{"id":685923,"date":"2026-03-08T00:00:00","date_gmt":"2026-03-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/08\/rising-import-costs-are-squeezing-egypts-pharma-industry\/"},"modified":"2026-03-08T00:00:00","modified_gmt":"2026-03-08T00:00:00","slug":"rising-import-costs-are-squeezing-egypts-pharma-industry","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/08\/rising-import-costs-are-squeezing-egypts-pharma-industry\/","title":{"rendered":"Rising import costs are squeezing Egypt\u2019s pharma industry"},"content":{"rendered":"

A <\/strong>weakening<\/strong> EGP is adding pressure on the pharma industry<\/strong>, forcing the Central Bank of Egypt to fast-track urgent letters of credit for essential imports, Egyptian Chambers of Commerce pharma division head Ali Ouf tells EnterpriseAM. While Egypt currently has a six-month supply of raw materials and a four-month stock of finished meds, the volatile exchange rate is threatening the industry, Ouf warns<\/p>\n

Manufacturers are caught in a classic double bind: skyrocketing import costs and fixed <\/strong>local prices. <\/strong>With most active ingredients sourced from China and India, the cost of making drugs is highly vulnerable to the trade disruptions currently rocking the Gulf. Ouf estimates that production costs could climb by 30% over the next three months, compounded by a potential 50% jump in container ins. costs. Air freight is no longer a viable escape valve either, with costs having spiked by 200-300%.<\/p>\n

Under normal circumstances, a mandatory pricing system prevents manufacturers from <\/strong>passing these costs onto consumers<\/strong>, Ouf explains. Drug makers are also bogged down by a list of import and financial fees owed to the Egyptian Drug Authority and the Finance Ministry.<\/p>\n

But these aren\u2019t normal times.<\/strong> Ouf is calling for special treatment to avoid potential drug shortages. His division is urging the government to either adjust price caps to reflect current exchange rates or slash the fees imposed on drug registration, logistics services, and financial charges. Either of these measures, combined with the CBE\u2019s support, could stabilize production without forcing the public to pay more at the pharmacy counter, Ouf argues.<\/p>\n

MEANWHILE-<\/strong> The government has cleared a significant chunk of its debt to the industry, paying out EGP 30 bn of the EGP 43 bn owed \u2014 a much-needed liquidity boost for a sector under pressure.<\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

Production costs could climb by 30% over the next three months if exchange rate pressures remain<\/p>\n","protected":false},"author":1,"featured_media":685924,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7304],"tags":[72,1666,427],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-685923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pharma","tag-enterpriseam","tag-exchange-rate","tag-pharma","wpautop","entry"],"acf":{"mongo_id":"ef31a69f-3f64-4e64-97df-e22b07c3f322","order":"9","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/3\/373.jpg","photo_position":"above","homepage_title":"","full_issue_title":"EGP slide puts the pharma industry in a corner","related_issue":[685907],"teaser":"Production costs could climb by 30% over the next three months if exchange rate pressures remain"},"yoast_head":"\nRising import costs are squeezing Egypt\u2019s pharma industry - 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