Medical supplies sector seeks procurement price revisions as costs surge

Egypt’s medical supplies sector is preparing a memorandum to Prime Minister Mostafa Madbouly calling for revisions to government procurement prices amid sharp rises in production and supply costs. The move follows measures announced by the Egyptian Authority for Unified Procurement to ease pressure on suppliers and ensure steady medical supplies availability.

Egypt’s medical supplies sector plans to submit a memorandum to Prime Minister Mostafa Madbouly requesting revisions to government procurement prices due to sharp increases in production and supply costs.

Amr Gad, Deputy Head of the Egyptian Authority for Unified Procurement for the medical supplies sector, stated that all unfulfilled purchase orders over five weeks old will be cancelled and reissued. He pledged to shorten payment cycles to 30-45 days from the previous 120 days and allow suppliers to substitute bank guarantees with portions of their outstanding dues.

Mohamed Ismail Abdo, Head of the Medical Supplies Division at the Cairo Chamber of Commerce, affirmed the sector’s commitment to meeting the authority’s needs for a strategic reserve. Members were asked to provide March and April delivery data for the memorandum, noting cost hikes of at least 100% in transportation, insurance, raw materials, and Egyptian pound depreciation. He urged companies to fulfill commitments by end of April.

The division compiled invoices from private hospitals showing markups, such as EGP 1,200 charged to patients for a box of medical gloves versus supply prices of EGP 170-180. These will be submitted to authorities and the parliamentary health committee.

Mari Gamal, Head of Central Administration at the authority, called for updated inventory data on finished products, raw materials, and supply volumes to plan tenders. She noted the authority has not imposed delay penalties since its establishment.

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