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Al-Ahram Weekly
3 days ago
- Business
- Al-Ahram Weekly
Keeping the summer lights on - Egypt - Al-Ahram Weekly
Measures are being taken to avert possible power outages during summer this year. Government ministries have been collaborating to secure full electricity provision throughout the summer this year and to ward off the threat of any power outages. 'The electrical grid is secure and stable, and the electricity supply is continuous and sustainable throughout this summer,' said Mansour Abdel-Ghani, spokesperson for the Ministry of Electricity, on television at the end of May. Prime Minister Mustafa Madbouli had asked for steps to be taken to prevent power cuts during the summer months in July 2024, Abdel-Ghani added, which had 'necessitated the collaboration of the ministries of electricity, petroleum, and finance, to end load shedding' as a way of reducing pressure on the grid. His statement came days after Reuters and Bloomberg's Asharq Business reported that companies exporting Israeli gas to Egypt had announced plans to reduce exports by one billion cubic feet per day, bringing the volume down to 800 million cubic feet per day during the upcoming summer months. The reports noted that Israel had informed Egypt it would carry out periodic maintenance in May for 15 days, which would lower the volume of exported gas below the agreed-upon amount and below the target for the summer months. Some 60 per cent of Egypt's consumption of natural gas is used to generate electricity. Egypt began importing gas from Israel in 2020 under a $15 billion agreement between Noble Energy (acquired by Chevron in 2020) and Delek Drilling. The reduction in imported gas from Israel coincides with the natural decline in production from Egyptian gas fields, which has decreased to 4.1 billion cubic feet per day, while daily demand stands at around six billion cubic feet and rises during the summer. Egypt's electricity consumption increases by more than 25 per cent during the summer, reaching between 38 and 40 Gigawatt hours per day, up from 32 Gigawatt hours in winter, driving up the consumption of gas and diesel, said Egypt's former petroleum minister Osama Kamal. He estimates the gap between domestic gas production and consumption at 25 per cent, prompting the government to resort to gas imports to cover the shortfall. Domestic consumption exceeds 6.2 billion cubic feet per day, while local production stands at around four billion cubic feet. Another reason for the gap between consumption and the local production of gas needed to cover the demands of power plants is the delay in integrating new renewable and nuclear energy facilities, Kamal said. The government had previously announced long-term precautionary measures to address power outages, especially in the light of geopolitical crises that disrupt global supply chains and key maritime trade routes. Sources told Reuters in early May that Egypt was in talks with international energy and trading firms to procure between 40 and 60 shipments of liquefied natural gas (LNG) to meet emergency needs ahead of peak summer demand. This is in line with statements by the presidential spokesperson, who said that President Abdel-Fattah Al-Sisi had directed the government last week to 'take all necessary measures in advance' to prevent recurring power outages. Madbouli said there was no possibility of renewed power cuts during the summer, despite the financial burdens shouldered by the government. According to the Reuters report, Egypt will have to spend up to $3 billion, based on current gas prices, to purchase the necessary LNG shipments. This would add further pressure on the state treasury, which is already under financial stress, to avoid power outages amid declining domestic gas production. The arrival and commencement of operations of a fourth gasification vessel will enable Egypt to maintain a stable gas supply to the electricity grid, said Medhat Youssef, former deputy chairman of the Egyptian General Petroleum Corporation. However, he added that temporary supply imbalances may still occur, which the government will likely cover using diesel until regular gas flows to power plants are restored. This may necessitate reducing gas supplies to certain industries due to the high cost of imported gas compared to the economic returns generated by these sectors, despite their export potential, Youssef said. He pointed out that gas-intensive industries yield lower returns than the cost of importing gas since the import price ranges between $14 and $16 per million British thermal units, while the supply price to factories stands at $4.5. He added that these industries are directed to carry out periodic maintenance for production lines during peak summer consumption periods, rather than during the lower-demand winter months. Given that Egypt will rely on gas imports as a long-term strategy, Youssef believes the best solution lies in accelerating the development of nuclear power plants, which are highly efficient and reliable sources of electricity despite their substantial investment costs. Nuclear plants reduce the fiscal burden on the state in the long term, especially as global gas import prices grow higher. At present, Egypt imports