Egypt Cairo’s bustling Sabtiya Market, Umm Karim stares at egg prices – now 120 EGP ($2.40) a dozen. “Last year, this bought chicken and rice,” she sighs. Around her, the air thrums with anxious haggling as Egypt’s economic crisis tightens its grip.
With inflation hitting 33.1% – the highest since 2017 – and the Egyptian pound losing 40% of its value since January, President Sisi faces a nation pushed to breaking point. The $8 billion IMF bailout meant to stabilize the economy now demands brutal sacrifices.
The High-Stakes Balancing Act:
- Privatization Push: The government races to sell state assets – from hotels to banks – targeting $2.5 billion by December. Gulf investors recently acquired stakes in iconic firms like Alexandria Container Terminal.
- Subsidy Cuts: Bread subsidies are being slashed, tripling prices for 70 million Egyptians reliant on cheap loaves (aish baladi).
- Military Retreat?: Under IMF pressure, the powerful military-owned businesses may cede control of industries like cement and olive oil.
Market Realities:
“Investors see potential but demand proof of reform,” explains financial analyst Nada Rashad. “Every delay spooks the markets.”
- Foreign reserves dipped to $28 billion despite Gulf deposits
- Debt payments consume 45% of state revenue
- Tourism revenue drops as European travelers avoid regional instability
Human Impact:
In Imbaba, a working-class Cairo district, carpenter Ahmed works three jobs: “My children ask why we never eat meat anymore. What do I tell them?”
Meanwhile, the business elite hunts opportunities. At a Nile-side investment forum, Emirati delegates discuss buying luxury hotels while Sisi urges: “Egypt is open for business!”
The Road Ahead:
Economists warn of a “lost generation” unless:
✅ Accelerated privatization attracts hard currency
✅ Diversification beyond real estate and tourism
✅ Transparency in military-to-civilian transition
As Umm Karim leaves the market with half her list, she whispers: “They sell our country piece by piece. Who’s left to feed?”
