Developing nations must adapt to withstand global economic shocks, says Egypt’s PM Mostafa Madbouly

Madbouly said the solution to Egypt’s economic challenges lies in the promotion of ‘sustainable governance’ and ‘visionary and innovative’ policy approaches. (Supplied)
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Updated 12 February 2024
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Developing nations must adapt to withstand global economic shocks, says Egypt’s PM Mostafa Madbouly

  • Madbouly says Cairo is pursuing private sector investment, green transition, and policies ‘centered on human dignity’
  • At World Government Summit, Egyptian PM urges nations to adopt ‘visionary and innovative’ approaches to governance

DUBAI: Egypt is responding to recent global economic turmoil by encouraging private sector investment, exploring new technologies, prioritizing the green transition, and shaking up its governance model, Egyptian Prime Minister Mostafa Madbouly has said.

The Arab world’s most populous country, home to more than 110 million people, has been almost uniquely vulnerable to the economic headwinds of the COVID-19 pandemic, the war in Ukraine, the Israel-Hamas conflict, and the pressures of climate change.

These combined blows have struck a nation already facing a foreign exchange crisis, historic inflation, sluggish non-oil exports and foreign direct investment, constrained private sector activity and job-creation, and rising government debt.

For Madbouly, the solution lies in the promotion of “sustainable governance” and policy approaches that are “visionary and innovative.”

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Government delegations attending summit.

“In Egypt we have been encouraging people to invest in the private sector, which can help create more jobs,” Madbouly, who has held the office of prime minister since 2018, told an audience at the World Government Summit in Dubai on Monday.

“Our new plans and their implementation has helped us push through the past four years till now,” he added, saying Egypt aims to achieve sustainable growth by 2030 by investing in its population — almost 30 percent of whom live below the national poverty line.

“We are educating our citizens and we have centered our policies on human dignity. Our plans so far have been recognized and received rather well by the UN.”

The World Bank and the International Monetary Fund expect Egypt to face continued economic strain through 2024 before beginning to see improvement over the medium term — as long it sticks with current stabilization and structural reforms.

These reforms include implementing the IMF-brokered State Ownership Policy, fostering greater competition, strengthening governance and the rule of law, and improving the overall business environment to unleash the private sector’s full potential.

Egypt also aims to stabilize its economy by raising productivity and by diversifying its investments into different sectors, from high-tech industries like artificial intelligence to modern agricultural techniques, creating 7-8 million jobs in the process.

“Our focus on the growth of infrastructure and our political reforms will be attracting local foreign investments alike,” said Madbouly, who was previously Egypt’s minister of housing, utilities and urban communities.

One area the Egyptian government seems especially keen to develop is green energy.

Having hosted the UN Climate Change Conference, COP27, at the Red Sea resort of Sharm El-Sheikh in 2022, Egypt is looking to lead the way in the adoption of green hydrogen and to reduce its reliance on fossil fuels.

“We aim to cooperate and facilitate the establishment and production of green energy, especially green hydrogen, which we are hoping to become a regional central hub for by 2026 and a global hub by 2030,” Madbouly said.

Of course, Egypt is not alone in having to adjust to difficult economic realities, which are forcing governments across the developing world to break with old structural orthodoxies and embrace new approaches to governance.

“According to the World Bank, the problem with high interest rates will cause problems for developing nations,” said Madbouly.

“This is a result of political tensions that manifests into lack of cooperation between governments, which will end up causing a strain on some nations’ local currencies.”

He added: “That alone ought to motivate governments to think entirely differently in order to address these present problems.”

Madbouly urged governments in a similar predicament to Egypt to “develop sustainable governance and start to approach matters in visionary and innovative ways.”

 

 


EU’s Borrell says Lebanon attacks aimed to ‘spread terror’

Updated 8 sec ago
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EU’s Borrell says Lebanon attacks aimed to ‘spread terror’

“The indiscriminate method used is unacceptable due to the inevitable and heavy collateral damages among civilians,” Borrell said
At least 37 people were killed and more than 3,000 wounded

BEIRUT: The EU foreign policy chief condemned attacks which targeted mobile communication devices used by Hezbollah this week, saying whoever was behind them aimed “to spread terror in Lebanon,” a statement from the EU’s Beirut delegation said on Thursday.
“The indiscriminate method used is unacceptable due to the inevitable and heavy collateral damages among civilians, and the broader consequences for the entire population, including fear and terror, and the collapse of hospitals,” Josep Borrell said.
At least 37 people were killed and more than 3,000 wounded when first pagers, then walkie-talkies used by Hezbollah members exploded in two waves of attacks on Tuesday and Wednesday.
Lebanon and Hezbollah say Israel carried out the attack. Israel has not claimed responsibility.
Hezbollah, a heavily armed group backed by Iran, and Israel have been trading fire across the Lebanese-Israeli border for almost a year in a conflict triggered by the Gaza war.

