Egypt parliament approves cabinet reshuffle amid economic pressures

Egypt’s parliament on Tuesday approved a cabinet reshuffle as the North African country struggles with an ailing economy and mounting pressure from regional conflicts.

The shake-up affected 13 portfolios, including housing, higher education, communications, youth and sports. However, key portfolios, most notably foreign affairs and defence, remain unchanged.

Candidates were nominated by President Abdel Fattah el Sisi, who met with Prime Minister Mustafa Madbouly earlier on Tuesday, according to a statement released by the president’s office.

The reshuffle appeared to focus on economic portfolios, with Ahmed Rostom, a senior economist at the World Bank, named Minister of Planning and Mohamed Farid Saleh, the chairperson of the Financial Regulatory Authority, heading the Ministry of Investment.

The State Ministry of Information was also restored after being dissolved in 2021. Diaa Rashwan, chairman of the State Information Service, was named as its minister.

Two women ministers were included in the new lineup. Randa al Menshawi now heads the Housing Ministry, and Gihane Zaki has been named minister of culture.

Egypt’s economy has been hit hard by years of austerity measures following an International Monetary Fund programme adopted in 2016, the coronavirus pandemic, the fallout from Russia’s war in Ukraine, and, most recently, the Israeli war on Gaza.

Houthi attacks on shipping routes in the Red Sea have also slashed Suez Canal revenues, a major source of foreign currency, after the attacks forced traffic away from the canal and around the tip of Africa.

IMF managing director Kristalina Georgieva told journalists earlier this month that Egypt showed a strong commitment to achieving the economic reform programme’s objectives and implementing difficult measures, and that a final review of the programme was near completion.

However, the reform measures have increased daily living costs for most Egyptians, including fuel prices and subway fares, as the Egyptian pound slid against foreign currencies. Around 30 per cent of Egyptians live below the poverty line, according to the latest figures by the Egyptian government.

In 2025, the government raised the minimum monthly wage for both public and private sector workers to 7,000 pounds, up from 6,000 pounds.

The last cabinet reshuffle was in July 2024.

SOURCE: AP