Egypt Launches Fund for Restructuring Distressed Factories with a Capital of $19.2 Million

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

The fund aims to participate in the equity of distressed industrial enterprises with promising operational capabilities in Egypt and to work on restructuring them to support the restoration of their operational efficiency, enhance their growth and sustainability, and contribute to maximizing their value in the long term.

Abdullah stated that the launch of the Distressed Factories Restructuring Fund represents an important step in 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 sustainable and growth-capable production capacities.

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 distressed factories by making various funding sources available for this vital sector.

The Minister of Industry stated that the launch of this fund represents an important step in the efforts to restructure and operate distressed factories, which is 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, noting that this fund is part of a comprehensive initiative for distressed factories.

He explained that the application 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 the factories applying for financing.

The minister expressed his hope that this fund would contribute to restoring unused production capacities, creating new job opportunities, in addition to enhancing local supply chains and increasing the competitiveness of the Egyptian industry.

The fund is based on a specialized investment strategy aimed at serving factories and industrial facilities facing financial or operational challenges, despite having assets and production capacities that can be developed. The fund's specialized team works in collaboration with the executive departments of these facilities to implement comprehensive restructuring plans, including restructuring loans, injecting new capital, and applying programs to enhance operational efficiency and strengthen governance frameworks, which contributes to restoring production efficiency, maintaining job opportunities, and supporting the competitiveness of the Egyptian industrial sector.