Egypt to overhaul food subsidy program with cash-based system

Egypt is planning a major overhaul of its food subsidy program, transitioning from an in-kind distribution system to a cash-based model. This reform aims to impact approximately 60 million people, providing households with greater autonomy to choose their own food items and reducing waste within the distribution network.

The expanded food basket under the new system is expected to include meat, milk, eggs, poultry, grains, lentils, beans, and tea, in addition to existing staples like oil, sugar, and pasta. The government has allocated 175.3 billion Egyptian pounds for subsidized food commodities in the 2026/2027 budget to support these efforts.

Prime Minister Mostafa Madbouly and other officials, including Finance Minister Ahmed Kouchouk and Supply Minister Sherif Farouk, have met to discuss the transition and address financial entanglements between government agencies, such as the debt owed by the General Authority for Supply Commodities to the Ministry of Finance. While the reform seeks to enhance social justice and efficiency, specific details regarding implementation dates, exact payment values, and inflation adjustment mechanisms have not yet been finalized.