Egyptian president demands establishment of a new government focused on economic reform

Egyptian Prime Minister Mostafa Madbouly submitted his government’s resignation on Monday after president Abdel Fatah al-Sisi demanded a reshuffling of his cabinet. 

The move comes a few days after Egypt announced a dramatic price hike on subsidized bread – the first in decades – that caused outrage among lower income households that rely heavily on government subsidies. 

Al-Sisi reportedly asked Madbouly to select MPs who will prioritize economic reform to grow the private sector and tackle inflation while boosting foreign and local investment in Egypt.

These priorities align with what the International Monetary Fund has mandated in connection with an $8 billion lifeline provided to Egypt earlier this year to help stabilize its economy.  

The move was widely expected after al-Sisi secured a third term earlier this year vowing to focus on growing the economy. 

Egypt has faced considerable economic challenges in recent years including runaway inflation and a massive foreign-currency shortage. According to Bloomberg, it has devalued its currency four times over the past two years.