Egypt cuts baby formula subsidies in latest attempt to save economy

Egyptian mothers gathered yesterday in Cairo, blocking traffic, holding empty milk bottles and crying babies, to rally against severe shortages of subsidised baby formula.

Egyptian Minister of Health and Population Ahmed Emad El-Din Rady denied that a crisis exists.

This is the first time in Egypt’s history that baby formula subsidies have been cut, however it is the latest measure introduced by the government to get Egypt’s struggling economy back on its feet. Like the cuts in energy subsidies and tax increases that have also been implemented, shortages of subsidised baby formula will hit the poorest Egyptians the hardest.

Egypt: 40% increase in price of subsidised baby formula

Egypt’s economy has struggled over recent years, in part because tourists and foreign investors, who once made up a considerable amount of its GDP, have stayed away from the country as news of widespread human rights abuses continue to emerge from the country. As a result, the country’s domestic debt is estimated to stand at around 2.25 trillion Egyptian pounds ($0.25 trillion).

As well as cutting services at home, Egyptians are in the final stages of negotiating a $12 billion IMF loan after having accepted, and exhausted, billions of dollars in aid from Gulf countries which was handed over after the first democratically elected President Mohamed Morsi was ousted from power in 2013.