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Daily News Egypt: Mobile phone traders launch campaign to increase mobile, top-up card sales

Traders demand a 5% increase in top-up card prices, mobile phones by 10%.
21.09.16 | Interesting article at Daily News Egypt

A number of mobile phone traders, who are also members in the Communications and Mobile Syndicate, have launched a campaign on social media platforms under the name “Lazim Neksab” (We Must Make a Profit). It aims to increase their profits from the sales of top-up cards and mobile phone devices.

According to Mohamed El-Mahdy, head of the Communications and Mobile Syndicate, the profits made by mobile traders are low compared to the companies, despite traders being the main partners in the success of mobile phone manufacturing companies. Traders acquire 80% of mobile phone sales. In addition, topping up credit on SIM cards is carried out via internet or electronic payment companies like Fawry in stores that provide this service.

He added that it is illogical for traders to achieve a profit of just EGP 5-10 for the sale of a mobile phone worth EGP 2,000, whereas they achieve a maximum profit of EGP 1.9 for every EGP 100 worth of top-up cards, which represents nearly 2%. On the other hand, the state has imposed a 10% tax on each card before applying the value-added tax (VAT).