The Egyptian government, in collaboration with the private sector, has launched an initiative to reduce the prices of essential goods, Prime Minister Mostafa Madbouly revealed. The initiative will initially focus on seven main groups of goods: beans, lentils, dairy products, white cheese, pasta, sugar, cooking oil, and rice. Prices for these goods will be reduced by 15% to 25%. The initiative will also reduce the prices of live and frozen poultry and eggs by 15%.
This came during a Monday press conference, to reveal the details of an agreement between the government and private sector regarding the initiative to reduce prices of basic commodities. The press conference was attended by various key figures including Ali Moselhi, the Minister of Supply and Internal Trade, Mohamed Maait, the Minister of Finance, Elsayed El-Kosair, the Minister of Agriculture and Land Reclamation, Ahmed Samir, the Minister of Trade and Industry, Ahmed El-Wakil, President of the Federation of Egyptian Chambers of Commerce (FEDCOC), Mohamed El-Sewedy, Chairperson of the Federation of Egyptian Industries (FEI), Alaa Ezz, FEDCOC Secretary-General, and Anwar Al-Abd, Vice President of the Egyptian Poultry Association (EPA).
Prime Minister Madbouly emphasized the importance of working with relevant entities such as FEDCOC and FEI to target basic commodities and significantly reduce their prices, which would have a tangible impact on the Egyptian citizens. Discussions were held to identify the underlying reasons behind price increases, which were found to be rooted in the scarcity of supply and the lack of sufficient raw materials or production requirements, particularly for food products. To address this, the responsible entities called for the availability and provision of hard currency to increase the supply and subsequently reduce prices.
Madbouly explained that certain measures implemented by government entities had contributed to price increases. Therefore, coordination was carried out with the Ministry of Finance, specifically the Tax and Customs Authorities, as well as the Ministry of Trade and Industry, the General Authority for Export and Import Control, and the Ministries of Supply and Agriculture to monitor various procedures. The Central Bank of Egypt, responsible for credit procedures and facilitation, was also involved.
The Prime Minister also mentioned meetings with the Ministers of Finance and Transportation to discuss fines imposed on shipments at ports. An agreement was reached with the private sector and industry professionals to streamline procedures in the future.
Decisions regarding the suspension of certain fees and customs on production supplies for these goods for a period of six months will be made by the Minister of Finance and signed by the Prime Minister. This is aimed at ensuring price reduction followed by price stability. It is important to note that temporary price reduction for a limited period of time is not the goal. Therefore, the same required mechanisms will continue to be implemented by the Central Bank, Ministry of Finance, and relevant ministries for an indefinite period, with a minimum duration of six months.
Madbouly also highlighted an agreement to gradually introduce other essential goods and products in coordination with all chambers’ unions. This aims to address targeted inflation and control it. As the ability to reduce inflation increases, it contributes to lowering interest rates and stabilizing prices for essential goods, which have a significant impact on the inflation rate, ultimately leading to a downward trend in inflation.
El-Wakil stated that the government is cooperating with the private sector to confront the challenges facing Egypt, particularly inflation and job creation, which have a negative impact on the quality of citizens’ lives.
Moreover, El-Sewedy indicated mutual cooperation between the government and the private sector to ensure the continuity of factories and guarantee the availability of goods to citizens at lower prices and in abundance in the markets. He emphasized that scarcity of goods leads to price increases. He also mentioned the significant steps agreed upon and the cooperation that has been ongoing since 2011 to maintain the continuity of factories, driven by their national role, especially during times of crisis. He reiterated the private sector’s commitment to its role in ensuring the availability of goods and reducing their prices, stating that any crisis can be resolved through cooperation and joint coordination.
Al-Abd mentioned a meeting with the Minister of Agriculture and producers, where an agreement was reached to reduce poultry and egg prices by 15%. The prices before and after the reduction were presented in detail.
The Egyptian Prime Minister confirmed the ongoing effectiveness and implementation of the initiative to reduce the prices of essential goods, as long as the agreed-upon measures are being implemented by the relevant authorities. Initially, the initiative will be applied to poultry for a period of three months, with the possibility of extension. However, the rest of the essential goods will be subject to the initiative for at least six months. Continuous evaluation and monitoring of various aspects of the initiative will take place to curb inflation.
Madbouly emphasized that the major crises faced by different countries, including Egypt, are unprecedented. He mentioned that the world is currently facing many new crises and significant challenges, stating that every country faces similar crises, although the severity may vary depending on their ability to confront them.
