Social Safety Nets Strengthened: Egypt increases support for rural development, poverty alleviation



Mon, 16 Oct 2023 - 06:32 GMT


Mon, 16 Oct 2023 - 06:32 GMT

CAIRO - 16 October 2023: In a move to strengthen social safety nets and promote comprehensive rural development, Egypt's Ministry of Planning and Economic Development has announced a significant expansion of the Takaful and Karama (Solidarity and Dignity) program. The expansion aims to extend the program's reach to approximately 5 million families, incurring an additional cost of LE5.5 billion.

The Takaful and Karama program was initiated as part of the government's "Haya Karima" (Decent Life) initiative, which focuses on improving living conditions in rural areas. The Ministry of Finance is set to bear the cost of deferring property taxes for several industrial sectors and activities for a period of three years, amounting to approximately LE1.5 billion annually.

In a recent report, the Ministry of Planning detailed the government's commitment to social protection by announcing the second set of social safety net packages, covering the second quarter of 2023 (April-June) and the entire year 2023-2024. These packages come at a total cost of LE190 billion, with LE40 billion allocated for the first period and LE150 billion for the second.

The allocated funds will play a critical role in increasing the minimum wage and enhancing the Takaful and Karama program, which provides financial assistance to the most vulnerable segments of society. Additionally, LE55 billion will be directed toward increasing pensions, ensuring that retirees receive enhanced financial support.

The government's proactive approach to activating social protection programs is evident in the 2023-2024 General Budget. The budget allocates LE529.7 billion for social protection, surpassing the actual expenditures of LE343.4 billion in 2021-2022 and the estimated LE426 billion in 2022-2023.

This concerted effort by the Egyptian government underlines its commitment to addressing the needs of its citizens while focusing on inclusive and sustainable development, particularly in rural areas. The expansion of the Takaful and Karama program is set to make a significant impact on reducing poverty and promoting economic stability, ensuring a brighter future for millions of Egyptians.





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