October 30, 2024 — Egypt is set to issue new sukuks and green bonds valued between EGP 5 billion ($102.9 million) and EGP 10 billion ($205.8 million) before the end of its current financial year in June 2025, according to Finance Minister Ahmed Kouchouk. This initiative is part of a broader strategy to diversify the country’s debt portfolio and re-engage with international investors.
Kouchouk previously indicated plans to issue $3 billion in debt this fiscal year, including the first eurobond sale since late 2021. Egypt is also working to rejoin JP Morgan’s Emerging Markets Bond Index after being removed in January.
The government’s financial strategy comes amid significant economic challenges, including a reported loss of $6 billion in revenue this year, largely due to heightened regional tensions impacting Suez Canal income and scaling back tourism targets. In a recent austerity measure, Egypt raised fuel prices by 10 to 17 percent—the third such increase in 2024—as part of ongoing compliance with International Monetary Fund (IMF) requirements.
President Abdel Fattah El Sisi acknowledged the difficult regional and global circumstances, suggesting that the current arrangement with the IMF may need to be reconsidered. The government’s austerity measures, including cuts to state subsidies and a push for increased private sector involvement, have been met with growing public pressure.
Despite expectations for inflation to decrease throughout 2024, recent data shows a slight uptick in inflation rates, prompting concerns among economists, including those at Goldman Sachs, about the sustainability of economic recovery.
At the Central Bank of Egypt’s last monetary policy meeting, interest rates were maintained at a record high of 27.25 percent for deposits and 28.25 percent for lending, unchanged since March.
As the government navigates these complex economic waters, Sisi highlighted the need for flexibility in its financial strategies in light of the ongoing pressures facing Egyptian citizens.
