Russia's war in Ukraine casts shadow over Ramadan in Egypt

CAIRO -- The economic repercussions of Russia's war on Ukraine have had a significant impact on the Egyptian economy which is acutely felt during Ramadan, with sharp increases in the prices of basic foods and commodities.

The rising cost of living, which many blame at least in part on Russia's war and associated issues with the import and availability of wheat, has forced most families to cut down on expenses during the holy month.

The Egyptian economy had barely taken its first steps towards recovery following the coronavirus pandemic, when it received a new blow from the Russian war on Ukraine, said Ain Shams University economist Fakhreddine Awadallah.

This was the case for many countries, he told Al-Mashareq, but perhaps the impact was more severe in Egypt, which was facing an economic crisis already.

The Egyptian government in 2016 moved forward with an economic recovery plan to address longstanding challenges in the Egyptian economy.

Per the International Monetary Fund, these included "a balance of payments problem manifested in an overvalued exchange rate, and foreign exchange shortages [and] large budget deficits that led to rising public debt".

Egypt has been grappling with "low growth with high unemployment", it said.

It also is facing a "decline in tourism revenues and withdrawal of investment by many investors", Awadallah said, noting that the government has been forced to implement a package of exceptional measures to deal with the downturn.

There has been a significant increase in the price of wheat, cereals and fodder, he added, which in turn led to a wave of price hikes in the local market applying to all products, without exception.

"This impacted people's purchasing power, especially with regard to basic items such as meat, poultry products, oils, cereals and legumes," he said.

With the advent of Ramadan, this has been more noticeable as there has been a significant increase in demand for basic commodities, Awadallah said.

Massive price hikes

Cairo food store owner Khaled Ali complained about the increase in prices since the start of the Russian war.

"The price of meat has risen by up to 50%, with the price per kilogramme exceeding 300 EGP ($9.70), while poultry, fish, oils, sugar and bread have increased by up to 70%."

The impact of the high prices could be seen in shopping patterns ahead of the month of Ramadan, he said, "as most families refrained from buying what they needed for the entire month, and opted instead to make daily purchases".

Some stopped buying certain commodities, or reduced the quantities of the specialty items they purchased, such as Ramadan yamish (dried fruit and nuts), to less than half of what they had previously consumed, he said.

"The month of Ramadan this year is very harsh," said Samah Omar, who teaches English at a private school in Cairo.

Omar said her monthly salary barely covers the expenses of just one week of the holy month.

Had it not been for the additional income she makes from private lessons, she would not have been able to meet her household's needs during Ramadan at all, she told Al-Mashareq.

This year, she said, she changed many of her previous customs, such as setting up an iftar spread featuring numerous dishes, limiting it instead to "only one main dish, one type of sweets and one type of drinks".

Decline in charitable donations

Egyptians who rely on charitable donations during Ramadan are making do with less this year, said Ihab Abdo, who works for a charitable organisation that distributes food and ready-made meals during the holy month.

"Donations have declined this year by about 40% from the economic situation resulting from the repercussions of the Russian-Ukrainian war, which consequently affected the distribution plans for this month," he said.

The decline in donations from all sources makes it clear that "all Egyptians have been hard hit by the consequences of the Ukrainian crisis", he told Al-Mashareq.

Charitable organisations have had to reassess the level of need of families on their lists in order to deliver donations to the neediest, especially in low-income and rural areas.

Smaller portions are being served in the ready-made meals that are distributed at iftar time, Abdo said, and these meals "are now limited to essential food items for fasters that primarily provide them with the necessary calories".