Egypt approves 2nd phase of priority industries financing initiative

Updated 3/1/2026 7:51:00 AM

Arab Finance: The cabinet approved expanding the scope of the financing facilities initiative for priority industries with the launch of its second phase, Minister of Finance Ahmed Kouchouk and Minister of Industry Khaled Hashem announced.

The second phase will include new industrial sectors and activities for investors seeking to benefit from these facilities.

The goal is to finance the purchase of machinery, equipment, and production lines for priority industries identified by the Ministry of Industry and the Industrial Development Authority (IDA) in coordination with the Federation of Egyptian Industries.

This is set to enhance the quality and competitiveness of Egyptian products in accordance with the latest international standards, boosting local industry and paving the way for new export markets.

The joint announcement also highlighted that the maximum loan amount per client under the initiative has been increased to EGP 100 million from EGP 75 million, and to EGP 150 million from EGP 100 million in the case of related parties.

The amount of credit available to each beneficiary under the initiative is determined based on their business size and applicable banking regulations.

Moreover, the concessional interest rate borne by the customer declines by less than 15% annually when the local value added increases, as well as in the case of new industries that have not previously been produced locally and whose import volume is large.

The period of benefiting from this low price set within the framework of the financing facilities for priority industrial sectors initiative extends for five years since the launch of the initiative.

The Ministry of Finance bears the spread rate between the market interest rate and the concessional rate throughout that period.‎

Launched in January 2025 with a maximum budget of EGP 30 billion, the first phase prioritized establishments in the neediest areas for development and with the highest employment potential.

The program covers sub-sectors within pharmaceuticals, engineering, food, textiles, and ready-made garments, in addition to chemicals, mining, building materials, leather, and metal industries.