Egyptian Prime Minister Mostafa Madbouly. Photo courtesy of Egyptian cabinet.
Speaking during a press conference following the weekly cabinet meeting, Madbouly said the government has been studying the issue with the ministries of supply and social solidarity and is taking into account public concerns and expert recommendations before finalizing the new mechanism.
"The state does not seek to reduce the value of subsidies allocated in the state budget. Rather, it seeks to ensure that support reaches those who truly deserve it," Madbouly said.
He noted that inefficiencies persist within the current subsidy system, citing the bread subsidy programme as an example, where inefficiency rates are estimated at around 25 percent.
The prime minister said the government intends to introduce a tiered cash-support system under which the poorest households would receive the highest level of assistance, with less vulnerable groups receiving progressively lower amounts.
According to Madbouly, Egyptian households will be categorized into different income and social groups to allow the state to direct greater support to the most vulnerable segments of society.
He added that a dedicated press conference would be held once the programme is finalized. The conference, he explained, will address issues such as inflation and mechanisms to sustain beneficiaries' purchasing power.
Madbouly also highlighted ongoing coordination with the Central Bank of Egypt and the ministries of finance, petroleum, and electricity in securing the country's energy needs during the summer months.
He warned that Egypt is preparing for an exceptionally hot summer and a significant increase in electricity consumption. He also noted that global energy prices remain elevated, with oil prices nearing $97 per barrel, adding pressure on the state's efforts to secure fuel supplies.
Moreover, Madbouly said the government is accelerating the integration of new renewable energy projects into the national grid to reduce dependence on imported natural gas, mazut, and diesel used to operate power stations.
"The faster we bring new and renewable energy capacities online, the lower the bill for importing fuel to operate power plants," he noted.
Regarding state-owned assets, Madbouly said the government has taken steps to list 16 state-owned companies under temporary registration procedures in preparation for public offerings. Four additional companies are expected to complete registration before the end of June, while procedures have also begun for 10 petroleum-sector companies.
The prime minister pointed out that the government expects between four and five state-owned companies to be offered on the Egyptian Exchange before the end of 2026 as part of the implementation of the State Ownership Policy Document and efforts to maximize returns from public assets.
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