Egypt’s medical supplies sector pushes for procurement price reforms amid rising costs

EGYPT—The medical supplies sector in Egypt is preparing to submit a memorandum to Prime Minister Mostafa Madbouly, seeking urgent revisions to government procurement prices as production and supply costs continue to rise sharply.

This move comes as suppliers face mounting financial pressure driven by increased expenses for raw materials, transportation, and insurance.

In response, the Egyptian Authority for Unified Procurement has introduced a series of measures aimed at easing operational strain and maintaining a steady flow of essential medical supplies.

Amr Gad, Deputy Head of the authority for the medical supplies sector, confirmed that all purchase orders older than five weeks that remain unfulfilled will be cancelled and reissued.

This step is intended to reduce administrative and financial burdens on both manufacturers and traders.

Furthermore, the authority has committed to significantly shortening payment cycles.

Suppliers delivering goods for Egypt’s strategic stockpile will now receive payments within 30 to 45 days, compared to the previous 120-day period.

In addition, companies can now substitute bank guarantee letters with a portion of their outstanding dues, a move designed to ease liquidity challenges.

Suppliers seek price adjustments

At the same time, Mohamed Ismail Abdo, Head of the Medical Supplies Division at the Cairo Chamber of Commerce, emphasized that suppliers remain committed to meeting national demand and supporting the buildup of a strategic reserve.

However, he noted that companies are facing cost increases of at least 100% across several components, including logistics and raw materials, alongside the depreciation of the Egyptian pound.

To support the memorandum, division members have been asked to submit detailed data on deliveries made during March and April, including quantities and total values.

This data will help justify the sector’s request for price adjustments that better reflect current market conditions.

Abdo also urged companies to fulfill their supply commitments to the procurement authority, as well as to hospitals affiliated with the Ministry of Health and Population, public health insurance entities, and university hospitals before the end of April.

Concerns over market pricing practices

Meanwhile, the division has compiled invoices from private hospitals showing significant price disparities.

According to Abdo, some hospitals charge patients around EGP 1,200 (USD 24) for a box of medical gloves, while suppliers sell the same products at EGP 170–180 (USD 3.40–3.60).

Separately, Mari Gamal, Head of Central Administration at the procurement authority, has called on companies to provide updated data on inventory levels, including finished goods, raw materials, and monthly supply volumes.

She stressed that accurate data is essential for planning tenders and ensuring the completion of the country’s strategic medical supplies reserve.

Gamal also noted that the authority has already finalized Egypt’s pharmaceutical stockpile and has consistently avoided imposing delay penalties on suppliers to support the sector.