As Egypt navigates its economic landscape, the International Monetary Fund (IMF) is set to play a crucial role in evaluating the effects of the country's $8 billion reform program on its most vulnerable citizens. A survey is currently underway to assess the impact of these economic reforms, with IMF chief Kristalina Georgieva scheduled to visit Cairo in early November 2024 to discuss the findings and the broader implications of the reform initiatives. The discussions will focus on Egypt's social protection programs, which are vital for mitigating the adverse effects of economic changes on low-income populations.
The backdrop of this evaluation includes the recent devaluation of the Egyptian pound by 40% in March 2024, which has intensified the need for currency reform. President Abdel-Fattah El-Sisi acknowledged the challenging conditions under which the IMF agreement is being implemented, highlighting the delicate balance the government must maintain to ensure economic stability while adhering to the terms of the loan deal. Although the IMF is open to adjustments in the program, the overall loan amount is expected to remain unchanged.
In an effort to bolster its economy, Egypt is also looking to attract foreign investment by selling over two dozen state assets. The IMF's decision to lower borrowing costs is projected to save Egypt approximately $800 million by 2030, providing some fiscal relief amid ongoing economic pressures. Furthermore, progress has been made in accessing the Resilience and Sustainability Facility, which aims to support countries in their efforts to build resilience against climate change and other economic shocks. As Egypt and the IMF continue their collaboration, the focus remains on ensuring that the most vulnerable populations are protected during this period of significant economic transformation.