IDA, FEI review financing initiatives to support industrial sector growth

The Industrial Development Authority (IDA) and the Federation of Egyptian Industries (FEI) have reviewed the implementation status of several state-backed financing initiatives aimed at supporting industrial expansion and addressing challenges facing investors. IDA Chairperson Nahed Youssef held an expanded meeting with FEI Deputy Chairperson and Head of the Industrial Licensing Committee Mahmoud Serge to discuss mechanisms for enhancing the effectiveness of the initiatives and maximizing their benefits for manufacturers. Youssef said the meeting was held in line with directives from Minister of Industry Khaled Hashem to strengthen direct communication with the business community and listen to investors’ proposals and concerns. She stressed that the discussions aimed to further develop existing initiatives, address obstacles facing beneficiaries, and enhance the flexibility of financing mechanisms to better align with the actual needs of industrial investors. Participants reviewed the executive status of several financing programmes, including the EGP 150bn working capital financing initiative launched in 2023, the proposed EGP 3bn programme to restructure distressed factories, and the EGP 30bn soft financing initiative dedicated to machinery and equipment purchases. According to Youssef, the machinery and equipment initiative currently covers nine priority industrial sectors and more than 70 industrial activities, with plans underway to gradually expand coverage based on feasibility studies and market demand. The meeting also examined a number of proposals aimed at easing financial pressures on investors and improving access to funding. Discussions included the possibility of extending financing initiatives to cover working capital alongside machinery and equipment financing, as well as mechanisms to optimise the utilisation of available financial allocations. Participants further discussed reviewing certain procedural requirements, linking future interest rates to decisions by the Central Bank of Egypt (CBE), and broadening the scope of initiatives to include additional industrial sectors and activities. Youssef affirmed that all proposals raised during the meeting would be carefully studied in coordination with the relevant authorities. She also reiterated the IDA’s commitment to simplifying procedures and providing technical support to factories to help transform financing initiatives into productive capacity that supports exports and creates sustainable employment opportunities. For his part, Mahmoud Serge praised the ongoing cooperation between the IDA and the federation, noting that it has helped gradually resolve many of the challenges facing industrial investors and FEI members. Meanwhile, FEI Executive Director Khaled Abdel-Azim highlighted the importance of the meeting in introducing investors to the available financing initiatives and their application requirements. He also revealed that the first meeting of the Financing Committee is scheduled to take place next week, urging members of industrial chambers to actively participate in the committee’s work to maximise the benefits of the available financing programmes.    The post IDA, FEI review financing initiatives to support industrial sector growth first appeared on Dailynewsegypt.