Egypt’s Parliament Approves Cabinet Reshuffle Amid Economic Strain and Regional Pressures

Egypt’s parliament has approved a Cabinet reshuffle affecting 13 ministries, with a focus on economic portfolios, as the country struggles with a weak economy and regional pressures. While key ministries remained unchanged, new appointments were made to planning and investment roles. The move comes amid rising living costs, IMF-backed reforms, reduced Suez Canal revenues, and growing economic hardship for many Egyptians.

Egypt’s parliament on Tuesday approved by a majority vote a Cabinet reshuffle as the North African country continues to battle a fragile economy while facing increasing pressure from ongoing regional conflicts. The reshuffle affected 13 ministerial portfolios, reflecting the government’s effort to respond to both domestic economic challenges and wider geopolitical developments. Ministries impacted by the changes include housing, higher education, communications, youth and sports. Despite the scope of the reshuffle, key and sensitive portfolios such as foreign affairs and defence remained unchanged, signaling continuity in Egypt’s core security and diplomatic policies.
The nominees for the reshuffled Cabinet were put forward by President Abdel Fattah el Sisi, who met earlier on Tuesday with Prime Minister Mustafa Madbouly, according to a statement released by the president’s office. The changes appeared to place a strong focus on economic management and reform, with appointments aimed at strengthening financial planning and investment. Ahmed Rostom, a senior economist at the World Bank, was named Minister of Planning, while Mohamed Farid Saleh, who previously served as chairperson of the Financial Regulatory Authority, was appointed to head the Ministry of Investment.
As part of the reshuffle, the State Ministry of Information was reinstated after having been dissolved in 2021. Diaa Rashwan, the chairman of the State Information Service, was appointed as the new minister, marking the return of an institution seen as significant in managing state communication and media relations. The new Cabinet line-up also included two women ministers. Randa al-Menshawi was appointed as Minister of Housing, while Gihane Zaki was named Minister of Culture, reflecting a degree of continuity in the inclusion of women in senior government roles.
Egypt’s economy has faced mounting difficulties in recent years, largely due to prolonged austerity measures implemented following an International Monetary Fund programme adopted in 2016. These challenges were further intensified by the economic impact of the coronavirus pandemic and the global repercussions of Russia’s war in Ukraine. More recently, the Israeli genocidal war on Gaza has added to regional instability, placing additional strain on Egypt’s economy and security environment.
Economic pressures have also been exacerbated by Houthi attacks on shipping routes in the Red Sea, which have significantly reduced traffic through the Suez Canal. The canal is one of Egypt’s most important sources of foreign currency, but the attacks have forced many shipping companies to reroute vessels around the southern tip of Africa, sharply cutting canal revenues.
Earlier this month, International Monetary Fund Managing Director Kristalina Georgieva told Sky News Arabia that Egypt had shown strong commitment to achieving the objectives of its economic reform programme and implementing difficult policy measures. She noted that a final review of Egypt’s reform programme was nearing completion, raising expectations of continued IMF support.
However, the reform measures have taken a heavy toll on ordinary Egyptians. Daily living costs have risen sharply, with increases in fuel prices, subway fares, and other essential expenses, while the Egyptian pound has continued to weaken against major foreign currencies. According to the latest figures released by the Egyptian government, around 30 percent of the population now lives below the poverty line.
In an effort to ease the burden on workers, the government raised the minimum monthly wage for both public and private sector employees in 2025 to 7,000 Egyptian pounds, equivalent to about $138, up from 6,000 pounds, or roughly $118.58. The previous Cabinet reshuffle before the latest changes took place in July 2024.