Record EGP 80 Billion Allocated to Boost Production and Manufacturing in New Budget

Egypt's Minister of Finance, Ahmed Kojak, has confirmed the government's continued commitment to supporting the private sector as the main driver of economic growth, unveiling a significant allocation within the new state budget. The minister announced that EGP 80 billion has been earmarked for programs aimed at stimulating production, manufacturing, entrepreneurship, and both commodity and service exports, marking a major step toward enhancing local industrial capabilities and attracting investment across key sectors, including the automotive industry.

Breakdown of Financial Allocations for Productive Sectors

Kojak detailed that the allocations include EGP 48 billion specifically for repaying export burdens, a move that will directly benefit exporters in the automotive and auto parts sectors by easing their financial pressures. Additionally, EGP 6.7 billion has been set aside to support the tourism sector, while EGP 6 billion will be directed toward providing financing facilities for productive industries. These funds are expected to improve liquidity for manufacturers, enabling them to expand production lines and increase overall manufacturing capacity.

Tax and Customs Facilities to Attract Investors

The minister also highlighted the continuation of comprehensive tax, customs, and real estate facilitation packages designed to streamline procedures for investors and improve the overall business environment. These measures are part of the government's broader strategy to attract more domestic and foreign investments into the Egyptian market, particularly in the automotive manufacturing sector, which has faced challenges related to high production costs and customs complexities. The new facilities include simplified customs clearance processes for production inputs, reducing clearance times and accelerating the pace of manufacturing.

It is worth noting that the Egyptian government aims through this incentive package to achieve sustainable economic growth, boost commodity and service exports, and create new job opportunities in productive sectors. This announcement comes at a critical time when the Egyptian market is witnessing growing demand for both new and used cars, with investors eagerly awaiting more supportive policies for local industry amid fierce competition from global automotive brands.