Egypt Boosts Export Support by 55% to EGP 28 Billion Amidst Structural Reforms
Egypt has significantly amplified its commitment to export-led growth, allocating EGP 28 billion to export support for the 2025/26 fiscal year. This represents a substantial 55% increase from the previous year, signalling a strategic push to invigorate production, enhance export volumes, and stimulate private sector investment. The announcement, made by Minister of Finance Ahmed Kouchouk during a joint committee meeting with the Egyptian Exporters Association – Expolink (EEA), underscores the government’s fiscal policy focus on fostering an investment-conducive environment through robust support for production and exports.
The state budget, as articulated by Minister Kouchouk, is meticulously aligned with national priorities: driving economic expansion, bolstering competitiveness, and ensuring fiscal prudence. The economic team is actively engaged in a coordinated effort to cultivate a more attractive business landscape for the private sector, fostering inter-ministerial collaboration to embed economic objectives within governmental programmes and initiatives. This commitment to structural reforms is intended to yield tangible improvements in economic performance and living standards.
Evidence of this proactive approach is seen in the positive reception to the government’s tax facilitation measures, which contributed to a 28% surge in tax revenues in the preceding fiscal year without imposing new tax burdens. This outcome reflects heightened economic activity and improved taxpayer compliance. The government remains dedicated to maintaining open dialogue with exporters and investors to address their challenges, with ongoing policy reforms anticipated to translate into concrete benefits for the business community.
Further reinforcing this supportive ecosystem, Rasha Abdel Aal, Head of the Egyptian Tax Authority, detailed a second package of tax facilitation measures designed to deepen trust with taxpayers through enhanced incentives and streamlined procedures. These practical and flexible solutions are poised for implementation upon legislative enactment, complementing existing facilitation measures. Notably, the law governing tax dispute settlements has been extended to year-end, solidarity contribution payments are now deductible from the tax base, and the VAT suspension period for industrial machinery, equipment, and medical devices has been extended from two to four years.
Simplifying trade logistics, Ahmed Amway, Head of the Egyptian Customs Authority, highlighted ongoing efforts to expedite customs procedures and reduce clearance times. An advanced risk management system now prioritises companies in the Authorised Economic Operator (AEO) programme, with specific inspection channels (yellow, green, and blue) undergoing documentary or X-ray checks only.
The government’s commitment to clearing export subsidy arrears is also a key focus. Nevine Mansour, Adviser to the Minister of Finance for Economic Institutions Relations, stated that EGP 70 billion has been disbursed to exporters over the past six years, including EGP 12.6 billion in the last fiscal year. The aim is to settle all outstanding arrears within two years, bolstering export competitiveness.
Mohamed Kassem, Chairperson of the EEA, lauded the tax and customs reforms as crucial for enhancing the competitiveness of Egyptian products and driving export growth, characterising exports as the primary engine for economic development. Samir Aref, Deputy Chairperson of the EEA, additionally stressed the importance of supportive policies for corporate mergers, advocating for simplified procedures and accelerated approvals to foster sustainability and market competitiveness.
