Egypt: Economy shows signs of revival, two new ministries underway
The Egyptian government has received a big boost after it sold $1.5 billion of 10-year bonds at a yield of 6% with lead managers claiming that $4.5 billion of investor orders were attracted by the bond issuance.
The success of this first international bond issuance under Sisi’s government shows signs of a return to normality after the 2011 turmoil that ousted Mubarak had prompted foreign investors to flee the country.
The bond sale was arranged by BNP Paribas, Citigroup, JP Morgan, Morgan Stanley and Natixis
The bond is expected to highlight that there is economic and political stability although the fight against armed groups in the Sinai Peninsula is going on.
Egypt’s economy has been growing slowly amidst shaky state finances. Financial aid and grants from the Gulf States coupled with economic reforms by Cairo have helped to boost the situation in the country although tensions still exist with extremist groups.
President Sisi was on a visit to Germany when he hinted that two new ministries could be created to support the government’s economic and financial ambitions. One of the ministries will be for entrepreneurs while another one will be dedicated to Egyptian expatriates.
The entrepreneurial ministry would oversee “technical, financial and marketing support” to small-and medium-sized business projects to help provide job opportunities for young people in Egypt. The ministry for Egyptian expatriates will provide support to the diaspora and strengthen their links with the homeland.
One of Egypt’s main challenges continues to be security and Sisi has stressed that he will not let the country turn into a conflict area like in neighboring Libya, Yemen, Iraq or Syria.