Egypt orders early closures for cafes, shops as energy costs surge

Cafes and shops across Cairo are closing hours earlier than usual under a month-long government order aimed at curbing Egypt’s soaring energy bill, which officials say has been exacerbated by rising global fuel prices linked to the U.S.-Israel war on Iran.

Under the measures introduced last week, commercial establishments must shut at 9:00 p.m. on weekdays and 10:00 p.m. on weekends. A temporary extension to 11:00 p.m. is expected during the Coptic Easter holidays, Caliber.Az reports per foreign media. 

Prime Minister Mostafa Madbouly said the decision applies to all commercial outlets, including malls, shops and restaurants, and will remain in force for one month to reduce electricity consumption.

The early closures mark a sharp departure from Cairo’s typically vibrant nightlife. While high-end restaurants along the Nile and international hotels are exempt as tourism establishments, small businesses say they are already suffering significant losses.

Some shop owners report revenue declines of more than 50 per cent within days of the order taking effect.

Officials describe the measures as unavoidable, citing Egypt’s heavy reliance on imported fuel. According to Madbouly, the country’s monthly energy import bill more than doubled between January and March to $2.5 billion as global prices surged following the outbreak of hostilities in late February.

Around 60 per cent of Egypt’s $20 billion annual oil budget is spent on electricity generation, placing additional strain on public finances.

In recent weeks, the government has rolled out what it calls “exceptional” steps to ease pressure on the grid and the budget, including fuel price hikes, delays to state projects, remote work for public employees on Sundays and reduced street lighting.

Economists warn that the early-closing policy is hitting the informal sector particularly hard. The informal economy accounts for roughly two-thirds of employment in Egypt.

The economic strain is reflected in financial indicators. Since the conflict began, the Egyptian pound has weakened by about 15 per cent, trading at a record 54.3 to the U.S. dollar, while annual inflation reached 13.6 per cent in March.

The restrictions are also affecting key industries. Film producer Gaby Khoury said cinemas have lost more than 60 per cent of their revenues, as most ticket sales occur between 9:00 p.m. and midnight. Several film releases have been postponed and some productions delayed indefinitely, he said.

Tourism operators are also concerned. Although major resort destinations such as Luxor and Aswan are exempt, historic areas in the capital — including the centuries-old Khan el-Khalili bazaar — must comply.

By 9:00 p.m., shopkeepers in central Cairo are stacking goods, switching off display lights and lowering metal shutters, even as tourists continue to wander the streets. Some cafes have reportedly adopted tactics used during the COVID-19 pandemic, dimming lights and partially closing shutters while quietly serving customers inside.

By Sabina Mammadli