EGYPT Crisis Egyptian Prime Minister Mostafa Madbouli has announced a series of planned privatizations of state-owned co

[answerhappygod]

EGYPT Crisis
Egyptian Prime Minister Mostafa Madbouli has announced a series
of planned privatizations of state-owned companies, as the country
struggles with an economic crisis and inflation at almost 15% in
April.
The strategy unveiled by the government includes the
privatisation of ten public companies, two of which belong to the
army, and the creation of two listed companies, one of which will
absorb "the seven main Egyptian ports" and the other "the country's
best hotels", Mr. Madbouli told journalists.
While there are no credible figures on the weight of the
military in the economy, the army claimed in 2019 to "supervise"
more than 2,300 projects employing five million civilians.
Since 2017, and again in April, non-oil private sector activity
has remained contracted, reflecting a glaring lack of dynamism.
These announcements had been expected since early May, when
President Abdel Fattah al- Sissi had called on his government to
establish a privatisation strategy with the aim of bringing "ten
billion euros per year over a period of four years" into the state
coffers.
On Sunday, Madbouli also said that the "complete empowerment of
the private sector" by 2025 was part of Cairo's strategy to deal
with the economic crisis. He called for "private sector
participation in total investments to be increased to 65%", more
than double the current 30%.
For many, the state is competing unfairly with the private
sector. "The state should have a regulatory role and not be a
shareholder," Naguib Sawiris, one of the country's richest men,
told AFP in 2021.
Struck by the economic impact of the war in Ukraine, galloping
inflation and huge public spending on infrastructure, Egypt
recently devalued its currency by 17%.
Immediately, Saudi Arabia, a major ally of Abdel Fattah
al-Sissi's regime, deposited five billion dollars in the Egyptian
Central Bank. Madbouli said on Sunday that part of these funds
would be redirected to direct investments.
This week, the Central Bank of Egypt's monetary committee will
meet amid widespread expectations of further devaluation in
response to the US central bank's interest rate hike.
Cairo is discussing a new loan with the International Monetary
Fund (IMF) as the country's budget of around $160 billion is
burdened by a public debt that reaches 90% of GDP.
a- What are the main reasons for the egyptian monetary
crisis?
- economic crisis and inflation
- privatization of companies
b.- What is the role of IMF in a crisis like the egyptian?
c- If you were an european exporter to Egypt which kind of measures
would you take?