Egypt studies flexible subsidy system

Egypt is studying a gradual shift from its current in-kind subsidy system to a more flexible cash-based commodity system, Supply and Internal Trade Minister Sherif Farouk said during Egypt Forum 2026.

Speaking at a session attended by Prime Minister Moustafa Madbouly on Wednesday, Farouk said the proposed system would allow citizens to choose essential goods according to their household needs while improving subsidy targeting.

Around 64.5 million citizens benefit from subsidised bread, receiving five loaves per person daily, while 57.5 million receive monthly commodity subsidies worth 50 Egyptian pounds per person, Farouk said.

In-kind subsidy allocations totalled 160 billion pounds in the 2025/2026 fiscal year, including 124 billion Egyptian pounds for bread and 36 billion pounds for commodities. They are set to rise to 178 billion pounds in 2026/2027, comprising 142 billion pounds for bread and 36 billion pounds for commodities.

The proposed reforms include updating beneficiary databases, introducing different support tiers based on household needs, and expanding the range of available food commodities.

Farouk also highlighted the ministry’s smart digital market monitoring system, launched on September 1, 2026. It uses price-tracking tools, geographic information systems and digital inspection records, alongside artificial intelligence models to forecast food price movements and support regulatory decisions.