The Egyptian President Abdel Fattah al-Sisi has reaffirmed the need to reform the subsidy system in order to gradually introduce direct financial assistance, with the stated objective of better targeting the most vulnerable households.
The Egyptian head of state reviewed on Monday, during a meeting dedicated to food security and strategic reserves, the plan to gradually transform a portion of in-kind subsidies into cash aid, the Egyptian presidency said in a statement.
Abdel Fattah al-Sisi called for continued efforts to “develop the subsidy system” and ensure that aid effectively benefits eligible categories and the most vulnerable citizens.
The proposed system could include subsidies distributed through ration cards as well as subsidized bread.
According to the presidency, the shift to cash transfers should strengthen social justice while giving beneficiaries greater freedom in using the aid according to their needs.
The project, however, remains shrouded in uncertainty regarding its timeline, eligibility criteria, and safeguards against a potential loss of purchasing power for beneficiary households.
The reform also comes amid controversy surrounding rationing cards.
According to local media, more than 850,000 people have recently been removed from the programme, while the Ministry of Supply claims to be working on better targeting beneficiaries.
The meeting also addressed subsidized bread and a project that, in its first phase, envisions the creation of 300 strategic bakeries across Egypt.
The Authorities also reviewed the activities of the National Food Security Authority and the state of reserves of essential goods.
According to the presidency, strategic stocks are at levels deemed “very reassuring” and would cover market needs for several months, or even nearly a year for certain commodities.
Mr. Al-Sisi called for strengthening the country’s self-sufficiency in strategic products, maintaining sufficient reserves to contribute to price stability and developing partnerships with the private sector.
MK/AK/Sf/fss/gik/APA