Egypt launches a fund to restructure troubled factories with a capital of $19.2 million

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The Governor of the Central Bank of Egypt, Hassan Abdullah, and the Minister of Industry, Khaled Hashem, announced the launch of the “Troubled Factories Restructuring Fund,” with a total capital of $19.2 million (one billion pounds), according to a statement issued by the Egyptian Council of Ministers, today, Thursday.

The fund aims to participate in the capital of distressed industrial establishments with promising operational capabilities in Egypt and work to restructure them in a way that supports the restoration of their operational efficiency, enhances their ability to grow and sustain, and contributes to maximizing their value in the long term.

Abdullah said that the launch of the Troubled Factories Restructuring Fund represents an important step within the framework of the state’s efforts to support the industrial sector and enhance its contribution to the gross domestic product and economic growth, by directing capital towards rehabilitating productive assets and benefiting from production capacities capable of sustainability and growth.

The Governor of the Central Bank of Egypt added that the banking sector is working to encourage investment and production, in addition to providing all necessary solutions to restart troubled factories by providing various sources of financing for this vital sector.

The Minister of Industry said that the launch of this fund represents an important step within the framework of efforts to restructure and operate troubled factories, which represents a priority for the Ministry of Industry as it is one of the main axes within the state’s directions to enhance local production and raise the efficiency and sustainability of the industrial sector in the Egyptian market, indicating that this fund comes within an integrated initiative for troubled factories.

He explained that applying to benefit from the Fund’s financing will be through the manufacturers’ support system recently launched by the Ministry of Industry, through which the Fund will evaluate factories applying for financing.

The Minister expressed his aspiration for this fund to contribute to restoring untapped production capacities, creating new job opportunities, in addition to strengthening local supply chains and raising the competitiveness of Egyptian industry.

The Fund is based on a specialized investment strategy aimed at serving factories and industrial facilities that face financial or operational challenges, despite having assets and developable production capacities. The Fund’s specialized team works in cooperation with the executive departments of these facilities to implement integrated restructuring plans, including restructuring loans, pumping new capital, and implementing programs to raise operational efficiency and strengthen governance frameworks, which contributes to restoring production efficiency, preserving job opportunities, and supporting the competitiveness of the Egyptian industrial sector.