Latest news with #Kouchouk
Daily News Egypt
2 days ago
- Business
- Daily News Egypt
Finance minister unveils EGP 5bn cash payout for 2,000 exporters on 7 August
Ahmed Kouchouk, Minister of Finance, announced that around 2,000 exporting companies will receive approximately EGP 5bn in cash payments on 7 August. This payment represents the first instalment—equivalent to 50%—allocated under the new Cabinet-approved mechanism for settling overdue export support payments. Covering shipments up to the end of June 2024, these payments are made through the Export Development Fund as part of the government's plan to clear all arrears owed to exporters over four consecutive fiscal years starting from the current one. The initiative is designed to support the export sector by providing liquidity to help exporters boost their exports and enhance the global competitiveness of Egyptian products. In a statement issued by the Ministry of Finance on Wednesday, Kouchouk added that, due to strong demand from exporters, the ministry will reopen applications from 17 August to 4 September 2025. This window will allow companies holding certificates from the Export Development Fund to submit the required documents and benefit from the mechanism, with a second payment scheduled for 18 September. He further noted that the current fiscal year includes the largest-ever allocation for export support in the state budget, amounting to EGP 45bn. This will enable the reimbursement of export burdens for the current fiscal year within just three months of file completion, under the new mechanism adopted by the Cabinet to fully settle outstanding dues. This builds on earlier successful programmes launched since 2019, including the Immediate Cash Payment initiative in its seven phases, which benefited around 3,000 exporting companies with total payments of roughly EGP 70bn. Nevine Mansour, Advisor to the Minister of Finance for Economic Institutional Relations, clarified that the first instalment under the new mechanism will be disbursed through the National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt. She added that, in cooperation with the Central Bank and the banking sector, payments for companies that do not hold accounts at these four banks will be transferred to their accounts at other banks without any administrative fees, further streamlining the disbursement process.
Al-Ahram Weekly
2 days ago
- Business
- Al-Ahram Weekly
Egypt disburses EGP 5 bln in overdue export subsidies to 2,000 companies - Economy
Egypt's Ministry of Finance will disburse EGP 5 billion on 7 August to 2,000 exporters, marking the first instalment of a new settlement mechanism to repay long-overdue export subsidy claims. The payments, which cover shipments made up to 30 June 2024, fall under the government's four-year plan to clear arrears through the Export Development Fund. Finance Minister Ahmed Kouchouk said the move reflects 'our commitment to repaying all outstanding dues to exporters' and aims to inject liquidity to boost the global competitiveness of Egyptian products. The ministry will reopen applications from 17 August to 4 September, with a second payout scheduled for 18 September. Kouchouk noted that the current fiscal year includes the largest-ever allocation for export support, with EGP 45 billion earmarked. The government aims to reimburse dues within three months of receiving the necessary documents. 'The high turnout from exporters confirms their trust in this mechanism,' he said. Advisor to the Minister Nevin Mansour said payments will be processed through the National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt, with transfers to other banks available at no cost via the Central Bank of Egypt. The new mechanism builds on earlier initiatives launched since 2019—including the Instant Cash Payment Initiative—which has delivered around EGP 70 billion to nearly 3,000 exporters. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
24-07-2025
- Business
- Al-Ahram Weekly
Egypt government committed to economic reform - Economy - Al-Ahram Weekly
Egypt's economy expanded by 4.8 per cent in the third quarter of fiscal year 2024-25, up from 4.2 per cent in the first nine months and 2.4 per cent at the start of the fiscal year, Finance Minister Ahmed Kouchouk told a seminar on 'Fiscal Policy Between Financing Challenges and Growth Aspirations' organised by the Egypt-Canada Business Council and the Egyptian Business Council for International Cooperation on Monday. Last week, Kouchouk told participants during the opening session of the 'Egypt Day' at the London Stock Exchange in the UK that the country's primary surplus had reached 3.6 per cent in fiscal year 2024-25, the highest ever recorded, with a 35 per cent growth in tax revenues. He said the figures were the outcome of Egypt's solid fiscal performance. Delivering a presentation about the country's macroeconomic outlook, he said that taxes had not been increased or new ones imposed. The increased revenue