Egypt to implement cash subsidy system, freeze fuel prices by end 2026: Deputy PM

“Egypt targets the implementation of a plan to transition from in-kind to cash subsidies by the end of 2026, Deputy Prime Minister for Economic Affairs Hussein Eissa said on Tuesday. Speaking at the annual meeting of the American Chamber of Commerce in Cairo, Eissa also announced that there will be no increase in fuel prices before the end of the 2026 fiscal year. He said the move is intended to reassure citizens and markets amid global economic uncertainty and fluctuations in international energy prices. Outlining a comprehensive economic reform programme aimed at restructuring state-owned economic authorities and public sector companies, Eissa detailed plans to offer ten state-owned companies to the private sector before the end of 2026. The offerings, which include Banque du Caire and two companies affiliated with the Egyptian Armed Forces, will occur through listings on the Egyptian Stock Exchange and strategic partnerships with investors, he said. The initiative aims to revitalise the capital market, improve the financial resources of public companies, enhance their competitiveness, and reflect the state’s policy of broadening ownership and encouraging local and foreign investment, the deputy prime minister added. An updated version of Egypt’s State Ownership Policy Document will be launched before the end of next June, Eissa said. The document outlines the sectors in which the state will maintain or reduce its presence, reflecting a government commitment to expanding private sector participation and attracting more domestic and foreign investments. Eissa stated the government aims to complete the restructuring of six major economic authorities by the end of the current year, including the National Food Authority, the Small and Medium Enterprises Development Agency, and the Suez Canal Authority. The move is part of a broader strategy to improve their administrative and financial performance while enhancing their developmental role. A new phase of restructuring for state economic entities will begin next year following an evaluation of the first phase, Eissa explained. The reform process includes upgrading management systems, strengthening governance standards, and improving operational efficiency, going beyond mere financial adjustments. Egypt’s public business sector currently consists of six holding companies and around 66 subsidiaries, and the process of listing them on the stock exchange is continuing steadily, Eissa noted. The government is working to improve their financial indicators and operational performance through stronger governance, greater transparency, and more efficient management. The state has adopted a clear approach based on separating ownership from management, Eissa said. He stressed that the success of companies is determined by the efficiency and effectiveness of their management and their ability to provide quality services to citizens and markets, rather than whether they are publicly or privately owned. On the fiscal front, the government is working to reduce domestic debt levels and is studying several “out-of-the-box” solutions to support financial stability and ease the burden of public debt, the deputy prime minister said. The current economic policy seeks to balance economic efficiency with social and developmental considerations, particularly in strategic sectors that directly affect citizens’ daily lives, Eissa added. He said the broader objective is to build a more competitive economy capable of attracting investment and achieving sustainable growth. The announcements reaffirm the government’s determination to accelerate structural reforms, strengthen the role of the private sector in the national economy, and improve the investment climate as part of a long-term vision for achieving sustainable and inclusive economic growth in the years ahead. The meeting was attended by Omar Mohanna, Chairman of the American Chamber of Commerce in Egypt, alongside several ministers, investors, and business leaders. The post Egypt to implement cash subsidy system, freeze fuel prices by end 2026: Deputy PM first appeared on Dailynewsegypt .

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