Despite the current political instability and the violence on some of Egypt's streets, spending on charity, which increases during the holy month of Ramadan, seems to be holding up well this year. However, the signs have been mixed. While there are no official statistics regarding charitable services and spending during Ramadan, there were indications last week that people's willingness to help the poor during the holy month may have been significantly lower than it has been in previous years. Up until last Thursday, many retailers were reporting low demand for Ramadan bags, which are bags filled with basic foodstuffs that are distributed to the poor before and during Ramadan. The retailers attributed the low demand to the lack of security and the uncertainty of the economic scene in the country, which has made many people reluctant to spend money. Increases in inflation have also negatively affected the purchasing power of many Egyptians. However, the situation changed dramatically after the Egyptian Armed Forces chief, Abdel-Fattah Al-Sisi, announced the ousting of former president Mohammed Morsi last Wednesday following demonstrations by millions of people who had taken to the streets in protest against Morsi's rule. Mohamed Mustafa, manager of a Ragab & Sons branch in Giza, stated that high demand for Ramadan bags usually starts 20 days prior to the holy month, but this year's political instability had discouraged people from spending money. However, things had changed, he said, since the intervention of the Armed Forces on 3 July, installing chair of the Supreme Constitutional Court Adli Mansour as interim president, calming the protesters and bringing peace back to many of the country's streets. “Demand for Ramadan bags has been very high since the ouster of the former president, despite this year's higher prices,” Mustafa said. With people feeling things will become better in economic terms as a result of a new regime coming to power, they have become willing to spend more, he added. Mustafa said that the prices of the bags had gone up by 10-14 per cent in comparison to last year. Ramadan bags usually include cooking oil, rice, pasta, beans, tea and sugar. Prices are based on the quantities of these foods in each bag. In order to counter the higher prices of basic food items, which represent a burden for the average citizen, the Ministry of Supply and Internal Trade announced plans two weeks ago to sell at least 20 basic food items at state-owned retailers at a 15 per cent discount during Ramadan. However, fears mounted that the ministry's plans for Ramadan would not be applied after minister Bassem Ouda, a Muslim Brotherhood member, resigned following the ousting of Morsi. He has not yet been replaced by the new government. Magda Hussein, deputy minister of supply and internal trade, said in a press statement that the ministry's plans for Ramadan were not affected by current events, and that continuous inspections of the markets were being carried out in order to ensure the availability of basic food products and that their prices were not being manipulated by retailers. Mamdouh Shaaban, general manager of the Dar Al-Orman Charity Group, told the Weekly that higher inflation had never really affected the Charity as Egyptians were always willing to give to charity, even when their income was tightening, especially during Ramadan. Shaaban noted that a Ramadan bag full of basic foodstuffs and dried fruit costs LE99 this year, compared to LE80 last year. “Despite the higher price and the economic slowdown that has affected many people's incomes in Egypt, more Egyptians have been keen on spending on charity this year,” he said. He noted that donations had increased this year by approximately 25 per cent compared to last year. “We have prepared large quantities of foodstuffs valued at about LE15 million in order to fill 150,000 bags and distribute them throughout Ramadan to poor families across Egypt,” he stated. Last year, the charity group had received LE9.8 million from donors for Ramadan bags, he added. Shaaban said that Dar Al-Orman was expected to spend LE33 million by the end of Ramadan on charitable activities, including the distribution of Ramadan bags and development projects in poor areas. “We spent LE26.3 million last Ramadan, with 80,000 Ramadan bags being distributed,” he said.
