CAIRO—In a significant dialogue focused on economic reform, Egyptian President Abdel Fattah El-Sisi met with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), on Sunday. The discussions underscored Egypt’s commitment to combating inflation and price increases while simultaneously fostering an environment conducive to private sector growth.
During their meeting, Sisi emphasized the Egyptian government’s ongoing efforts to ease the financial burdens on citizens and empower the private sector to drive employment and economic growth. This strategic approach aims to attract investments while addressing the pressing issue of rising costs for consumers.
The meeting, attended by a high-level IMF delegation and key Egyptian officials, including the Prime Minister and the Central Bank Governor, highlighted the ongoing partnership between Egypt and the IMF. Sisi reaffirmed the importance of this collaboration in stabilizing the economy and reducing inflation, while also acknowledging the significant challenges posed by recent regional and global crises, which have adversely affected foreign currency reserves and national revenue.
Georgieva expressed a keen understanding of the difficulties facing Egypt amidst these international developments. She reiterated the IMF’s commitment to working alongside the Egyptian government to identify effective reform paths that address these challenges. Notably, she commended Egypt’s reform program, which has resulted in improved economic indicators and growth driven by the private sector.
During her visit, Georgieva praised the Egyptian government’s efforts, particularly in supporting vulnerable populations, and highlighted the positive trends in Egypt’s economic performance, which have garnered favorable assessments from international credit rating agencies.
As part of this ongoing collaboration, Georgieva’s visit precedes an upcoming IMF mission aimed at conducting the fourth review of Egypt’s economic reform program. This follows the completion of the third review in July, which unlocked $820 million in financial support as part of a larger 46-month loan program initiated in 2022. The IMF recently augmented this loan to $8 billion to assist Egypt amid ongoing economic challenges, including the impacts of the Israeli conflict and a decline in Suez Canal revenues.
Despite these efforts, President Sisi warned that Egypt may need to reassess its agreement with the IMF if current conditions become untenable for the populace. He noted that the country has lost approximately $6-7 billion over the past ten months due to these global pressures, projecting continued challenges in the year ahead.
Prime Minister Mostafa Madbouly reinforced this sentiment, indicating plans to reevaluate the timeline of Egypt’s reform program with the IMF in light of persistent economic hurdles. While acknowledging these challenges, he pointed to recent successes in reducing unemployment as evidence of resilience in the Egyptian economy.
As Egypt navigates these complex economic landscapes, the government remains steadfast in its commitment to reform and the empowerment of its private sector, setting the stage for potential growth and stability in the future.
