Egypt Broadens Cash Subsidy to Cover More Essential Foods
Egypt will expand its cash subsidy program to include more food items, giving households greater choice and purchasing power.
Egypt's cabinet announced on Wednesday that it will expand its new cash-subsidy system to cover a wider range of essential food items, moving beyond the current limited list of staples. The decision aims to give millions of beneficiaries more flexibility and address inefficiencies in the existing in-kind distribution system.
Currently, Egypt's ration-card program supports about 60 million people, each receiving 50 Egyptian pounds (roughly $1) per month to spend on a small set of subsidized goods at state-approved outlets. Separately, around 70 million people benefit from a subsidized bread scheme, which relies on annual wheat imports of 4 to 5 million metric tons.
Supply Minister Sherif Farouk said the new system will replace fixed in-kind allocations with cash transfers equivalent to the value of the goods. This change, he explained, tackles problems such as limited consumer choice and distribution losses, while giving households greater purchasing power.
The expanded list of subsidized items will include meat, grains, tea, milk, lentils, eggs, beans, and poultry, in addition to current staples like cooking oil, sugar, and pasta.
Prime Minister Mostafa Madbouly had previously indicated that Egypt would transition from in-kind subsidies to cash transfers during the current fiscal year, which runs until June 2027. The move is part of broader economic reforms aimed at making subsidy programs more efficient and targeted.