Hezbollah attacks Israel with drones as fears of a widening war mount

Updated 7 min 41 sec ago
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Hezbollah attacks Israel with drones as fears of a widening war mount

  • Hezbollah said early Thursday it had targeted three military positions in northern Israel near the border, two of them with drones
  • The Israeli military said the drones crashed near communities

BEIRUT: Hezbollah fired a new barrage into northern Israel on Thursday, continuing its drumbeat of exchanges with the Israeli military as fears of a greater war rise.
Hundreds of electronic devices used by Hezbollah exploded in Lebanon earlier this week, killing at least 37 people and wounding some 3,000 others.
The device explosions appeared to be the culmination of a monthslong operation by Israel to target as many Hezbollah members as possible all at once. Over two days, pagers and walkie-talkies used by Hezbollah detonated, wounding and even crippling some fighters, but also maiming civilians connected to the group’s social branches and killing at least two children.
It was unclear how the attack fit into warnings by Israeli leaders in recent weeks that they could launch a stepped-up military operation against Hezbollah, Lebanon’s strongest armed force.
The Israeli government has called it a war aim to end the Iranian-backed group’s cross-border fire in order to allow tens of thousands of Israelis to return to homes near the border.
Speaking to Israeli troops on Wednesday, Israeli Defense Minister Yoav Gallant said, “We are at the start of a new phase in the war — it requires courage, determination and perseverance.” He made no mention of the exploding devices but praised the work of Israel’s army and security agencies, saying “the results are very impressive.”
Gallant said that after months of fighting Hamas in Gaza, “the center of gravity is shifting to the north by diverting resources and forces.”
Hezbollah said early Thursday it had targeted three military positions in northern Israel near the border, two of them with drones. The Israeli military said the drones crashed near communities. Hospitals reported they treated at least eight patients lightly or moderately injured. The military said early Thursday it had struck several militant sites in southern Lebanon overnight.
The volley of strikes was a signal by Hezbollah that it would continue its near daily fire, which it says is a show of support for Hamas. Israel’s 11-month-old war with Hamas in Gaza began after its militants led the Oct. 7 attack on Israel.
Israel has responded to Hezbollah’s fire with strikes in southern Lebanon, and has struck senior figures from the group in the capital Beirut. The exchanges have killed hundreds in Lebanon and dozens in Israel and forced the evacuation of tens of thousands of residents on each side of the border.
Israel and Hezbollah have repeatedly pulled back from an all-out war under heavy pressure from the United States, France and other countries.
But in their recent warnings, Israeli leaders have said they are determined to change the status quo dramatically.
Israel began moving more troops to its border with Lebanon on Wednesday as a precautionary measure, Israeli officials said. Israel’s army chief, Lt. Gen. Herzi Halevi, said plans have been drawn up for additional action against Hezbollah, though media reported the government has not yet decided whether to launch a major offensive in Lebanon.
Lebanon is still reeling from the deadly device attacks of Tuesday and Wednesday.
The explosions have rattled anxious Lebanese fearing a full-scale war. The Lebanese Army said it has been locating and detonating suspicious pagers and communication devices, while the country’s civil aviation authorities banned pagers and walkie-talkies on all airplanes departing from Beirut’s international airport until further notice.
The attack was likely to severely disrupt Hezbollah’s internal communication as it scrambles to determine safe means to talk to each other. Hezbollah announced the death of five combatants Thursday, but didn’t specify if they were killed in the explosions or on the front lines.
Hezbollah leader Hassan Nasrallah was scheduled to speak later Thursday as the group vowed to retaliate against Israel.
The blasts went off wherever the holders of the pagers or walkie-talkies happened to be in multiple parts of Beirut and eastern and southern Lebanon — in homes and cars, grocery stores and cafes and on the street, even at a funeral for some killed in the bombings, often with family and other bystanders nearby.
Many suffered gaping wounds on their legs, abdomens and faces or were maimed in the hand. Tuesday’s pager blasts killed 12 people, including two children, and wounded some 2,300 others. The following day’s explosion killed 25 and wounded more than 600, Health Minister Firas Abiad said, giving updated figures.
Abiad told reporters that Wednesday’s injuries were more severe than the previous day as walkie-talkies that exploded were bigger than the pagers. He praised Lebanon’s hospitals, saying they had managed to deal with the flood of wounded within hours. “It was an indiscriminate attack. It was a war crime,” he said.


