Egypt's PM initiates gradual release plan for $1.3B goods in customs with focus on essential commodities, medicines

CAIRO - 25 February 2024: Egypt’s Prime Minister, Mostafa Madbouly, directs a plan to gradually release goods in customs, estimated at $1.3 billion, with priority given to food commodities, medicines, and feed.

 

This directive was given during a meeting on Sunday, chaired by the Prime Minister, to monitor the provision of necessary financing in foreign currency for strategic goods and medicines. 

 

This directive comes days after Egypt- UAE agreement to develop Ras El-Hikma City with around $35 billion in direct investments for the Egyptian state within two months. A deal which Madbouly described as the beginning of correcting the course for the Egyptian economy, adding that Egypt is keen to attract foreign direct investment (FDI).

 

Egyptian Cabinet’s Official Spokesperson, Mohamed Elhomosany, stated that the meeting addressed the status of providing strategic goods to the markets and securing the required financing in foreign currency, especially for wheat, oil, and powdered milk.

 

Elhomosany mentioned that the Governor of the Central Bank of Egypt (CBE), Hassan Abdalla, confirmed during the meeting the existence of a current priority agenda being worked on. At the top of the agenda is providing financing in foreign currency for strategic goods and medicines. Coordination is already underway with the relevant ministries and entities in this regard.

 

The meeting also reviewed some reports that highlight the total value of foodstuffs, medicines, and animal feed currently held in customs, amounting to approximately $1.3 billion. The recent positive news has already led to a decrease in the prices of corn and soybeans. Continuous monitoring of market movements is taking place during this period.

 

Elhomosany pointed out that the meeting also discussed the expected prices for wheat straw supply this year. It is expected that the supply prices will increase in support of farmers, considering the rising inflation rates. The final prices will be presented to the Cabinet soon.

 

At the end of the meeting, Madbouly instructed the prompt holding of a meeting between the ministers of supply, finance, and agriculture to reach an agreement on the wheat straw supply price, which will be presented to the Cabinet soon.