Egyptian President Abdel Fattah el-Sissi swore in a significantly changed Cabinet on Wednesday, including new finance and foreign ministers, as Egypt faces challenges such as the conflict in neighboring Gaza, economic difficulties, and frequent power shortages.
Prime Minister Mostafa Madbouly was reappointed after the previous Cabinet resigned a month ago. El-Sissi emphasized the need to lower inflation — which reached a record high in September but has since fallen to about 28% in May — and boost investment.
Ahmed Kouchouk, previously a deputy finance minister and an economist at the World Bank, is the new finance minister. He highlighted Egypt’s commitment to fiscal discipline and reducing debt, along with reforms to support private sector growth.
Rania al-Mashat, minister of international cooperation, was re-appointed with expanded responsibilities in planning and economic development, especially development financing. Hassan El Khatib, who has a background in finance at the European Bank for Reconstruction and Development, fills the revived role of investment minister.
Egypt’s sovereign dollar bonds saw gains following the Cabinet appointments, reflecting positive market sentiment.
Despite recent foreign investments easing Egypt’s chronic currency shortages, power outages and gas shortages continue to pose challenges for Egyptians and their businesses.
Karim Badawi, recently a manager with an oilfield services company, will now serve as petroleum minister with a priority on the fuel supply to power stations. Mahmoud Esmat, formerly in public enterprises, takes charge of the electricity ministry. Sherif Farouk, who supervised pension reforms at Egypt Post, will lead the supply ministry, which manages wheat imports and a large food subsidy program.
At the foreign ministry, Badr Abdelatty replaced veteran diplomat Sameh Shoukry, focusing on Egypt’s diplomatic efforts amid regional conflicts, including the Gaza war.
Military changes also accompany the Cabinet reshuffle, with General Abdel Majeed Saqr appointed defense minister, and Lieutenant General Ahmed Fathy Khalifa as chief of staff, underscoring the military’s significant role in Egypt’s governance.
The Cabinet’s inauguration coincided with the 11th anniversary of el-Sissi’s removal of Egypt’s first democratically elected president, Mohamed Mursi, followed by a crackdown on political dissent.
The new Cabinet faces the dual challenges of stabilizing Egypt’s economy and navigating regional tensions, underscoring Egypt’s pivotal role in Middle Eastern diplomacy.
Some information for this report was provided by Reuters and Agence France-Presse
