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Egypt Independent
26-05-2025
- Business
- Egypt Independent
Economist says Egypt's debt servicing bill exceeds 50% of public spending
Economic expert Nermin Tahoun said that Egypt's debt servicing bill currently exceeds 50 percent of public spending, which poses a major challenge for the state. She added that the Finance Ministry's announcement of a primary surplus of 3.1 percent of GDP from the July 2024-April 2025 period strongly indicates improved public financial management, and provides greater confidence in the government's ability to adhere to the path of economic reform. This surplus, the highest in Egypt's history, is equivalent to nearly LE600 billion and comes at a highly sensitive time, as the global economy is experiencing inflationary pressures and a decline in capital flows to emerging markets. Tahoun explained that this achievement was made despite a decline in revenues from some vital sectors, such as the Suez Canal and the petroleum sector, while Suez Canal revenues declined by approximately 40 percent during the first quarter of 2025. This reflects the effectiveness of fiscal policies in compensating for the loss by improving tax collection efficiency and controlling public spending, she explained. Tahoun said that this surplus supports the state's ability to finance basic expenditures without the need to borrow to finance the current deficit, contributing to reducing pressure on public debt. While praising the results, Tahoun emphasized that 'achieving a primary surplus is a positive step, but the most important thing is to continue achieving it sustainably.' The government must strike a delicate balance between achieving fiscal discipline and stimulating economic growth, she said, especially since the current growth rate—estimated at between 3.5 and four percent—is still below long-term targets. Tahoun concluded by saying that the focus during the next phase should be on deepening local production, attracting foreign direct investment, and expanding the social protection umbrella to ensure that positive indicators are reflected in improved quality of life, not just overall indicators. Edited translation from Al-Masry Al-Youm
Al-Ahram Weekly
28-02-2025
- Politics
- Al-Ahram Weekly
Egypt journalists gear up for elections - Egypt - Al-Ahram Weekly
Eight journalists will compete for the chairmanship of Egypt's Press Syndicate Eight journalists are seeking the chair of the Press Syndicate and 43 candidates are competing for the six board seats that will be contested in the syndicate's upcoming mid-term election, said Press Syndicate Secretary Gamal Abdel-Rehim. The committee in charge of receiving candidacy requests will announce a final list at the end of this week after examining appeals. The vote is set to take place on 2 May. The syndicate has around 12,000 members and for the vote to be valid, a quorum of 50 per cent plus one is required, meaning more than 6,000 journalists will need to cast a ballot. Should this not happen, a second ballot will be held two weeks later with a reduced quorum of 25 per cent. Candidates for the post of chair include the incumbent Khaled Al-Balshi, Abdel-Mohsen Salama, former board chair of Al-Ahram Establishment and a member of the National Press Authority (NPA), Sayed Al-Iskandrani and Nora Rashed from Al-Gomhouriya newspaper, Talaat Hashem from Misr Al-Fatah, Mohamed Badawi from the online publication Al-Ghad, and Mohamed Maghrabi from Al-Shaab. Journalists vying to secure a seat on the board include Maher Maqlad (Al-Ahram), Hussein Al-Zanati (Al-Ahram), Maher Maqlad (Al-Ahram), Mohamed Khoraga (Al-Ahram), Ismail Al-Awami (Al-Ahram), Amr Badr (Al-Dostour), Ayman Abdel-Meguid (Rose El-Youssef), Mohamed Saad Abdel-Hafez (Al-Shorouk), Mohamed Said (Akhbar Al-Youm), Alaa Omran (Al-Gomhouriya), and Mahasen Al-Senoussi (Al-Masry Al-Youm). The election will be overseen by a judicial committee comprised of members of the Administrative Prosecution Authority. The syndicate's General Assembly will also form a committee to monitor the ballot. The election will be held against a backdrop of high inflation fuelled by regional instability. As a result, candidate campaigns are expected to focus on increasing journalists' salaries and pensions. Salama and Al-Balshy — considered the frontrunners in the race to become chair — began their election campaigns this week. Salama said he would soon announce a package of financial incentives for journalists. 'It will be the first of its kind in the history of the Press Syndicate. It will increase journalists' salaries and pensions so they can overcome the difficult economic conditions they face,' he said. Salama added he had received assurances from the Finance Ministry that it will increase funds allocated to training and technological allowances — in 2023, the allowance was raised by LE600 to LE 3,760 — and said that his platform aims to restore the strength of the syndicate, enhance its role in defending the rights of journalists, and build an inclusive syndicate that represents journalists from all backgrounds. He stressed the importance of raising the professional and technical level of journalists across national, private, partisan, and independent press organisations, adding that his platform will 'contain tangible steps to enhance the freedom of the press'. The challenges facing the newspaper industry in the age of digital communication are the same the world over, he said. New technology is impacting all aspects of the traditional media, including subscriptions, circulation, and advertising revenues. Laying out his stall, Salama noted that his achievements during his 2017-2019 tenure as head of the Press Syndicate, including establishing a training institute and providing essential medical services to journalists, attest to his commitment to achieving tangible gains for journalists, and vowed that if he wins he will use his post to build a new hospital for journalists where they can receive inexpensive medical treatment. Al-Balshi, a left-leaning journalist, visited different publications at Al-Ahram this week. He warned that maintaining good relations with the government and state officials alone will not solve the problems journalists face. 