CABINET WATCH- El Sisi sets growth target of 7% per annum for the Madbouly Cabinet: President Abdel Fattah El Sisi ordered the newly formed Madbouly Cabinet to work to bring average annual GDP growth to 7%, according to a statement from the cabinet. The also president urged ministers to continue cutting the budget deficit while cutting unemployment and inflation. The cabinet must also drive industrialization nationwide and expand aid to SMEs, particularly in Sinai, the statement quotes El Sisi as having said.

These economic targets are one of six objectives set out by El Sisi for the Madbouly Cabinet, which held its first meeting on Wednesday. Other priorities include (1) national security, (2) improving quality of life for citizens; (3) expanding protections for low-income earners; (4) improving education and (5) improving government services.

Re-engagement with Nile Basin tops foreign policy objectives: On the foreign policy front, El Sisi ordered cabinet to work on improving ties and “fostering trust” with African nations, particularly those of the Nile Basin Initiative (NBI) to drive “joint sustainable development.” As we noted in our 2016 year in review, re-engagement with Africa and the NBI would be a major priority for the El Sisi administration. The policy has begun to bear fruit as Ethiopia and Egypt appear to have reached a breakthrough in talks on the Grand Ethiopian Renaissance Dam during Ethiopian Prime Minister Abiy Ahmed’s visit to Cairo earlier this month.

Decisions taken by the cabinet at its inaugural meeting include:

• Approving a plan to restructure the Administrative Control Authority to bring it in line with the Vision 2030 goals;
• Approving a USD 200 mn loan from the European Bank for Reconstruction and Development as part of an energy efficiency project at Suez Oil Company;
• Approving a EUR 150k grant from the Spanish Agency for International Development to cooperate on judicial matters.