Back to the complete issue
Tuesday, 3 October 2017

House of Representatives begins its third session

The House of Representatives officially began its third session yesterday, with Prime Minister Sherif Ismail giving a speech to MPs outlining his government’s legislative for this session. Ismail had said earlier that he would present briefs for 20 proposed pieces of legislation. Among those he highlighted in his remarks to the House:

  • The Universal Healthcare Act: The state’s most significant piece of social legislation this year would see health coverage expand to cover breadwinners and their families with the goal of making quality public healthcare more accessible. Ismail did not touch on plans to roll out price caps for the private sector, which Health Minister Ahmed Rady has previously said is in the cards. As we noted yesterday, the Council of State has concluded its review of the bill (sans price caps).
  • The Social Welfare Act: The bill would see the Social Solidarity Ministry establish a new pension fund and set its own investment strategy. The law will also index annual pension increases to inflation and set a minimum pension rate. The Council of State was supposed to have completed its review of the bill in August, though we have received no word that it has.
  • The Local Administration Act: This bill would set up and organize local councils and elections and is part of the government’s plan to decentralize local administration. The government is hoping these elections will take place following the May 2018 presidential elections. The act has been gathering dust in the House since October 2016.
  • The Auctions and Tenders Act: Back in June, the government overhauled the bill, which would decentralize tender procedures and streamline the selection process for winning bids, will promote two-stage tenders to give the government more options when choosing contractors and suppliers, while also curbing spending by placing restrictions on the amount bodies can pay out in a tender.
  • The Labor Unions Act: This law, which regulates the activities of labor unions, may probably be among the most contentious acts this session. Labor unions had opposed the law last year, saying it was too restrictive, while members of the House Manpower Committee had stated that they would oppose the bill for allowing unions too much power.

Not highlighted by the PM: A number of bills that are important to business, including the proposed bankruptcy act and amendments acts on the central bank and banking industry, companies, and capital markets, among others. Don’t take it to heart, though: The PM’s speech was one part political theater for MPs, one part message to the “average Egyptian” on the street.

There are no plans for a cabinet reshuffle anytime soon, Prime Minister Sherif Ismail said, according to Al Shorouk. Ismail says he will use the results of the census as the starting point for his annual report to parliament. The report will include a scorecard for the past 18 months.

Ismail also said that explosive population growth is among Egypt’s most clear and present dangers. He said that the government was working on a comprehensive strategy to try and curb the population growth rate.

It was only the first day of the fall legislative season, but we’re strangely pleased that House Speaker Ali Abdel Aal returned from recess as grumpy as ever, admonishing journalists and the media that he will brook no attempt to “defame” the House. “Freedom should not mean chaos or be viewed as an absolute right, which some may like to exercise at the expense of state’s interest and the freedom of others,” the speaker said, promising “tough penalties” for MPs who decide not to play nice, Ahram Online reports.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.