Sisi slashing subsidies
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.