Egypt’s el-Sissi to begin 3rd term at helm after economic bailout

Egypt’s President Abdel-Fattah el-Sissi begins his third term this week, marking another milestone in his leadership of the country. However, as he prepares to take on this new term, the economic crisis facing Egypt remains a significant challenge that needs to be addressed. Despite the massive fresh financing received by the country, experts believe that the road to economic stability will be a long and arduous one.

President el-Sissi has been at the helm of Egypt since 2014, when he came into power following the ousting of former President Mohamed Morsi. In his first two terms, he has made significant strides in stabilizing the political situation in the country and prioritizing national security. However, the economic situation has continued to be a major concern for the government and the people of Egypt.

The COVID-19 pandemic has only exacerbated the economic crisis in Egypt, with the country’s tourism industry taking a major hit due to travel restrictions and lockdowns. Tourism is a significant contributor to Egypt’s economy, and the decline in visitors has resulted in a loss of billions of dollars in revenue. This, coupled with high unemployment rates and a growing population, has put a strain on the country’s economy.

To combat this crisis, President el-Sissi’s government has secured significant financing from various international organizations and countries. In 2020, Egypt received a $5.2 billion loan from the International Monetary Fund (IMF), which was followed by a $2.7 billion loan from the World Bank. Additionally, Egypt has also received financial support from the United Arab Emirates, Saudi Arabia, and China.

While these loans provide a much-needed boost to Egypt’s economy, experts warn that they are not a permanent solution. The country’s high debt levels and reliance on external financing put it at risk of falling into a debt trap. Furthermore, the loans come with conditions that require the government to implement economic reforms, such as reducing subsidies and increasing taxes, which may result in a burden on the citizens.

The government has taken some steps to address the economic crisis, such as implementing a new investment law to attract foreign investors and launching a national project to develop the Suez Canal area. However, many believe that more needs to be done to achieve long-term economic stability.

One of the key areas that require attention is job creation. Unemployment rates in Egypt have been on the rise, especially among the youth. The government needs to focus on creating more job opportunities to absorb the growing population and reduce the burden on the state.

In addition, there is a need for more diversification of the economy. Egypt’s heavy reliance on tourism and oil exports leaves it vulnerable to external shocks. The government should invest in other sectors, such as agriculture and manufacturing, to create a more resilient economy.

Moreover, addressing corruption and improving the business environment in Egypt will play a crucial role in attracting investments and promoting economic growth. The government has taken some steps in this direction, but more needs to be done to ensure a transparent and fair business environment.

Despite these challenges, there is optimism that Egypt will overcome its economic crisis under the leadership of President el-Sissi. His government has shown a commitment to implementing necessary reforms and has made progress in improving the country’s infrastructure and investment climate.

President el-Sissi’s third term presents an opportunity to build on these efforts and create a prosperous future for Egypt. His leadership and determination to address the economic crisis have earned him the trust and support of the Egyptian people.

In conclusion, while the economic crisis in Egypt is far from over, there is hope that with the right policies and strategies, the country can overcome these challenges. President el-Sissi’s government and the people of Egypt must work together to build a resilient and sustainable economy that will benefit the entire nation. With determination and perseverance, Egypt will emerge stronger and more prosperous in the years to come.