The IMF Board today completed the First and Second Reviews of the extended arrangement under the Extended Fund Facility (EFF) for Egypt and approved an augmentation of the original program by about US$5 billion (SDR 3.76 billion), allowing the authorities to draw the equivalent of about US$820 million (SDR 618.1 million); A strong economic stabilization plan is being implemented to correct policy slippages. The plan is centered on a liberalized foreign exchange system in the context of a flexible exchange rate regime, a significant tightening of the policy mix, reducing public investment, and leveling the playing field to allow the private sector to become the engine of growth; While the recent sizable investment deal in Ras El-Hekma alleviates the near-term financing pressures, implementation of the economic policies under the program remains critical to address Egypt’s macroeconomic challenges. Robust delivery on structural reforms will be critical to lock in the benefits of the improved financing environment.

The Executive Board of the International Monetary Fund (IMF) completed the first and second reviews of Egypt’s Extended Fund Facility arrangement with Egypt and approved an augmentation of the original program by about US$5 billion (SDR 3.76 billion). This enables the authorities to immediately draw about US$820 million (SDR 618.1 million). Egypt’s 46-month EFF arrangement was approved on December 16, 2022.

In completing the review, the Executive Board assessed that all but one of the quantitative performance targets for end-June 2023 were met. The Board approved the authorities’ request for a waiver for non-observance of the June performance criterion on Net International Reserves on the basis of corrective actions.

Macroeconomic conditions since the approval of the program have been challenging, with rising inflation, foreign exchange shortages and elevated debt levels and financing needs. The difficult external environment generated by Russia’s war in Ukraine was subsequently aggravated by the conflict in Gaza and Israel, as well as tensions in the Red Sea. These developments increased the complexity of macroeconomic challenges and called for decisive domestic policy action supported by a more robust external financing package, including from the IMF.

Within this context, external shocks and delayed policy adjustment weighed on economic activity. Growth slowed to 3.8 percent in FY2022/23 due to weak confidence and foreign exchange shortages and is projected to slow further to 3 percent in FY2023/24 before recovering to about 4½ percent in FY24/25. Inflation remains high but is expected to ease over the medium term as the policy tightening takes hold. 

The recently announced US$35 billion investment deal from an Abu Dhabi-based investment and holding company in Ras El-Hekma has alleviated near-term balance of payment pressures and, if used judiciously, will help Egypt rebuild buffers to deal with future shocks.  Nonetheless, steadfast implementation of the economic policies under the program remains critical to sustainably address Egypt’s macroeconomic challenges, as does robust delivery on structural reforms to allow the private sector to become the engine of growth.

At the conclusion of the Executive Board’s discussion, Ms. Kristalina Georgieva, Managing Director and Chair made the following statement:

“Egypt is facing significant macroeconomic challenges that have become more complex to manage given the spillovers from the recent conflict in Gaza and Israel. The disruptions in the Red Sea are also reducing Suez Canal receipts, which are an important source of foreign exchange inflows and fiscal revenue.

“The authorities have significantly strengthened the reform package underlying the Extended Fund Facility arrangement, supported by an augmentation of access. Recent measures toward correcting macroeconomic imbalances, including unification of the exchange rate, clearance of the foreign exchange demand backlog, and significant tightening of monetary and fiscal policies, were difficult, but critical steps forward, and efforts should be sustained going forward. The authorities’ commitment to use a large part of the new financing from the Ras El-Hekma deal to improve the level of reserves, fast-track the clearance of foreign currency backlogs and arrears, and reduce government debt upfront is prudent.

“The authorities’ policies are well calibrated to entrench macroeconomic stability while protecting the vulnerable. The Central Bank of Egypt’s resolve to focus squarely on reducing inflation and to tighten further, if necessary, is key to preventing further erosion of the purchasing power of households. Implementation of the newly established framework to monitor and control public investment will help manage excess demand. The pursuit of a revenue-based fiscal consolidation will put debt firmly on a downward path and provide resources for expanding the social safety net. In this regard, it remains essential to replace untargeted fuel subsidies with targeted social spending as part of a sustained fuel price adjustment package.

“With policies to restore macroeconomic stability in place, the stage is set for accelerating implementation of the structural reform agenda intended to deliver inclusive and sustainable growth. Withdrawing the state and military from economic activity and leveling the playing field between the public and private sectors is key to attracting foreign and domestic private investment in Egypt.

“Achieving these goals is subject to risks. Externally, uncertainty remains high. Domestically, sustaining the shift to a liberalized foreign exchange system, maintaining tight monetary and fiscal policies, and integrating transparently off-budget investment into macroeconomic policy decision making will be critical. Managing the resumption of capital inflows prudently will be important to contain inflationary pressures and limit the risk of future external pressures.”

