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Home»Politics»What is the Deal With Egypt’s Debt-Funded Megaprojects?
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What is the Deal With Egypt’s Debt-Funded Megaprojects?

Buzzin DailyBy Buzzin DailyJune 11, 2025No Comments9 Mins Read
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What is the Deal With Egypt’s Debt-Funded Megaprojects?
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Welcome to International Coverage’s Africa Transient.

The highlights this week: Egypt unveils plans for one more city megaproject, the Wagner Group leaves Mali after three and a half years, and Ghana acknowledges Moroccan sovereignty over Western Sahara.

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Egypt’s Debt-Funded Megaprojects

Earlier this month, Egypt unveiled plans to develop a brand new 1,680-acre desert metropolis named Jirian. The large initiative will see roughly 7 % of the nation’s annual Nile River quota rerouted from fertile delta areas through a human-made channel that winds by way of the town. It is going to be positioned close to the colossal Grand Egyptian Museum, which not too long ago opened on the outskirts of Cairo, and the Sphinx Worldwide Airport.

It’s the newest in a string of megaprojects undertaken by President Abdel Fattah al-Sisi. These have included a $59 billion new administrative capital east of Cairo, a $1.3 billion monorail, a $23 billion high-speed rail, and a number of different deliberate upmarket cities—all financed with hovering exterior debt.

Egypt’s hope is that these tasks will spur long-term progress and improvement. Prime Minister Mostafa Madbouly has stated that the Jirian improvement, as an illustration, will create 250,000 jobs and houses for hundreds of thousands of households.

But critics argue that these undertakings are simply one other means for the Sisi regime to make sure its grip on the nation. Since Sisi led a army coup towards Egypt’s first democratically elected president, Mohamed Morsi, in 2013, the army has been intently concerned in lots of authorities tasks. As corporations related to the army achieve management over extra prime actual property, lots of the nation’s city poor are being moved to the outskirts of cities, making it tougher to mobilize mass unrest.

In the meantime, multilateral lenders and governments proceed to pour billions of {dollars} into Egypt. The nation receives loans from the Worldwide Financial Fund (IMF), the European Union, and China, in addition to grants from the United Arab Emirates and Saudi Arabia. Egypt’s exterior debt has climbed from $37 billion in 2010 to $155 billion as of final September.

An preliminary $3 billion IMF bailout package deal accepted in 2022 was expanded to $8 billion in March 2024. In April, the EU accepted a $4.6 billion mortgage package deal for Egypt.

In the meantime, Egypt has partnered for a lot of of its infrastructure tasks with Chinese language firms, together with the state-owned China State Development Engineering Company. And the UAE has invested $35 billion in a challenge in Ras El Hekma, a deliberate resort vacation spot on the Mediterranean coast.

Though the Egyptian financial system is recovering this 12 months, as monetary reforms required by the IMF have put the nation on a progress trajectory, many analysts warn that Sisi’s failure to curb spending on vainness tasks may hurt the nation’s financial prospects.

In February, Egyptian billionaire Naguib Sawiris referred to as for the nation to rethink its foreign-funded megaprojects spurred by what he described as “an overambitious president.” Final month, worldwide commerce knowledgeable Nermin Tahoun warned that Egypt’s debt service burden surpasses 50 % of its public spending and will result in worse fiscal challenges for the nation.

The Jirian luxurious metropolis is predicted to take 5 years to finish. Within the meantime, poverty in Egypt is on the rise, and peculiar Egyptians proceed to face a cost-of-living disaster. Inflation hit a four-month excessive in Could, reaching 16.8 %.


The Week Forward

Wednesday, June 11, to Friday, June 13: The Africa Influence Summit is held in Accra, Ghana.

Thursday, June 12: Kenyan Treasury Secretary John Mbadi presents the 2025-26 price range to parliament.

Nigeria celebrates Democracy Day, which marks the restoration of democracy in 1999 following the annulled 1993 presidential election that culminated in a army coup.


What We’re Watching

Sudan’s civil battle. The quantity of people that have fled Sudan since battle broke out in 2023 between factions loyal to rival generals has surpassed 4 million, in line with the most recent information from the U.N. refugee company.

Final week, company spokesperson Eujin Byun described the battle as “the world’s most damaging displacement disaster in the intervening time.” “If the battle continues in Sudan … we anticipate 1000’s extra individuals will proceed to flee, placing regional and world stability at stake,” she stated.

Wagner exits Mali. On Friday, Russia’s paramilitary Wagner Group introduced that it will go away Mali after greater than three and a half years because the nation grapples with a worsening Islamist insurgency.

In a message on its Telegram channel, Wagner stated it was withdrawing after “the completion of its fundamental mission,” throughout which it had killed “1000’s of militants and their commanders, who terrorized civilians for years.”

