After receiving two credit lines from the International Monetary Fund (IMF) to counter the COVID-19 pandemic, the Egyptian government announced multi-billion dollar investments in construction activities. President Abdel Fattah al-Sisi on Monday presided over a virtual ceremony to inaugurate two airports as a part of this infrastructure boost.
During the event, Prime Minister Moustafa Madbouly confirmed the government plans to invest $18.5 billion in infrastructure during the upcoming fiscal year, which starts on July 1, reports Efe news.
“Large investments must be injected into the country to ensure that the construction, industrial and agriculture sectors continue to operate and that the low rate of employment we have attained is not affected,” he said.
During the event, the Sphinx International Airport was inaugurated over a year after it started domestic flight operations.
The coronavirus did not halt Egypt’s megaprojects. Rather, it prompted the government to ask the IMF for help to deal with the pandemic that has severely hit the tourism industry, one of the country’s main sources of income.
On June 26, the IMF approved a 12-month $5.2 billion Stand-By Arrangement and the immediate access to $2 billion to counter the economic impact of the coronavirus.
On May 11, the IMF had approved $2.77 billion as an extension to the loan pending under the IMF Expanded Service, under which $12 billion has been approved since 2016 for structural reforms.
In the wake of that loan, Egypt has carried out tough reforms by removing fuel and electricity subsides, significantly affecting the purchasing power of low-income citizens.
Over 30 per cent of Egyptians live below the poverty threshold, according to official figures.
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