CAIRO: Egypt’s economy had just started to recover after years of political turmoil and militant attacks when the coronavirus crisis hit, impacting especially its vital tourism sector.
Now President Abdel Fattah El-Sisi’s government has loosened a strict curfew for the Muslim holy month of Ramadan in an effort to kickstart North Africa’s largest economy.
Having shuttered shops and cafes in late March and forced millions of civil servants to stay home, it is slowly reversing some of these measures, bringing back many state workers and extending the trading hours of shops and malls.
The blessing for the emerging economy of more than 100 million people, experts say, is that activity has kept ticking over in agriculture and construction, and especially in the vast informal sector.
“Twenty-five percent of the workforce is in agriculture, which remains unaffected,” said Angus Blair, a business professor at the American University in Cairo.
“Many other businesses continue to remain open, albeit with reduced staff, and construction is continuing.”
Egypt’s main sources of foreign currency have been tourism, remittances sent home from workers abroad, and Suez Canal revenues — which have all dropped sharply during the global lockdown in travel and trade.
But more than half of Egypt’s private sector is made up of the so-called informal economy — ranging from streetside fruit sellers to day laborers on construction sites to one-man auto repair businesses.
Around four million workers make up this shadow economy comprised of low-paid irregular laborers.
“The large informal sector, while finding conditions slower, will continue to function,” predicted Blair.
The challenge is huge for Egypt, where nearly a third of people live below the poverty line, many more face precarious conditions and social order has traditionally been maintained by a strict military apparatus.
Slow growth and fewer jobs may have “a temporary impact on poverty rates in the country,” warned Alia El-Mahdi, former dean of Cairo University’s faculty of economics and political science.
“The state must encourage the private sector on a macroeconomic scale so that it can overcome the crisis.”
The El-Sisi government approved a $6 billion (100 billion Egyptian pounds) aid package to stem the fallout of the coronavirus, which has caused 400 deaths and nearly 7,000 infections according to official data.
This included payments of 500 pounds a month to informal workers who lack any social insurance to fall back on.
Cairo also sought a fresh loan from the International Monetary Fund last month and cut its interest rates in March to encourage lending for individuals and businesses.
The biggest cash-cow, tourism, has however taken a heavy blow as the COVID-19 pandemic shuttered travel worldwide.
It was all the more painful after the country famed for the Pyramids, Nile river cruises and Red Sea resorts had last year booked tourism revenues topping $12.6 billion, the highest in a decade.
Mahmoud Al-Dabaa, a travel agent in the popular seaside resort of Sharm el-Sheikh, said he was shocked at how the once bustling travel destination had turned into a ghost town with deserted beaches.
“It’s the first time I see Sharm completely empty like this,” he said.
Dabaa had expected this season to also be profitable, but a string of canceled bookings signals a bumpy road to recovery.
On Sunday, the government announced that hotels may start operating again for domestic tourists, provided they stick to a limit of 25 percent of capacity until the end of May.
From the start of June, this will rise to 50 percent, reflecting the authorities’ confidence they can keep infections under control while jump-starting the tourism sector.
Egypt hopes to get back to the relatively better times of recent years, which saw annual economic growth rates above five percent.
The government has been implementing financial reforms since 2016 when it secured a $12 billion IMF loan, and investors have flocked back in recent years, driving a booming construction sector.
As recently as January, Egypt was ranked among the top ten countries in Morgan Stanley’s Emerging Markets Index.
Planning Minister Hala El-Saeed has estimated that the economy will slow down to about 4.5 percent growth in the third quarter because of the aftershocks of the virus.
But Blair said he was optimistic of a gradual recovery, judging that, if the constraints loosen further in June, a broader revival of commercial activity could “drive economic growth further late in the third and fourth quarters this year.”
Egypt reopens slowly to revive coronavirus pandemic-hit economy
https://arab.news/ppuws
Egypt reopens slowly to revive coronavirus pandemic-hit economy
- ‘Many other businesses continue to remain open, albeit with reduced staff, and construction is continuing’
- ‘The state must encourage the private sector on a macroeconomic scale so that it can overcome the crisis’
Israeli strikes batter Lebanon, killing five medics
- Israel has pushed on with its intense military campaign against Hezbollah, tempering hopes that efforts by a US envoy could lead to an imminent ceasefire
- Hezbollah said it had fired rockets at Israeli troops east of Khiyam at least four times on Friday
BEIRUT: Israeli strikes battered southern Lebanon and the outskirts of the capital Beirut on Friday, killing at least five medics, as ground troops clashed with Hezbollah fighters in the south.