was possible because of facilitations, broadening the tax base, digitisation, and building trust, the minister said. Given the improved revenues, Kouchouk said that next year he hopes to triple allocations supporting the economy, double export funding, and launch more initiatives supporting the industrial and tourism sectors and entrepreneurship. He said this was possible despite the headwinds that had affected Suez Canal revenues and an oil sector that needed support to rebound. He said he was confident that the country would meet its key economic reform targets and have a delayed review of its $8 billion International Monetary Fund (IMF) programme completed by September or October, according to Reuters. According to the news agency, Kouchouk said he expected the government to complete three to four privatisations across various sectors before the end of the current fiscal year 2025-26. He said the government had shared a medium-term plan for these with the IMF and international institutions. The fifth review of Egypt's $8 billion Extended Fund Facility programme by the IMF has been delayed due to slow progress on reforms such as divesting state assets and reducing the footprint of the government in the economy. This meant that Egypt would not receive the fifth tranche of $1.2 billion that was set to be release by the IMF following the review. However, once Egypt passes the combined fifth and sixth review scheduled for this autumn, it should receive $2.5 billion. Prime Minister Mustafa Madbouli had previously referred to the regional and global turmoil and its effects on the investment climate and the movement of capital in explaining the delays, indicating that these conditions had not been favourable to the sale of stakes in state-owned companies. At a recent press conference, he affirmed that selling stakes in state-owned companies was important for the government. He said that the IMF had not asked the state to offer stakes in specific sectors or companies, affirming that the decision was 100 per cent Egyptian, and that the delays were due to the state's target of achieving a specific return from the offering of the assets. If this return is not achieved, the offering is postponed to a more suitable time, he explained. In November 2024, Madbouli said that the government was planning to offer stakes in 10 state-owned companies in 2025, including four military-owned companies and banks. The list also included companies in the pharmaceuticals sector. Moreover, the government said it would privatise the management of Egypt's airports at a recent press conference, with Madbouli explaining that this involves offering the management and operation of the airports to specialised global companies. He said that the return generated by these companies in managing the airports would represent a higher value than what would be achieved through state management. In the meantime, the IMF released its report on the fourth review of Egypt's reform programme that took place earlier this year. According to the IMF report, the government has made progress in stabilising the economy. However, it said that going forward 'it is critical not only to consolidate these short-term gains but also accelerate the implementation of structural reforms.' The fourth review gives a glimmer of hope, said Hesham Shafick, assistant professor of strategic management at the German International University (GIU) in Cairo, citing it as acknowledging that inflation had cooled to around 24 per cent compared to a peak of 38 per cent and that GDP growth is recovering and reserves have accumulated quicker than expected. Quarterly real GDP growth picked up to 3.5 per cent in the first quarter of fiscal year 2024-25 compared to 2.7 per cent the same time the year before. Net international reserves reached $48.7 billion at the end of June 2025, according to the Central Bank of Egypt (CBE). However, Shafick said that some of the challenges mentioned by the report remain the same as those mentioned by the IMF since day one of the agreement, namely that the government needs to take a back seat in the economy and allow the private sector more room to operate. The fourth review report said that 'deeper reforms are required to unlock Egypt's growth potential, sustainably reduce its vulnerabilities, and meet its economic and social needs.' Reducing the role of the public sector in the economy is an urgent priority, the report stressed. It listed essential reforms such as developing a financial system that supports private-sector development, strengthening the competitiveness of the economy, and levelling the playing field and reducing red tape. According to Shafick, the economy continues to depend on piecemeal solutions such as the sale of assets or loans, while real recovery requires shrinking the state's role in non-strategic sectors and encouraging private-sector investment inflow in productive sectors. He said that while the government appears to be serious about clearing the way for private-sector activity, it needs to take steps on the ground such as issuing new legislation that will create an ecosystem that would attract the private sector. The private sector wants to make sure that it will be competing on equal terms with other players in the market, Shafick said. Economist Moataz Yeken said in a post on his Linkedin page that Egypt's macroeconomic indicators may be stabilising on the surface, thanks to hefty foreign currency inflows from Gulf allies, proceeds from the Ras Al-Hekma deal, and multilateral support, but the real economy remains constrained. He also noted that progress on the State Ownership Policy and public-asset divestment has been limited. 