Egyptian Minister Announces 20% Decrease in Electrical Appliance Prices

Egyptian Minister of Trade and Industry Ashraf Helal has announced a significant 20% decrease in electrical appliance prices, with expectations for prices to drop further to 30% as of April 24, 2024. The measure aims to enhance competitiveness and provide compensation to exporters through a tiered system based on export volumes.

Under the new system, a share of the export proceeds will be directed towards banks rather than informal markets. "This measure is intended to strengthen competitiveness and provide exporters with compensation through a tiered system based on export volumes, ensuring that a share of the proceeds is directed towards banks rather than informal markets," Helal stated.

The Egyptian government has been working to energize exports and reduce the trade balance deficit since 2015. Efforts have focused on addressing challenges faced by the export sector, such as the acquisition of production inputs. These initiatives have yielded significant results, with the trade balance deficit decreasing from $53 billion in 2015 to $36.9 billion in 2023.

Why this matters: The reduction in electrical appliance prices is part of Egypt's broader plan to increase its total exports to $145 billion by 2030. This move not only benefits consumers but also supports the country's goal of boosting foreign exchange revenues to a cumulative $300 billion, strengthening Egypt's economic position on the global stage.

Egypt's Minister of Finance, Mohamed Maait, recently unveiled details of the country's new draft budget for the fiscal year 2024-2025. The budget prioritizes balancing inflationary pressures, meeting development needs, and maintaining financial discipline. Public revenues are anticipated to increase to EGP 2.6 trillion, with tax revenues targeted to grow by about 30.5%. The government also aims to achieve a primary surplus of EGP 591.4 billion, equivalent to 3.5% of the estimated GDP.

Helal emphasized that the decrease in electrical appliance prices is a significant step in supporting the export sector and enhancing Egypt's competitiveness in the global market. The government remains committed to implementing measures that will stimulate economic growth, attract foreign investment, and improve the country's overall economic performance.

Key Takeaways

• Egypt to cut electrical appliance prices by 20-30% by April 2024.
• Measure aims to boost exports, competitiveness, and direct proceeds to banks.
• Egypt's trade deficit decreased from $53B in 2015 to $36.9B in 2023.
• Egypt targets $145B in total exports and $300B in foreign exchange by 2030.
• Egypt's 2024-2025 draft budget focuses on balancing inflation, development, and fiscal discipline.