{"id":16872,"date":"2026-03-16T23:42:53","date_gmt":"2026-03-16T21:42:53","guid":{"rendered":"https:\/\/zawia3.com\/?p=16872"},"modified":"2026-10-07T04:01:22","modified_gmt":"2026-10-07T02:01:22","slug":"medicine-in-egypt","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/medicine-in-egypt\/","title":{"rendered":"War Threatens Egypt\u2019s Medicines: Imported Raw Materials and Strained Supply Chains"},"content":{"rendered":"

The supply crisis caused by the regional war that began on February 28, 2026, is reaching Egypt\u2019s vital sectors, from gas and food to pharmaceuticals. The industry depends on imports for roughly 90% of its raw materials. The article\u2019s opening estimate puts their annual cost<\/a> at about US$3 billion, in addition to hundreds of millions spent on finished medicines without local alternatives, some of them life-saving. Other sources interviewed below give different import-cost estimates; they are not directly interchangeable.<\/p>\n

The Egyptian Association for the Right to Medicine warned of potential shortages<\/a> and of companies exploiting the situation to raise prices. It urged the Egyptian Drug Authority and Unified Procurement Authority to disclose raw-material stocks, finished-medicine shipment status and preparedness plans to reassure the public and prevent market manipulation.<\/p>\n

The association anticipated higher freight and energy costs, a stronger dollar and disrupted Red Sea trade delaying raw materials whose annual import bill it estimates at over US$1.3 billion, as well as approximately US$700 million in imported medicines and surgical supplies. Such delays could compound shortages and affect treatment and health-insurance programmes.<\/p>\n

Ali Auf, head of the medicines division at the Federation of Egyptian Chambers of Commerce, acknowledged the potential impact of tensions. In press statements<\/a>, he said geopolitical disruption lasting more than three months could raise production costs by around 30%. Currency movements and global supply-chain disruption were placing simultaneous pressures on the industry.<\/p>\n

The United States and Israel attacked Iran<\/a> in late February; Tehran responded by attacking Israel and US bases in Gulf countries. Exchanges continued at the time this March report was written. Airspace closures and suspended flights, a partial closure of the Strait of Hormuz and threats to Bab al-Mandab shipping diverted vessels around Africa\u2019s Cape of Good Hope, increasing costs and delivery times.<\/p>\n

With navigation risks<\/a> in the Red Sea and the two straits, costlier Cape routes, oil-price pressures and the dollar trading above EGP 52 during the period, pharmaceutical experts expected price increases in subsequent months and delays to some medicine and medical-supply shipments.<\/p>\n

Observers warn that prolonged disruption could create further pressure on prices and availability of essential products. Egypt\u2019s dependence on imported pharmaceutical inputs makes these concerns especially significant.<\/p>\n

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Stock Transparency and Shortage Concerns<\/h2>\n

Mahmoud Fouad, president of the Egyptian Association for the Right to Medicine, says previous geopolitical crises\u2014including Russia\u2019s war in Ukraine, the Gaza war and Red Sea disruption\u2014affected medicine supply chains. He asks whether regulators have accurate inventory data and a clear crisis plan. The association contacted foreign pharmaceutical companies operating in Egypt to ask about stocks and supply plans.<\/p>\n

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Fouad told Zawia3 that current fears centre on medicine and raw-material shipments being delayed by up to two months as trade routes change and cargo travels around the Cape rather than shorter routes. This could prevent factories operating at full capacity.<\/p>\n<\/blockquote>\n

Heavy dependence on imported raw materials and finished medicines exposes the market to international trade disruption, freight costs and foreign-exchange changes, he says. Local companies already face energy and fuel pressures, with some reporting production-cost increases of up to approximately 20%.<\/p>\n

Higher freight costs, new routes and a more expensive dollar may revive demands to raise medicine prices, Fouad says\u2014a recurring controversy as some seek to link prices to cost fluctuations.<\/p>\n

He argues that official claims of several months\u2019 stocks cannot be independently assessed without published data. Information about government tenders and supplies to sovereign bodies is generally unavailable to the public or sector observers. Factories usually hold raw-material stocks, but their size and regular use remain unclear.<\/p>\n

Fouad estimates shortages affecting around 168 products. He says the Egyptian Drug Authority must prevent a recurrence of the acute 2023 crisis by publishing clear strategic-stock figures and explaining its contingency plan.<\/p>\n

On March 3, Health and Population Minister<\/a> Khaled Abdel Ghaffar said strategic stocks of medicines, raw materials and medical supplies were stable. Some vital products had reserves for up to three months and others more than six. Auf separately said raw and packaging materials covered six months, extending to ten when finished products were included. These statements refer to different products and inventory categories.<\/p>\n

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Regional Tensions and Parliamentary Questions<\/h2>\n

