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.