'Achieving concrete gains for journalists will require negotiation and constructive dialogue with all state authorities,' he said. Al-Balshi pointed to the conference the Press Syndicate held in December, saying it clearly showed that journalists are not only feeling the pinch of higher living costs but are also hampered by the lack of press freedom. 'If I win, I will do my best to implement the conference's recommendations to raise journalists' incomes and allowances so they can meet their basic needs against the backdrop of high inflation rates, and in coordination with state authorities and the House of Representatives, I plan to amend legislation that threatens press freedoms. The state should view the press as the voice of citizens and not the enemy.' Al-Balshi noted that 24 journalists have been held in custody, 15 of them for more than two years, adding: 'During my two-year tenure in office as head of the syndicate, I was able, through negotiation with the prosecutor-general and state officials, to secure the release of 12 journalists from prison.' Syndicate board member Mohamed Saad Abdel-Hafez characterised the Press Syndicate's sixth conference held in December as one of the most remarkable achievements during Al-Balshi's tenure. 'The conference highlighted the desperate need for greater press freedoms in Egypt and that this will not be possible without changing press laws, increasing the number of independent and opposition newspapers, and raising the salaries of Egyptian journalists,' said Abdel-Hafez. * A version of this article appears in print in the 27 February, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Egypt Independent
27-02-2025
- Business
- Egypt Independent
Egypt unveils LE200 billion relief package amid inflation
Egypt has launched a new social package on Thursday to support groups impacted by rising prices, worth LE200 billion (US$4 billion) during Ramadan and the new fiscal year, Prime Minister Mostafa Madbouly announced. Ashraq Business reported that this new package includes raising the minimum wage for state employees to LE7,000 per month, in addition to increasing pensions, providing cash support for beneficiaries of the 'Takaful and Karama' program by 25 percent, and support for farmers and those most in need. This package comes after Egyptian Prime Minister pledged to launch it before the start of Ramadan, noting that the government will take exceptional measures during the holy month and Eid. Pensions raised by 15 percent The government approved a 15 percent increase in pensions starting next July, and Finance Minister Ahmed Kojok said that the Insurance Authority will announce the details of the increase soon. The government estimated the cost of the social package at about LE40 billion over the next two months, while the increase in wages alone amounts to LE85 billion for the next fiscal year. Kojok said that the exceptional cost of living allowance for public sector employees will be raised from LE600 to LE1,000, in addition to disbursing a fixed allowance of LE300 for government employees, starting from the new fiscal year next July. The new package includes the establishment of a fund worth LE10 billion, funded by the state, to achieve economic empowerment for Egyptian families. The coming period will also witness financial facilitations to support farmers with an additional six billion pounds. During the holy month of Ramadan, LE300 will be disbursed to each beneficiary of the Takaful and Karama program, which currently includes 5.2 million beneficiary families, according to the Egyptian Minister of Finance. Aid for 10 Million Egyptian Families The Egyptian government said that financial aid will be disbursed to about 10 million families on ration cards most in need, ranging from LE125-250 during Ramadan (depending on the size of each family) and will be repeated during Eid al-Fitr. The government approved an increase in state-funded treatment allocations, according to Kojok, noting that the aim is to treat all eligible cases at the state's expense, numbering 60,000 cases during March and April. Simultaneously with raising the prices of many government services, which affected inflation rates, Egypt previously implemented two packages to alleviate living burdens on citizens, worth LE240 billion. The first was in September 2023, when President Abdel Fattah al-Sisi directed the government to increase the exceptional cost of living allowance for public sector employees to LE600, instead of LE300, and to increase the minimum income for the sixth grade, to become LE4,000 LE, instead of LE3,500. Then in February, the government decided to raise the minimum wage by 50 percent to reach LE6,000 per month.
