Egypt Eyes Bread Subsidy Overhaul as Global Inflation Bites

Egypt is considering replacing the popular bread subsidy with cash payments to the poor to protect the budget from a sharp rise in international wheat prices (Reuters)
Egypt is considering replacing the popular bread subsidy with cash payments to the poor to protect the budget from a sharp rise in international wheat prices (Reuters)
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Egypt Eyes Bread Subsidy Overhaul as Global Inflation Bites

Egypt is considering replacing the popular bread subsidy with cash payments to the poor to protect the budget from a sharp rise in international wheat prices (Reuters)
Egypt is considering replacing the popular bread subsidy with cash payments to the poor to protect the budget from a sharp rise in international wheat prices (Reuters)

Egypt is considering replacing a popular bread subsidy with cash payments for the poor to protect the budget from soaring global wheat prices, but domestic inflation could make the government opt for a less ambitious reform.

Under the existing program, more than 60 million Egyptians, or nearly two thirds of the population, get five loaves of round bread daily for 50 cents a month, little changed since countrywide “bread riots” prevented a price hike in the 1970s.

The handout is a lifeline to the poor, but is widely criticized as wasteful. High global prices for wheat, which Egypt imports on a vast scale, led President Abdel Fattah al-Sisi to say last year that it was time to tackle the bread subsidy.

Ali Moselhy, the minister in charge of subsidies, told Reuters that inflation, which has climbed in recent months to 6% from 4% earlier in 2021, made it harder to replace the support for bread and other food with cash handouts.

“When inflation is stable, then you can introduce cash,” he said.

Moselhy has said he personally favors giving people money specifically to buy bread. Eligible Egyptians already get a monthly $3.20 voucher for other subsidised food.

However, he said a broader idea to introduce unconditional payments, favored by many economists as the most efficient welfare system, risked driving up prices by putting more cash into circulation at a time of rising inflation.

The government aims to draw up a plan for reformed food subsidies in time for March budget preparations, officials have recently said.

Moselhy said that for now, the government had not taken a decision on what to do, and was focused on improving the database of recipients, with the intention of “finding out who needs what.”

That could mean that any changes are more limited in nature, perhaps trimming the program through means testing, restricting how many people in a household are eligible, or increasing the price of subsidized bread.

Bassant Ibrahim, 36, a housewife living in Beheira, north-west of Cairo, said any such restrictions should not hurt families like hers, which relies on the subsidies to bolster her husband's $180-a-month teaching salary and feed four children.

"There are rich people with cards who you can sift out, but the poor shouldn't have to pay the price," said Ibrahim, who said the family daily ate the ten loaves of bread they received, sometimes finishing them by lunchtime.

Ahmed Mohamed, 24, a married gardener in Cairo with two children, said he could live without the government paying for his daily bread.

"There are other people who need it more than I do," he said.

However, Ahmed Darwish, a former minister who oversaw a transition to a smart subsidy card system in the early 2000s, said authorities would have to step carefully to reassure people that any changes will not leave them overly exposed.

"Until the government says that this subsidy would be increased with inflation, they have to comfort people," Darwish said.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.