print logo

Takaful and Karama: Your guide to Egypt's social welfare

10 Things you need to know about the subsidy programmes of the Ministry of Social Solidarity and the proposed amendments to them.
© World Bank
 
The Ministry of Social Solidarity announced suggested changes to the current structure of the social welfare system that would be proposed and discussed in the parliament.

Here are things you need to know about the new system.

1- All those who benefit from cash subsidies from the government to be gathered under the same umbrella following the same rule of the TAKAFUL scheme.

2- The government currently follows three structures for cash subsidies: TAKAFUL, KARAMA and FORSA.

3- TAKAFUL is a conditional programme for families with children where families have to provide the education and health care for the children to get the cash subsidy. KARAMA is designed to help those with disabilities, orphans and the elderly and it doesn't have any conditions while FORSA, the newest addition to the programmes, aims to provide vocational training and job placements.

4- Currently 1.2 million families are beneficiaries of these programmes that's more than 9 million individuals. The government aims to increase that number to 3.3 million by 2020.

5- The Ministry of Social Solidarity was able to add 120,000 families to the programmes this fiscal year covering all 27 governorates.

6- Women constitute a big percentage of all beneficiaries, reaching up to 88% mostly from Upper Egypt.

7- All programmes will now be conditional as this scheme proved most successful and had the best impact on the community.

8- The Ministry stated that the new scheme guarantees bigger amount to the beneficiaries and ensured that the Ministry has the required allocations to cover the scheme.

9- The beneficiaries will be reviewed and filtered every 3 years to make sure that only the deserving stay within the programme.

10- The Ministry stated that the World Bank will provide $500 million to support the solidarity programmes in Egypt for 3 years.