PRIME MINISTER MADBOULY URGES EGYPTIANS TO GIVE NEW GOVERNMENT TIME
Egypt's Prime Minister Mostafa Madbouly on Thursday urged the public to give his revamped cabinet time to prove themselves amid widespread discontent over frequent power cuts caused by an economic crisis that has pushed inflation to record levels over the past two years.
“Give the new government a chance before you judge,” Mr Madbouly said at a press conference after the first meeting of his new government.
The cabinet reshuffle on Wednesday reduced the number of ministries from 32 to 30 and introduced 13 new faces.
Thursday's meeting focused on finding urgent solutions to the electricity shortage that has grown more severe in recent months due to disruptions in the supply of natural gas because of the Israel-Gaza war.
Mr Madbouly stressed the importance of resolving the issue to his ministers, and said the government was committed to providing a final and comprehensive solution by the end of the year, according to a statement issued after the meeting.
The newly appointed Minister for Electricity and Renewable Energy, Mahmoud Esmat, outlined plans to increase the efficiency of power plants and speed up the integration of large-scale renewable energy projects into the national grid, while the new Petroleum and Mineral Resources Minister, Karim Badawi, discussed efforts to secure sufficient fuel for power plants to end the rolling power cuts, it said.
Mr Badawi also laid out a plan to increase domestic fuel production as long-term solution to the power problem.
Ahmed Kojok, the new Finance Minister, said the electricity sector was a top priority for his ministry and assured that funding would be made available to procure fuel for power plants.
There has been growing public anger over power cuts that have grown more frequent as unusually high temperatures push up demand for electricity, as well as over a recent order for shops to close early in an attempt to reduce power consumption.
Small business owners, already struggling with high operating costs due to inflation, said the order would further reduce their revenue and increase the challenges they face.
Since March 2022, Egyptians have been facing a severe economic crisis that has drastically affected their everyday lives. Inflation has skyrocketed, with the rate tripling since 2022.
This sharp increase in prices has been coupled with a significant depreciation of the Egyptian pound, which has lost more than 70 per cent of its value in four devaluations. These economic measures were implemented as part of the reforms mandated by the International Monetary Fund (IMF) under its latest agreement with Egypt, which provides a loan of $8 billion over four years.
In his remarks on Thursday, Mr Madbouly dismissed the idea that the IMF loan and a recent $35 billion investment deal with a UAE-led consortium, including for the development of the Mediterranean Ras El Hekma area, should have been enough to end the power cuts.
“We are always being told nowadays that we have received funds from the Ras El Hekma deal and from the IMF and why don’t we spend that to end the power cuts,” he said.
“But the government is handling a crisis, an unprecedented crisis. We are merely staying prepared for all scenarios and possibilities that could happen over the coming period. Perhaps the most pessimistic of scenarios, as the situation changes so quickly day by day.”
He also raised the impact of the war in Gaza, which has drastically reduced Egypt's revenue from the Suez Canal after Yemen's Houthi rebels began attacking shipping in the Red Sea in a move they said was directed at Israel and its allies.
“How could any policymaker working on October 1 have anticipated that only a few days later on October 7, war would erupt in Gaza?” Mr Madbouly said.
“And when it did happen, no one anticipated that it would last this long with all the disruptions it has brought to the Suez Canal and our revenue from it.”
2024-07-04T14:02:39Z dg43tfdfdgfd