Egypt’s Ministry of Finance has launched its first government bond aimed directly at individual citizens, introducing a retail-focused instrument as part of efforts to broaden its domestic investor base.
The “Citizen Bond”, available for subscription from February 22 through Egypt Post nationwide, offers a 17.75% annual return, paid monthly over an 18-month tenor, with a minimum investment of EGP 10,000 ($210.56). The issuance targets household savers, distinguishing itself from Treasury bills, which remain largely held by banks and institutional investors.
Retail savings expansion
The launch comes amid a notable expansion in domestic liquidity. Individual deposits in local currency reached EGP 7.74 trillion ($162.97 billion) by the end of December, reflecting a 26.8% year-on-year increase, while broad money (M2) grew 21.5% in Q4 and is projected to reach 24.1% by June, according to the Central Bank of Egypt (CBE). The banking system’s net foreign assets increased by $4.7 billion in the fourth quarter of 2025, reaching $25.5 billion, supported by remittances and portfolio inflows.
Strong external inflows reinforce domestic liquidity. Remittances from Egyptians working abroad reached $41.5 billion in 2025, a 40.5% increase year-on-year, with $22.1 billion recorded during the first half of FY 2025/2026. Once converted to local currency, these funds contribute to savings accumulation, potentially supporting demand for the Citizen Bond.
The bond is positioned separately from Treasury bills, which currently yield between 22.7% and 24.1% in the secondary market. Its 17.75% return is closer to bank deposit instruments, such as certificates of deposit, which averaged 15.3% in December, following monetary easing. The bond is not designed to compete with institutional debt but to provide a government-backed retail savings option with fixed monthly payouts.
Government bond access
Distribution through Egypt Post allows nationwide access, including in rural areas and for citizens with limited banking services. Dalia El-Baz, chairperson of Egypt Post, said the network’s operational capabilities ensure subscribers can participate efficiently and in accordance with Ministry of Finance regulations.
The Citizen Bond expands domestic financing channels without replacing existing sources. While banks remain the primary holders of Treasury bills and bonds, the bond introduces a direct channel for household savings, complementing existing products and offering a structured government-backed investment. The broader impact on Egypt’s domestic financing strategy will depend on the scale of household participation and its interaction with existing banking deposits and certificates of deposit.
