Dr. Mostafa Madbouly, the Prime Minister of Egypt announced the initiative to reduce basic commodity prices, during a press conference attended by various government officials, including the Minister of Supply and Internal Trade, the Minister of Finance, the Minister of Agriculture and Land Reclamation, the Minister of Trade and Industry, the President of the Federation of Egyptian Chambers of Commerce ( FEDCOC) , the President of the Egyptian Industries Federation, the Chief Executive of FEDCOC, and the Deputy Chairman of the Poultry Producers Union.
Dr. Mostafa Madbouly, the Egyptian Prime Minister, emphasized that the government has conducted numerous meetings with industrial and trade Federations to address inflation and promote local industries in the short, medium, and long term. He stressed the importance of the Egyptian private sector's role in supporting the government in tackling the challenge of rising prices and highlighted the coordination with relevant authorities and the importance of cooperation in all circumstances.
Dr. Madbouly pointed out that working with relevant bodies such as the Federation of Chambers and the Federation of Industries focuses on identifying key commodities and genuinely reducing their prices to benefit the Egyptian citizens. Discussions highlighted the factors leading to price increases, with an emphasis on the shortage of supply or the lack of sufficient raw materials and production requirements, calling for increased availability of hard currency to boost supply and reduce prices.
An agreement was reached between the government and the private sector, along with industry representatives, to streamline the procedures related to fines imposed on shipments arriving at ports. As a result of this cooperation, seven major groups of commodities were identified for price reductions ranging from 15% to 25%. These commodities include beans, lentils, dairy products, white cheese, pasta, sugar, cooking oil, and rice. Additionally, a 15% reduction was agreed upon for live and frozen poultry and eggs. These measures aim to lower prices, stabilize them, and facilitate access to essential products for citizens.
Prime Minister Madbouly highlighted the significant collaborative effort with the private sector in this context. Detailed discussions and negotiations were conducted with private sector representatives to reach agreements on necessary actions by the government. This collaboration includes suspending fees and customs on certain production requirements for essential goods for a period of at least six months, with the goal of achieving a reduction and stability in the prices of these products, ranging from 15% to 25% for the seven main groups and approximately 15% for poultry and eggs.
It was agreed that there would be weekly monitoring of the economic situation, chaired by the Prime Minister, to monitor price stability and address any emerging issues. This ongoing interaction between the government and the private sector is aimed at addressing the challenges of inflation and achieving price stability. Furthermore, gradual steps are planned to expand the measures to include more vital commodities affecting Egyptian citizens. These efforts are intended to reduce inflation and increase price stability, ultimately allowing for interest rate reductions and economic stability in the long term.
Mr. Ahmed Elwakil, the President of the General Federation of Chambers of Commerce ( FEDCOC), expressed gratitude during the press conference. He thanked the Prime Minister, ministers, the Central Bank, the banking sector, and various agencies for their fruitful cooperation. He emphasized that the government is collaborating with the private sector to address Egypt's two most significant challenges: inflation and job creation. He described these challenges as having the most significant impact on improving the quality of life for citizens. Mr. Elwakil reaffirmed their commitment to continuing this collaboration to address these challenges progressively, in accordance with market mechanisms. In conclusion, he expressed appreciation for the Egyptian private sector's patriotic efforts and dedication to the well-being of their beloved Egypt.
