CAIRO (AP) - Egypt's parliament approved a major Cabinet reshuffle on Tuesday as the country grapples with a struggling economy and increased pressures from regional conflicts. The Cabinet change affected 13 portfolios, notably in sectors like housing, higher education, communications, youth, and sports, while key positions, including foreign affairs and defense, remained unchanged.
The candidates for the reshuffle were nominated by President Abdel Fattah el-Sissi, who met with Prime Minister Mustafa Madbouly earlier in the day, as per a statement from the president's office. This Cabinet reshuffle particularly focused on economic portfolios, with Ahmed Rostom, a senior economist at the World Bank, appointed as Minister of Planning, and Mohamed Farid Saleh, chairperson of the Financial Regulatory Authority, taking over Ministry of Investment.
In a notable move, the State Ministry of Information was reinstated after its dissolution in 2021. Diaa Rashwan, the chairman of the State Information Service, was appointed as its minister. Additionally, two female ministers were included in the new Cabinet; Randa al-Menshawi was named Minister of Housing, and Gihane Zaki was appointed Minister of Culture.
Egypt's economy has been significantly impacted by a series of adverse events, including years of austerity measures stemming from an International Monetary Fund (IMF) program initiated in 2016, the impacts of the coronavirus pandemic, and the ramifications of Russia's full-scale invasion of Ukraine. The ongoing Israel-Hamas conflict in Gaza has exacerbated the situation, leading to disruptions that have reduced Suez Canal revenues—a critical source of foreign currency for the country.
IMF Managing Director Kristalina Georgieva recently expressed confidence in Egypt's commitment to achieving the objectives of its economic reform program. She noted that a final review of the country’s reform program is nearing completion. However, these reform measures have led to increased living costs for most Egyptians, including hikes in fuel prices and subway fares. Consequently, the Egyptian pound has depreciated against foreign currencies, resulting in around 30% of the population living below the poverty line according to government statistics.
A report released on Tuesday by the Central Agency for Public Mobilization and Statistics indicated that the annual inflation rate in Egypt stood at 10.1% in January, showing a slight decrease from 10.3% the previous month. In another move to address economic challenges, the government has raised the minimum monthly wage for public and private sector workers to 7,000 pounds ($138), up from 6,000 pounds ($118.58).
The last Cabinet reshuffle occurred in July 2024, marking a continued effort by the government to address ongoing economic challenges and maintain stability in a tumultuous regional landscape.
