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The successful roll-out so far of a new “smart card” system to distribute subsidised bread has been a major achievement for Egypt's government, saving money while earning praise from families who no longer have to wake early to fight for loaves. President Abdul Fattah Al Sisi appears to be succeeding where predecessors Hosni Mubarak and Mohamed Morsi both failed in the delicate task of reforming a system that has drained the state's finances while angering the population. For generations, Egypt's government has fed the public by distributing subsidised flour to bakeries, which sell bread for as little as 5 piastres a loaf, less than one US cent. The system turned Egypt into the world's biggest importer of wheat, draining the government's foreign currency reserves: Cairo spends $3 billion a year on imports for it. Nor has it pleased the public. Bread has been sold on a “first come, first served” basis, forcing people to queue up for hours in the morning to get it before it runs out, and sometimes leading to violence. Those who arrive at the bakery early sometimes buy extra bread to feed to their livestock. Meanwhile, those who arrive too late can get nothing. And bakers are widely accused of siphoning off flour to sell on the black market, profiting while running up the government's bills. Under the new system, families are issued plastic cards allowing them to buy five loaves per family member per day. Buyers no longer have to queue. Bakeries are paid for the subsidised loaves they sell, rather than being given a fixed allotment of cheap flour, making it harder to siphon off subsidies.


A woman buys bread at a bakery in Cairo, January 8, 2015. The successful roll-out so far of a new “smart card” system to distribute subsidised bread has been a major achievement for Egypt's government, saving money while earning praise from families who no longer have to wake early to fight for loaves. (Photo by Mohamed Abd El Ghany/Reuters)

A woman buys bread at a bakery in Cairo, January 8, 2015. The successful roll-out so far of a new “smart card” system to distribute subsidised bread has been a major achievement for Egypt's government, saving money while earning praise from families who no longer have to wake early to fight for loaves. (Photo by Mohamed Abd El Ghany/Reuters)




A woman walks away after buying bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman walks away after buying bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A worker carries dough to be put into an oven in a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A worker carries dough to be put into an oven in a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman carries bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman carries bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman walks away after buying bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman walks away after buying bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A worker weighs dough to be baked into bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A worker weighs dough to be baked into bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




Men queue to buy bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

Men queue to buy bread at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A female worker carries bread as people wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A female worker carries bread as people wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman arranges bread after purchasing it at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman arranges bread after purchasing it at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman carries bread as she leaves a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman carries bread as she leaves a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman carries bread after purchasing it at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman carries bread after purchasing it at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A worker arranges dough to be placed in an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A worker arranges dough to be placed in an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A female worker carries a tray of bread as customers wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A female worker carries a tray of bread as customers wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A woman carries bread as she leaves a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A woman carries bread as she leaves a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A female worker passes bread through a window as people wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A female worker passes bread through a window as people wait to make their purchases at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A worker carries dough to be placed in an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A worker carries dough to be placed in an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




A female worker takes bread out of an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

A female worker takes bread out of an oven at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)




Women purchase bread through a window at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)

Women purchase bread through a window at a bakery in Cairo, January 8, 2015. (Photo by Mohamed Abd El Ghany/Reuters)
13 Jan 2015 14:35:00