Back to the complete issue
Wednesday, 22 July 2020

Details of Egypt’s consumer-spending initiative could emerge within a week

We could be hear the details of the government’s consumer-spending initiative within a week, if local press reports citing government officials are anything to go by. According to the officials, the initiative — which is designed to stimulate EGP 100 bn-worth of consumer spending over three months, starting from the end of July — will initially cover durable goods and food commodities.

Background: The government announced last week a package of measures designed to support consumer spending and end the demand slump caused by the pandemic. The government has made agreements with manufacturers and merchants to offer 15-25% discounts on consumer goods for all citizens, and will spend between EGP 10-12 bn to subsidize a 10% discount for ration card holders. A new fund will also be used to back up to EGP 2 bn in consumer loans and mortgages in an effort to encourage lending, and provide cheap financing for consumers to engage in government projects such as the installation of dual-fuel engines into cars.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2020 Enterprise Ventures LLC.