LNG and is purchasing a portion of the foreign partner's production share and utilising domestic output in order to meet rising demand driven by population growth. The cost of importing gas over two years is equivalent to the cost of establishing a nuclear power plant, he stated. According to Ministry of Petroleum figures, the average daily domestic consumption of natural gas in 2022-23 reached 5.9 billion cubic feet per day. Of this, 57 per cent was allocated to the electricity sector, 25 per cent to industry, 10 per cent to the petroleum and gas derivatives sector, six per cent to households, and two per cent to vehicles. According to the Egypt Vision 2030 Strategy, the government is working to increase the share of new and renewable energy in electricity generation to 35 per cent by 2030 and 42 per cent by 2035, up from the current level of 4.5 per cent. Gas and petroleum are the main sources of electricity generation, accounting for 90 per cent of total output. By 2030, Egypt's planned energy mix is expected to comprise 27 per cent oil and gas, five per cent hydroelectric power, 16 per cent solar energy, 14 per cent wind energy, 29 per cent coal, and nine per cent nuclear energy. Gamal Al-Qalioubi, a professor of energy engineering, said that accelerating the development of new and renewable energy plants is the optimal path towards reducing gas imports and reallocating available gas to export-lucrative industries such as fertilisers, cement, and petrochemicals. This objective has been announced by the government, which aims to add 39,000 Megawatts of new and renewable energy capacity by 2030, of which seven Megawatts have been implemented to date. As a result, wind and solar power plants should be brought online over the next four years at a rate of 10 Megawatts per year. Al-Qalioubi added that several wind and solar plants are under construction. Had these projects been expedited and connected to the national grid before May 2025, the financial burden on the state to import natural gas would have decreased. He referred to the 'Wafi' programme implemented by the Ministry of Planning and International Cooperation in collaboration with the European Union, which seeks to replace diesel power plants with clean energy facilities. Every time a clean energy plant enters operation, a conventional and polluting plant is decommissioned. The programme supports the government's strategy to conserve natural gas used in electricity generation and redirect it to high value-added industrial sectors. * A version of this article appears in print in the 5 June, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
09-05-2025
- Business
- Al-Ahram Weekly
Egypt: Properties to be given IDs - Egypt - Al-Ahram Weekly
Properties nationwide will soon have their own unique IDs under a new system to be rolled out this year In late April, the House of Representatives passed a law to introduce national IDs for real estate. The law calls for the creation of a unified national database of all real-estate properties, each of which will be assigned an individual number. These numbers will be printed on plaques that will be affixed to all properties. As a result, every real-estate unit — freestanding house, apartment, factory, office, or vacant plot — will have its own unique 'digital fingerprint'. The database will contain all the technical, legal, and administrative information about the property, including its address, usage, ownership, licensing, violations, and transaction records. The new system will greatly simplify property transactions. For example, it will enable ownership verification without having to obtain certifications and authorisations from a court. It will also prevent real-estate fraud through the centralised compilation of accurate documentation of property-related details. The new ID for real estate aligns with Egypt's comprehensive Vision 2030 development plans, which call for digital transformation and support the sale of Egyptian real estate to Egyptians abroad and foreign purchasers. Under the 14-article law, real estate is defined as land, buildings, and structures of all kinds, regardless of purpose or use and whether utilised or not. The goal is to generate an authoritative digital map of the whole country. The Military Survey Authority will be in charge of producing and updating the map. Local municipal departments or their counterparts in the new satellite communities will be responsible for delivering or installing the national ID plaques, which will be deemed state property. Damaging, tampering with, or altering them in any way is strictly prohibited. Only authorised government personnel will be allowed to make changes based on official approval from the relevant authority. Violators will be subjected to penalties ranging from fines to imprisonment, depending on the nature and intention of the damage. The new system will also facilitate the detection of property encroachments, the calculation of property taxes, and the improvement of the real-estate investment environment in Egypt. It will help prospective buyers make informed and safe decisions by ensuring access to verified information on the properties they have set their hearts on. As Prime Minister Mustafa Madbouli explained in a press conference last week, the deficiencies in current property registration records have long hampered property ownership verification. The new ID project for real estate will end any doubts and disputes surrounding property ownership. It will streamline owner verification processes, eliminating the need to go to court for the purpose, and it will greatly reduce the risk of fraud and protect citizens' property rights. 