Sisi: Egypt will not remove subsidies, offer New Administrative Capital on EGX

CAIRO - 14 August 2021: Egypt will not remove the system of subsidies but the government will reorganize it, President Sisi assured the Egyptians in his speech during the inauguration of a number of housing projects in the Badr City, northeast  Cairo, on Saturday morning.

 

President Sisi’s assurance statements came 11 days after his previous remarks about the necessity of removing the subsidies on bread. “ The price of the [subsidized] loaf of bread offered at 5 piasters will have to increase. It’s not reasonable to offer 20 loaves at the price of 1 cigarette… It’s not rational to keep the [subsidized] price as is for 20 years,” President Sisi asserted,” he said in a speech during the inauguration of Menoufeya's Sadat City "Silo Foods" on August 3.

 

In his Saturday speech, President Sisi said that subsidies are affected by the increasing number of beneficiaries and the high cost of the commodities, adding that revamping the system of subsidies aims at improving the living conditions of the Egyptians.

 

“Overpopulation leads to the destruction of the country […] Lack of awareness is the most dangerous issue facing societies in the world,” he said, adding that Improving people's living conditions requires controlling the growth of population, with putting into consideration the increase of the income. 

 

The President said that the development of the Egyptian countryside will cost from LE 700 million to LE 800 million in 3 years, saying “The country bears an enormous cost to provide [well-constructed] alternative housing units.

 

Regarding the elimination of slums and unsafe areas nationwide, President Sisi said that slums are a result of lack of control over its building, saying “Egypt has resolved the crisis of slums and this is a divine grace upon the country.”

 

“The state guarantees people’s rights and refuses violating the deadline for providing housing units to the citizens,” he continued.

 

The  president also stated that the goal of providing housing units is not for competition with the private sector, but rather to achieve balance, saying “Construction companies should complete 30% of housing units before running ads for them.”

 

“We seek to increase the supply of housing units and facilitate financing methods,” he added.

 

The President revealed that Egypt will offer the New administrative capital company on the stock exchange. “We are talking about liquid funds worth LE 1 billion in banks within two years, besides assets reach LE3 billion to LE 4 billion,” he said.

 

Afterward, President Sisi witnessed the inauguration of a number of various residential housing projects in different areas nationwide, via video conference, from within Badr City.

 

Badr City hosts the first housing project for the employees of the New Administrative Capital. It is located only 10 minutes away from the government district in the Administrative Capital. 

 

The new housing units of Badr City would be handed over to the employees of the ministries that have been selected as a first stage to move to the New Administrative Capital. The first phase of the housing units in Badr City covers an area of 800 acres.