Egypt Swears in New Cabinet as Mounting Economic Challenges Mount

Egypt’s new Cabinet was sworn in in Cairo on Wednesday as the country faced an ailing economy and raging conflicts in neighbouring nations.
The new Cabinet, chaired by Prime Minister Mustafa Madbouly, who has been in office since 2018, included major changes, particularly in the defence and economy-related portfolios. Some ministers, including those in charge of police, health and transportation, remain in place.
The change comes as the country faces mounting public discontent following years of economic mismanagement, the coronavirus pandemic and the fallout of the wars in Europe and the Middle East.
In addition, a Western-backed reform programme – adopted in 2016 and backed by President Abdel Fattah el-Sissi – has caused prices to soar due to austerity measures. Nearly 30% of Egyptians currently live in poverty, according to official figures.
Mohamed Maait, the country’s finance minister since 2018, was replaced by his deputy Ahmed Kouchouk, a former World Bank economist who played a major role in implementing a reform programme 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 U.S. currency at more than 47 pounds, up from about 31 pounds.
The measures are meant to combat ballooning inflation and attract foreign investment.
This comes as attacks by Yemen’s Houthis on shipping routes in the Red Sea have slashed Suez Canal revenues.
Egypt has been struggling to revive the lucrative tourism sector decimated by years of turmoil, the pandemic and most recently war in Europe and the Middle East.
In the new Cabinet, Sherif Fathy, a former civil aviation minister, replaced Ahmed Issa as Tourism and Antiquities Minister in the new government.