Matta Beshai, head of the Internal Trade Committee at the Egyptian Federation of Chambers of Commerce, emphasized the need for a collaborative approach to address rising prices. He stressed that reducing profit margins is crucial to mitigating the financial burden on Egyptian households. Beshai noted that the current economic pressures require a responsible and cooperative effort from all market stakeholders.
Beshai highlighted that the recent surge in the US dollar has significantly impacted the cost of importing various goods and raw materials. This increase in costs may lead to higher production, manufacturing, and transportation expenses. However, he cautioned that passing these costs on to consumers must be done thoughtfully, taking into account their purchasing power and avoiding excessive financial burdens.
The Egyptian market is currently undergoing a challenging phase, necessitating a shift in commercial strategies. Beshai described the situation as an "economy of crisis," which demands prioritizing the public interest and seeking practical solutions. These solutions should balance the continuity of commercial activities, market stability, and the availability of affordable goods.
Reducing profit margins does not harm traders or importers, according to Beshai. Instead, it can lead to increased sales and a reasonable return on sold quantities. This approach can help offset the decline in purchasing power, which has resulted from the economic strain on some consumers. Beshai suggested reviewing the supply chain, minimizing unnecessary costs, and improving logistics to reduce product costs.
Beshai emphasized the importance of promoting competition among traders and commercial outlets, as well as expanding initiatives that offer discounted goods. He stressed the need for continued coordination between chambers of commerce and relevant authorities to ensure the availability of essential products and prevent unjustified price increases.
Recent price increases have affected various basic goods, including food items. For example, the price of a liter of blended oil rose from 90 to 100 pounds, while the price of a 250-gram canned cheese increased from 24 to 30 pounds. Prices of grains and legumes have also increased, with the price of one kilogram of local fava beans rising from 42 to 45 pounds and the price of one kilogram of lentils increasing from 50 to 55-60 pounds.
The prices of electrical appliances have increased by 5-8%, and some companies are preparing to apply further increases of 7-10% on imported finished goods. Additionally, prices of completely imported cars have risen by up to 10%, influenced by the surge in the dollar and shipping costs. Beshai concluded that the current situation requires collective efforts from all stakeholders to alleviate the financial burden on citizens and ensure market stability.
Key points
- Matta Beshai urges reduced profit margins to mitigate financial strain on Egyptian households.
- The Egyptian market is experiencing an "economy of crisis," requiring a shift in commercial strategies.
- Recent price increases have affected basic goods, including food items and electrical appliances.