'Investors face considerable challenges when buying property in Egypt because much real estate is unregistered,' Madbouli said. He added that the Government itself faces problems in cases of expropriation when it discovers that some properties are not registered in the owners' names. Another aim of the law is to support Egypt's real-estate export initiative, especially dollar-based investments. The transparency afforded by the new system will attract real-estate investors — whether Egyptian expatriates or foreigners — in the market for trustworthy investment opportunities. According to Parliamentary Affairs Minister Mahmoud Fawzi, the system will safeguard citizens' rights and benefit Egyptians living abroad. He stressed that the new law imposes no additional obligations or financial burdens on property owners. It will not affect private property rights or override any of the provisions of the law on resolving building violations. People already in the process of settling issues related to zoning or building code violations in accordance with this law will not face further complications. An advantage of the new system for Egyptian expatriates, Fawzi said, is that they will be able to complete all the necessary procedures electronically, without having to travel to or be physically present in Egypt. Shamseddin Youssef, a board member of the Egyptian Federation for Construction and Building Contractors, described the new system as a much-needed modernisation of documentation systems that will bring Egypt up to date with the developed countries. 'If I'm in Aswan and want to buy a house in Cairo, I'll be able to access the property's data and construction history through its national ID. The difference will be like the before-and-after when personal ID cards were introduced,' he said. Compiling data linked to every property in the country offers the government a great opportunity to rectify problems and avoid arbitrary decision-making, MP Khaled Abdel-Aziz Fahmy told Al-Ahram Weekly. 'This is not just about residential property. It covers industrial and administrative spaces as well. It will help us understand the country's needs. The new law is very much in the citizen's interest. It will make dealing with Government agencies much easier,' he said. 'The law is expected to expand the real estate market and boost investment,' Youssef added. Mohamed Hisham, a senior urban planner at an international engineering consultancy firm, hailed the law as 'an extremely important step towards promoting sound governance and urban planning, and towards the development of smart cities in line with global trends.' 'It addresses one of the most pressing urban planning challenges, namely, the effective management of growth based on certified information and transparency. This is about more than urban management and enforcing regulations; it's about ensuring sustainable development.' Hisham stressed that in preventing building code and zoning violations, the law will significantly reduce encroachments on agricultural land, especially in rural areas of the Nile Delta. The new real-estate ID database will include precise geographic coordinates of all properties together with detailed surveys, making it harder to manipulate records. Another advantage of the new system, he said, is that it will standardise property addresses, thereby eliminating a common problem, especially in the new suburbs: the same property often has different addresses with the various utility water, gas, and electricity services. While one service lists properties by block and parcel number, another uses street names. The implementation of the new system will naturally encounter challenges, given the complexity of the task. Hisham underscored the need for a robust digital infrastructure to support it and suggested piloting the project in less densely populated areas, such as Suez, Ismailia, the Red Sea, and the New Valley. Glitches could then be ironed out before extending the work to complicated areas like Cairo, Giza, and Alexandria. According to Abdel-Aziz Fahmi, the law's executive regulations, which still have to be drafted, will specify the procedures for obtaining the assigned property ID. Regarding fees, Ministry of Housing Spokesperson Amr Khattab said that this question has not been discussed. The most recent parliamentary session on the subject focused on the project's importance because of the vital need to restructure Egypt's huge and largely unregulated real-estate sector. * A version of this article appears in print in the 8 May, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
27-03-2025
- Business
- Al-Ahram Weekly
Controversy on Banque du Caire - Economy - Al-Ahram Weekly
