Egypt’s New Cabinet Sworn In Amid Economic Challenges and Regional Conflicts

Cairo, Egypt – Egypt’s newly appointed Cabinet, led by Prime Minister Mustafa Madbouly, was sworn in on Wednesday as the nation grapples with a struggling economy and ongoing regional conflicts. The new Cabinet features significant changes, particularly in defense and economy-related positions, while maintaining continuity in areas such as police, health, and transportation.

The reshuffle comes in response to growing public dissatisfaction stemming from years of economic mismanagement, the impacts of the COVID-19 pandemic, and the repercussions of conflicts in Europe and the Middle East. Egypt’s Western-backed reform program, initiated in 2016 under President Abdel Fattah el-Sissi, has led to soaring prices due to austerity measures, with nearly 30% of the population living in poverty.

In a notable change, Finance Minister Mohamed Maait was replaced by his deputy, Ahmed Kouchouk, a former World Bank economist instrumental in implementing the International Monetary Fund’s reform program. Earlier this year, the Egyptian government devalued the pound and increased interest rates sharply to combat inflation and attract foreign investment. The U.S. dollar now trades at over 47 Egyptian pounds, up from about 31 pounds.

Egypt’s economic woes are further compounded by reduced revenues from the Suez Canal, following attacks by Yemen’s Houthis on shipping routes in the Red Sea. The tourism sector, critical to Egypt’s economy, continues to struggle after years of turmoil, the pandemic, and regional conflicts.

Sherif Fathy, a former civil aviation minister, has been appointed as the new Tourism and Antiquities Minister, replacing Ahmed Issa. Mahmoud Esmat has taken over the electricity ministry amid persistent power cuts during the scorching summer months.

On the diplomatic front, Badr Abdelatty, who has served as Egypt’s envoy to Germany and Belgium, was named Foreign and Migration Minister, replacing Sameh Shoukry. The defense portfolio saw General Abdel-Majeed Sakr replacing Gen. Mohamed Zaki.

The newly formed Cabinet, which includes four women and several technocrats, took their oaths at a presidential palace in Cairo before President el-Sissi. El-Sissi, first elected president in 2014 and re-elected in 2018, was sworn in for his third term in December after constitutional amendments extended his second term and permitted a third six-year term.