Egypt: Selected Macroeconomic Indicators[1]

2022/23

2023/24

2024/25

Output

Real GDP growth (%)

3.8

3.0

4.4

Employment

Unemployment  (%)

7.2

—

—

Prices

Inflation (%, end of period)

35.7

32.1

15.3

Inflation (%, period average)

24.4

32.5

25.7

Budget sector [2[

Revenue and grants (% GDP)

15.4

15.3

16.2

Expenditure (% GDP)

21.4

21.7

24.7

Overall balance (% GDP)

-6.0

-6.3

-8.5

Primary balance including divestment proceeds (% GDP)

1.6

7.1

4.5

Gross debt, general government (% GDP)

95.9

96.4

82.6

Money and credit

Broad money (M2, % change)

24.7

38.6

18.5

Credit to the private sector (% change)

25.4

30.0

25.0

Balance of payments

Current account (% GDP)

-1.2

-6.3

-2.4

FDI, net (% GDP)

2.5

9.3

2.5

Reserves (months imports)

5.3

7.3

6.9

External debt (% GDP)

41.8

43.0

45.4

Exchange rate

Real Effective Exchange Rate (% change; appreciation +)

-22.1

—

—

Sources: Egyptian authorities; and IMF staff estimates and projections.

Distributed by APO Group on behalf of International Monetary Fund (IMF).

On March 28, Ambassador Wang Xuekun attended the Signing Ceremony of Agreement on Sister Cities between Jinhua and Musanze. Other attendees includes Mr. Zhu Chonglie, the Secretary of Jinhua Municipal Committee of the Communist Party of China (CPC), Nzabonimpa Emmanuel, the Executive Secretary of Rwanda Northern Province, and Nsengimana Claudien, the Mayor of Musangze.

Ambassador Wang congratulated Jinhua and Musanze on their establishing sister cities, and stressed that as the first sister cities between China and Rwanda, Jinhua and Musanze have started a new chapter of friendship and cooperation. The Chinese Embassy in Rwanda stands ready to promote the cooperation between the two cities, and benefit our two peoples.

Mr. Zhu Chonglie said, Jinhua looks forward to better industrial collaboration, closer trade relations and deeper cultural exchanges with Musanze.

Mr. Nsengimana Claudien said that the agreement will help two cities enhance mutual understanding and friendship, and build a brighter future.

he Jinhua delegation made a briefing on the  China-Africa Economic, Trade and Cultural Forum, and the economic and social development of Dongyang City.

In the afternoon, Ambassador Wang attended the Signing ceremony of Agreement on Continued Cooperation in Building Luban Workshops and Vocational Education.

Distributed by APO Group on behalf of Embassy of the People’s Republic of China in the Republic of Rwanda.

For a long time, the voice of Maryan Zeylac was one of the few women’s voices heard by the listeners of the main, privately-owned radio station in Somalia’s South West State.  

“I was the sole female journalist at Radio Baidoa, leading several radio shows within a predominantly male environment,” says Maryan Zeylac, whose programmes used to cover a range of topics, including political developments, women’s affairs and social uses.  

Working in a male-dominated industry is not new Ms. Zeylac – she spent almost 20 years working in the media in South West State and became accustomed to it. 

But she did not simply accept the status quo either. 

Learning on the job

 Born in 1987 in Baidoa – the biggest city in South West State – Ms. Zeylac had a childhood dream of a career in the news media.  

She completed her primary and secondary education in Mogadishu, and then returned to Baidoa in 2005. She soon landed a cadetship at Baidoa Radio’s newsroom. 

Her training and natural aptitude saw her grow her skills, and she eventually undertook various roles, including reporter and producer, for various Somali outlets with a presence in South West State, such as SBC TV, Universal TV and Radio Shabelle, among others. In 2007, she completed a diploma in journalism from the Kenya Institute of Mass Communication.

Women seeking careers in the news media can face many obstacles, ranging from discrimination to lower salaries. 

Looking back, Ms. Zeylac recalls how rare it was for a Somali woman to work as a journalist.

“When I started in 2005, children in villages would cheer my name – they looked at me as if I was some sort of renowned BBC Somali journalist from Europe!” she says. “I was the sole female reporter, covering the latest social and political news on the streets. I recall that all radio stations were manned by males except mine.”

Starting SOMWA

Her awareness of the lack of women’s voices in the local media also prompted her to do something to bridge this gap.

With others, she established a platform in 2006 to unite the few female journalists in Baidoa and to, hopefully, attract more women to the field: the Somali Media Women Association (SOMWA).

“I, along with three colleagues from Radio Warsan and Radio Shabelle, founded SOMWA to advocate for a higher number of female journalists in my hometown. Back then, we were just four, but now there are nearly a hundred female media workers in Baidoa alone, and throughout the South West State,” says Ms. Zeylac, who also serves as SOMWA’s Executive Director.

