Egypt implements food subsidy cuts amid economic reforms

Egypt is implementing reforms to reduce the cost of its massive food subsidy program, a move aligned with International Monetary Fund-backed economic adjustments. Since June, approximately 850,000 people have been removed from the subsidy system, with officials stating that millions more could be excluded next year as the government targets only the “undeserving.”

The cuts have significantly impacted citizens, particularly in working-class areas like Cairo's El-Marg district. For many, the cost of staple flatbread has increased tenfold following the suspension of subsidy cards. This comes amid a broader economic crisis characterized by multiple currency devaluations and double-digit inflation, which has approached 40% in some periods.

Financial pressures are mounting as the government manages high costs; the food subsidy bill reached $3.2 billion last year, while interest on foreign debt is projected to exceed $29 billion this year. Residents report having to reduce food consumption and forgo items like meat and fruit to afford basic necessities.