that period. The initiative encompasses a broad range of sub-sectors, including pharmaceuticals, engineering industries, food industries, textiles and ready-made garments, chemicals, mining, building materials and refractories, leather, and metallurgical industries.