'While Egypt has demonstrated resilience in the face of external shocks, from Covid-19 to war-induced commodity disruptions, the model of stabilisation through foreign borrowing and asset monetisation is not a substitute for structural reform. It buys time, not sustainability,' Yeken wrote. Nonetheless, the IMF's continued support is not in doubt. According to Shafick, Egypt's geopolitical status will shield it against any fallout from the IMF's decision to delay the fifth review and the accompanying disbursement of funds, especially if it moves faster with reforms. Earlier this month, the US ratings agency Moody's kept Egypt's outlook positive and affirmed its Caa1 rating. The agency said its outlook 'reflects the prospect for an easing of Egypt's debt service burden… and increasing monetary policy credibility and effectiveness.' Yeken said that 'the IMF's continued support is not in question. Egypt remains geopolitically strategic.' However, he stressed that 'Egypt's own long-term stability hinges on a genuine pivot away from state-led commercial expansion and toward a rules-based, competitive market economy.' Attracting foreign direct investments (FDI) and selling stakes in state-owned companies is crucial not only for the growth of the economy but also to bring in revenue to bridge Egypt's financing gap. In the fourth review report, the IMF estimated the financing gap at $8.2 billion in 2025-26. To help bridge that gap, bond issuances are in order. Kouchouk said that there are plans to issue up to $4 billion of various types of bonds. Last month, $1 billion worth of sovereign sukuk (Islamic bonds) was issued. Though these issuances have raised concerns about growing external debt, the government has said it is part of a strategy to extend the maturity of its debt. The IMF puts Egypt's external debt at reaching around $180 billion in the current fiscal year, with external debt servicing amounting to $46.6 billion. During his meeting in London last week, the minister said the government was implementing an integrated strategy to improve public debt indicators and maintain investor confidence. During the seminar on Monday, he said the government had already begun reducing the country's debt-to-GDP ratio, targeting overall improvements in all economic indicators over the coming period. He added that the government remains committed to reducing external debt-servicing obligations for all budget entities by $1 to $2 billion annually. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
18-07-2025
- Business
- Al-Ahram Weekly
Egypt adopts balanced fiscal policies to boost economic performance: Finance Minister - Economy
Egypt's Minister of Finance, Ahmed Kouchouk, affirmed that the government is doubling its efforts in the upcoming phase to enhance economic performance through balanced fiscal policies. Speaking during an extended dialogue with international investors on Thursday at the British-Egyptian Business Association (BEBA) in London, Kouchouk emphasised that Egypt is not competing with any specific country. Instead, the government aims to boost the competitiveness of the Egyptian economy, promote national development, and foster sustainable economic growth. He urged both local and international investors to capitalise on the economic opportunities available in Egypt fully, positioning the country as a strategic gateway to numerous regional and global markets. Kouchouk noted that Egypt has established a competitive growth model underpinned by a stable and coherent policy framework, laying a strong foundation for attracting new investments, localising manufacturing, and advancing technological development. The minister reaffirmed Egypt's commitment to improving the business climate through clear and tangible reforms. He emphasised that the government functions as a unified body with a shared vision to deliver a meaningful economic transformation, bolster investor confidence, and safeguard financial and economic stability. These efforts, he added, include building sustainable, integrated policies that sustain the momentum of recent positive economic developments. During the meeting, Kouchouk outlined ongoing tax and customs reforms aimed at simplifying procedures, lowering costs, and shortening customs clearance times to draw further