Egypt overhauls cabinet as economic pressures, power cuts persist

CAIRO: Egyptian President Abdel Fattah al-Sisi swore in a reshuffled cabinet on Wednesday that includes new finance and foreign ministers in a government facing challenges including the Gaza war on its border, economic woes and persistent power cuts.

When the resignation of the previous cabinet was announced a month ago, Sisi reappointed Prime Minister Mostafa Madbouly and said his new government should focus on lowering inflation and regulating markets as well as boosting investment.

Sworn in as the new finance minister was Ahmed Kouchouk, formerly deputy finance minister and facing perhaps the biggest challenge in managing a stumbling economy and a debt burden that has soared in recent years.

Egypt’s sovereign dollar bonds rallied on Wednesday, with the longer-dated maturities gaining the most. The 2047 maturity rose by 1.96 cents to trade at 75.16 cents on the dollar by 1124 GMT.

At the foreign ministry, Egypt’s ambassador to the European Union, Badr Abdelatty, replaces Sameh Shoukry, a veteran who has steered Egypt's diplomatic efforts to contain the impact of the war in Gaza. Karim Badawi was appointed as petroleum minister, Mahmoud Esmat as electricity minister and General Abdel Majeed Saqr as defence minister.

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Ministers in Egypt have limited decision-making authority, with real power residing with the presidency, military and security services.