Egypt releases $1.5 billion worth of imports stranded at ports since 1 Jan

The Egyptian government released imports worth $1.5 bn backlogged for months at ports in the first 10 days of January, putting the total value of goods cleared since 1 December at $ 8.5 bn, the Prime Minister Mostafa Madbouly said in a cabinet statement yesterday.

The statement didn’t disclose how much remains stuck in ports, though the government previously pegged the value at $9.5 bn as of 25 December. The imports released so far in January include $613 mn worth of manufacturing inputs including foodstuffs, raw materials, and spare parts, the statement reads.

The released goods also comprised foodstuff including $40 million worth of corn, $28 million worth of soybeans, and $56 million worth of pharmaceutical chemicals, according to Madbouly.

Vast quantities of goods, including production inputs valued in the billions of dollars, had been accumulating at Egyptian ports after curbs were imposed on import finance due to a hard currency crunch resulting from the Russian-Ukrainian war.

In February, the Central Bank of Egypt obliged importers to use letters of credit to finance their imports, before they were phased out gradually by the end of December.

The dismantle of the Letters of Credit system for imported goods, alongside a flexible exchange rate, is among a host of commitments Egypt has pledged in order to secure a $3 billion IMF loan to address the impacts of the inflationary wave and the FX pressure caused by the war in Ukraine.

Today's announcement brings the value of the released imported goods to $8.5 billion since early December.

PM Madbouly said efforts will continue to speed up the release of all goods held at the country's ports to make them available in the local market.

The government has said it is giving priority to food products, food manufacturing components, medicines, and production requirements.