Sisi’s Vanity Projects

Source: Carnegie

Author(s): Maged Mandour

Original Link:

Since coming to power, Egypt’s President Abdel Fattah el-Sisi has undertaken various mega infrastructure projects with dubious economic benefits. Despite a worsening debt crisis, these projects remain a government priority. The debt crisis has grown with the percentage of the total debt of the GDP at 101 percent as of the end of 2018, and the cost of servicing the debt reaching 31 percent in the 2016-2017 budgets. One of the notable challenges of the debt crisis is the budgetary strain of meeting interest payments. This has promptedthe government to plan debt restructuring, reliance on longer-term loans, and the issuance of Zero-Coupon bonds, which have no interest payments and are sold at a deep discount.  Despite the strain on the budget, the push for mega-infrastructure projects remains.   

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