Egypt Is Facing An Economic Crisis
SUMMARY – EGYPT FACES AN ECONOMIC CRISIS WITH SOARING GROCERY PRICES AND DEVALUATION OF THE CURRENCY, PROMPTING INTERVENTION FROM THE IMF. AFRICAN HOTELIERS SEEK FUNDING FROM LOCAL LENDERS AS BORROWING CHALLENGES PERSIST, LEADING TO INITIATIVES BY AFRICAN FINANCIAL INSTITUTIONS FOR BETTER TERMS AND RISK MITIGATION.
The New York Times has reported that Egypt is facing an economic crisis due to the plummeting value of the Egyptian pound and rising global costs. To tackle this situation, the International Monetary Fund’s intervention has become necessary. The newspaper highlights the difficulties Egyptians are experiencing in coping with skyrocketing grocery prices. Basic items like eggs and meat are now seen as luxury items.
Mai Abdulghani, a 30-year-old Cairo-based communications officer at a development nonprofit, expressed her concerns to the Times. She shared, “All I do is think about how we’ll survive on our budget just to feed ourselves. Every time we visit the supermarket, my blood boils.”
African Hoteliers Seek Support from Local Lenders
According to HNN’s Terence Baker, borrowing has become difficult worldwide, especially for hoteliers in Africa. However, a ray of hope emerges as many African lenders are now turning to local resources to finance hotel projects. Jean-Louis Ekra, the founder of Ayipling Morrison Capital, an investor based in Abidjan, Ivory Coast, shared this development during the Atlantic Ocean Hotel Investors’ Summit.
Ekra pointed out that financial institutions like the Africa Import Export Bank have launched initiatives to provide loans with better terms and greater alignment for African hotel and tourism developments. Moreover, banks have begun to address the construction risk associated with such projects. He stated, “We saw that the risk was so high that it had to be dealt with.” After this positive outlook, Africa is hoping to come out of Egypt economic crisis
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