Egypt to disburse EGP 7.4b to pharmaceutical suppliers in days

Egypt will disburse about 7.4 billion Egyptian pounds in cash to pharmaceutical suppliers within days as part of a package of measures to support the sector and ensure stable drug supplies.

Finance Minister Ahmed Kouchouk said in  a statement on Monday that the government has allocated 14.7 billion pounds in credit facilities for suppliers under the 2025/2026 budget, alongside regular monthly cash flows. Suppliers will also be able to access an additional 7.3 billion pounds in bank credit facilities via letters of credit, he said after meeting with the head of the Egyptian Unified Procurement Authority (UPA) and representatives of drug companies.

He further said the measures are aimed at easing liquidity shortages, settling arrears and reinforcing cooperation with both local and foreign drugmakers. Since July, the government has paid 14 billion pounds to the UPA to cover supplier dues, compared with a total of 73.4 billion pounds in the last fiscal year.

Kouchouk said the government was working with the ministry of health and the UPA to sustain supply chains and respond quickly to challenges, while ensuring that no new arrears accumulate under the unified electronic procurement system.

Representatives of local and foreign pharmaceutical companies welcomed the steps, with foreign firms describing Egypt as a large and promising market that benefits from “clarity of vision” in policy, the statement concluded.

Attribution: Amwal Al Ghad English