Egypt Allocates EGP 28bn for Export Support in 2025/26 Fiscal Year, 55% Increase from Previous Year
Egypt’s government has allocated EGP 28bn for export support during the 2025/26 fiscal year, marking a 55% increase compared to the previous year, according to Minister of Finance Ahmed Kouchouk. The move is part of broader efforts to stimulate production, exports, and private sector investment, as outlined during the first meeting of the joint committee between the Ministry of Finance and the Egyptian Exporters Association (EEA).
Government Prioritizes Economic Growth and Fiscal Stability
Kouchouk emphasized that the state budget reflects priorities to drive economic growth, enhance competitiveness, and maintain fiscal stability. “The government’s fiscal policy is designed to encourage investment by providing strong support for production and exports,” he stated. The minister highlighted coordination across ministries to create a more attractive business environment, integrating economic priorities into government programs and initiatives.
The government’s structural reforms aim to improve economic performance and living standards, with Kouchouk reaffirming commitment to direct communication with exporters and investors to address challenges. “Ongoing policy reforms are expected to translate into tangible benefits for the business community,” he said.
Tax Reforms Aim to Strengthen Business Environment
Rasha Abdel Aal, Head of the Egyptian Tax Authority, announced the second package of tax facilitation measures, designed to strengthen trust with taxpayers through incentives and simplified procedures. The package includes solutions to address tax-related challenges and improve the overall tax environment. Key reforms include extending the law governing tax dispute settlements until the end of December, making solidarity contribution payments deductible from the tax base, and doubling the suspension period for value-added tax on industrial machinery and medical devices to four years.
Abdel Aal noted that the authority is ready to implement the package once legislation is enacted, alongside existing measures that do not require legal changes. These reforms followed a 28% increase in tax revenues during the previous fiscal year, achieved without introducing new tax burdens, according to Kouchouk.
Customs Reforms Streamline Export Processes
Ahmed Amway, Head of the Egyptian Customs Authority, reported ongoing efforts to simplify customs procedures and reduce average clearance times. An advanced risk management system has been introduced, prioritizing companies in the Authorised Economic Operator (AEO) program. Shipments in the yellow channel will undergo documentary checks only, while green and blue channels will be subject to X-ray inspections alone.
These changes aim to expedite trade and reduce administrative burdens on exporters, aligning with broader goals to enhance Egypt’s competitiveness in regional and international markets.
Export Subsidies and Industry Challenges
Nevine Mansour, Adviser to the Minister of Finance for Economic Institutions Relations, revealed the government has paid EGP 70bn to exporters over the past six years, including EGP 12.6bn in the last fiscal year. She stated the government aims to clear all outstanding export subsidy arrears within two years, underscoring its commitment to strengthening exports.
He called for policies to encourage corporate mergers, simplify procedures, and remove regulatory obstacles to ensure the sustainability and competitiveness of merged companies.
Industry Response and Future Outlook
Mohamed Kassem, Chairperson of the EEA, welcomed the government’s tax and customs reforms, stating they would improve the competitiveness of Egyptian products and support export growth. He stressed the importance of addressing challenges faced by exporters, including access to financing and market access.
The reforms come amid efforts to diversify Egypt’s economy and reduce reliance on traditional sectors.