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Egypt swears in new cabinet as growing economic challenges fuel public discontent
CAIRO (AP) — Egypt’s new cabinet was sworn in Wednesday with major changes to its defense, foreign and economy portfolios as the country grapples with growing public discontent and conflict in neighboring nations.
Years of economic mismanagement, the coronavirus pandemic and the aftermath of wars in Europe and the Middle East have caused economic pain, including exponential growth inflation. In addition, a Western-backed reform program — adopted in 2016 and supported by President Abdel Fattah el-Sissi — has led to austerity measures. Nearly 30 percent of Egyptians live in poverty, according to official figures.
As el-Sissi chaired his government’s first meeting, the president stressed the importance of completing the economic reform program and urged the government to work to “attract and encourage domestic and foreign investment,” according to his office.
Mohamed Maait, Egypt’s finance minister since 2018, has been replaced by his deputy Ahmed Kouchouk, a former World Bank economist who played a key role in implementing a reform program with the International Monetary Fund.
Earlier this year, the government floated the pound and sharply increased the main interest rate. Commercial banks are now trading the US dollar at more than 47 pounds, up from around 31.
Meanwhile, Egypt’s revenue from the Suez Canal has fallen due to the onslaught by Yemen’s Houthi rebels. shipping routes in the Red Sea.
Egypt has also struggled to revive its lucrative tourism sector. In the new Cabinet, Sherif Fathy, a former civil aviation minister, replaced Ahmed Issa as tourism and antiquities minister.
Another source of discontent is the recurring power cuts during the scorching summer heat in the country of more than 106 million people. Mahmoud Esmat has been appointed to oversee the electricity ministry.
As conflicts spread across GazaLibya and Sudan, Badr Abdelatty, who was sent from Egypt to European countries, including Germany and Belgium, was appointed minister of foreign affairs and migration. The 58-year-old diplomat replaced Sameh Shoukry, who led Egypt’s diplomacy for the past decade.
General Abdel-Majeed Sakr replaced General Mohamed Zaki, who had led the defense portfolio since 2018. El-Sissi also appointed Lieutenant General Ahmed Fathy Khalifa as chief of staff of the armed forces.
El-Sissi, elected in December to a third six-year term, chose Prime Minister Mustafa Madboulyin office since 2018, to form the new government last month.
The new Cabinet includes four women and several technocrats. Some ministers, including those responsible for police, health and transport, remain in place.
El-Sissi, a former defense minister, was first elected president in mid-2014 and re-elected in 2018. A year later, constitutional amendments approved in a general referendum, it added two years to el-Sissi’s second term and allowed him to run for a third.