investment. The government is also conducting a comprehensive review of taxpayer rights to strengthen them through legislative and regulatory changes to ensure greater tax fairness in the near future. Kouchouk revealed that Egypt is working with a range of international partners and expert institutions to improve investor services and stimulate higher levels of investment inflows. He emphasised that all public financial allocations must yield tangible economic benefits for investors, citizens, and the broader economy. To this end, allocations for economic activities have been doubled, with EGP 45 billion earmarked in the current budget to support exports. He emphasised that economic reform is not about achieving short-term milestones, but about cultivating long-term trust, establishing predictable policy foundations, and ensuring adaptability in the face of change. Kouchouk reported that Egypt's financial performance has steadily improved, with a positive outlook for the future. Despite global economic headwinds, Egypt posted strong results in the last fiscal year, with the private sector playing a pivotal role in driving growth. Private investment rose by 77 percent, while non-oil exports increased by 33 percent—reflecting growing confidence in the Egyptian economy and its ongoing reform agenda. The minister emphasised that private sector expansion creates a conducive environment for attracting foreign direct investment, which in turn has a positive impact on tax revenues. In the past fiscal year, Egypt's tax revenues increased by 35 percent without the imposition of any new burdens, thanks to the expansion of the taxpayer base and the resolution of longstanding disputes. He explained that the government has focused on overhauling the tax system through three major reforms: the introduction of a unified tax regime for small and medium-sized enterprises, the facilitation of voluntary dispute settlements, and the option to resubmit or amend previous tax filings without penalty. As a result, the ministry received around half a million new or revised tax declarations, and the private sector voluntarily contributed an additional EGP 60 billion in taxes. Follow us on: Facebook Instagram Whatsapp Short link:
See - Sada Elbalad
16-07-2025
- Business
- See - Sada Elbalad
Egypt Expects about 4 Privatization Deals in Current Fiscal Year, Says Minister
Taarek Refaat In line with Egypt's ongoing economic reforms, Finance Minister Ahmed Kouchouk stated on Wednesday that the government expects to complete three to four privatization deals by the end of the current fiscal year, which began earlier this month. These privatizations are part of the country's broader strategy to increase the role of the private sector in the economy, thereby fostering greater economic growth and efficiency. 'The deals will cover various sectors, and we have shared a medium-term strategic plan with international institutions, including the IMF, that includes a clear and visible timeline,' Kouchouk explained. Egypt is on track to meet the targets set in its $8 billion loan agreement with the International Monetary Fund (IMF), he added. Speaking at an event in London, Kouchouk emphasized that both Egypt and the IMF are working under expectations to complete the next review of the program in September or October. Kouchouk noted that the IMF remains focused on achieving specific targets, which he described as the most critical aspect of the ongoing program. The next review is a significant step towards unlocking a new tranche of the loan, expected to be dispensed once an agreement is reached and approved by the IMF Board of Directors. In July, the IMF announced that it would combine the fifth and sixth reviews of Egypt's loan program to provide the country with more time to meet key reform goals. A successful outcome of this review process would trigger the release of a new disbursement. Kouchouk underscored that Egypt has been making steady progress in implementing its economic reforms, as outlined in the IMF-backed program. He also reassured investors that the country is on track to achieve its fiscal and economic goals within the stipulated timeline. Minister Kouchouk also highlighted Egypt's commitment to building stronger relationships with both local and international investors. The Finance Minister stressed that Egypt's economy is showing signs of improvement, with the private sector now playing a leading role in economic activity. In addition, Kouchouk pointed to Egypt's impressive economic performance in the past year, marked by a significant primary surplus and higher growth rates in exports. 'Through events like this one at the London Stock Exchange, we are launching a new phase of trust, partnership, and certainty with investors,' he added. He further emphasized that Egypt is firmly committed to ongoing dialogue with the business community to explore new investment opportunities in the local market. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
