EconSource: Egypt Needs $12 Billion in Next 5 Years to Address Electricity Crisis

Follow the latest in economic news and developments about the Arab transition countries. 

Addressing the massive electricity blackouts that plagued most of Cairo on Thursday, President Abdel Fattah Al-Sisi unveiled in a Saturday speech that Egypt needs $12bn (EGP 85 billion) investment over the next five years in order to solve the electricity crisis. The president added that these funds will be invested to enable power stations to bear the increasing demands. [DNE]


Egypt’s foreign direct investment (FDI) doubled to register $6 billion in fiscal year (FY) 2013/2014, according to head of General Authority for Investment and Free Zones (GAFI) Hassan Fahmy. Fahmy said in May that the FDI was $2.8 billion in the first half of FY 2013/2014, rising up to $4 billion after the first nine months of the same fiscal year. [DNE, Reuters]


Tunisia’s annual inflation rate fell to 5.8 percent in August from 6 percent in July – its highest rate this year – thanks to a slight decline in the food and drink price index, official data showed on Friday. Tunisia’s central bank in June raised its key interest rate to 4.75 percent from 4.5 percent to counter inflation, in its second rate hike in six months. [Reuters]


Jordan and Morocco are two models that can be emulated by those who are still holding firm and have not been left behind. They include states that collapsed into civil war, like Syria, are in fear of doing so, like Yemen and Libya, or fell apart, like Iraq. Reform in these states is all but too late, and they require external intervention. The longer their situation is neglected, the worse they will become and the more they will affect their neighbors. [Al-Monitor]





Also of Interest:

Egypt Finance Ministry seeks 9 percent deficit by 2017 | Egypt Independent

Egypt president says no magic bullet for power problems after major blackout | Reuters

Egypt to hold donor conference in February | JPost

Libya denies exempting Egypt from repayment of $2 billion deposit | Libya Herald

Op-ed: Slow start to Egypt’s home-grown budget solution | The National

Morocco’s government bond rating is upgraded | MEED [subscription]

Tunisia: Tax reform project to be ready before end-2014 | TAP

Tunisia’s economy threatened as Libya unravels | Al-Monitor

Oman confirms its support to Yemen | SABA