Prices of electrical appliances drop by 30%
Egypt - Wafi Abu Samra, a member of the Electrical Appliances Division at the Giza Chamber of Commerce, reported that various electrical appliance companies and manufacturers have slashed prices by 10%. This reduction, coupled with the cessation of the overpricing trend—which previously led to a markup in factory prices by 15 to 30%—indicates that the average price drop for electrical appliances is at least 30%.
The downward trend in prices is anticipated to persist. Many electrical appliance firms have started to roll out promotional offers on select products, marking a shift from the previous period characterized by dollar scarcity and supply chain disruptions due to geopolitical unrest in several parts of the globe. During that time, promotions were scarce for any product, regardless of its availability in the Egyptian market.
Abu Samra elaborated that the move to offer discounts on electrical appliances was driven by Egypt’s economic stabilization following the completion of the Ras El-Hikma agreement with the UAE, which involved a total investment of up to $35 billion. This agreement led to a decrease in the dollar’s exchange rate in the parallel market. Additionally, the decision to liberalize the exchange rate at the start of March has brought further market stability.
Furthermore, Abu Samra noted that a new deal with the International Monetary Fund (IMF) is set to increase Egypt’s loan value to $8 billion, up from the previous $3 billion. There’s also the potential for Egypt to secure an additional $1.2 billion loan from the Environmental Sustainability Fund, along with a financing package from the World Bank amounting to $6 billion over the coming three years. Moreover, an agreement for a financing package of $8.06 billion with the European Union for the period 2024-2027 has been reached. These financial influxes have significantly boosted the dollar supply, effectively enhancing the availability of goods in the local market, and thereby leading to price stability and reductions.