Egypt will begin disbursing 50% of the arrears owed to exporters for shipments delivered before the end of June 2024, starting in fiscal year 2025/2026, according to a statement by Ahmed Kouchouk, Minister of Finance. The cash payments will be distributed over four years, with the first disbursement set for August 7, 2025.
The initiative covers an estimated EGP 25 billion in back payments due to around 2,400 exporting companies, as part of a broader strategy to inject liquidity into the export sector, support production expansion, and boost export capacity—key elements in Egypt’s private-sector-led growth model.
Dual Mechanism
In addition to the phased cash payments, the Ministry will settle 50% of the exporters’ arrears through a clearing mechanism that offsets government dues with outstanding debts owed by exporters to entities such as the Tax Authority, Customs, Social Insurance, Electricity, and Gas companies.
This approach is designed to ease financial strain on exporters while streamlining inter-agency settlements and reducing the administrative backlog of claims.
Coordination with Export Development Fund and Banking Sector
The Ministry of Finance is working closely with the Export Development Fund and four partner banks—National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt (EBank)—to execute the first wave of payments on time.
“We are fully committed to settling all outstanding dues for shipments made before the end of June 2024,” said Kouchouk, emphasizing the government’s focus on fiscal transparency and support for the real economy.
EGP 70 Billion Paid to Exporters Since 2019
According to Dr. Nevine Mansour, Advisor to the Finance Minister for Institutional Relations, Egypt has already disbursed EGP 70 billion to over 2,800 exporting companies between 2019 and 2024 as part of ongoing export support programs.
These programs aim to stimulate non-oil exports, increase foreign exchange earnings, and strengthen Egypt’s position in global markets, particularly in the wake of economic disruptions caused by regional instability, supply chain realignment, and inflationary pressures.
Egypt’s Broader Policy of Fiscal Reform
This announcement aligns with Egypt’s broader policy of fiscal reform and private sector empowerment, particularly as the government reins in public investment spending and pivots toward export-led, private-driven growth. The injection of liquidity into the export sector is expected to accelerate industrial activity, create jobs, and foster competitiveness, especially for small and medium-sized exporters.
The Finance Ministry’s commitment to resolving arrears also reflects Egypt’s broader effort to rebuild trust with the business community and enhance policy predictability—critical factors in attracting both foreign direct investment and expanding domestic enterprise.
