Sisi slash­ing sub­si­dies

The Africa Report - - QUARTER -

Elec­tric­ity prices are set to jump again in July as the Cairo gov­ern­ment cuts spend­ing as part of its bailout deal with the In­ter­na­tional Mon­e­tary Fund. The gov­ern­ment al­ready hiked elec­tric­ity prices for house­holds by an av­er­age of 24% in 2018. Fuel and en­ergy sub­si­dies are getting the biggest cuts (see graph), while food sub­si­dies – seen as more po­lit­i­cally sensitive – re­main in place at about the same level. The fuel sub­sidy re­forms are due to be com­pleted in July, but elec­tric­ity sub­sidy cuts will not be fully rolled out un­til the 2020/2021 fis­cal year. Pres­i­dent Ab­del Fat­tah al-sisi’s gov­ern­ment is count­ing on tough security mea­sures and so­cial spend­ing on the Taka­ful and Karama cash-trans­fer pro­grammes to keep people from tak­ing to the streets.

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