Egypt’s medical supplies sector is preparing to submit a memorandum to Prime Minister Mostafa Madbouly, calling for revisions to government procurement prices in response to sharp increases in production and supply costs.
The move follows a series of measures announced by the Egyptian Authority for Unified Procurement aimed at easing pressure on suppliers and ensuring the steady availability of medical supplies.
Amr Gad, Deputy Head of the authority for the medical supplies sector, said all unfulfilled purchase orders older than five weeks will be cancelled and reissued, a step designed to reduce burdens on suppliers, including traders and manufacturers.
He also pledged to shorten payment cycles for supplies delivered to support the country’s strategic stockpile, with payments now to be made within 30 to 45 days of delivery, compared to the previous standard of 120 days.
In addition, suppliers will be allowed to substitute bank guarantee letters with a portion of their outstanding dues, easing liquidity constraints.
Gad noted that the authority is currently reviewing procurement prices to better reflect rising input costs, including shipping, insurance, and raw materials. While exchange rate fluctuations have had an impact, he said they remain a less significant factor compared to other cost drivers so far.
For his part, Mohamed Ismail Abdo, Head of the Medical Supplies Division at the Cairo Chamber of Commerce, said the sector remains committed to meeting the authority’s needs and supporting efforts to build a strategic reserve of medical supplies.
He added that division members have been asked to submit detailed data on deliveries made during March and April—including quantities and total values, in preparation for the memorandum to the prime minister.
Abdo stressed that suppliers are seeking price adjustments in line with what he described as cost increases of at least 100% across several components, including transportation, insurance, and raw materials, alongside the depreciation of the Egyptian pound.
He also urged companies to fulfil their supply commitments to the procurement authority and the broader healthcare system, including hospitals affiliated with the Ministry of Health and Population, public health insurance entities, and university hospitals, before the end of April.
The division has compiled invoices from private hospitals highlighting what it described as significant markups on medical supplies. These documents are set to be submitted to relevant authorities and the parliamentary health committee.
According to Abdo, some hospitals charge patients around EGP 1,200 for a box of medical gloves, compared to supply prices of EGP 170–180.
Mari Gamal, Head of Central Administration at the procurement authority, called on companies to provide updated data on inventory levels, including finished products, raw materials, and monthly supply volumes. She said such data is essential for planning tenders and procurement orders to complete the strategic reserve of medical supplies, noting that the authority has already finalised the country’s pharmaceutical stockpile.
Gamal also emphasised that since its establishment, the authority has not imposed delay penalties on suppliers or resorted to purchasing at their expense in cases of delayed delivery, in a bid to support the sector.