Mada
28-01-2025
- Business
- Mada
Court opposes release of arrested workers as labor action concludes at clothing supplier for Levis, UNIQLO, Tommy Hilfiger
The Administrative Prosecution opposed on Tuesday court release orders for nine workers who were arrested after participating in a strike at the Cairo factories of a clothing manufacturer supplying global brands including Levis, Tommy Hilfiger and UNIQLO, according to a lawyer who spoke to Mada Masr. After a court north of Cairo ruled that the workers should be released on bail in the morning, the prosecution later blocked the release with an appeal to prolong their detention pending further investigation. The workers will stay in detention facilities until Wednesday morning, when the court will review the prosecution's appeal, according to Mahmoud Magdy, a lawyer at the Center for Trade Union and Workers' Services. The T&C Garments strike also ended on Tuesday, three of the workers who had participated said to Mada Masr on condition of anonymity. The workers did not comment on whether management responded to the strike demands nor did the company's managers provide a public statement regarding their response to the strike. Around 6,000 employees at T&C Garments' Obour City complex to Cairo's east began strike action on January 16, organizing sit-ins at the companies' facilities to demand that management increase their bonuses, commissions and meal allowances, as workers currently take home less than minimum wage per month despite a sharp increase in the cost of living. Following several days during which workers attended daily shifts at the company to gather and hold protest action, the company halted the daily transport it normally provides for staff to reach the industrial zone where its facility is located. Security forces later arrested the nine workers from their homes on Saturday, after the company's lawyer filed a complaint against them due to their participation in the strike and demanded an increase in the annual bonus. The workers were detained under Case 264/2025 of the First Circuit Obour Administrative Prosecution for investigation on charges of 'inciting unrest and sedition, striking, encouraging other workers to strike and harming the company's interests,' according to Magdy. Magdy told Mada Masr that the Obour prosecution initially issued orders for the workers to be held in detention for several more days pending further investigation, until they were ordered released on LE2,000 bail each on Tuesday at the Khanka Misdemeanor Court. The releases were later blocked by the administrative prosecution's appeal against the court decision. Two other workers named in the summons order for the same case are yet to be questioned in relation to the charges, the lawyer said. The thousands of T&C factory workers launched their strike on January 16, demanding a 50 percent increase in their annual bonus to cope with rising living costs, a raise in meal allowances from LE600 to LE1,200, an enforcement of the minimum wage and permission for discretionary leave and paid public holidays. While management made no public announcement regarding the strike's conclusion, one worker told Mada Masr that a supervisor informed them to expect an increase in their bonus. The company's executive director had offered the laborers a 17 percent increase to bonuses on Sunday, which was rejected by workers at the time who held firm to their demand for a 50 percent increase. Workers at the company currently take home between LE4,000 and LE5,000 per month, substantially below the minimum wage for the private sector, which is set at LE6,000. The worker speaking on Tuesday said that the raise they expect is not the company's offer of 17 percent. 'I'll find out the rate from my manager,' they said. They were also demanding that the company improve its on-site health clinic, which is poorly equipped and offers little more than painkillers, they say. Workers who fall ill or are injured on the job must seek treatment outside the company at their own expense, and if they have to take leave for health reasons, they are only paid a quarter of their daily wage, workers told Mada Masr last week. The strike further called for the dismissal of HR manager Mohamed Abdel Rahman for insulting workers. T&C Garments, a partnership between Egypt's Tolba Group and Turkey's Tay Group, manufactures ready-made clothing for well-known brands, including Levis, UNIQLO and Tommy Hilfiger. The factory operates under the Qualified Industrial Zones (QIZ) agreement between Egypt, Israel and the United States, which stipulates that Egyptian products must include a 10.5 percent Israeli component to enter the US import market. T&C currently exports 70 percent of its production to the US and the rest to Europe.
