In 1977, the then-president of Egypt, Anwar Sadat, lifted state subsidies on a range of basic foodstuffs. Under a policy of 'Infitah', or openness, the reforms were introduced as part of a wider programme of economic liberalisation. The result was catastrophic; cities across the country erupted in riots in what became known as 'the Bread Intifada'. Nearly 80 people were killed and hundreds were injured in the ensuing violence. In the intervening years, no Egyptian government has dared to tackle the country’s subsidy regime – until now.
Since being sworn into office in 2014, current president Abdel Fattah el-Sisi has embarked on one of the most striking economic reform programmes anywhere in the world. The president, whose reputation is akin to that of a demanding chief executive, has shaken the foundations of the Egyptian economy in his pursuit of a more business-friendly market. The end goal is Vision 2030 and the attainment of a balanced, competitive and diversified economic model.
