Egypt cancels procurement fee of Covid-19 medical supplies, rations expenditure

CAIRO – 14 May 2020: The procurement fee of medical equipment and drugs used in treating Covid-19 has been canceled, and all ministries will set an expenditure rationing plan to offset the economic impact of the pandemic.

In a Wednesday video conference of Prime Minister Mostafa Madbouli with his cabinet, the ministers discussed the updates of the anti-pandemic efforts.

The Egyptian Authority for Unified Procurement and Medical Supplies is the beneficiary of the exemption, as it is the entity that supplies quarantines and hospitals that treat Covid-19 patients with their relevant needs.

On March 30, the Ministry of Trade obliged Egyptian companies producing and importing medical supplies (protective suits, Latex gloves, surgical and N95 masks, protective glasses) to supply their products and stocks to the authority for three months.

Madbouli thanked the relevant ministers for their concerted efforts to fly Egyptians abroad back home and establishing quarantines for them upon their return.

He admitted that the issue has demanded much effort, especially that the number of returning nationals is much higher compared to other countries. He noted that more than 16,000 are expected to return to Egypt in the coming period.

Amid speculations on whether or not Egypt will open the economy after the holy month of Ramadan, Madbouli asked the ministers to ration the government’s expenditure, but also highlighted Moody’s report on Egypt’s credit rating, which was maintained at B2 with a stable outlook despite the economic repercussions of the pandemic.

Earlier in April, Standard and Poor’s also maintained Egypt’s BB long and short term foreign and local currency sovereign credit ratings with a stable outlook on the future of the economy.