INTERVIEW: Confronting global crisis ‘not an easy matter’ for Egypt

These global crises have placed significant burdens, like rising inflation, on numerous countries, including Egypt, Belhaj said. He emphasized that confronting these repercussions “is not an easy matter” for Egypt despite its mighty efforts, as measures to address them have introduced challenges of their own, such as rising interest rates.

Al-Ahram: Egypt is encountering significant challenges caused by successive external crises, such as the COVID-19 pandemic and the conflict in Ukraine. What are some strategies to address the repercussions of these crises and bolster the economy?

Feried Belhaj: Undoubtedly, the impact of the COVID-19 crisis, including disruptions in supply chains, inflation and the ongoing Ukrainian war leading to shocks in food and energy prices, has had adverse consequences for the Egyptian economy. These challenges have exerted significant pressure on the Egyptian government and its economic reform plans, thereby reducing their effectiveness.

Consequently, there is a pressing need to adopt policies that foster economic growth by actively involving the private sector and strengthening the social safety net to ensure stability. Furthermore, addressing the current economic pressures requires heightened attention to the middle class, ensuring its members do not slip into poverty. It is worth noting that the Egyptian economy is not alone in facing these pressures, as most economies have experienced a weakened economic situation in the aftermath of the COVID-19 pandemic.

AA: Why did it take considerable time to finalize and announce the strategic partnership framework with Egypt? What are the primary characteristics and goals of this strategy?

FB: The strategy was not a lengthy process. However, extensive discussions were held with the Egyptian government to align [the partnership] with Egypt's goals and aspirations, and to establish a comprehensive vision for joint action in the coming five years. The strategy encompasses the period from 2023 to 2027.

Its structure considers the role of the state in the economy. Expanding the participation of the private sector is one of the most important goals that the strategy seeks to achieve. This goal is the main way out of the current crisis facing the economy and the way to achieve recovery and push growth rates to rise.