With offices in Baidoa and Mogadishu, the Somali capital, the non-governmental organization (NGO) is one of the country’s leading representative associations for women working in the news media in Somalia. 

It has 20 paid staff and 253 voluntary members, and is a vocal advocate for their rights, needs and place in Somali society.

SOMWA works to promote the rights to and use of information to create a society that has equitable access to opportunities. It monitors the violations of the labour rights and safety of female of journalists and provides impartial information concerning attacks on female journalists such as harassment, intimidation, inappropriate sexual attentions and online violence. It has also highlighted the issue of women’ s involvement in the country’s political processes, especially decision-making processes.

“We are glad that our efforts have borne fruit – negative perceptions against female journalism are dying down, the number of female journalists has increased significantly and, after engaging traditional leaders intensively, women’s political participation is higher in SWS comparing to other Federal Member States. I believed we did our best,” she says. 

Reporter targeted

Ms. Zeylac knows what it is like to be targeted as a female journalist – it is what led to her now living far from her homeland.

In 2008, SOMWA partnered with international entities such as Care International and United States Agency for International Development (USAID) which the Al-Shabaab terrorist group was opposed to on ideological grounds.

In 2008, when the Al-Shabaab terrorist group took control of Baidoa from Somalia’s Transitional Federal Government, the young journalist relocated to Mogadishu. 

“I started to receive death threats from Al-Shabaab, which was so severe and constant to the extent that I could not even step out of my house ,” she says.

 In the capital, she continued her media and advocacy work, but the Al-Shabaab threats did not let up. Her work there, as well as her work in Baidoa made her a target. In late 2009, she fled to Kenya from where she proceeded to the United Kingdom. 

“I did not choose to move to the UK – I left my country for safety reasons. Al-Shabaab constantly demanded that I close SOMWA’s office. They accused me of ‘collaborating’ with Care International and USAID, calling me an ‘apostate’ in the media,” she says.

Recently, in the United Kingdom, Ms. Zeylac completed  a bachelor’s degree in health and social care from the University of Bedfordshire – but she continues in her leadership role at SOMWA through virtual means and through regular, low-key visits to Somalia. 

“The situation is difficult for me in some ways, but SOMWA has a strong membership and, ultimately, it doesn’t matter where I am physically as long as we can achieve our goals for Somali women in SWS and Mogadishu,” she says.

Over the past 20 years, SOMWA has worked with various national and international organization, including the United Nations, to hold a series of training workshops for female media workers in South West Somalia.  

“The proportion of female journalists in the press is less than 30 per cent, underscoring the need to increase their representation. Offering capacity-building training, internships, employment opportunities, and holding media leaders accountable for violations against women in the media are crucial strategic areas that can promote female journalists,” says Ms. Zeylac.

 “In general, I can say that women are half of our society and should be represented accordingly. Women are often interested in hearing other women’s voices and opinions, and men can learn from hearing female’s perspectives of the world.” says the Head of Office of the UN’s operations in South West State, Magnus Bjarnason.

But, even with this support, Ms. Bjarnason is under no illusion as to the road ahead for young Somali women considering a career in the news industry.

“My advice to young girls entering the media is that the media needs you. Equip yourself with knowledge, proactiveness, and perseverance. There are no red carpets on your path to success, but it is slightly better than before,” she says. “Let’s make sacrifices for the next generation.”

Distributed by APO Group on behalf of United Nations Assistance Mission in Somalia (UNSOM).

The UAE welcomed the additional provisional measures issued by the International Court of Justice (ICJ), in  the case of genocide presented by the Republic of South Africa, demanding Israel to allow increased humanitarian aid to the Gaza Strip, and to open more crossing points to transfer food and medical supplies.

Her Excellency Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation said that the UAE reiterated its appreciation for the efforts of South Africa in this regard, and reaffirmed the importance of providing protection for civilians, and ensuring the entry and delivery of humanitarian and relief aid urgently, sustainably and without impediment to the Gaza Strip. 

The UAE also urged to avoid further loss of life, and prevent fueling the situation in the Occupied Palestinian Territory. Furthermore, the UAE emphasized the importance of alleviating the extremely critical and deepening humanitarian catastrophe faced by innocent civilians in the Gaza Strip. 

Her Excellency stressed the importance of creating a political horizon to achieve the two-state solution to establish an independent Palestinian state, alongside the State of Israel, and to reach a sustainable solution to the Palestinian-Israeli conflict that guarantees the end of violence and hostilities. The UAE underscored that it will continue working alongside partners to intensify efforts aimed at alleviating the humanitarian suffering in Gaza.

Distributed by APO Group on behalf of United Arab Emirates Ministry of Foreign Affairs&International Cooperation.