Minister of Supply and Internal Trading, Aly Meselhi, said that he is not against the subsidies principle, but he rejects the continuation of the system in its traditional form because it is ineffective and does not meet its objectives.
Meselhi’s statement came during a meeting organised by the American Chamber of Commerce in Cairo and the Egyptian-American Business Council with a delegation of US companies visiting Cairo.
“The current subsidy system is inefficient, the measures currently being taken by the government aim to implement a good and effective subsidy system to act as a social safety net,” he explained.
There is a major imbalance in the internal trade system, which is the lack of logistics areas, which made the government develop a comprehensive scheme of logistics areas across different governorates, Meselhi pointed out, adding that the recent hike in prices of potatoes and tomatoes were the result of this imbalance.
The minister offered US companies the investment opportunities available in the internal trade sector, explaining that there are huge investment opportunities in the areas of logistics and infrastructure as well as distribution networks.
The government is working to overcome all bureaucratic obstacles and challenges facing the private sector to exploit those opportunities, Meselhi explained.