Egypt’s new Cabinet was sworn in on Wednesday, taking the reins as the country grapples with a struggling economy and escalating conflicts in neighboring nations. The new Cabinet, led by Prime Minister Mustafa Madbouly, who has been in office since 2018, features significant changes, particularly in the defense and economy-related portfolios. Some ministers, including those in charge of police and tourism, remain in their positions. This change comes amidst mounting public discontent, fueled by years of economic mismanagement, the lingering effects of the coronavirus pandemic, and the repercussions of the wars in Europe and the Middle East. Moreover, a Western-backed reform program, implemented in 2016 and supported by President Abdel Fattah el-Sissi, has resulted in soaring prices due to austerity measures. Official figures indicate that nearly 30% of Egyptians currently live in poverty.
Mohamed Maait, the country’s finance minister since 2018, has been replaced by his deputy Ahmed Kouchouk, a former World Bank economist who played a crucial role in implementing a reform program with the International Monetary Fund. Earlier this year, the government floated the pound and significantly increased the main interest rate. As a consequence, commercial banks are now trading the U.S. currency at over 47 pounds, a substantial increase from the previous rate of around 31 pounds. These measures aim to combat spiraling inflation and attract foreign investment. These economic challenges coincide with a resurgence of attacks by Yemen’s Houthis on shipping routes in the Red Sea, which have drastically reduced Egypt’s Suez Canal revenues. Egypt has been striving to revive its lucrative tourism sector, decimated by years of turmoil, the pandemic, and most recently, the war in Europe and the Middle East. In the new Cabinet, Sherif Fathy, a former civil aviation minister, replaces Ahmed Issa as Tourism and Antiquities Minister in the new government.
Another critical concern is the recurrent power outages during the scorching summer heat in the country of over 106 million people. Consequently, Mahmoud Esmat has been appointed to oversee the electricity ministry. As conflicts rage in Gaza, Libya, and Sudan, a key portfolio of Egyptian diplomatic leadership is the foreign ministry. Badr Abdelatty, who has served as Egypt’s envoy to European countries including Germany and Belgium, has been named Foreign and Migration Minister. The 58-year-old diplomat replaces Sameh Shoukry, 72, who led the country’s diplomacy for the past decade. In addition, Gen. Abdel-Majeed Sakr replaces Gen. Mohamed Zaki, who held the defense portfolio since June 2018. The ministers, their deputies, and provincial governors took the oath of office in a presidential palace in Cairo, witnessed by President Abdel Fattah el-Sissi, who was elected to a third six-year term in December. El-Sissi appointed Madbouly to form the new government last month. This follows el-Sissi’s swearing-in for his third term, three months prior. The former defense minister was first elected president in mid-2014 and subsequently reelected in 2018. A year later, constitutional amendments, approved in a general referendum, extended el-Sissi’s second term by two years and enabled him to run for a third, six-year term.
