Egypt has launched a transformative new export rebate programme for the fiscal year 2025/2026, jointly announced by Investment and Foreign Trade Minister Hassan El-Khatib and Finance Minister Ahmed Kouchouk. This initiative demonstrates Egypt’s commitment to building a modern, responsive support framework aligned with its ambitious export growth strategy.

A Collaborative and Modern Framework

The new scheme is designed using international best practices alongside extensive public consultation. Export councils, industrial chambers, and various industry stakeholders contributed through surveys, workshops, and feedback sessions, developing an advanced economic model for funding allocation and sector prioritization involving all relevant state bodies. All 13 export councils - from chemicals and fertilizers to furniture, agriculture, textiles, and engineering - contributed to tailor support addressing each sector's unique priorities.

Integration with Egypt’s Economic Policy

This next-generation export support system integrates with broader economic reforms such as flexible exchange rates, targeted tax breaks, reduced financial pressures, accelerated customs procedures, and 29 new foreign trade streamlining measures. Finance Minister Kouchouk emphasized that boosting exports is now a central government priority, focusing on high-productivity, high-value-add industries. The programme’s budget is a record EGP 45 billion, doubling previous allocations and confirming Egypt’s commitment to private sector export growth.

Efficiency and Increased Assistance

Since 2019, over EGP 70 billion has been distributed to more than 2,800 companies, with support payments now processed within 90 days. For 2025/2026, EGP 38 billion will be allocated to priority sectors, and a flexible EGP 7 billion fund will address emerging needs. Allocation is data-driven based on added value (50%), export growth (30%), production capacity (10%), and employment (10%).

Eligibility and Inclusivity

Updated sector-specific eligibility standards assess export volume, added value, trade fair participation, market development, logistics, environmental sustainability, and energy efficiency. The flexible fund targets high-potential sectors like engineering and chemicals while incentivizing global manufacturers, rewarding top exporters, and investing in export infrastructure. For the first time, the programme includes all business sizes with transparent eligibility, guaranteed reimbursement within 90 days, and no deductions for outstanding tax debts.

Resolving Backlog of Arrears

The Ministry of Finance aims to resolve EGP 60 billion in backlog arrears from before July 2024. Half will be repaid in cash over four years, and the remainder offset against tax and utility debts. This overhaul creates a predictable, innovation-driven environment supporting Egyptian exporters for sustained global growth.

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Source: Daily News Egypt