The Egyptian Cabinet approved to keep the subsidy on home electricity bills until fiscal year (FY) 2024/2025 due to the economic fallout from the COVID-19 outbreak, according to a June 9th announcement.
The electricity subsidies were planned to be fully lifted by the end of FY 2021/2022 after the Egyptian pound was floated in 2016.
The additional three-year subsidy will cost the state a total of EGP 26.7 billion.
It is worth noting that Egypt’s economic growth decreased to 5% during the third quarter of FY 2019/2020 due to the COVID-19 pandemic.
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