Egypt has been in and out of crises since 2008. It started with fallout from the global financial crisis, which slashed the country’s GDP growth rates from 7.2% in 2007 to 4.7% the following year. Since then, the government has suffered a myriad of significant domestic and regional disruptions that noticeably raised the country’s macroeconomic risk profile. Egypt’s macroeconomic risks started with two revolutions two years apart (2011 and 2013). A raging currency black market in 2015 led to a devaluation in late 2016 when the pound lost half its value within weeks. In February 2020, COVID-19 lockdowns halted the…
Author: Rania Hassan
A one-on-one with Alex Segura-Ubiergo, IMF Egypt senior resident representative, on how the IMF perceives the country’s economic future. Replies were edited for length and clarity How does the IMF view the impact of global economic conditions on Egypt’s economy? Global conditions continue to present important challenges for Egypt, especially through the negative impact of the reduction of maritime traffic through the Red Sea, which is reducing Suez Canal receipts. In addition, the risks of escalation in the regional conflict can also weigh on investor sentiment. These risks are, however, mitigated by a possible improvement in sentiment toward emerging markets…
Finding good-paying jobs with suitable promotion prospects is particularly difficult during tough times. “Complex economic conditions typically coupled with slow job creation cycles have turned entrepreneurship into a viable alternative” to a corporate position, said a September report from Entlaq, Egypt’s first entrepreneurship-specialized think tank. The 200-page document details the state of the country’s entrepreneurship ecosystem in the first half of 2024. “Egypt has experienced notable developments, including a rise in venture capital investments in key sectors like fintech and health tech, alongside stronger public-private partnerships,” Mohamed Ehab, CEO of Entlaq, said in the report. “These advancements are encouraging signs…
S&P Global Ratings has affirmed Egypt’s credit ratings at B-/B, maintaining a positive outlook, highlighting the country’s progress in implementing reforms since the liberalization of its exchange rate regime in March, a statement showed on Saturday. Positive outlook The rating agency noted that Egypt’s external liquidity and fiscal accounts are bolstered by a significant rise in foreign direct investment (FDI), a robust donor program, and steady inflows from portfolios and remittances. Thanks to a tight monetary policy and high interest rates since March, the government has managed to allocate approximately 70% of its revenue to interest payments, S&P said. The positive…
The Grand Egyptian Museum Authority announced on Wednesday that trial operations for its Main Galleries began on October 16, 2024, offering visitors an exclusive preview of twelve curated exhibition halls, an official statement showed. GEM trial phase This trial phase is part of the museum’s efforts to ensure a seamless visitor experience ahead of its highly anticipated official opening, the statement noted. The Grand Egyptian Museum’s (GEM) Main Galleries offer a look at thousands of years of history, from prehistoric times (700,000 BC) to the Roman era (around 394 AD). Visitors will see a variety of artifacts organized into three…
Egypt’s annual urban consumer price inflation increased for the second consecutive month in September, rising to 26.4% from 26.2% in August, driven by a significant surge in energy costs, according to official data released Wednesday. Egypt’s inflation rises The index rose by 2.1% month-on-month, matching the rate from August, and reversing a 0.4% decline in July, according to data from Egypt’s statistics agency, CAPMAS. Food and beverage prices, the largest component of the inflation basket, increased by 27.7% compared to the previous year. On a monthly basis, food prices rose by 2.6% in September, up from 1.8% in August. September’s…
Throughout the pharaonic era, gold and other minerals were used in everything from utensils to crowns and even plating the Giza Pyramids, as evidenced by surviving artifacts. Research published in 2020 by Egypt Oil & Gas, a government-owned portal, said the nation’s oldest mining activities date to about 3,100 B.C. However, mining for precious metals and minerals faded over time as searching for oil and gas took over. In 2018, then Minister of Petroleum and Mineral Resources Tarek El Molla launched the country’s first national strategy to revive the mineral mining sector. In the Egypt Mining Forum (EMF) conference in…
Reusing discarded materials and products to make new ones or repurposing them is not new. In March 2023, The Financial Times published an article stating that recycling waste might date back to Plato in the 4th century BC. According to a 2006 book titled “Recycle: The Essential Guide,” recycling gained popularity “during periods when resources were scarce.” In 2024, trepidation continues about what will happen when resources are depleted, especially “rare earth materials” used in electric vehicles, batteries and solar panels, which experts say could eventually replace fossil fuel powered products. The problem with excessive consumption is humans cannot remake…
In the past, top executives had to worry about their product’s utility, value for the money, availability and exposure to their target markets. That is changing. “More than ever, today’s consumers are considering a company’s impact on the environment before buying,” said marketing agency Galactic Fed in July 2023. That shift started in 2016. In the following four years, “searches for sustainable goods increased globally by 71%,” The Economist Intelligence Unit reported. The COVID-19 pandemic only increased that awareness. In February 2022, an IBM Institute for Business Value survey found “93% of global respondents said the pandemic had influenced their…
This article first appeared in June’s print edition of Business Monthly. For Egypt, the IMF is more than a lender offering support after the exodus of foreign investors. “Staff-level agreements reached with the IMF are [like] an international certificate asserting the economy’s strength and resilience and the success of the government’s reform program,” Parliamentarian Ahmed Abaza said at a hearing in March. The latest agreement was in April, days after Egypt secured a commitment of $35 billion from the Abu Dhabi Developmental Holding Co. for the Ras El Hikma triangle. The staff-level agreement saw the IMF increase the $3 billion…