Egypt’s Parliament Approves Cabinet Reshuffle with 13 New Ministers

Egypt’s parliament has voted in favor of a significant Cabinet reshuffle, appointing 13 new ministers amid ongoing economic challenges and regional tensions. The approval, which occurred on Tuesday, reflects the government’s effort to address pressing issues affecting the North African nation.

The reshuffle involved key portfolios focused on economic management, including the Ministries of Planning and Investment. Ahmed Rostom, a senior economist with the World Bank, has been appointed Minister of Planning, while Mohamed Farid Saleh, previously chairperson of the Financial Regulatory Authority, will now lead the Ministry of Investment. Additionally, the State Ministry of Information has been reinstated after its dissolution in 2021, with Diaa Rashwan, chairman of the State Information Service, taking the ministerial role.

Continued Economic Struggles

Egypt’s economy has faced numerous challenges in recent years, exacerbated by austerity measures linked to an International Monetary Fund (IMF) program initiated in 2016. The impacts of the COVID-19 pandemic, the conflict stemming from Russia’s invasion of Ukraine, and the ongoing Israel-Hamas conflict have further strained the economy.

The recent escalation of Houthi attacks on shipping routes in the Red Sea has also affected the revenue generated from the Suez Canal, a vital source of foreign currency for Egypt. These attacks have diverted maritime traffic, leading to a decrease in canal revenues.

In light of these difficulties, Kristalina Georgieva, managing director of the IMF, indicated earlier this month that Egypt is showing a strong commitment to the objectives of its economic reform program. A final review of this program is nearing completion.

Impact on Daily Life

Despite the government’s reform efforts, the measures have resulted in increased living costs for many Egyptians. Fuel prices and public transport fares have risen significantly, coinciding with a decline in the value of the Egyptian pound against foreign currencies. According to the latest figures from the Egyptian government, approximately 30% of the population lives below the poverty line.

The Central Agency for Public Mobilization and Statistics reported an annual inflation rate of 10.1% for January 2025, a slight decrease from 10.3% in December 2024. In response to these economic pressures, the government has increased the minimum monthly wage for public and private sector workers from 6,000 Egyptian pounds (approximately $118.58) to 7,000 pounds (about $138).

This latest Cabinet reshuffle marks the first major change since July 2024, as Egypt continues to navigate its economic challenges while maintaining stability in key governmental positions, such as foreign affairs and defense, which remain unchanged. The new appointments reflect a strategic approach to addressing the nation’s pressing economic concerns, aiming to pave the way for recovery and growth.