Egypt Daily News – The Ministry of Industry has announced the launch of the first phase of the initiative to finance priority industrial sectors. The initiative aims to provide funding for the purchase of equipment, machinery, and production lines. It was officially launched during the 14th meeting of the Ministerial Group for Industrial Development and approved by the Cabinet.
This initiative was originally announced by General Kamel El-Wazir, Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, and Ahmed Kouchouk, Minister of Finance, to support and assist producers in priority industrial sectors. It includes financial facilities worth 30 billion EGP for the private sector, specifically for the purchase of machinery, equipment, and production lines. Access to the initiative is linked to obtaining a building permit, completion of construction, and either the opening of a letter of credit or submission of a tax invoice for local purchases.
As part of the first phase initiative, investors will benefit from a reduced interest rate of just 15% for five years starting from the launch date. Additional incentives are also included to encourage industrial localization and value addition. These include an extra interest rate reduction of up to 2% for projects that increase local value added or introduce new industries that have not been previously produced locally but are heavily imported.
The first phase initiative outlines specific conditions, including a cap on the support provided, credit limits per client based on business size and banking rules, and a maximum duration for benefiting from the initiative. Priority will be given to projects located in underdeveloped areas and those with high employment potential.
The Ministry explained that the initiative focuses on financing equipment and production lines to encourage investors to establish projects in targeted industrial sectors. This is expected to boost productive capacity and modernize technological infrastructure, enhancing the competitiveness of Egyptian products.
Seven industrial sectors were identified as having strong potential for added value through localization:
- Pharmaceuticals – Including the production of active pharmaceutical ingredients (APIs) such as cancer medications and antibiotics, and manufacturing of cosmetics.
- Engineering Industries – Including industrial machinery, components for renewable energy projects, solar cells and components, hydrogen production equipment, wind power station parts, mold manufacturing, containers, generators, transformers, agricultural machinery, desalination components, refrigeration and air conditioning, electronics, and mobile phones.
- Food Industries – Including powdered and infant milk, processing of medicinal and aromatic plants (dried, paste, or oils), dried fruits, and fruit concentrates.
- Ready-Made Garments and Textiles – Including synthetic yarns from raw materials and blended yarns.
- Chemical Industries – Including the production of inks, polyethylene, polypropylene, and acrylics.
- Mining – Including processing of mining materials used in the pharmaceutical, food, and tech industries.
- Building Materials – Including ceramics, marble and granite, and pipes.
The Ministry invited investors who wish to benefit from the initiative to submit their applications to the main headquarters of the Industrial Development Authority in Fifth Settlement or its regional branches. Applications must include:
- Proof that the industrial activity falls under one of the priority sectors or related sub-sectors/components.
- Proof of completion of necessary construction, including building permits and readiness for installation.
- A detailed list of production lines, equipment, and machinery.
- The requested financing amount (within the client’s limit).
- The location of the facility where equipment will be installed.
- The estimated value of equipment and whether contracts have been signed and expected shipping dates.
- The name of the bank for further coordination upon confirming technical eligibility.
- A copy of the tax invoice or letter of credit for the equipment, if available.
- For existing facilities, submission of an operating license, annual follow-up status, and a valid industrial registry.
The Ministry added that the Industrial Development Authority will review applications to verify compliance with technical requirements and will contact applicants within two weeks of submission to coordinate with participating banks. The Egyptian Federation of Industries has been informed of the procedures and documentation required so that it can share them with all registered companies.
This first phase initiative reflects the state’s commitment to strengthening local manufacturing and achieving self-sufficiency in key strategic sectors. The Ministry also revealed that performance indicators have been established to evaluate the initiative annually based on actual results and impact on the national economy and benefiting companies.
