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Monday, 30 December 2019

Egypt to add 170k beneficiaries to Takaful, Karama safety nets soon

The government expects to add 170k Takaful and Karama beneficiaries in the coming period, Nivine Kabbag said at her first press conference as social solidarity minister, according to Masrawy. This will bring the number of beneficiaries of the cash subsidy programs to 3.4 mn families, or approximately 14 mn individuals. The ministry still needs to flush out those ineligible for subsidies (whom we here at Enterprise fondly refer to as ‘Kramers’) for this to move forward, Kabbag added.

As far as we know, purging the Kramers can only happen after passing the Cash Subsidies Act, an in-the-works legislation that Kabbag separately mentioned during the presser. The minister didn’t provide an update on the status of the law, which is essentially an ongoing bid to legislate a new system for all of Egypt’s cash subsidy programs, including adding new conditions to be eligible for social welfare. The bill would require authorities review the subsidy rolls every three years and scratch off those found ineligible. Last we heard, the ministry had finalized drawing it up, but it is yet to receive a nod from cabinet, and subsequently from the House of Representatives. It was first announced last summer.

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