Israel has pushed on with its intense military campaign against the Iran-backed armed group Hezbollah, tempering hopes that efforts by a US envoy could lead to an imminent ceasefire.
US mediator Amos Hochstein said earlier this week in Beirut that a truce was “within our grasp.” He traveled on to meet Israeli Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz before returning to Washington, according to the news outlet Axios.
His trip aimed to end more than a year of hostilities between Israel and Hezbollah along Lebanon’s southern border, which escalated dramatically when Israel ramped up its strikes in late September and sent ground troops into Lebanon on Oct. 1.
Israeli troops have fought Hezbollah in a strip of towns all along the border and this week pushed deeper to the edges of Khiyam, a town some six km (four miles) from the border. Hezbollah said it had fired rockets at Israeli troops east of Khiyam at least four times on Friday.
Lebanese security sources told Reuters that Israeli troops had also advanced in a string of villages to the west as well. They said Israel was most likely trying to isolate Khiyam ahead of a major attack on the town.
Israeli strikes on two other villages in southern Lebanon killed a total of five medics from a rescue force affiliated with Hezbollah, the Lebanese health ministry said.
The more than 3,500 people killed by Israeli strikes over the last year include more than 200 medics, the health ministry said.
Israel says its aim is to secure the return home of tens of thousands of people evacuated from Israel’s north due to rocket attacks by Hezbollah, which began firing across the border in support of Hamas at the start of the Gaza war in October 2023.
Israel also mounted more strikes on Beirut’s southern suburbs, a once densely populated stronghold of Hezbollah.
It issued evacuation orders on the social media platform X for several buildings in the area on Friday. Reuters footage showed one of the strikes appearing to pierce the center of a multi-story building, sending the whole structure toppling in a massive cloud of smoke.
UN reports heavy clashes between Israeli troops and Hezbollah in south Lebanon
- “We are aware of heavy shelling in the vicinity of our bases,” UNIFIL spokesman Andrea Tenenti said
- Asked if the peacekeepers and staff at the headquarters are safe, Tenenti said: “Yes for the moment”
BEIRUT: Israeli troops fought fierce battles with Hezbollah fighters on Friday in different areas in south Lebanon, including a coastal town that is home to the headquarters of UN peacekeepers.
A spokesman for the UN peacekeeping force known as UNIFIL told The Associated Press that they are monitoring “heavy clashes” in the coastal town of Naqoura and the village of Chamaa to the northeast.
UNIFIL’s headquarters are located in Naqoura in Lebanon’s southern edge close to the border with Israel.
“We are aware of heavy shelling in the vicinity of our bases,” UNIFIL spokesman Andrea Tenenti said. Asked if the peacekeepers and staff at the headquarters are safe, Tenenti said: “Yes for the moment.”
Several UNIFIL posts have been hit since Israel began its ground invasion of Lebanon on Oct. 1, leaving a number of peacekeepers wounded.
The fighting came a day after the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, his former defense minister and a Hamas military leader, accusing them of war crimes and crimes against humanity over their 13-month war in Gaza and the October 2023 attack on Israel respectively.
The warrant marked the first time that a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by a global court of justice.
Israel’s war has caused heavy destruction across Gaza, decimated parts of the territory and driven almost the entire population of 2.3 million people from their homes, leaving most dependent on aid to survive.
Israel launched its war in Gaza after Hamas-led militants stormed into southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting another 250. Around 100 hostages are still inside Gaza, at least a third of whom are believed to be dead.
Israel has also launched airstrikes against Lebanon after the Hezbollah militant group began firing rockets, drones and missiles into Israel the day after Hamas’ attack last October. A full-blown war erupted in September after nearly a year of lower-level conflict.
Gaza ministry: hospitals to cut or stop services ‘within 48 hours’ over fuel shortages
- All hospitals in Gaza would have to stop or reduce services “within 48 hours“
GAZA: The Hamas government’s health ministry warned Friday all hospitals in Gaza would have to stop or reduce services “within 48 hours” for lack of fuel, blaming Israel for blocking its entry.
“We raise an urgent warning as all hospitals in Gaza Strip will stop working or reduce their services within 48 hours due to the occupation’s (Israel’s) obstruction of fuel entry,” Marwan Al-Hams, director of Gaza’s field hospitals, said during a press conference.
Israel says to end ‘administrative detention’ for West Bank settlers
- Practice allows for detainees to be held for long periods without being charged or appear in court
- The Palestinian Prisoners Club advocacy group said in August that 3,432 Palestinians were held in administrative detention
JERUSALEM: Israeli authorities will stop holding Jewish settlers in the occupied West Bank under administrative detention, or incarceration without trial, the defense ministry announced Friday.
