The government has re-launched bidding for a new license to produce cigarettes in Egypt after the first auction announced earlier this year was canceled for an unknown reason.
Backstory⏪ Last March, the Industrial Development Authority (IDA) launched a tender (an invitation to bid for a project) for a license of cigarette & e-cigarette production in Egypt, after nearly a hundred-year monopoly by state-owned Eastern Company (EAST).
More details🧐 The IDA set tomorrow, Thursday, as the final day for interested companies to purchase the updated license conditions booklet, & will review offers on the 23rd of January, 2022.
Why is this important🤔 Monopolies aren’t great for markets. They are generally associated with higher product prices, & fewer incentives to be efficient. Multiple tobacco licenses would ensure fair competition between companies & provide consumers with competitive options.