Back to the complete issue
Monday, 27 December 2021

A “clear vision” on subsidies coming in early 2022?

The government will set out a “clear vision” on subsidies when preparing next fiscal year’s state budget in March, Prime Minister Moustafa Madbouly said on Thursday. Speaking at a press conference to mark the first cabinet meeting to be held in the new administrative capital, Madbouly said that the government must strike a balance between providing support to citizens and maintaining the country’s economic performance, especially given global inflationary pressures and a rapidly increasing population.

Inflationary pressures are set to impact subsidies: Egypt is not immune from the squeeze on commodities, rising shipping costs and higher input costs seen worldwide, Madbouly said, adding that it wouldn’t be logical for local prices to remain fixed given the wider inflationary environment. His comments came a day after President Abdel Fattah El Sisi suggested that new rules could come into effect on eligibility for subsidy ration cards, as the government continues to reform the subsidy system to reduce its burden on the state budget.

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. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.