Last updated: 09/5/2018

Basic Information

Country
Geographic area

Programme Details

Programme components
Subsidies cover petroleum products and food (food subsidies consist of Baladi bread and ration cards)
References
Egypt Network for Integrated Development. 2012. Subsidies and the Social Safety Net in Egypt. Cairo: Egypt Network for Integrated Development. Accessed 27 July 2017. <http://enid.org.eg/Uploads/PDF/PB12_subsidies_social_protection.pdf>.
Start date
1920
References
Rohac, D. 2013. “Solving Egypt’s Subsidy Problem.” Policy Analysis, No. 741. Washington, DC: Cato Institute. Accessed 11 November 2015. <http://object.cato.org/sites/cato.org/files/pubs/pdf/pa741_web_2.pdf>.
Coverage
Food subsidies: in 2015, 88.6 per cent of all households received a ration card; these are distributed by the government and allow holders to access food commodities such as rice, sugar and tea at subsidised prices
References
CAPMAS and UNICEF Egypt. 2017. Children in Egypt: a statistical digest 2016. Cairo: Central Agency for Public Mobilization and Statistics and United Nations Children’s Fund Egypt. Accessed 30 July 2017. <https://www.unicef.org/egypt/eg_Children_In_ Egypt_2016(3).pdf>.
Programme expenditure
Energy subsidies: 3 per cent of GDP; food subsidies: 1.5 per cent of GDP in 2015-2016; to alleviate the impacts of subsidy reforms, about 1 per cent of GDP of the savings in 2016-2017 have been set aside for social protection The government is currently reforming its subsidies, aiming at liberalising fuel and electricity prices over the next 5–10 years. The resulting savings from the energy subsidies sector is scheduled to be invested in the newly implemented social safety net programmes.
References
IMF. 2017. “Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt.” IMF Country Report, no.17/17. Washington, DC: International Monetary Fund. Accessed 27 July 2017. <https://www.imf.org/en/ Publications/CR/Issues/2017/01/18/Arab-Republic-of-Egypt-Request-for-Extended- Arrangement-Under-the-Extended-Fund-Facility-44534>.

Targeting and eligiblity

Targeting methods
Means Test
Universal; however, reforms have been adopted to move from universal subsidies to targeted programmes, food subsidies have been means-tested since 2017
References
World Bank. 2015. International Bank For Reconstruction And Development Project Appraisal Document On A Proposed Loan In The Amount Of USD400 Million To The Arab Republic Of Egypt For A Strengthening Social Safety Net Project March 20, 2015. Washington, DC: World Bank. Accessed 15 February 2016. <http://www-wds.worldbank.org/external/default/WDSContent Server/WDSP/IB/2015/03/25/000477144_20150325145541/Rendered/PDF/PAD6110PAD0 P14010Box385454B00OUO090.pdf>. CAPMAS and UNICEF Egypt. 2017. Children in Egypt: a statistical digest 2016. Cairo: Central Agency for Public Mobilization and Statistics and United Nations Children’s Fund Egypt. Accessed 30 July 2017. <https://www.unicef.org/egypt/eg_Children_In_Egypt_2016(3).pdf>.
Targeted areas
Nationwide
Target groups
Energy subsidies: universal; Food subsidies: poor households
Eligibility criteria
Food subsidies: since 2017, ration cards are only distributed to households earning EGP1,500 (USD84.50) per month or less. Energy subsides: universal, but several ad hoc discretionary changes in local prices have been implemented since 2016
References
El-Tablawy, T., and A. Feteha. 2017. “Egypt Extends cost-cutting efforts to Applicants for Food Rations.” Bloomberg Markets Website. Accessed 4 October 2017. <https://www.bloomberg.com/news/articles/2017-08-08/egypt-extends-cost-cutting-effort-to-applicants-for-food-rations>. IMF. 2017. If Not Now, When? Energy Price Reform in Arab Countries. Annual Meeting of Arab Ministers of Finance. April 2017, Rabat, Morocco. Washington, DC: International Monetary Fund. Accessed 29 September 2017. <http://www.imf.org/en/Publications/Policy-Papers/Issues/2017/06/13/if-not-now-when-energy-price-reform-in-arab-countries>.

Coverage and other information

Type of benefits
Subsidised food and electricity; in the case of the food subsidies, beneficiaries are provided with subsidised Baladi bread (up to 5 loaves per day) and ration cards which are charged monthly and allow for the purchase of 20 different food commodities.
Amount of benefits
Food subsidies: the smart card is charged with EGP15 (USD2) per month; Baladi bread is sold to beneficiaries for EGP0.05 per unit, and bakers are compensated for the total cost of production per unit (EGP0.36).
References
World Bank. 2015. International Bank For Reconstruction And Development Project Appraisal Document On A Proposed Loan In The Amount Of USD400 Million To The Arab Republic Of Egypt For A Strengthening Social Safety Net Project March 20, 2015. Washington, DC: World Bank. Accessed 15 February 2016. <http://www-wds.worldbank.org/external/default/WDSContent Server/WDSP/IB/2015/03/25/000477144_20150325145541/Rendered/PDF/PAD6110PAD0 P14010Box385454B00OUO090.pdf>. Government of Egypt. 2015. Egypt’s Five Year Macroeconomic Framework and Strategy FY14/15–FY18/19. Cairo: Ministry of Finance. Accessed 15 February 2016. <http://www.mof.gov.eg/MOFGallerySource/English/Strategy.pdf>.
Payment/delivery frequency
Food subsidies: ration cards are recharged monthly.
References
CAPMAS and UNICEF Egypt. 2017. Children in Egypt: a statistical digest 2016. Cairo: Central Agency for Public Mobilization and Statistics and United Nations Children’s Fund Egypt. Accessed 30 July 2017. <https://www.unicef.org/egypt/eg_Children_In_ Egypt_2016(3).pdf>.
Benefit delivery mechanism
Food subsidies: ration cards operate via a smart card system; Diesel and gasoline: smart cards were introduced but have not been implemented yet; they are part of the proposed budget for 2017-2018 though
References
CAPMAS and UNICEF Egypt. 2017. Children in Egypt: a statistical digest 2016. Cairo: Central Agency for Public Mobilization and Statistics and United Nations Children’s Fund Egypt. Accessed 30 July 2017. <https://www.unicef.org/egypt/eg_Children_In_ Egypt_2016(3).pdf>. Government of Egypt. 2015. Egypt’s Five Year Macroeconomic Framework and Strategy FY14/15–FY18/19. Cairo: Economic Ministerial Committee. Accessed 27 July 2017. <http://www.mof.gov.eg/MOFGallerySource/English/Strategy.pdf>.