Ahmed Kamel – Egypt Daily News
The Egyptian government has called on business leaders and major merchants to implement genuine price reductions across essential goods, citing improved economic indicators, restored availability of foreign currency for imports, and stable supply levels in local markets.
The appeal was made during a meeting held by Prime Minister Mostafa Madbouly with prominent business figures and heads of trade and industry chambers. Madbouly emphasized that Egypt has “overcome the economic crisis” it faced in recent years, pointing to improved macroeconomic indicators as evidence of recovery.
“Just as prices increased during difficult periods due to external shocks and supply disruptions, they must now come down,” Madbouly said, underscoring the government’s view that current market conditions no longer justify sustained high prices.
Merchants to Launch Nationwide Price Reduction Initiative
In response, major traders and manufacturers confirmed they are working on a nationwide initiative to reduce prices by accepting smaller profit margins and increasing product availability through expanded market outlets across the country. The initiative is expected to coincide with Egypt’s summer sales season, starting August 4, and will include a wide range of goods—not just apparel.
Osama El-Shahed, head of the Giza Chamber of Commerce, stated that the initiative will involve direct coordination with wholesale traders, producers, and different commercial divisions to lower the cost of strategic commodities. He revealed that some price reductions have already taken place:
- Sugar: Decreased from EGP 29,400 (approx. $604) to EGP 28,300 (approx. $581) per ton
- Rice: Dropped from EGP 25,000 (approx. $513) to under EGP 22,000 (approx. $452) per ton
- Flour: Reduced from EGP 18,000 (approx. $370) to EGP 16,000 (approx. $329) per ton
He also noted that prices for several food items have stabilized despite increased fuel costs, and that key imported goods are now fully available due to improved access to foreign currency and streamlined import procedures.
Government Leans on Private Sector Role in Curbing Inflation
The government’s message to traders was clear: price reductions are not only economically justified but necessary for long-term financial stability. Madbouly reiterated that the Central Bank of Egypt will not lower interest rates unless inflation slows, positioning private sector price controls as central to monetary easing.
“Lower inflation benefits all of us—government, citizens, producers, and exporters,” Madbouly told investors in a previous meeting held in June.
The government’s inflation-fighting strategy has included building up strategic reserves of food, tightening market oversight to combat hoarding, and offering incentives such as the “Golden License” system to accelerate major private investments.
So far, 50 golden licenses have been issued to investors—34 of them in manufacturing, and five in renewable energy projects. These licenses streamline procedures for land allocation, permitting, and project operation through a one-stop process.
Inflation Indicators Show Mixed Signals
According to the government’s latest monthly inflation report, prices for fresh produce and poultry fell by 2.3% and 9.1%, respectively, while beef and fish saw price increases. Prices for eggs, cooking oils, and fats remained largely stable.
Meanwhile, Ayman Ashry, Chairman of the Cairo Chamber of Commerce, confirmed plans for an upcoming meeting with heads of various trade divisions to finalize their participation in the price-cutting initiative and relay any necessary requests to the government to ensure its success.
Ashry echoed growing optimism about Egypt’s economic trajectory, citing the improved availability of foreign exchange and the appreciation of the Egyptian pound against the U.S. dollar as key reasons for expected price stability in the coming months.
