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CAPEX Attraction for Feeding Industry Upgrade
برنامج رأس المال لتحديث الصناعات المغذية

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The CAPEX Attraction Program for Feeding Industry Upgrade attracts foreign and local investments to upgrade existing factories to manufacture locally specified feeding components for a set of promising products. The Program targets small and medium enterprises and it pays back investors a percentage of their capital expenditures on factory machinery and ICT technologies. The promising products and their target feeding components are as depicted in the table below. As depicted, each product vertical is assigned a target local manufacturing percentage. Payment percentage is 40% and it increases by 10% when export revenue reaches a minimum of 25% of the total factory revenue.

The ultimate objective is to expand the local electronics manufacturing base and complete the related supply chain to maximize the local added value.

 

 Promising Products Table ​ ​
#GroupVerticalLocal Manufacturing Percentage
1Mobile Phones, Tablets, and GPS Tracking DevicesFinal Products40%
Feeding Components (Lithium batteries, LCM, Speakers, Chargers)50%
2LED LightingLED chip packaging, Inverters, LED boards60%
3Smart MetersFinal Products and Feeding Components50%
4LED TVs and DisplaysLCD glass, Speakers, Special internal cables, LED bars, Inverters, LCM40%
5Solar Energy SystemsSolar cells, Storage batteries, Inverters, Control units40%

 

 Enterprise Criteria:

  • Locally-established SME working in the electronics industry.
  • Enterprise registered at the "Egypt Makes Electronics (EME)" Platform.
  • The enterprise capital is foreign and local joint venture, foreign investment, or local private investment.
  • The enterprise is upgrading an established factory in one of the verticals for the feeding components depicted in the Promising Products Table.
  • The minimum local manufacturing percentage is 40% or more as per the Promising Products Table.
  • The upgrade capital expenditure is not less than EGP 5M.
  • The finance is requested for only one established factory.
  • The industrial registration and the operation license for the established factory are before January 1, 2015.
  • The contracts and invoices of the new machinery, devices, and equipment's and the new ICT technologies as well as the date of commencement of commercial production after upgrade are all on or after November 27, 2016.

Funding Mechanism:

  • The Program pays back 40% of the capital expenditures already paid on upgrading factory machinery, devices, and equipment's necessary for production, and in addition on upgrading ICT equipment's, systems, and services through local purchases.
  • Payment is made in 4 installments during 3-year period.
  • Payment increases by 10% when export revenue reaches a minimum of 25% of the total factory revenue.
  • Payment is returned back in full if factory is voluntarily closed, sold, or stopped production.
  • Payment in total does not exceed EGP 15M.

Submission timeline of Round 1-2016/2017:

  • Program Announcement: 27 November 2016
  • Q&A Sessions: 14 and 26 December 2016
  • Submission Starting Date:  1 March 2017
  • Submission Closure Date: 30 April 2017

Submission steps:

  1. Download Program Template
  2. Fill in all needed data and avail all needed documents.
  3. Append filled Template and all needed documents in one zip file.
  4. Login using your enterprise account information (if you do not have an account, please Register).
  5. Upload the zip file.
  6. Print and keep the successful upload message.
  7. Follow all other instructions given in the Template to deliver hardcopies if required.


From: 01/03/2017 To: 30/04/2017