MP Nevine Iskander, a member of the House Health Committee and Coordination of Youth Parties and Politicians, warned about regional tensions<\/a>, supply chains, trade and foreign-currency availability. She estimated imported raw materials at approximately 90% of local industry inputs, costing US$1.8 billion annually, plus approximately US$600 million for finished medicines.<\/p>\n

Iskander requested a parliamentary discussion of government policy and its alignment with economic resilience and reduced external dependence. Medicine security requires local production and sustained availability of essential treatments, particularly for chronic conditions, she says.<\/p>\n

She told Zawia3 that Egyptian Drug Authority figures presented in earlier parliamentary discussions put average stocks at approximately nine months: six in government warehouses and three in pharmacies. These are broad averages for marketed medicines, rather than assurance that every product is available for that period.<\/p>\n

Iskander says around 90% of ingredients in locally manufactured medicines are imported, while finished imports account for approximately 10% of medicines. Dependence on imports makes supply vulnerable to global trade disruption, shipping and aviation risks.<\/p>\n

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She says the government previously reported about 540 unavailable products and later supplied approximately 400, while she estimates roughly 100 remain short, mostly wholly imported. These rounded figures and her current estimate differ; the report does not establish a consistent product-by-product reconciliation with Fouad\u2019s figure of 168.<\/p>\n<\/blockquote>\n

The crisis also affects locally manufactured medicines because their raw materials are imported, she adds. Factories have already raised concerns about obtaining inputs amid international disruption.<\/p>\n

Iskander hopes the government will avoid new price rises. Medicines are indispensable, especially for daily users with hypertension or diabetes and those needing cancer, antiviral or dialysis-related treatments and supplies. These patients cannot absorb further increases, she argues.<\/p>\n

The Egyptian Drug Authority centrally regulates medicine prices, she notes. In her view, the reported nine-month average stock should support price stability during that period, and she asks that prices not be increased while those stocks last.<\/p>\n

She urges preparation before stocks run down, including urgent meetings between the authority and industry and diversification of raw-material and medicine import sources to reduce exposure to disrupted routes.<\/p>\n

Egypt\u2019s previously announced pharmaceutical localisation strategy needs an assessment of actual progress in light of international conditions, she says. Plans should be publicly explained, alongside awareness guidance to prevent panic over temporary shortages.<\/p>\n

Iskander also calls for additional suppliers beyond the countries on which Egypt heavily relies, such as China and India, to reduce concentration risks.<\/p>\n

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How War Affects Pharmaceutical Production<\/h2>\n

Dr Mostafa al-Wakeel, deputy head of the General Pharmacists Syndicate, says Egypt\u2019s reliance on imported inputs makes pharmaceuticals highly sensitive to geopolitical tensions, as in other countries using international supply chains. Political and military crises lead states to reassess strategic stocks, particularly medicines.<\/p>\n

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\u201cMedicine is a strategic, vital commodity, not a luxury,\u201d he told Zawia3. Supply disruption quickly affects markets and patients. Production had already been affected to some extent by uncertainty over upcoming imports, he says; prolonged or wider tensions could create shortages.<\/p>\n<\/blockquote>\n

Import dependence extends beyond active pharmaceutical raw materials to aluminium foil, production powders, inks, paper and other manufacturing inputs. Al-Wakeel estimates imported dependence for these inputs at around 95%; this is a broader category than the raw-material share cited elsewhere.<\/p>\n

Foreign-exchange increases affect production costs and potentially medicine and medical-supply prices, but price revisions do not follow dollar movements automatically or immediately, he explains. They require studies and regulatory procedures.<\/p>\n

Companies facing higher raw-material costs or exchange-rate pressures submit formal repricing applications to the Egyptian Drug Authority, which evaluates the requests and stability of economic changes before deciding.<\/p>\n

Long-term import contracts often cover six or seven months, reducing immediate exposure to sudden price or supply shifts. Nevertheless, continued economic pressure could lead to some medicine price increases, al-Wakeel says.<\/p>\n

He sees import dependence as a principal weakness and supports expanded local manufacturing. Recent official moves to establish raw-material factories aim to narrow that gap and strengthen domestic production of pharmaceutical inputs.<\/p>\n

Many countries maintain medicine and medical-material reserves against pandemics, wars and other shocks, he notes. Egypt has stocks for a period, but that does not eliminate product shortages caused by specific input gaps or manufacturing problems. He also notes some patients\u2019 preference for a particular brand over products containing the same active ingredient and strength under another name. The report records his market observation, rather than advising patients to change treatment without professional guidance.<\/p>\n

Dr Mahmoud Fattouh, president of the General Syndicate of Government Pharmacists, expects military escalation and freight disruption to affect medicines alongside other sectors. A prolonged war could worsen shortages, especially under mandatory pricing that he says holds prices low relative to dollar-linked costs.<\/p>\n

