Egypt aims to cut customs clearance time to two days, a move expected to save $284 million, enhance commercial competitiveness, and reduce logistical costs, Minister of Investment and External Trade Hassan El Khatib announced on January 13.
The plan was first revealed during the “Future of Egypt’s Engineering Industries Exports” conference, organized by the Engineering Industries Export Council in November.
The plan is set to be implemented in two phases, according to a statement from the investment ministry. The first phase aims to reduce customs clearance time to four days, improving customs operations. The second phase will further reduce clearance time to just two days.
The ministry has already begun implementing the plan, working on official holidays and Fridays since December 2024. The new procedural reforms also allow fee payments after bank working hours, starting December 12, 2024, with extended hours until 6 PM on Thursdays.
These measures are expected to positively impact Egypt’s business environment and economy, El Khatib said.
Big numbers
Inspection and customs operations have been conducted on 10,608 shipments, with inspection, valuation, and approval procedures completed. A total of 1,823 shipments were cleared, saving an average of $3.5 million, according to the statement.
Barriers for investors
Customs procedures in Egypt have long been a barrier to foreign investment, primarily due to lengthy clearance times, complex bureaucracy, and inconsistent regulations. Delays in customs processing, which can extend over several days or even weeks, have increased costs and uncertainty for businesses. These challenges have often deterred foreign investors, who seek more streamlined and predictable business environments.
The Egyptian government has recently taken steps to address these issues, including efforts to reduce customs clearance times and improve overall efficiency, in a bid to enhance the investment climate and facilitate smoother trade operations. El Khatib stressed that the new changes would not only make Egypt a more attractive investment destination but also “create a more efficient, cost-effective trade environment.”
“The reduction in customs clearance time is expected to significantly lower logistics-related expenses, benefiting both domestic and international investors,” he added.
More golden licenses
In the statement, El Khatib announced the expansion of the golden license program, which has now granted licenses to 44 companies. This comprehensive approval covers the setup, operation, and management of projects, including building licenses and the allocation of necessary real property.
To ease the process for investors further, the ministry is also working to reduce procedural burdens by unifying communication through a single point of contact, establishing a centralized electronic licensing platform, and digitizing services to ensure greater transparency.
Boosting exports
El Khatib asserted that the planned reforms aim to position Egypt among the top 50 countries in global trade indices, with the ambition of entering the top 20 by 2030. He highlighted that Egypt’s 2030 action plan aims to boost annual exports to $145 billion by expanding trade partnerships across Africa, Europe, Asia, and North America.
The minister noted that the value of non-oil commodity exports grew in 2024, reaching $40.8 billion, up from $35.7 billion the previous year, marking a $5 billion increase and a 14% rise.
Key sectors driving Egyptian exports include building materials, chemical products, food industries, and engineering and electronic goods. The leading destinations for these exports are Saudi Arabia, the United Arab Emirates, Turkey, and Italy.