The EGP 30 billion (over $615 million) fund, announced on Monday, is designed to help private sector manufacturers finance the purchase of equipment, machinery, and production lines.
It offers reduced interest rates and additional incentives to businesses that boost local value-added production or introduce new products not currently manufactured in Egypt.
Investors approved for the initiative will be able to access financing at a yield rate of 15 percent for a five-year period.
A further discount of up to two percentage points will be available to companies that demonstrate a clear contribution to import substitution or develop new domestic manufacturing capacities.
The initiative comes as Egypt continues to grapple with inflationary pressures, foreign currency shortages, and structural challenges in its industrial base. Authorities have increasingly turned to policies aimed at promoting self-sufficiency, particularly in strategic sectors.
The ministry said the funding will be allocated based on business size and according to regulated banking standards, with a cap on the amount each firm can receive.
Priority will be given to businesses operating in underdeveloped regions and those with high employment potential.
Officials have identified seven sectors as core to the programme: pharmaceuticals, engineering, food processing, ready-made garments and textiles, chemicals, mining, and construction materials.
The aim, according to the ministry, is to strengthen production capacity, modernize technological infrastructure, and boost the competitiveness of Egyptian products in both local and export markets.
Investors are being invited to submit applications, which will be reviewed before being granted access to the funding initiative.
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