Israel media say new Gaza deal mooted to free hostages, give Sinwar safe passage

Updated 22 min 38 sec ago
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Israel media say new Gaza deal mooted to free hostages, give Sinwar safe passage

  • The proposal would also call for the release of Palestinian prisoners and a new governance system in Gaza, though no details were provided
  • Hostage envoy Gal Hirsch “presented the plan to the Americans, who were expected to pass it on to unspecified Arab officials“

JERUSALEM: Israeli media reported on Thursday that Israel has proposed a new deal that would see hostages released from Gaza in exchange for safe passage for Hamas leader Yahya Sinwar and the cessation of fighting.
Public broadcaster Kan reported that the proposal would also call for the release of Palestinian prisoners and a new governance system in Gaza, though no details were provided.
The Times of Israel said an Israeli official had confirmed that hostage envoy Gal Hirsch “presented the plan to the Americans, who were expected to pass it on to unspecified Arab officials.”
Asked about the reports by AFP at a press conference on Thursday, government spokesman David Mencer did not specifically address them, instead referring to previous statements calling for the international community to pressure Hamas to make concessions to reach a deal.
“Whoever wants to assist in the effort to release our hostages needs to pressure the murderous Sinwar and not the prime minister of the State of Israel,” he said.
The October 7 attacks that sparked the Gaza war resulted in the deaths of 1,205 people, mostly civilians, according to an AFP tally based on Israeli official figures that include hostages killed in captivity.
Out of 251 hostages seized by militants, 97 are still held in Gaza, including 33 the Israeli military says are dead.
Israel’s retaliatory military offensive has killed at least 41,272 people in Gaza, a majority of them civilians, according to figures provided by the Hamas-run territory’s health ministry. The United Nations has acknowledged the figures as reliable.



Israeli media reported on Thursday that Israel has proposed a new deal that would see hostages released from Gaza in exchange for safe passage for Hamas leader Yahya Sinwar and the cessation of fighting. (AFP/File)


Turkiye reviews security of communication devices after Lebanon blasts, official says

Updated 42 min 46 sec ago
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Turkiye reviews security of communication devices after Lebanon blasts, official says

  • The blasts appeared to throw Hezbollah, Iran’s most powerful proxy in the Middle East, into disarray
  • “… measures are reviewed and new measures are being developed as part of the lessons learned following each development,” the official said

ANKARA: Turkiye is reviewing its measures to secure the communication devices used by its armed forces after the deadly blasts in Lebanon, a Turkish defense ministry official said on Thursday.
Hand-held radios used by armed group Hezbollah detonated on Wednesday across Lebanon’s south in the country’s deadliest day since cross-border fighting erupted between the group and Israel nearly a year ago, stoking tensions after similar explosions of the militants’ pagers the day before.
The blasts appeared to throw Hezbollah, Iran’s most powerful proxy in the Middle East, into disarray, and occurred alongside Israel’s 11-month-old war against Palestinian Hamas militants in Gaza and heightened fears of an escalation and regional war.
The Turkish official, speaking on condition of anonymity, said Turkiye’s military exclusively used domestically-produced equipment but Ankara had additional control mechanisms in place if a third party is involved in procurement or production of devices.
“Whether in the operations we carry out, the ongoing war in Ukraine, and as with the Lebanon example, measures are reviewed and new measures are being developed as part of the lessons learned following each development,” the official said.
“In the context of this incident, we as the Defense Ministry are carrying out the necessary examinations,” the person added, without providing further detail.
In Tuesday’s explosions, sources said Israeli spies remotely detonated explosives they planted in a Hezbollah order of 5,000 pagers before they entered the country.
Turkish Foreign Minister Hakan Fidan told state-owned Anadolu news agency that establishing an independent agency for cyber-security specifically was on the government’s agenda, and that President Tayyip Erdogan saw this as a necessity.


Bulgaria probes firm’s possible link to Hezbollah pagers

Updated 19 September 2024
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Bulgaria probes firm’s possible link to Hezbollah pagers

  • “Checks are underway with the tax authorities and the interior ministry,” Bulgaria’s state security agency said
  • The agency said there was no record the devices had entered the European Union legally via Bulgaria

SOFIA: Bulgaria was looking into the possible involvement of a Sofia-based company in delivering pagers that exploded while being used by Hezbollah operatives in Lebanon, authorities said Thursday.
Hundreds of electronic devices detonated across Lebanon in unprecedented attacks on Tuesday and Wednesday, killing at least 37 people and wounding more than 2,900 others, according to Lebanon’s health minister.
Questions and speculation have swirled over where the devices came from and how they were supplied to Hezbollah.
“Checks are underway with the tax authorities and the interior ministry to determine the possible role of a company registered in Bulgaria in the supply of communications equipment to Hezbollah,” Bulgaria’s state security agency (SANS) said in a statement.
The agency said there was no record the devices had entered the European Union legally via Bulgaria, adding customs had not registered the “said goods.”
The comments came after an article on the Hungarian Telex news site quoted anonymous sources saying that a Sofia-based company called Norta Global had imported the pagers and arranged their delivery to Hezbollah.
Taiwan’s Gold Apollo — whose trademark appeared on the pagers — has denied producing the devices and instead pointed the finger at its Budapest-based partner BAC Consulting KFT.
But Hungary said the company “is a trading intermediary, with no manufacturing or operational site in Hungary.”
Norta Global, which has been listed on the Sofia trade register since April 2022, could not be immediately reached.
The company, owned by Norwegian Rinson Jose, recorded revenue of 650,000 euros ($725,000) last year for management consultancy services.