Social media platforms and talk shows in Egypt have been abuzz over the last couple of weeks at the news of the planned sale of Banque du Caire (BdC), Egypt's third-largest state-owned bank. Some media reports have noted that a deal to sell 45 per cent of the bank to an Emirati investor for $1 billion is in the making, stirring controversy as the figure is seen by many as below the profitable bank's fair value. One of the main drivers of the controversy is the fact that BdC was offered for sale in 2007 when a deal was about to be finalised. Things froze as the price offered was considered to be too low. It put the value of 45 per cent of the bank back then at the same $1 billion offered 18 years later. Maha Abdel-Nasser, an MP, requested in a statement addressed to the House of Representatives spokesperson as well as the minister of finance a clarification of the details of the deal. 'We don't know how the sale price was determined, the entity that conducted the valuation, or the criteria upon which the valuation is based,' she said. She questioned why the bank was not listed on the Egyptian Stock Exchange, giving local investors the right to own shares, rather than selling them directly to a foreign investor. BdC is the fifth-largest bank in Egypt by total assets, with a 2.4 per cent market share in loans and deposits and an eight per cent market share in retail lending at the end of the first half of 2024. It has the third-largest customer base, with more than three million customers. Prime Minister Mustafa Madbouli tried to calm concerns in his weekly press conference on Wednesday by saying that the state had chosen an advisor on the sale and that the last valuation had become outdated. He noted that it is undecided if the sale will be to a strategic investor or through the bourse. In a commentary published in the newspaper Al-Masry Al-Youm, economic expert Medhat Nafie lamented the fact that whenever the bank is said to be offered for sale, objections rise on claims of a low valuation preventing the government from divesting from the bank and delaying restructuring the banking sector. The latter needs to be regulated and governed in compliance with Egypt's agreement with the International Monetary Fund (IMF) to achieve increased efficiency in the banking system. 'The hype surrounding the sale of any asset intimidates investors, who view societal resistance as a risk that increases their suspicion and hesitation, requiring them to obtain additional guarantees or a price reduction to address potential issues and disputes arising from this commotion,' Nafie said. He called on non-experts to stop filling social media platforms with rumours and incitement against a particular deal, weakening the Egyptian negotiator's position. 'Most of those who have reservations about the idea of selling a public bank do so because the public banks play a role in supporting the economy by lending to the government through investing in treasuries and issuing high-yielding certificates of deposit to absorb liquidity and tame inflation,' an economic expert speaking on condition of anonymity told Al-Ahram Weekly. But according to the source, BdC's role in both activities is limited. He explained that a look at the bank's financials shows that it only invests 18 per cent of its assets in treasury bills, equivalent to less than 10 per cent of what the other two public banks invest. 'It also falls behind the two other banks when it comes to offering high-yielding deposit certificates,' he said. The idea of selling a publicly owned bank is not accepted by many experts and even laymen. 'Why are we selling a public, profit-making bank with excellent performance indicators and sound fundamentals,' asked Gamal Wagdy, a banking expert. BdC saw its net income rise 86 per cent year-on-year in 2024 to about LE12.4 billion with growth in profits in all segments, retail banking, treasury, corporate services, and small-business banking. It has assets of LE483 billion and a customer base of 300 million. Wagdy noted that all the key performance indicators of the bank are good, negating the need to resort to a foreign investor to provide it with expertise. He recalled that previous privatisation cases in the 1990s and early 2000s had brought in major names in the global financial industry that had revamped local banks but 'this is not needed in this case.' He added that the bank has undergone a restructuring process recently and that it has excellent management, as proven by the improvement in its performance during the last decade. Last November, international ratings agency Fitch Ratings upgraded its rating for the bank, together with another three local banks. It cited BdC's 'standalone creditworthiness, as well as potential support from the Egyptian authorities.' Eighteen per cent of the bank's total assets at the end of the first half of 2024 were investments in treasuries. 'The rating also reflects BdC's strong retail franchise, good profitability, moderate loan quality and stable funding. It also captures the bank's high concentrations and moderate capitalisation,' it noted. Experts have also questioned the way the bank is to be sold. If the government needs sale receipts and the bank has to be sold, why not offer it in the stock market rather than a direct sale to strategic investors, Wagdy asked. He said that selling the bank to a foreign investor would secure the dollars the government needs to meet its financial gap, but in the long run it would deprive the state of any profits realised by the bank as these would be transferred abroad. Mostafa Shafie, head of research at Arabeya Online, agreed that selling a stake in the bank through the local bourse would be a good choice as it would attract many investors. 