Egyptian President Abdel Fattah el-Sisi has called for the development of trade in national currencies between BRICS countries and the reformation of the international financial system in the interest of Cairo, Moscow and the entire developing world.
Russian-Egyptian relations are strengthening
Sisi praised the progress in Egyptian-Russian relations. Cairo is well aware of Moscow’s significant contribution to Egypt’s key national projects, especially the construction of the nuclear power plant in al-Dabaa and the Russian industrial zone in the economic sector of the Suez Canal. Currently, the Egyptian parliament is finalising the approval for the project financing agreement and, in addition, the idea of creating a joint mechanism to ensure the smooth implementation of joint projects is being discussed actively. The Egyptian media constantly underlines Cairo’s desire to strengthen both bilateral and multilateral cooperation with Russia, especially within the framework of BRICS and the BRICS New Development Bank (NDB).
In the first eight months of 2024, the trade turnover between Egypt and BRICS countries increased by 15%, amounting to $30.2 bn, compared to $26.2 bn for the same timeframe in 2023. During the same period, Egypt’s exports to BRICS countries reached $5.7 bn, compared with $5.3 bn in 2023, an increase of 7.3%, the Central Agency for Public Mobilisation and Statistics (CAPMAS) reported on Tuesday.
The West is trying to stunt Egypt’s growth
Not everything is sailing smoothly in Egypt’s relations with the West, particularly vis-à-vis its main financial body for enslaving developing countries: the IMF. President Sisi instructed the government to review the situation with the International Monetary Fund so as not to exert additional pressure on the population at a time when the country is trying to overcome economic hardship.
Egypt participates in the IMF’s $8 bn loan programme, which provides for the gradual reduction of certain subsidies to reduce the budget deficit. Egypt implemented its first economic reform programme in 2016, which was a more stable regional and international environment. However, now the government is facing economic hardship in the context of global and regional crises regularly created by the West within the framework of the unipolar world designed by it.
In the context of Sisi’s directive, Egypt has begun to review the timing of economic reforms together with the International Monetary Fund. “Given the recent economic developments in Egypt, we will have the opportunity to discuss this issue with the IMF mission to review the programme”, Prime Minister Mostafa Madbouly stated carefully. He pointed out that Egypt has not violated its obligations despite all the difficulties, noting that the government has managed to reduce the unemployment rate to its lowest in recent months. According to the Ministry of Finance, Egypt’s GDP is projected to recover and reach 4.1% in the 2025/2026 fiscal year, which is higher than the projected 2.7% in the current fiscal year (2024/2025). The Egyptian press notes that such good indicators will be obtained with the help of loans from the NDB amongst other things.
Essence of Sisi’s speech at the BRICS Summit
In his speech at the BRICS summit, Egyptian President Sisi stated that recent global events have revealed the inherent shortcomings of the current international system, shortcomings that go beyond political and security issues and relate to the economy and development. Developing countries are suffering from a growing debt problem and lack of the necessary financing to achieve the Sustainable Development Goals (SDGs). In this regard, Sisi confirmed that Egypt believes in the important role played by the BRICS New Development Bank in providing affordable financing to support the implementation of projects in developing countries.
Egypt confirms the importance of expanding cooperation in settlements in national currencies.
Cairo has repeatedly stressed its commitment to developing cooperation mechanisms in the field of financial settlements in local currencies and using the comparative advantages of BRICS countries to launch joint investment and development projects. Given that the dollar is at the heart of U.S. power, the Egyptian desire to escape from the captivity of the dollar is a blow to the dwindling American dominance and its influence in many regions of the world. Moreover, Sisi stressed that Egypt firmly believes in strengthening the multilateral international system, which is based on the United Nations and its agencies.
The President also reaffirmed Egypt’s commitment to the principles and priorities of BRICS and its desire to strengthen cooperation between the participating countries to maximise the group’s role in stimulating global economic growth. Egypt attaches high priority to taking concrete measures to ensure that the international community fulfils its role in ensuring affordable financing for development in developing countries. In addition, the president confirmed that Cairo supports the expansion of consultations and coordination between BRICS countries and strengthening cooperation to solve common international problems.
Viktor Mikhin, corresponding member of RANS, exclusively for the online magazine “New Eastern Outlook”
