Egypt & World Bank: Sisi Discusses Economic Reforms & $10bn Suez Canal Loss
Egypt has lost an estimated $10 billion in Suez Canal revenues due to regional tensions, President Abdel Fattah Al-Sisi told Ajay Banga, President of the World Bank Group, during a meeting in Cairo on Monday.
The meeting focused on Egypt’s economic reform program and the escalating economic consequences of instability in the region, according to a statement released by the Egyptian presidency. Al-Sisi highlighted Egypt’s ongoing cooperation with the International Monetary Fund to stabilize the foreign exchange market, control inflation, and reduce public debt. He also emphasized efforts to increase private sector involvement in the Egyptian economy.
Al-Sisi detailed Egypt’s flagship social programs, including the “Decent Life” initiative and the “Takaful and Karama” scheme, which aim to advance the Sustainable Development Goals by 2030. These programs, alongside housing and employment projects, are designed to create job opportunities for young Egyptians, the presidency stated.
Banga, for his part, expressed appreciation for Egypt’s long-standing partnership with the World Bank and acknowledged the ongoing coordination on projects related to social protection, healthcare, food security, education, and climate resilience. He also welcomed Egypt’s steps to attract foreign direct investment and promote sustainable growth, according to the statement.
The two leaders discussed the impact of regional conflicts, particularly the situation in Gaza, on global commodity prices, energy markets, and maritime navigation. Al-Sisi stressed Egypt’s commitment to resolving tensions through diplomatic channels. He also noted the significant economic strain placed on Egypt by hosting approximately 10.5 million foreigners displaced by regional conflicts, who receive public services equivalent to those provided to Egyptian citizens without sufficient external financial assistance.
The World Bank chief acknowledged the burden placed on Egypt by hosting the large number of displaced persons, the presidency statement indicated. Egypt’s efforts to contain regional tensions were also discussed, with Al-Sisi underscoring the need for a peaceful resolution to prevent further economic repercussions.