Minister of Finance Mohamed Maait has announced that the presidential initiative to stimulate consumption and encourage local production will be launched before the end of July for a period of three months.
Maait said that the initiative aims to encourage all economic segments of Egypt’s citizens to purchase locally-made durable and non-durable consumer goods.
It is expected that the initiative will motivate factories to increase their production to meet the demand from shops and commercial chains. This will have the knock-on effect of creating new job opportunities.
The minister added that there is a list of local consumer goods which will be offered for sale at discounted prices to all citizens who wish to purchase them. These will be available through the outlets and distribution points of companies, factories, stores and commercial chains participating in the presidential initiative.
A website for the initiative will be launched that will list the participating companies and showcase their products and discounts.
“In implementation of the presidential directives to lift the burden on low-income citizens, ration card holders will be given an additional 10% discount on all consumer goods offered for sale within the initiative,” Maait said, “This will be provided with the state treasury bearing this additional discount at a total of EGP 12bn from the current fiscal (FY) year 2020/2021.”
He pointed out that the initiative allows for goods to be purchased in instalments that can be repaid over a period of two years. The payments will also be made at reduced interest, to make it easier for citizens to pay for their purchases.
The initiative to stimulate consumption and encourage domestic products will be subject to periodic evaluation and close monitoring by various ministries and the relevant authorities. The Egyptian Consumer Protection Agency (CPA) will, in particular, monitor the initiative to ensure its success and that it achieves its desired goals, Maait disclosed.
He concluded that the presidential initiative may be renewed if positive results in raising the rate of consumption spending growth are achieved.