'The sector is a good investment opportunity, given the currently limited number of bank accounts relative to the population,' he said. Central Bank of Egypt (CBE) figures show that not more than 30 per cent of Egypt's adult population have bank accounts. Moreover, around 50 per cent of the country's small and medium-sized enterprises (SMEs) do not have access to credit, which means the sector has wide room for growth. However, Shafie said that what the state needs from privatisation deals is dollars, and thus selling a stake in the bank to a foreign strategic investor is its best option. 'We also have to consider the fact that the potential success of a share offering is low due to the geopolitical risks that are weighing on the market,' he said. Comparing the price of the potential deal with the price of the one that was supposed to take place in 2008, when the National Bank of Greece wanted to acquire Banque du Caire, there is no significant change in the price, nor is there an exaggerated reduction or decrease in the bank's value, as is currently being rumoured, he said. He pointed out that even if there is a reduction in value, it will not be a drastic reduction and could be due to economic conditions and the need for dollars. * A version of this article appears in print in the 27 March, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
07-03-2025
- Business
- Al-Ahram Weekly
More social support in the offing - Economy - Al-Ahram Weekly
Around 10 million low-income ration card beneficiaries will be getting financial assistance of LE125 to LE250 depending on the size of the family during Ramadan and once again during Eid Al-Fitr as part of a newly announced social protection package. The package includes measures that will be implemented in the new fiscal year starting in July, and others that will be in force between March and July. The holy month will also witness the 5.2 million families included in the Takaful and Karama social protection programmes receiving one-off assistance of LE300. The wide-ranging new package announced by Prime Minister Mustafa Madbouli last week includes an increase of 17 per cent in the minimum wage of public sector workers to reach LE7,000 starting in July, also the starting date for pensioners to receive a 15 per cent increase in their pensions. State employees and workers in state economic entities will receive monthly increases ranging from LE1,000 to LE1,200, depending on job grade. An additional LE15 billion has been allocated to enhance the salaries of doctors, nurses, teachers, and university faculty members. The increases in wages and pensions will cost the state LE85 billion, said Ahmed Kouchok, the minister of finance, who added that 4.5 million state employees and 13 million pensioners will benefit from the increases. This is in addition to permanent increases of 25 per cent in the monthly allowances of Takaful and Karama beneficiaries, with the starting date any time between March and July. Irregular workers will be granted a bonus of LE1,500 six times a year. As part of the new package, the government will establish a LE10 billion economic empowerment fund to create job opportunities for youth, equip them for the labour market, and support entrepreneurial ventures, Kouchok said. A Finance Ministry statement added that the new package includes a LE3 billion allocation to treat 60,000 patients on limited incomes at government expense, in addition to another LE3 billion to treat the most needy who are not covered by any kind of medical insurance during a three-month period starting this month. Mohamed Abu Basha, chief economist at investment bank EFG Hermes, believes the new package will not lead to an increase in the budget deficit, saying that some of its items, such as periodic salary increases and pension raises, were already factored into the budget, while others are financed through budgetary reserves. He noted that the government has sought to diversify the spending in the new package to implement various forms of support, including ration card subsidies, salary increases, cash assistance, and healthcare services. While these measures offer some relief to low-income households, the increases remain below the rate of inflation, particularly given the cumulative rise in prices over the past two years, he said. Achieving income parity with inflationary pressures will be a long-term process. Egypt's annual inflation rate has been on a slowing streak for the last three months to reach 24 per cent in January compared to 29.8 per cent and 35.7 per cent in January and February 2024. However, the decline has been mainly due to the base effect, which means that the comparison between the rate of increase in prices this month to that of the corresponding month a year ago gives a low reading because last year's was high and not because prices are getting lower. Mohamed Hassan, managing director of Alpha Financial Investment Management, said that while