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Egypt PM Vows No Return to Power Outages

September 20, 2024

At a press conference on Thursday, 19 September, Egypt’s Prime Minister Mostafa Madbouly assured the public that there would be “no return to the power outages” that had plagued the country earlier in the year.

The government had secured more than USD 2.5 billion (EGP 121.3 billion) to guarantee a steady fuel supply throughout the summer, significantly surpassing the initial USD 1.18 billion (EGP 57.3 billion) allocation. Madbouly reaffirmed the government’s dedication to ensuring an uninterrupted energy supply, emphasizing that power cuts would not be repeated.

The Prime Minister highlighted Egypt’s ongoing shift toward renewable energy, with plans to introduce an additional four gigawatts of solar and wind power next year. To support this transition, EGP 7 billion (USD 144.3 million) has been allocated to enhance the country’s electricity distribution and transmission networks. Madbouly also stressed the significance of the planned electricity interconnection with Saudi Arabia, which will enable both countries to manage peak loads by sharing energy. The first phase of the project is set to be completed before next summer.

Turning to a recent train accident in Zagazig, which resulted in several fatalities, Madbouly expressed his condolences to the victims’ families. He acknowledged the decades-long neglect of Egypt’s railway infrastructure but emphasized the government’s ongoing efforts to modernize the system. These efforts include upgrading rolling stock and electrifying signaling towers, with the accident site slated for an automation upgrade by November—a move that, he said, could have prevented the human error behind the crash.

Madbouly also discussed Egypt’s foreign investment strategy, referencing the recent visit of German Chancellor Olaf Scholz. Several projects were signed between the two nations, including collaboration on the high-speed rail line being constructed by Siemens. Scholz praised the project as a testament to German-Egyptian cooperation. Additionally, Madbouly highlighted his recent talks with Saudi Crown Prince Mohammed bin Salman, which centered on boosting Saudi investment in Egypt.

He noted that a joint investment protection agreement with Saudi Arabia is in the works and forecasted that Saudi investments in Egypt could reach USD 5 billion (EGP 242.6 billion). At the same time, Egyptian investments in Saudi Arabia are thriving, with over 5,700 Egyptian companies operating there, representing a total value of SAR 70 billion (EGP 904.7 billion).

Regarding concerns over Egypt’s gas production, Madbouly acknowledged recent disruptions but attributed them to delays in foreign investment in oil fields. He assured the public that production levels would return to normal by June of next year.

The Prime Minister also reaffirmed the government’s commitment to human development, emphasizing the initiative of Egypt’s President, Abdel Fattah Al-Sisi, “New Start for Human Development.” This ambitious program aims to enhance healthcare, education, and social services, with clear goals and monthly progress reviews.

Madbouly concluded by celebrating the graduation of the first cohort of students from Egypt’s private universities. He also addressed the recent outbreak of gastrointestinal illness in Aswan, reassuring the public that health authorities were investigating the issue and had taken steps to ensure the safety of the water supply.

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