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First with the News

Egypt: SMEs Condemn Early Closure Of Shops Amid Energy Crisis

July 1, 2024
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By Ebi Kesiena

Egypt’s small business owners have reacted angrily to the government’s decision to close shops early as part of a plan to reduce power usage due to energy shortages.

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Starting Monday, all shops, cafes, and restaurants must shut by 10 pm, while pharmacies and supermarkets can remain open until 1 am.

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Prime Minister Mostafa Madbouly announced this decision last week, apologizing for the enforced daily power cuts.

Shop owners, already burdened by high operating costs due to record inflation, are dismayed by the reduced business hours. Omar Ismail, whose family runs a clothes shop in Cairo’s Matareya district, expressed frustration: “How ridiculous is it to issue a decision like that when people are screaming from the cost of living?”

Small businesses, especially in poorer areas, have been struggling since regular power cuts began last summer. The government has prioritized gas exports to Europe, worsening the local energy crisis. Many small business owners cannot afford generators, unlike their larger counterparts in malls or upscale areas. “I am losing business day by day,” Ismail said, noting that most customers shop at night during the cooler hours.

Also, Tamer Ibrahim, a supermarket owner in Cairo’s Al Zawya Al Hamra district, said power cuts have caused his frozen produce to perish faster. He pointed out that chain supermarkets do not face this issue, highlighting the inequality between small and large businesses.

There are also discrepancies in power cut durations between affluent and poorer neighborhoods. Residents in areas like Heliopolis, which houses the presidential palace, report minimal power outages, increasing resentment among lower-income Egyptians. The visible, uninterrupted power supply at North Coast resorts, frequented by the affluent, adds to the discontent.

When routine power cuts returned last summer, the government blamed high temperatures and inadequate fuel stockpiling. Prime Minister Madbouly reiterated these reasons recently, sparking widespread criticism and accusations of government failure. Reports of power-related incidents and deaths, including a man’s fatal fall while escaping a stuck elevator, have fueled the growing dissatisfaction.

Despite these challenges, the government has allocated $1.8 billion for fuel imports during the summer months. However, this has done little to alleviate the frustrations of Egypt’s struggling small business community.

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