the new package represents an effort to enhance household incomes, it remains insufficient in the light of rising inflation and surging prices. He said the raises would offer temporary relief, but more packages are needed. The most recent increase in the minimum wage for public sector employees occurred in early 2023, when it rose by 50 per cent to LE6,000 as part of a broader LE180 billion social protection package. Last month, the National Council for Wages decided to increase the minimum wage for private sector workers from LE6,000 to LE7,000 starting in March. The first package was introduced in 2020 costing the state LE100 billion and meant to support economic sectors affected by the Covid-19 pandemic. The second package was announced in April 2022 and was valued at LE78 billion. It aimed to mitigate the economic fallout of the Russia-Ukraine war. In September 2022, the third package, amounting to LE67.5 billion, was launched to support vulnerable groups facing mounting economic hardships. April 2023 saw the introduction of the fourth package, worth LE150 billion, which was meant to address escalating living costs. The fifth package, in October 2023 and totalling LE60 billion, sought to counter successive waves of inflation. In March 2024, the sixth and largest package to date was launched, with LE180 billion in allocations. This was intended to support people struggling with additional economic pressures. * A version of this article appears in print in the 6 March, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
11-02-2025
- Health
- Al-Ahram Weekly
Healthcare for all by 2030 - Egypt - Al-Ahram Weekly
Egypt is expanding its Universal Health Insurance System to ensure that all citizens have health coverage by 2030 Enhancing private investments in providing universal health insurance is essential, Prime Minister Mustafa Madbouli said this week while addressing the annual forum of the Universal Health Insurance Authority (UHIA). The vision adopted by the government is that providing health services is not a luxury but a fundamental right for every citizen, Madbouli said. Real development can only be achieved when individuals enjoy a dignified and healthy life, in line with Egypt's Vision 2030 and the UN Sustainable Development Goals (SDGs), he said. Held under the theme of 'Pioneering Private Investment for Sustainable Universal Health Coverage', the forum aimed to boost public-private partnerships to encourage private investment in the healthcare system and accomplish comprehensive and sustainable health coverage for everyone. During the first phase of the implementation of Egypt's Universal Health Insurance System (UHIS) in six governorates, the cost of preparing and enhancing the efficiency of health facilities exceeded LE51 billion to cover six million citizens out of a total of 107 million, the prime minister explained. He added that this demonstrated the expected future expenditure for implementing the remaining phases of the system to cover all citizens with healthcare services. It is anticipated that approximately LE115 billion will be spent to implement the system among the six governorates in the second phase. Currently, 54 per cent of health expenditure comes out of the patient's pocket, Deputy Prime Minister and Minister of Health and Population Khaled Abdel-Ghaffar said. He added that the government covers 38 per cent of the cost and the rest is covered by non-governmental organisations and others. 'The government is making every effort to speed up the process of implementing the Universal Health Insurance System by 2030,' said the minister, adding that the system's second phase will begin in July. According to Abdel-Ghaffar, the full implementation of the system is extremely important for Egypt and its future because it will ensure fairness and non-discrimination in healthcare services. 'It is true that the percentage of healthcare expenses paid for out-of-pocket by individuals in Egypt is currently higher than the amount spent by the government. But the Government percentage is expected to increase over time due to the expansion of the system,' Abdel-Ghaffar said. The UHIS was launched in July 2019 by President Abdel-Fattah Al-Sisi in Port Said to introduce a comprehensive healthcare system for 100 million Egyptians in accordance with international standards. In February 2021, President Al-Sisi initiated the trial operation of the UHIS in three governorates as part of its first phase, officially launching the system in Ismailia, Luxor, and South Sinai. Abdel-Ghaffar pointed to the importance of encouraging private investments in the healthcare sector, due to certain challenges, primarily population growth. 'Egypt's bed capacity is still below global standards. While the international benchmark is 28 beds per 10,000 citizens, Egypt currently has only 12 beds per 10,000 citizens. There is a need to add thousands of hospital beds in the coming years,' Abdel-Ghaffar said, adding that a single hospital costs the government LE3 billion and requires private-sector investment. He said that the government is committed to increasing the participation of the private sector in the development of Egypt's healthcare infrastructure. The share of private-sector hospital beds and facilities has increased significantly, reflecting its growing role in the healthcare system, Abdel-Ghaffar pointed out. The share of private hospital beds rose from 21 per cent in 2011 to 29.3 per cent in 2022, while private hospitals now account for 63.3 per cent of the total, up from 59 per cent in 2011. 