He told Zawia3 that the dollar, freight and energy costs pressure factories, potentially reducing output or leading companies to sell some products at a loss to avoid registration cancellation. A single strategic-stock duration is imprecise, he argues, because inventories differ by company.<\/p>\n

The report cites a 2025 pharmaceutical-market estimate of US$7.072 billion and a projection of US$14.5 billion by 2034. Separately, the Egyptian Drug Authority reported<\/a> domestic sales of EGP 307 billion in 2024, up from EGP 216 billion in 2023\u2014approximately 42% growth\u2014with 3.5 billion packs traded in 2024. The original article mistakenly assigns the EGP 307 billion figure to 2025; the year is corrected here against the authority\u2019s statement. The report also cites local production covering about 80% of needs, over 170 licensed factories and an annual-production figure exceeding 150 million packs. That production estimate is not equivalent to the authority\u2019s market-wide packs-traded total.<\/p>\n

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Rising Production Costs<\/h2>\n

Dr Mahfouz Ramzi, chair of the Pharmacists Syndicate\u2019s Pharmaceutical Manufacturing Committee, says most raw materials and inputs arrive by sea, with some by air. Both routes have suffered disruption from regional tensions.<\/p>\n

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Freight costs in some cases rose five- to sixfold, alongside higher cargo insurance, he says. This increases both direct and indirect production costs.<\/p>\n<\/blockquote>\n

Global energy-price increases add manufacturing pressure because factory operating costs are linked to energy, Ramzi told Zawia3. Labour, distribution, printing and packaging together shape the final medicine cost.<\/p>\n

Ramzi refers to mandatory medicine-pricing Decision No. 499 and describes a 15% upward or downward dollar movement as relevant to price review. In his view, recent exchange-rate changes did not justify an immediate increase. This is his account of the pricing framework and assessment, rather than an automatic repricing instruction.<\/p>\n

Paper, cardboard, information leaflets, aluminium, PVC tablet-packaging material, empty capsules and starch may become more expensive, he says. Many are manufactured locally using imported raw materials arriving in large maritime consignments.<\/p>\n

Aluminium foil and the transparent PVC component of blister packs are manufactured in Egyptian factories, but their imported raw materials tie costs to international trade, freight and energy conditions, he explains.<\/p>\n

If pressures persist, some price adjustments may become necessary, Ramzi says. Any increase must be calculated carefully, reflect citizens\u2019 circumstances and recognise medicine\u2019s social role as an essential commodity.<\/p>\n

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He opposes blanket price rises now, particularly for chronic-disease treatments such as hypertension and diabetes medicines. Unaffordable drugs can lead to serious complications whose hospital-treatment costs subsequently fall on the state, he warns.<\/p>\n<\/blockquote>\n

A central difficulty is that finished medicines face mandatory pricing while many inputs do not. Suppliers can set prices freely, adding financial pressure and creating room for speculation during crises or currency rises, including reducing quantities offered and charging more.<\/p>\n

Previous medicine crises were strongly linked to foreign-currency shortages and steep dollar increases, Ramzi says. He argues companies were not currently struggling to obtain foreign exchange for raw-material imports because the state prioritises the pharmaceutical sector.<\/p>\n

He estimates current raw-material reserves at three to nine months, providing some short-term stability. Companies generally plan production and secure materials according to expected sales; stock coverage therefore varies.<\/p>\n

Egypt\u2019s pharmaceutical market faces another test of resilience against global supply-chain changes, energy costs and exchange-rate movements. Official assurances of several months\u2019 stocks coexist with experts\u2019 warnings about prolonged disruption, production costs and availability. Outcomes depend on regional developments and how quickly authorities manage the risks.<\/p>\n","protected":false},"excerpt":{"rendered":"

With roughly 90% of pharmaceutical raw materials imported, Egypt faces rising freight, energy and currency pressures. Experts question stock transparency as officials offer assurances.<\/p>\n","protected":false},"author":4,"featured_media":15254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[413],"tags":[],"kateb":[1550],"class_list":["post-16872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society-en","kateb-aya-yasser"],"jetpack_featured_media_url":"https:\/\/zawia3.com\/wp-content\/uploads\/2026\/03\/\u0627\u0644\u062f\u0648\u0627\u0621-1.png","_links":{"self":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/comments?post=16872"}],"version-history":[{"count":1,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16872\/revisions"}],"predecessor-version":[{"id":16873,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/16872\/revisions\/16873"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media\/15254"}],"wp:attachment":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media?parent=16872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/categories?post=16872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/tags?post=16872"},{"taxonomy":"kateb","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/kateb?post=16872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}