Egypt’s Economy Hard Hit by Gaza War [Business Africa]

The Egyptian economy, already struggling for several years, has been severely impacted by the war in Gaza. The escalation of the conflict between Israel and its neighbors has become yet another obstacle to economic reforms and development in Egypt.
A UN report estimates that the total economic cost of the Gaza war for the Egyptian economy will reach between $5.6 billion and $19.8 billion over the current and next fiscal years (2024-2025). This represents a loss of between 1.6% and 5.2% of average GDP, depending on the extent of the conflict’s escalation. The country is suffering significant revenue losses due to the suspension of Israeli gas re-exportation.
Traffic through the Suez Canal and the tourism sector are likely to be the hardest hit, according to the report. Their revenues are expected to decrease by $3.7 billion to $13.7 billion over the current and next fiscal years.
Projections for the coming months are worrying. The unemployment rate could reach 9.1% in the event of a serious escalation of the conflict. These factors exacerbate a crisis already inflamed by the war in Ukraine, adding to an unsustainable debt and a cost-of-living crisis that has persisted since 2022.
At a recent meeting in Nairobi, Kenya, stakeholders from across Africa gathered to discuss the future of the continent’s renewable energy. The Accelerated Renewable Partnership for Africa (APRA) Investment Forum focused on key priorities to unlock the potential of renewable energy in the region.
Mobilizing Funding and Private Sector Engagement
Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), stressed the need for comprehensive infrastructure development. “We need interconnected, flexible, and balanced networks, pipelines, and ports,” said La Camera. He also highlighted the importance of markets designed for renewable energies based on long-term contracts and the need for a skilled workforce to manage increasingly complex and decentralized energy systems.
Moving Away from Fossil Fuels
While some African countries have begun to turn to renewable energy, others are lagging behind. The forum highlighted the urgency for countries to demonstrate their commitment to reducing their dependence on fossil fuels, which have been the primary energy source for over a century.
Accelerating Africa’s Energy Transition
Delegates at the APRA forum emphasized the importance of not delaying Africa’s energy transition. The continent faces unique challenges but also has immense potential for renewable energy development. By prioritizing funding mobilization, private sector engagement, and capacity building, African nations can work towards a more sustainable and resilient energy future.
Tanzania is now one of Africa’s top-performing countries in tourism, with a 49% increase in tourist arrivals during the first seven months of 2024, according to the United Nations World Tourism Organization (UNWTO).
The UN body’s latest report also shows that Africa as a whole saw a 7% increase in tourist arrivals compared to 2019.
The government says it is now aiming for 5 million visitors by 2025 – mainly from China. Experts say the key is to promote all regions of the country.
“They shouldn’t just promote one region and forget the others. So, they should promote the Southern and Northern tourism circuit, which are all part of Tanzania,” says Margaret Ndoro, a tourism expert.
The Tanzanian government released a new tourism film this year titled “Amazing Tanzania.” It believes this will help increase the sector’s contribution to the economy, which currently stands at 17.2%.
In Tanzania, approximately 1.5 million people work in the tourism sector, either directly or indirectly.