Mada
28-01-2025
- Business
- Mada
Authorities arrest 26 workers as thousands strike for fair pay at supplier for international brands
Authorities in Egypt arrested 26 people on Saturday who work for the east Cairo factories of T&C Garments, a Turkish-Egyptian clothing manufacturer that supplies goods to global brands including Levis, UNIQLO and Tommy Hilfiger. Around 6,000 employees at T&C Garments' Obour City complex began a strike for fairer wages at the beginning of the year. As the cost of living increases, they demand that the company increase bonuses, commissions and meal allowances for workers, who currently take home less than minimum wage per month. Four workers at the T&C Garments factory told Mada Masr on condition of anonymity that security forces arrested 26 of their colleagues from their homes over the weekend. Among those arrested was Ahmed Hassan Abdel Aziz from the Zawamel village in the Sharqiya Governorate, according to one of the company employees from the same village, who described authorities arresting his colleague from his home on Saturday evening. A larger group of police and Central Security Forces personnel is now stationed outside the factory premises in the Industrial Zone at Obour City, the sources said. Only workers from the packing, laundry and cutting departments were admitted to the premises for Sunday's shift at the company, which suspended daily transport into the industrial zone for night shift workers as soon as the strike began and did the same for morning shift workers in most departments shortly afterward. When workers arrived at the factory on Sunday, they gathered in the yard in front of the administration office, where they declared they would continue their strike until their demands were met. 'The company is trying to divide us to break the strike,' one worker told Mada Masr. T&C's executive manager presented an offer to the workers on Sunday, another laborer said. 'They offered us a 17 percent bonus increase, which we rejected. We want 50 percent.' The thousands of factory workers launched their strike on January 16, demanding a 50 percent increase in their annual bonus to cope with rising living costs, a raise in meal allowances from LE600 to LE1,200, an implementation of the minimum wage, permission for discretionary leave and paid public holidays, in accordance with the labor law. Workers at the company currently take home between LE4,000 and LE5,000 per month, substantially below the minimum wage for the private sector, which is set at LE6,000. Bonuses, which the laborers expected to receive in the third week of January, are also yet to be paid out, one worker said. They are also demanding that the company improve its on-site health clinic, which is poorly equipped and offers little more than painkillers, they say. Workers who fall ill or are injured on the job must seek treatment outside the company at their own expense, and if they have to take leave for health reasons, they are only paid a quarter of their daily wage, workers told Mada Masr last week. The strike is further calling for the dismissal of HR manager Mohamed Abdel Rahman for insulting workers. T&C Garments, a partnership between Egypt's Tolba Group and Turkey's Tay Group, manufactures ready-made clothing for well known brands, including Levis, UNIQLO and Tommy Hilfiger. The factory operates under the Qualified Industrial Zones (QIZ) agreement, a protocol established by the US in 1996 to build economic ties between Israel and its neighbors, which requires that Egyptian products include a 10.5 percent component to enter the US market. The company exports 70 percent of its production to the US and the rest to Europe.
