Amid Egypt’s government reshuffle, setting priorities becomes imperative, particularly in navigating the challenging global and regional landscapes that impact the country’s economy. Underlining these efforts is Egypt’s commitment to enhancing its business and investment environment, crucially bolstered by its $8 billion loan program with the International Monetary Fund (IMF). This initiative aims to elevate the private sector’s role in driving economic growth and job creation. Rebuilding private sector confidence The House of Representatives has expressed confidence in the new Cabinet, which includes a restructured economic cluster led by the Prime Minister. Notably, the cluster comprises key figures such as Central…
Author: Doaa A.Moneim
Egypt’s non-oil sector is finally showing signs of recovery after enduring years of contraction exacerbated by inflation and foreign exchange shortages. In June, the country’s non-oil private sector saw a notable increase in sales volumes, marking its first expansion since August 2021, according to the latest S&P Global Egypt Purchasing Managers’ Index (PMI) report. The report reveals that Egypt’s headline PMI for the non-oil private sector climbed to 49.9 in June, up from 49.6 in May, marking the highest reading in three years. This indicates that operating conditions within the non-oil economy were generally stable by the end of the…
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) is anticipated to maintain the current key interest rates unchanged until the end of 2024 and to begin reducing interest rates in 2025, according to a new report from American investment bank Morgan Stanley. The MPC is set to convene on Thursday, July 18, to assess the key interest rates in light of recent developments in macroeconomic indicators, notably the trend in inflation rates, and the performance of the local currency relative to the US dollar. This upcoming meeting marks the first for the current fiscal year 2024/2025…
Egypt plans to drill 110 new exploratory oil and gas wells during the fiscal year 2024/2025, which concludes by the end of June 2025, with a total investment of $1.2 billion, Minister of Petroleum and Mineral Resources Karim Badawi has said. Badawi revealed these plans while addressing a parliamentary committee convened to review the government’s program for the years 2024/2025 to 2026/2027. His statements come following a recent comprehensive reshuffle within the cabinet, particularly in the economic sector, which appointed Badawi as the new Minister of Petroleum and Mineral Resources, succeeding Tarek El-Molla. Badawi highlighted Egypt’s ambitious plan to drill…
The International Monetary Fund (IMF) has postponed its Executive Board meeting to discuss Egypt’s third review under the $8 billion loan program to July 29, as announced by IMF Mission Chief for Egypt, Ivana Holler. Originally scheduled for July 10, the delay has not been further detailed by the IMF. Meanwhile, the head of the Planning and Budgeting Committee at the Egyptian House of Representatives Fakhri EL Feqi suggested that the postponement aims to allow Egypt to benefit from potential IMF actions, including consideration of reduced lending fees. An official source within the Egyptian government, speaking on condition of anonymity…
Egypt’s Sovereign Fund for Education Development, part of The Sovereign Fund of Egypt (TSFE), has finalized a shareholders’ agreement with Al Ahly CIRA for Educational Services to launch a new company to develop four new international university models in Egypt. The agreement includes launching branches of international universities and technological institutions in Egypt, starting 2025, in collaboration with partners from Canada, Switzerland, Germany, and the United States. Al Ahly CIRA for Educational Services is a joint venture between CIRA Education, Al Ahly Capital Holdings (ACH), the National Bank of Egypt’s private equity arm, and the Education Support and Development Authority.…
Small and medium-sized enterprises (SMEs) in Egypt are grappling with a financing shortfall of $46 billion per annum, exacerbated by the persistent economic challenges stemming from regional and global tensions, a new report released by Visa showed. Around 33% of SMEs in Egypt face financial constraints, with only 15% of these businesses having access to the necessary financing, Visa’s SME Megatrends Report stated. Additionally, the outstanding loan portfolio for Egyptian SMEs amounts to $11 billion. The Visa SME Megatrends report analyzes Egypt’s SME financial landscape, highlighting growth opportunities in digital and financial sectors. It identifies key trends: increased demand for…
Egypt’s newly formed cabinet, comprising 22 new ministers and retaining 8 incumbents, was sworn in at the Al-Ittihadiya Palace in Cairo on July 3. Prime Minister Mostafa Madbouly reaffirmed his leadership role, extending his term since June 2018. With a total of 30 ministers, the reshuffled government aims to address economic challenges amidst significant changes in key positions within the Economic Group and Ministry of Defense. Among the new appointees were two deputy prime ministers: Kamel Al-Wazir for industrial development affairs and Khaled Abdel Ghaffar for human development affairs. General Abdel Majeed Saqr, previously Governor of Suez and Commander of…
Egypt secured the third position in the Middle East and North Africa (MENA) region for receiving venture debt (VD) investments in 2023, amounting to $4 million, following Saudi Arabia and the UAE, according to the latest Magnitt report issued in June. VD funding Despite the ranking, VD funding into the Egyptian market dropped by 86%, while it increased by 602% in Saudi Arabia and by 222% in the UAE, the Magnitt report said. Saudi Arabia received $400 million in VD funding in 2023, followed by the UAE at $353 million. “VD activity in 2023 was primarily centered in Saudi Arabia,…
The World Bank has earmarked $700 million in Development Policy Financing (DPF) for Egypt, as part of a larger $6 billion commitment until 2026. This funding aims to bolster Egypt’s shift towards greater private sector participation, strengthen macroeconomic and fiscal resilience, and foster environmentally sustainable growth, according to a statement released in June. The “Generating Resilience, Opportunities, And Welfare for a Thriving Egypt” DPF is designed to help Egypt “address short-term economic challenges while advancing the next generation of structural reforms to level the playing field to unleash private sector growth; build macroeconomic and fiscal resilience; and facilitate Egypt’s green…