But the announcement comes because the al Qaeda-linked Jama’a Nusrat ul-Islam wa al-Muslimin has intensified its assaults on Malian army bases in current weeks. Wagner suffered its deadliest setback in Africa in its historical past final July, when at the least 50 of its mercenaries had been killed in an ambush by Tuareg rebels in North Mali.

Africa Corps, which is seen because the Kremlin’s successor to Wagner, will exchange the group in Mali. Round 70 % to 80 % of its troops are former Wagner mercenaries, Reuters not too long ago reported. One key distinction between the forces, in line with analysts, is that Africa Corps engages much less in direct fight and as a substitute supplies coaching and weapons to Malian troopers.

Rwanda quits bloc. Rwanda stated on Saturday that it’s pulling out of the Financial Group of Central African States (ECCAS) as tensions rise over its involvement within the battle within the Democratic Republic of the Congo. Rwanda backs the armed M23 insurgent group, which has seized swaths of land in jap Congo this 12 months.

Rwanda was speculated to assume the chairmanship of the 11-member bloc at a gathering over the weekend, however the bloc saved Equatorial Guinea within the function as a substitute. In a assertion, Rwanda stated that its proper to imagine the chair was “intentionally ignored so as to impose [Congo’s] diktat.”

On the summit, ECCAS ordered Rwanda to withdraw its troops from Congo. Congolese authorities spokesman Patrick Muyaya stated on Sunday that ECCAS’s actions “ought to encourage different regional organizations to undertake a firmer stance towards Rwanda.”

Shift on Western Sahara. Ghana has acknowledged Moroccan sovereignty over Western Sahara. It now sees Rabat’s plan for the disputed area as “the one sensible and sustainable foundation to a mutually agreed answer,” in line with a joint assertion issued on Thursday after Ghanaian International Minister Samuel Okudzeto Ablakwa and Moroccan International Minister Nasser Bourita met in Rabat.

Since 1979, Ghana had supported the Algeria-backed Polisario Entrance in Western Sahara, a former Spanish colony that boasts wealthy Atlantic fishing grounds. The Polisario Entrance has sought full independence for the reason that Seventies, however over time, Morocco has consolidated management over 80 % of the realm.

Till not too long ago, most nations supported a U.N.-brokered plan to have the territory’s destiny decided by a future referendum. However up to now 12 months, Kenya, France, Spain, and the UK have modified tack and backed Moroccan sovereignty.

This shift comes as Morocco builds a $1.2 billion commerce port in Western Sahara and nations search to spice up financial ties with Rabat. Ghana and Morocco have scheduled a joint enterprise discussion board in Morocco for October.


This Week in Tradition

Human Somali exhibit. Researchers try to hint the tales—and descendants—of those that lived in a Somali village within the metropolis of Bradford, England, in 1904. A gaggle of round 100 Somali males, ladies, and youngsters had been delivered to the purpose-built village as a part of a six-month exhibition that attracted an estimated 350,000 guests.

So-called human zoos of Africans grew to become widespread in the USA and Europe across the flip of the twentieth century. Germany, as an illustration, had round 400 human exhibitions by the Thirties. The individuals dwelling in them had been usually anticipated to offer day by day performances.

“There are numerous elements of this story which can be positively uncomfortable,” Yahya Birt, a neighborhood historian engaged on the Bradford challenge, advised the BBC. “The very best historical past occurs whenever you’re made to really feel uncomfortable as a result of it makes you query your personal assumptions.”

African Christians. Africa has changed Europe because the area with the most important Christian inhabitants, in line with a Pew Analysis Middle report launched Monday. As of 2020, greater than 30 % of the world’s Christians dwell in Africa, in contrast with roughly 22 % in Europe.


FP’s Most Learn This Week


What We’re Studying

Africa’s balancing act. Africa faces important geopolitical challenges because it navigates not simply coverage reversals in Washington and U.S.-China competitors, but in addition relationships with rising buying and selling companions reminiscent of India, Turkey, and the Gulf states vying for the continent’s vital belongings, Mebratu Kelecha writes in Africa Is a Nation.

“In concept, this competitors for African markets may improve African leverage—an opportunity to play suitors off each other for higher phrases. However in follow, it may additionally change into a race to the underside,” he writes.

Can the African Union survive? Within the Republic, Afolabi Adekaiyaoja argues that the African Union is on borrowed time, particularly as public disillusionment grows over the bloc’s willingness to sentence army energy grabs however not constitutional coups.

“No additional rebranding or retrofitting will stem the rising disillusionment residents really feel with the physique and the looming worry of a future with out an AU,” he writes.

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