The practice allows for detainees to be held for long periods without being charged or appear in court, and is often used against Palestinians who Israel deems security threats.
Defense Minister Israel Katz said it was “inappropriate” for Israel to employ administrative detention against settlers who “face severe Palestinian terror threats and unjustified international sanctions.”
But, according to settlement watchdog Peace Now, it is one of only few effective tools that Israeli authorities to prevent settler attacks against Palestinians, which have surged in the West Bank over the past year.
Katz said in a statement issued by his office that prosecution or “other preventive measures” would be used to deal with criminal acts in the West Bank.
B’Tselem, an Israeli rights group, said authorities use administrative detention “extensively and routinely” to hold thousands of Palestinians for lengthy periods of time.
The Palestinian Prisoners Club advocacy group said in August that 3,432 Palestinians were held in administrative detention.
Israeli daily Haaretz reported on Friday that eight settlers were held under the same practice in November.
Yonatan Mizrahi, director of settlement watch for Peace Now, said that although administrative detention was mostly used in the West Bank to detain Palestinians, it was one of the few effective tools for temporarily removing the threat of settler violence through detention.
“The cancelation of administrative detention orders for settlers alone is a cynical... move that whitewashes and normalizes escalating Jewish terrorism under the cover of war,” the group said in a statement, referring to a spike in settler attacks throughout the Israel-Hamas conflict over the past 13 months.
Western governments, including Israel’s ally and military backer the United States, have recently imposed sanctions on Israeli settlers and settler organizations over ties to violence against Palestinians.
On Monday, US authorities announced sanctions against Amana, a movement that backs settlement development, and others who have “ties to violent actors in the West Bank.”
“Amana is a key part of the Israeli extremist settlement movement and maintains ties to various persons previously sanctioned by the US government and its partners for perpetrating violence in the West Bank,” the US Treasury said.
Excluding Israeli-annexed east Jerusalem, the West Bank — which Israel has occupied since 1967 — is home to three million Palestinians as well as about 490,000 Israelis living in settlements that are illegal under international law.
UK would arrest Netanyahu over ICC warrant: Senior politician
- Emily Thornberry: Britain has ‘obligation under Rome Convention’ to arrest Israeli PM if he enters country
- Court: ‘Reasonable grounds to believe’ Netanyahu responsible for war crimes, crimes against humanity in Gaza
LONDON: The UK will arrest Israeli Prime Minister Benjamin Netanyahu if he enters the country, a senior British politician has said.
The International Criminal Court issued an arrest warrant for Netanyahu on Thursday for alleged war crimes and crimes against humanity, alongside his former Defense Minister Yoav Gallant, pertaining to the Gaza war.
Emily Thornberry — Labour chair of the foreign affairs committee, and former shadow foreign secretary and shadow attorney general — told Sky News: “If Netanyahu comes to Britain, our obligation under the Rome Convention would be to arrest him under the warrant from the ICC.
“(It is) not really a question of should — we are required to, because we are members of the ICC.”
UK Home Secretary Yvette Cooper has refused to be drawn on whether Netanyahu would be arrested if he set foot on British soil, saying it “wouldn’t be appropriate for me to comment.”
She told Sky: “We’ve always respected the importance of international law, but in the majority of the cases that they pursue, they don’t become part of the British legal process.
“What I can say is that obviously, the UK government’s position remains that we believe the focus should be on getting a ceasefire in Gaza.”
Netanyahu’s arrest warrant is the first to be issued against the premier of a major Western ally by an international court for alleged war crimes and crimes against humanity.
His office denounced the warrant as “anti-Semitic,” adding that Israel “rejects with disgust the absurd and false actions.” Israel is not an ICC member and rejects the court’s jurisdiction.
US President Joe Biden called the warrants against Netanyahu and Gallant “outrageous,” adding: “Whatever the ICC might imply, there is no equivalence — none — between Israel and Hamas.”
Hungarian Prime Minister Viktor Orban said he plans to invite Netanyahu to visit Budapest, adding that the arrest warrant will “not be observed” by his government.
The Italian and French governments, however, have indicated that Netanyahu will be arrested if he visits either country.
The ICC said on Thursday it has “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts.”
The court also issued a warrant for Hamas commander Mohammed Diab Ibrahim Al-Masri for alleged war crimes and crimes against humanity.
Israel says Al-Masri, believed to have been the mastermind behind the Hamas attack of Oct. 7, 2023, was killed in Gaza earlier this year.
The ICC said it issued the warrant for his arrest because of insufficient evidence to prove his death.
