Egypt has launched a pension plan for Egyptian expatriates, denominated in US dollars, as the government seeks to attract foreign currency amid a liquidity crunch.
The plan, called “Tomorrow’s Pension,” was launched during a Monday press conference by Misr Life Insurance in cooperation with the National Bank of Egypt (NBE). It is the latest in a series of initiatives launched by the Egyptian government to tackle the crisis, which has been exacerbated by the war in Ukraine and the COVID-19 pandemic.
Other initiatives include offering high-yield dollar certificates through NBE and Banque Misr to attract dollar liquidity from citizens, granting customs exemptions for the cars of Egyptians abroad in exchange for depositing hard currency in the central bank and establishing an investment company for Egyptians abroad.
Mohamed Farid, Chairperson of the Egyptian Financial Regulatory Authority (FRA), said the plan includes an integrated insurance program, as well as investment and cumulative savings features. This ensures that clients receive a suitable retirement income at their chosen age.
Soha Gendi, Minister of State for Emigration and Egyptian Expatriates’ Affairs, said the launch of the pension plan is part of the many and varied initiatives launched by the state to respond to the demands of its citizens abroad and to advance their interests in their homeland. She noted that expatriates support the national economy through their dollar transfers.
Ahmed Abdel Aziz, the Managing Director of Misr Life Insurance said that the pension plan is open to Egyptian expatriates aged 18 to 59. The minimum instalment is $500 annually, and the minimum duration is five years. Clients can choose to receive their pension in a lump sum or monthly instalments.
Abdel Aziz added that a fully integrated website has been launched for the pension plan. The website includes informational materials to clarify the characteristics and features of the plan, with the ability to calculate premiums and insurance benefits electronically.
Hisham Okasha, Chairperson of NBE, said that “Tomorrow’s Pension” is a new product that aims to provide an insurance program that offers protection and savings for Egyptian customers residing abroad. He added that the plan also ensures a retirement amount for customers to receive upon reaching the eligibility age, and provides them with investment, saving, or insurance solutions.
Yehia Abou El-Fotouh, NBE Vice Chairperson, said that “Tomorrow’s Pension” will be offered to customers who have dollar balances in Egypt as a second phase.
The launch of the pension plan is a sign that the Egyptian government is taking steps to address the country’s foreign currency shortage. The government is hoping that the plan will attract dollar deposits from Egyptian expatriates, who send billions of dollars home each year.
