Analysis by Region - Africa - Egypt

Analysis by Region - Africa - Egypt

Egypt's staunch stance on delaying some economic reform requirements from the IMF came home to roost this month. More specifically, S&P Global Ratings (S&P) and Moody’s Investors Service (Moody’s) both decided to cut their sovereign credit rating for Egypt, citing increasing external balance pressures as the main sticking point. The local government has made some progress on its privatisation drive, but the multilateral organisation is still adamant that we need to see more exchange rate flexibility before the first review of the Extended Fund Facility (EFF) programme – now scheduled for March 2024 – can progress.