During his presentation on his new cabinet’s programme to the House of Representatives, PM Madbouly acknowledged the pressing issues citizens face due to power outages and pledged that the government would tackle them.

On Wednesday, Egypt's new 30-member cabinet, led by PM Madbouly, was sworn in before President Abdel-Fattah El-Sisi.

Shortly after, PM Madbouly said the cabinet's overhaul, which involved numerous changes in ministers and portfolios, would usher in new policies and measures to set the economy on a stronger footing.

In late June, the prime minister vowed to stop nationwide power cuts from the third week of July till the end of summer after announcing that the state would immediately import $1.18 billion in mazut and natural gas to deal with shortages in operating power plants.

The government said increased power consumption this summer — amid ongoing scorching heatwaves exceeding 44 °C in Cairo and climbing over 46 °C in the deep south — put pressure on the mazut and natural gas needed for power generation.

Since July 2023, the state has implemented a load-shedding programme that saw rolling power cuts of two hours across neighbourhoods nationwide to deal with energy shortages.

In May of this year, El-Sisi said the load-shedding programme spares citizens from bearing the actual cost of electricity, which he estimated at double or triple the currently charged prices.

Curbing inflation
 

In his speech on Monday, PM Madbouly highlighted to the House the government's efforts to curb inflation nationwide, including controlling markets and increasing the supply of goods to ensure their availability to consumers.

"These efforts have already shown positive results with a decline in inflation rates over the past two months," he noted, assuring that further reductions are targeted in the future.

Madbouly emphasised that the global economic crises had significantly impacted inflation rates worldwide, and Egypt was no exception.

"The Egyptian market experienced unprecedented price hikes for various goods and products," he said.

The prime minister explained to the House that the government plans to implement a series of programmes to stabilize prices and ensure the availability of essential goods in local markets amid a reduction in inflationary pressures in 2024.

He explained that these programmes include expanding agricultural and food production to boost local supply, developing the supply chain system, and digitizing major commodity markets.

Madbouly also pointed out a significant achievement by the outgoing cabinet in reducing the annual inflation rate, saying it fell to 27.4 percent in May 2024 after hitting 39.7 percent in August 2023.

This reduction reflects the government's proactive approach to economic management and its commitment to easing the financial burdens on citizens, he said.

Madbouly stressed that taming inflation is a key priority under its $8 billion loan deal programme with the International Monetary Fund (IMF).

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