Egypt’s unfortunate trajectory

April 10, 2023 Written by Jesse Moore

As I’ve described before, Egypt could be doing better. The turbulence of Covid-19, the war in Ukraine’s effect on food and energy prices, and the long-running mismanagement of the country all contribute to Cairo’s woes. While the government secured a $3 billion IMF loan, Egyptian President Abdel Fattah el-Sisi is courting Gulf countries for more financing.

Gulf countries have long been financiers of Cairo since El-Sisi seized power in 2013, but now they seek better terms for their investments. The countries have several conditions: they want Egypt to devalue its currency, which would make Gulf investments more lucrative; they have asked Egypt’s military to decrease its  sizable involvement in the economy; and they want better financial stewardship over Egypt’s finances. 

The opening of an extravagant mosque in Egypt’s  new desert capital illustrates the poor decision-making of the country’s leaders. The Grand Mosque, part of the country’s new Islamic Cultural Centre, is the second-largest mosque on the continent and can hold over one hundred thousand worshippers.