Dearer Money Makes Idle Stock Costly for Egyptian FMCG

Egypt's central bank added a full percentage point to its policy rates on 29 October, and every pound sitting in a warehouse now costs more to hold.

The surprise move touches borrowing costs across FMCG, Pharma and Healthcare, Retail and Modern Trade, and Consumer Durables and Electronics.

This post covers what the committee decided, why unsold stock and late payers become pricier to carry, and which records show it first.

What the Central Bank Decided

The overnight deposit rate rose from 19% to 20%, and the overnight lending rate from 20% to 21%.
It is the first increase since March 2024, and analysts had expected no change.
The bank said it wants to keep inflation expectations anchored and protect the disinflation path, citing challenging external conditions and heightened uncertainty.
Urban inflation eased to 13.9% in September from 14.5% in August, still above the 7% target with a two-point band.

Inflation is falling, but the bank chose to tighten rather than wait for another reading.

Stock bought on credit or funded by an overdraft collects interest for every day it sits unsold.

When the policy rate is above 20%, a pallet that clears in three weeks and one that lingers for three months no longer cost anything like the same.

Slow movers, near-expiry batches and over-ordered lines are where that carrying cost piles up.

Distributors who stock up early for Ramadan hold goods longer, so they feel the change first.

Two numbers move together: how old the stock is, and how long customers take to pay.

Both tie up cash, and a higher rate puts a price on each of them.

Record to review	Why it costs more now
Stock age by SKU and warehouse	Older stock has been financed for longer
Batch and expiry dates	Goods near expiry may need discounting to clear
Days sales outstanding	Every extra day of collection delay holds cash back
Overdue balances against credit limits	Slow payers are being funded by the distributor

1Channel's DMS gives stock visibility by warehouse, including a Stock Aging Report that shows stock age by warehouse and SKU.

Batch and expiry-aware picking supports first-expiry-first-out, and reorder rules can be set per SKU so stock is not over-ordered.

Credit Management tracks outstanding and overdue balances and days sales outstanding against each customer's credit limit, all on one cloud platform.

See how distributors in Egypt track stock by warehouse, batch and expiry, so cash tied up in slow stock shows early.

Pull a stock age report by warehouse this week and list the lines that have not moved in 60 days.
Re-check reorder quantities for seasonal lines before placing early Ramadan orders.
Review customers who are over their credit limit or past due, and tighten terms where the delay is routine.
Watch the next central bank meeting before committing to large forward purchases.