'This growth highlights the rising confidence in private healthcare services and their contribution to meeting the increasing demand for medical care. The private sector also plays a crucial role in Egypt's pharmaceutical market, accounting for approximately 82 per cent of total market share in recent years,' Abdel-Ghaffar said. He also spoke about national healthcare projects implemented over the past 10 years, which have totalled 1,300 projects, including 20 projects in 2024 alone, with a budget exceeding LE35 billion across 11 governorates. Abdel-Ghaffar pointed to legislative efforts made by the government to encourage private-sector investments by providing highly facilitated loans in coordination with the Central Bank of Egypt (CBE). Further facilities include the public utilities concession law, which facilitates the establishment, management, operation, and development of healthcare facilities, as well as the Investment Incentives Model recently approved by the cabinet. Ehab Abu Aish, vice chair of the board of the UHIA, stated that Egypt has achieved significant progress in the healthcare sector in recent years through health initiatives that have brought about a fundamental shift in disease control, expanded health protection for the most vulnerable groups, and led to the implementation of the UHIS. This system is a great change in the management and financing of healthcare services, as it is based on the principles of solidarity and financial sustainability, he said. 'There are several challenges that still exist, including changing demographics, rising disease rates, and economic difficulties. Therefore, we must maximise the utilisation of all available resources to ensure the continuous development of the healthcare system,' Abu Aish added. More than 27 per cent of private healthcare providers have joined the UHIS, thus reflecting the system's success in gaining the trust of healthcare providers. 'This public-private partnership plays a crucial role in achieving universal health coverage, adhering to quality standards that ensure the best possible services for all citizens,' he said. The ministries of planning and finance are responsible for developing the necessary infrastructure to support the system, he explained, while the UHIA purchases healthcare services from both public and private entities. The UHIA signed several cooperation protocols and agreements to strengthen strategic partnerships and enhance its services during the recent forum. The agreements included a collaboration with the Ministry of Social Solidarity, E-Health, and E-Finance. This agreement enables the use of social support cards, such as Takaful and Karama welfare cards, to verify eligibility for healthcare services. It also facilitates data exchange to ensure accuracy and efficiency in delivering services to beneficiaries. E-Health is an Egyptian technology and digital connector for the health, medical, and insurance sectors, and E-Finance is a digital operations provider that provides digital services for government payments. Another cooperation agreement was signed with the National Bank of Egypt (NBE) and the Doctors Syndicate that supports healthcare providers by offering financial assistance for the purchase of medical equipment and supplies for clinics, medical centres, and hospitals wishing to join the system. There was another support and operations agreement with E-Health to enhance the digital infrastructure of the system and improve the efficiency of healthcare-service management. This will ensure technological integration across various entities involved in the system. Memorandums of Understanding (MoUs) were signed with healthcare firm B-Well Holding and health insurance provider Limitless Care. These aim to produce medical awareness content via the MedSolto platform, a medical platform connecting doctors to facilitate the sharing of experience and knowledge, to educate doctors and pharmacists about the UHIS, and to promote the integration of the healthcare sector into the system. MoUs were also signed with GlobeMed, a private health insurance company, and Yodawy, a software company that offers medication delivery, management, and insurance services for patients, corporates, and health insurance companies. The agreements focus on supporting digital transformation and developing a standardised digital model. They aim to enhance healthcare and pharmaceutical services through a unified digital framework, ensuring efficiency and consistency. Several agreements were signed to enhance the skills and expertise of medical personnel with pharmaceutical companies AstraZeneca, Astellas, Roche, and AbbVie. These agreements focus on specialised training programmes and workshops in health economics, health technology assessment, the development of treatment protocols, service package components, and advancing payment systems. * A version of this article appears in print in the 13 February, 2025 edition of Al-Ahram Weekly Short link:
