Egypt hikes electricity prices as part of austerity measures

Egypt is raising the price of electricity by an average of 26% as part of austerity measures designed to overhaul the country's economy.

Electricity Minister Mohamed Shaker said on Tuesday that electricity charges for factories would rise by 41.8% and for households 20.9%. He says the new charges will take effect in July.

Egypt earlier this month raised the price of piped drinking water by up to 45%.

The hikes come as Egypt presses ahead with an economic reform program that has included slashing subsidies, imposing a value-added tax and a currency floatation. The measures aimed at qualifying for a three-year $12bn bailout loan from the International Monetary Fund, which Egypt secured in 2016.

The changes have hit poor and middle-class Egyptians especially hard.

AFP