São Paulo – Egypt has announced a 33.9 billion pound investment – equivalent to US$ 4.87 billion – in infrastructure projects, social programs, and the implementation of a trade and industry hub along the banks of the Suez Canal, which connects the Mediterranean Sea and Red Sea. This is the second stimulus package announced by Egypt’s interim government in six months.
According to news agency Reuters, the Egyptian minister of Finance, Ahmed Galal, has said the money for implementing the projects will originate from aid provided by the United Arab Emirates. The funds consist of US$ 1 billion in donations, US$ 2 billion in interest-free loans, and US$ 1.8 billion in fuel.
Since the former Egyptian president Mohamed Morsi was ousted, in July 2013, Kuwait, Saudi Arabia and the Emirates have pledged financial aid to Egypt. The North African country has struggled politically and economically since the end of Hosni Mubarak’s administration, in February 2011.
Egypt is plagued by popular uprisings, causing investors and tourists alike to flee the country. Tourism is a major source of revenue. Morsi was inaugurated in June 2012, but overthrown the following year. An interim government was formed.
According to Galal, as per the stimulus package, 20 billion Egyptian pounds (US$ 2.84 billion) will go to development projects, 2 billion Egyptian pounds (US$ 287.3 million) will be spent on building a trade and industry hub along the Suez Canal, and another 12 billion Egyptian pounds (US$ 1.72 billion) will go to social programs and to increasing the minimum wage.
In August last year, the Egyptian government launched the first stimulus package, worth 30 billion Egyptian pounds (US$ 4.3 billion), and designed to fuel the economy.
*Translated by Gabriel Pomerancblum
