Finance Minister Ahmed Kouchouk and Minister of Industry Khaled Hashem announced on Saturday, 28/2/2026, that the Cabinet has approved expanding the preferential financing initiative for priority industrial sectors, launching its second phase to include more sectors and industrial activities.
In a joint statement issued Saturday, the two ministers said the move aims 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 (FEI).
The initiative seeks to improve the quality and competitiveness of Egyptian products according to the latest international standards, contributing to localize the domestic industry and access new export markets.
Under the expanded framework, the maximum financing limit per client has been raised to LE 100 million, up from LE75 million, the statement read.
In cases involving related parties, the ceiling has been increased to LE 150 million instead of LE 100 million.
The available credit for each client will be determined according to business volume and applicable banking regulations.
The first phase of the initiative was launched in January 2025 with a total cap of LE 30 billion, according to the statement.
Priority is given to projects established in areas most in need of development and those with high employment rates, including southern Giza, the Suez Canal region governorates of Port Said, Ismailia and Suez (east of the Canal), border governorates including the Red Sea south of Safaga, and Upper Egypt governorates.
“The concessional interest rate borne by beneficiaries is below 15 percent annually and decreases further as the level of local value added increases,” the statement states.
The lower rate also applies to new industries that were not previously produced locally and have high import volumes.
The five-year concessional rate period begins from the launch of the initiative, with the Ministry of Finance covering the difference between the market rate and the subsidized rate throughout that period.
The initiative covers a wide range of sub-sectors, including pharmaceuticals, engineering industries, food industries, textiles and ready-made garments, chemicals, mining, building materials and refractories, leather, and metallurgical industries, according to the statement.
