The Egyptian government is set to launch a cash subsidy system in January 2027, starting with El-Behira province. This new system aims to replace the current in-kind subsidy system for essential goods. The Ministry of Supply and Internal Trade is preparing for the trial phase, which will be evaluated before expanding it to other provinces. The new system is part of the government's plan to develop the subsidy system.
The Ministry of Supply and Internal Trade, led by Dr. Sherif Farouk, is working on completing the necessary arrangements for the trial phase. This includes securing a strategic reserve of essential goods for at least six months, in coordination with the Future of Egypt device. The government has announced that the new cash subsidy system will be tested in El-Behira province, which has been chosen for its large number of subsidy recipients and diverse population.
The value of the new cash subsidy will be equivalent to the current in-kind subsidy, taking into account inflation rates and the possibility of increasing the cash allocations in the future. The government has not yet announced the final value of the subsidy, but it will vary depending on the number of individuals registered on each subsidy card. This means that the total cash allocation will differ from one family to another based on the number of beneficiaries.
The new subsidy system aims to provide a more diverse list of essential goods to citizens, rather than limiting them to a specific number of products. The proposed list includes meat, poultry, eggs, milk, and other staples, giving families more freedom to choose their daily needs. The system will allocate a cash amount to each eligible family, which can be used to purchase available goods.
The government has chosen El-Behira province for the trial phase due to its large number of subsidy recipients and diverse population. The success of the trial will pave the way for expanding the system to other provinces, based on the evaluation results and the efficiency of the implementation mechanisms. The government emphasizes that the transition from in-kind to cash subsidies does not aim to reduce the number of beneficiaries but rather to change the mechanism of providing subsidies.
The new system will provide families with more flexibility in choosing the goods they need, while linking the subsidy value to the number of individuals registered on the subsidy card and taking into account inflation rates. The Ministry of Supply and Internal Trade is working to ensure a smooth transition to the new system, which is expected to be more transparent and fair.
The Egyptian government is committed to ensuring that the new cash subsidy system is efficient and effective in supporting low-income families. The trial phase in El-Behira province will be closely monitored, and the results will inform the expansion of the system to other provinces. The government aims to improve the subsidy system, making it more responsive to the needs of citizens.
Key points
- The Egyptian government will launch a cash subsidy system in January 2027 in El-Behira province.
- The new system aims to provide a more diverse list of essential goods to citizens.
- The value of the cash subsidy will vary depending on the number of individuals registered on each subsidy card.
