Smart card based subsidies come to Giza

Minister of Supply Khaled Hanafy announced Tuesday that Egypt’s new smart card bread subsidy scheme has been expanded to cover Giza neighborhoods, including Dokki, Agouza, Bulaq Dakour and Warraq. 

This follows the introduction of the smart cards in Giza towns, including Hawamdia, Kerdasa and 6 October City. Other districts, including Haram, are scheduled to adopt the system in the coming days.

The system, which was first introduced in the Suez Canal region in January 2013, is based on electronic ration cards that entitle residents to 150 loaves of bread per month at a heavily subsidized price of five piasters per loaf. Consumers who do not use their entire quota receive credits that can be used to purchase other subsidized commodities, such as oil or rice. 

Officials say the program has reduced subsidy expenses by up to 30 percent by reducing waste and curtailing the black market trade of subsidized flour, while also minimizing the time consumers spend waiting for subsidized bread.

Critics of the program, however, say it has simply led to more elaborate forms of fraud and corruption, and has made purchasing the staple food nearly impossible for students, migrant workers and other people not officially registered in the area where they currently reside.

Despite mixed receptions, the program is continuing to expand across the country, and Hanafy urged those not registered for ration cards to apply for them immediately.

This week will also see the inauguration of a call center to handle complaints and inquiries regarding subsidized commodities. Hanafy, along with Communications Minister Atef Helmy, will launch the center at a Thursday ceremony in Smart Village. 

Hanafy also announced Tuesday that the ministry plans to introduce an SMS service that will let citizens check the balance of their bread rations by phone, and also receive updates about services provided by the ministry, including special events, promotions and prices of available goods.