Egypt plans to reduce customs clearance time to save $284 mln

Ahram Online , Monday 13 Jan 2025

Minister of Investment and External Trade Hassan ElKhatib announced Monday that Egypt plans to reduce customs clearance time to save $284 million.

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The announcement was made during the "Future of Egypt's Engineering Industries Exports" conference, organized by the Engineering Industries Export Council, according to a statement released by the investment ministry. 

In November, Minister ElKhatib unveiled an ambitious plan to gradually reduce customs clearance time to two days by 2025.

The plan will be executed in two phases, read the statement.

The first phase seeks to reduce clearance time to four days, enhancing the efficiency of customs operations. Meanwhile, the second phase will cut it further to just two days, boosting commercial competitiveness, lowering logistical costs, and saving an estimated $284 million. This will positively impact the business environment and Egypt's economy, the statement added.

This initiative is expected to support Egypt’s budget by reducing the overall budget deficit, which decreased to EGP 560.6 billion from July to November 2024/2025, down from EGP 652.7 billion during the same period in 2023/2024, according to the Ministry of Finance’s monthly report published in December.

The ministry also projected that the budget deficit for FY2024/2025 would reach EGP 1.245 trillion, accounting for 7.3 percent of the country’s GDP.

Reducing the budget deficit remains a key focus under Egypt’s agreement with the International Monetary Fund (IMF), which is part of the $8 billion extended fund facility (EFF) loan programme.

ElKhatib emphasized that these reforms will open Egypt’s trade policies to the world, boost exports, and create an attractive environment for local industries, thereby enhancing their competitiveness.

He further stated that Egypt aims to position itself among the top 50 global exporters in the near future to reach the top 20 by 2030.

"To support this growth, Egypt is working on diversifying its export markets, focusing on expanding trade with Africa, Europe, Asia, and North America," ElKhatib said.

The government is committed to strengthening global trade relations, advancing the African Continental Free Trade Area (AfCFTA) agreement, and fostering partnerships with the European Union and other international partners, ElKhatib added.

In addition, Egypt is working to improve its logistical infrastructure to better connect with global markets, leveraging its strategic location as a gateway to Africa, Europe, and the Middle East.

ElKhatib emphasized that the ministry's focus includes promoting Egyptian exports and improving global competitiveness by enhancing trade policies, developing foreign trade mechanisms, and encouraging valuable industries.

He noted that Egypt’s exports in 2024 reached $40.8 billion, marking a 14 percent increase.

The minister also outlined that Egypt's trade vision incorporates clear and transparent policies to foster investment, reduce procedural burdens, and ensure well-defined investor rights and obligations.

The private sector is central to driving the economy, and the government’s role will focus on regulation, oversight, and ensuring a fair investment environment.

ElKhatib also announced that the government is in the process of launching a company to secure export risks in African markets. The ministry plans to use Gusoor assets to establish logistics centres in key African cities to support the export sector.

During the conference, ElKhatib highlighted the vital role of Egypt's engineering industries sector in the national economy, noting that the sector meets local market demands and contributes significantly to exports.

Engineering and electronic goods exports reached $5.768 billion in 2024, a 25 percent increase.

The minister concluded by emphasizing that the government is progressing with initiatives to facilitate funding for productive sectors, specifically to support the private sector.

He also announced restructuring the Export Subsidy Programme, valued at EGP 23 billion, to enhance its effectiveness and further boost Egypt’s export capabilities.

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