Egypt To Provide EGP 14.7Bn In Credit Facilities For Pharma Sector Suppliers

2025-09-09 02:03:33

(MENAFN- Daily News Egypt) Egypt will make available EGP 14.7bn ($307m) in credit facilities for suppliers to the pharmaceutical sector, with half to be paid in cash within days, the finance ministry said on Tuesday.

The move is part of new mechanisms to provide the necessary liquidity for pharmaceutical companies and ensure the stability and sustainability of supply chains.

Finance Minister Ahmed Kouchouk and the head of the Egyptian Authority for Unified Procurement, Hisham Stet, announced the plan at a meeting with representatives of pharmaceutical companies at the ministry's headquarters.

“Multiple financing sources will be made available to provide the necessary cash liquidity for pharmaceutical companies, in a new step to build bridges of trust, partnership, and support for the pharmaceutical sector,” the minister said.

Kouchouk explained that about EGP 7.4bn will be disbursed in cash in the coming days from suppliers' dues. They will also be allowed to benefit from credit facilities at banks through letters of credit amounting to about EGP 7.3bn, with coordination with the banking sector on this matter already completed.

The minister added that the government is working with the Ministry of Health and the Unified Procurement Authority to support the pharmaceutical sector and meet citizens' needs. He noted that EGP 14bn has been disbursed to the procurement authority to pay suppliers' dues since the beginning of July, while a total of EGP 73.4bn was disbursed to the authority during the last fiscal year.

Stet said that the new electronic unified procurement system ensures that no new debts will accumulate for supplying companies.

During the meeting, representatives of pharmaceutical companies expressed their gratitude for the government's attention and the responsiveness of the finance ministry and the procurement authority to their proposals. Representatives of foreign companies affirmed that Egypt is a large and promising market and that clarity of vision greatly helps in the sound economic management of their projects.

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