The statements given by the ministers of industry and transport, supply and internal trade, electricity, and housing after taking oath introduce the headlines the four ministers will focus on throughout their mission.

Industry and Transport in the same portfolio for the first time
 

Industry will be Egypt’s economic development engine in the coming period, and efforts will be directed towards the completed infrastructure projects to develop industry across all sectors, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir said.

El-Wazir took the oath on Wednesday as Deputy Prime Minister for Industrial Development and Minister of Industry and Transport. Earlier, he served as the transport minister.

It’s a first to see the Ministry of Transport merged with the Ministry of Industry in the Egyptian government.

Aligning with the presidential directives, El-Wazir said that industrial development plan focuses on rationalizing imports, achieving self-sufficiency in industries currently relying on imports, encouraging exports, and leveraging Egypt's highly reputed industries, such as textiles, construction, iron, cement, ceramics, and others.

The main challenges for the local industry to continue competing in both local and international markets include production costs, securing dollars to import raw materials, and the high interest rates on bank financing.

Egypt has started addressing the US dollar shortage crisis it has faced over the past two years, which negatively affected all industrial sectors as well as exports and imports. These actions include sealing foreign direct investment (FDI) deals that provide the US dollar liquidity required in the market, such as the $35 billion Ras El-Hekma deal with the UAE.

Moreover, the current high interest rates represent a significant challenge for the industrial sector, as these rates have raised the associated operating costs, consequently increasing the prices of the end products.

The top priority for El-Wazir’s ministry is developing the private sector, increasing the number of factories, and granting regulated and disciplined licenses without bureaucratic routine, he emphasized.

Under its $8 billion loan deal with the International Monetary Fund (IMF), Egypt is committed to increasing the private sector share of the country’s economic activity to reach 50 percent in the current FY2024/2025 and 65 percent by FY2026/2027.

El-Wazir also committed to establishing new factories and re-operating idle ones, thereby contributing to reducing the 9.6 percent unemployment rate.

Supply and Internal Trade portfolio
 

Minister of Supply and Internal Trade Sherif Farouk, who replaced Ali Moselhi, has pledged to prioritize controlling prices and markets, tracking citizens’ satisfaction, and looking into the subsidized bread file over the coming phase.

Farouk said that the ministry will prioritize maintaining a strategic and secure stock of food and basic commodity products, coping with challenges of commodity shortages. This aligns with planned efforts of controlling prices and providing high-quality products.

This can only be achieved through cooperation with local merchants, the private sector, and other relevant ministries, he added.

Since the eruption of war in Ukraine, Egypt has suffered stables shortage in the market as a result of the global supply chain disruption the war caused, along with the severe US dollar shortage the country has suffered over the past two years that lagged its finance.

“Speaking of controlling prices, there will be coordination between the relevant ministries, especially the Ministry of Agriculture and the Ministry of Finance, to control prices at the request of the prime minister,” Farouk explained.

With the fourth wave of the local currency depreciation Egypt has applied over two years, the prices of commodities went high, while the purchasing power significantly went down.

Controlling prices will be crucial for the new ministry, especially considering the peak of food inflation rates in September 2023 at 73.6 percent, according to the Monthly Inflation Developments published by the Central Bank of Egypt. Food inflation rates have since slowed down.

Additionally, the new minister will focus on the provision of good services and high-quality commodities to those who benefit from the use of ration cards.

“Those who are eligible will receive support in cash or in-kind form. We will work hard in cooperation with the Ministry of Communications and Information Technology to mechanize the process,” Farouk said.

He will also focus on continuing the projects initiated by the ministry earlier. This includes developing the food subsidy system, service centers, and wholesale and semi-wholesale markets.

 

Electricity and Renewables
 

"Coordination is underway with all relevant parties to resolve power outages, ensuring electrical supply according to the highest quality standards, enhancing productivity and efficiency,” Minister of Electricity and Renewable Energy Mahmoud Esmat stated.

Esmat, who served as Minister of Public Business Sector, succeeds to Mohamed Shaker.

"We will work towards maximizing the utilization of existing distribution networks to achieve a comprehensive solution to the electricity crisis,” Esmat explained.

Unprecedented high temperatures have put significant pressure on the Egyptian government following a crisis of electricity outages lasting up to four hours daily due to increased loads.

 Shortages in natural gas supply have compelled the government to allocate $1.18 billion to import 17 liquefied natural gas and mazut cargos, necessary to permanently stop power outages.

Additionally, the government has announced measures, such as mandating commercial shops to close by 10 PM starting July, to end power outages by the third week of this month.

On a side note, four major fertilizer companies have announced halts due to gas supply shortages to maintain operational safety, following the redirection of gas to power stations.

The ministry takes into account the expansion of new cities, factories, and the population increase, noting that resolving the electricity outage crisis permanently will take time, Esmat stated.

“We have ambitious plans in renewable energy that, once implemented, will make a significant difference to citizens. Preparations are underway to receive nuclear energy generated from the nuclear reactor that will soon be operational,” he said.

Housing, Utilities and Urban Communities
 

The main objectives of the Ministry of Housing, Utilities and Urban Communities in the upcoming phase are completing the development of fourth-generation cities and executing the two presidential initiatives “Housing for all Egyptians” and “Haya Karima,” according to the new Minister of Housing, Utilities and Urban Communities Sherif El-Sherbiny.

El-Sherbiny, who served as Head of the New Administrative Capital Authority Body since 2021, is replacing Assem El Gazzar.

El-Sherbiny stated that the continuance of developing fourth-generation cities and the completion of their projects will be prioritized, such as the New Administrative Capital, the New Alamein City, the New Mansoura City, and others.

 This comes in addition to completing the water supply and sanitation projects and the new residential units in the presidential initiative “Housing for all Egyptians.”

As part of this initiative, the ministry has a goal of providing housing units for different segments of society. El-Sherbiny directed speeding up the execution rate to complete these units in areas, such as the Sixth of October, the Capital Gardens, and New Suez cities.

Moreover, the ministry will focus on continuing the execution of the presidential initiative “Haya Karima” to develop the Egyptian countryside, proceeding with its upcoming phases and elevating the economic standard of these areas which will positively reflect on the standard of living of the inhabitants there.

El-Sherbiny also noted that they will focus on investment, asset management, and maximizing the benefits of the projects being implemented, in addition to significantly associating investors and the private sector.

He also issued a ministerial decree on Thursday addressing the limited transfers within the departments of new cities, in addition to issuing another decree to appoint assistants to the heads of departments in new cities.