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The Implications of Egypt’s Energy Price Rises; Prosperity Through Pain?
Over the course of a few days in early July the Egyptian government announced a range of drastic cuts to energy subsidies.
Natural gas subsidies to several industries are being slashed, increasing prices by 30-75% according to a report by Reuters. Subsidized gasoline and diesel fuel prices will rise by as much as 78%. Electricity prices are set in rise by up to 56% in some pricing tiers.
An Investment Law in Egypt’s Best Interests?
The Egyptian business community is in no doubt: there needs to be change. And after three years of just that-revolutions, nationwide unrest and military takeovers-the authorities are looking to bring stability and economic recovery to Egypt, whatever the cost.
An Economy Built upon Sand
Shortly after Defense Minister Abdel Fattah El-Sisi and his Supreme Council of the Armed Forces (SCAF) removed the former President Mohamed Morsi from power, an Egyptian owner of a small technology start-up told me that the ouster of the Muslim Brotherhood president was a positive development for Egypt's economy. ''The military understands the importance of foreign investment, and they will bring stability back to Egypt. Foreign investors and tourists will return now that the Muslim Brotherhood is gone,'' he confidently declared. Nearly eight months later, it is clear that neither foreign investment nor tourists have been pouring into Egypt. Less clear, though, is where exactly to place the blame for Egypt's economic woes. A close examination of Egypt's economy reveals bleak prospects in the short-term; however, there is nevertheless some hope for cautious optimism.