In what analysts describe as an historic stage, Egyptians will start casting ballots at polling stations on Sunday, to elect a president for the coming six years.
The country’s presidential election, scheduled to wrap up Tuesday, is another political episode of democracy since the June 30 Revolution, which has ushered in stability since 2013.
The Egyptian next administration will likely carry on its efforts aimed at boosting the national economy and enhance the citizen’s purchasing power during the next presidential period.
One of key objectives will be localization of Egyptian industry and develop infrastructure across the country.
Another objective will also be to diversify sources of foreign reserves, conducting debt swap agreements. The government should also increase the private sector’s role in the national economy and gradually phase out state’s economic activity based on the state ownership document, which was enacted in 2023.
The overall objective will be taking all necessary measures to lure more foreign direct investment (FDI).
Egypt’s economy has gone through tough conditions since Covid-19 pandemic hit the world in 2020. The Russia-Ukraine conflict, which erupted in February 2022, has intensified economic challenges globally with grain importing countries like Egypt taking the hardest blow.
However, Egypt’s political leadership realised from the very beginning the challenges facing the Egyptian economy, taking a number of measures to alleviate the burden of such crises.
With the repercussions of the global economic turmoil taking its toll, President Abdel Fattah El Sisi increased an exceptional cost of living allowance to LE600, up from LE300, for all civil servants, as well as workers in all the public and private sectors.
El Sisi also raised minimum wage to LE4,000, up from LE3,500 for all workers nationwide.
The President also instructed the government ti raise the tax exemption limit by 25 per cent from LE36,000 to LE45,000 for all workers.
The President increased pensions of Takaful and Karama by 15 per cent for five million families across the country.
A stable political system provides the necessary framework for businesses to thrive, encourages foreign investment, and fosters economic growth.
Political stability plays a crucial role in the economic development of a country. When a nation is politically stable, it creates an environment that is conducive to investment, growth, and prosperity.
One of the key ways in which political stability contributes to economic development is by providing a sense of security and predictability for businesses and investors. In a politically stable environment, there is less risk of sudden policy changes, government instability, or social unrest that could disrupt business operations. This allows businesses to make long-term plans and investments with confidence, leading to increased economic activity and job creation.
Political stability can also lead to improved governance and more effective policymaking. When a country’s leadership is stable and secure, it can focus on implementing policies that promote economic growth, infrastructure development, education, healthcare, and other essential services. This can lead to increased productivity, innovation, and competitiveness in the global market.
Furthermore, political stability helps to build trust between the government and its citizens as well as between the government and foreign investors. A stable political system is more likely to uphold the rule of law, protect property rights, and enforce contracts fairly. This creates an environment where businesses can operate with confidence that their investments will be protected and their rights upheld.