CAIRO - 26 May 2024: Prime Minister, Mostafa Madbouly, held a press conference today following an inspection tour of the Beheira and Alexandria governorates.
Madbouly directed the Ministers of Petroleum and Finance to begin paying 20-25 percent of the arrears owed to foreign partners starting next week.
During the tour, the Prime Minister visited a farm involved in agricultural processing, dairy products, and food production. He discussed plans to establish a new factory for the production of dried milk, as Egypt currently imports over 100,000 tons of this product annually.
The Prime Minister also announced that by the end of 2025, Egypt will begin operating one of the largest factories to produce large central air conditioners, in cooperation with a major foreign company.
Addressing the government’s fiscal priorities, Madbouly stated that the main concern is to ensure revenues match expenditures over the next three years.
He discussed the bread subsidy program, under which Egypt produces 100 billion loaves annually and sells each one for just 5 piasters, resulting in only LE 5 billion in revenue for the state.
To reduce wheat imports and pressure on the dollar, the government is encouraging the use of locally produced wheat and providing support to Egyptian farmers, with costs reaching LE 40 billion in recent years.
Additionally, LE 100 billion has been provided to support the bread subsidy program.
On the topic of fuel prices for electricity production, Madbouly noted that over 60 percent of Egypt’s natural gas is used for power generation.
The cost of extracting natural gas is around $4.25 per unit, while the Ministry of Electricity purchases it for $3 per unit.
The Prime Minister projected that next year’s support bill will reach LE 636 billion, a 20 percent increase from the current fiscal year’s LE 530 billion. He also announced that LE 155 billion will be allocated to support petroleum products in the 2025 budget.
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