To help alleviate the economic burdens weighing on many people in Egypt, the government launched an initiative last month to provide discounts on food commodities in cooperation with the Federation of Egyptian Chambers of Commerce.
The initiative is being implemented in the majority of governorates and is set to run through the back-to-school season, and possibly beyond, according to a report the federation submitted to the prime minister.
The Ministry of Supply and Internal Trade also opened its annual summer sale early on 4 August, with the participation of more than 2,000 stores, with discounts on commodities ranging from between 10 and 50 per cent.
The ministry, via the Holding Company for Food Industries, is offering discounts ranging from five to 18 per cent on 640 foodstuffs, available through the company’s nationwide network of over 1,000 co-ops and outlets.
Producers and importers, in coordination with major retail chains, have also reduced prices by five to over 20 per cent on a wide range of food items and goods.
The initiatives are meant to provide basic commodities at affordable prices against the background of the rise in inflation over the past two years. In September 2023, inflation hiked to 38 per cent before cooling down to reach 13 per cent in July this year.
Ahmed Attabi, head of the Importers and Exporters Division at the Federation of Chambers of Commerce in Giza, said in a TV interview that prices have begun to decline, adding that the drop is not solely the result of government action.
The stability of the dollar against the pound has also contributed to the decrease in prices, he said, adding that it might take some time before people start to feel the impact.
The federation’s report noted a decline in the prices of fruit, vegetables, and school supplies by 10 per cent. It also referred to the expansion of the one-day markets organised by the federation and the ministries of supply and local development.
These markets, now numbering more than 120 across Egypt, provide goods directly from producers to consumers, cutting trading and transport costs by up to 15 per cent.
The report projects a further decline in commodity prices, driven by falling wholesale prices, the wider availability of production inputs, decreasing purchasing power, and growing market competition.
Maha, the mother of a 10-year-old daughter in Cairo, said she was frustrated because she has not been able to access the discounts offered by the initiatives, however.
“The price of rice is good, but its quality is not. Moreover, a package usually weighs 900 g instead of 1 kg. I also can’t find good-quality cooking oil nor the kinds of pasta I usually buy among the discounted items,” she said.
Mariam, in her 40s, said she had been excited to hear about the discounts offered on 640 items. Her hopes had been dashed, however, she said, when she found that the goods she is used to buying from co-ops were not on sale.
“I rely on dairy products for my two children. Yet, the prices of dairy products remain unchanged, or in some cases have even increased,” she noted.
Economic expert Heba Al-Leithi said the state initiatives were commendable but needed to be complemented by studies on the items that consumers demand. The government should reduce transportation costs from production sites to the market and cut down packaging costs, she added, acknowledging that vendors must be able to maintain profit margins, given their electricity and water bills and taxes and other expenses.
Hisham Al-Degwi, head of the Foodstuffs Division at the Federation of Chambers of Commerce in Giza, considered the availability of the goods to be an achievement in itself. He added that launching initiatives to reduce their prices was an even greater achievement.
“There is a wide range of initiatives, and what people may not find in one market may be available in another. The problem of people not knowing the location of near-by co-ops has also been addressed through one-day markets,” he said.
“One-day markets deliver products to shoppers at the nearest possible location and at the lowest prices, which confirms the availability of goods nationwide.”
For the price-reduction initiatives to have the greatest impact, they must be widely publicised, something Al-Degwi said was currently lacking.
Al-Leithi noted that people will only feel an improvement when they are able to purchase their basic needs and when incomes rise at a higher rate than prices.
She added that improving economic conditions and raising living standards requires boosting agricultural and industrial production, creating decent job opportunities, and working to enhance education and healthcare services.
* A version of this article appears in print in the 4 September, 2025 edition of Al-Ahram Weekly
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