The Egyptian economy has been hit hard by global and regional events since 2019. This started with the COVID-19 pandemic and the resulting global lockdown, followed by the global inflationary wave accompanied by the Russian-Ukrainian War, and more recently, regional conflicts. All these factors, with Egypt being a net importer, have placed immense pressure on the Egyptian pound, pushing the exchange rate to skyrocket and affecting the country’s trade balance.

Recently, Egyptian President Abel Fattah El-Sisi identified the high import bill of non-essential or luxury goods as a key contributor to the exchange rate problem in Egypt.

This Factsheet explores Egypt’s import landscape for such goods and the government’s approach to managing it.

• During the inauguration of the Bashteel railway station, the president stated that many of these non-essential products already have local alternatives or could be easily manufactured domestically. He urged manufacturers to invest in the production of these goods locally.
• The Minister of Industry reported that the import bill for these goods reached $6.5 billion, accounting for 12.3% of Egypt’s non-oil imports.
• According to the president’s statement, Egypt imported perfumes, deodorants, and toilet paper worth $440 million over the past decade, in addition to handbags worth $200 million and chocolate worth $400 million. The country also imported ceramics at a value of $235 million, as well as $1.2 billion worth of cheese and aluminum foil paper worth $500 million.
• In 2023 alone, Egypt imported $364.5 million worth of cosmetics, including perfumes, deodorants, and makeup products. It also imported around $10 million worth of handbags and $6.2 million worth of pet food. This is in addition to $126.8 million worth of aluminum foil, $53.6 million worth of chocolate, and $95.3 million worth of cheese products.
• Other imports included imitation jewelry or women’s accessories at a value of $10.9 million, and toys, games, and sports requisites worth $83.5 million.
• Recently, several international investors announced plans to start or expand operations in Egypt. These plans included investments of $70-100 million to produce aluminum foil paper, $280 million for chocolate production and export, and EGP 150 million for cheese production.
• This is not the first time the government has linked the import of luxury goods to the foreign exchange issue. In 2016, Egypt witnessed similar economic conditions as the government raised tariffs on 364 imported goods by 5%-60%. These goods were categorized as provocative goods. The list included, but was not limited to, pet food, cosmetics, deodorants, and sports shoes.

By: Amina Hussein

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