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Business Daily

Egypt's economy under pressure

Business Daily

BBC

News, Business

4.4796 Ratings

🗓️ 17 November 2024

⏱️ 17 minutes

🧾️ Download transcript

Summary

The Suez Canal was once one of the busiest global shipping routes – a third of the world's shipping containers normally pass through it.

Since the Houthis began to attack passing ships last year, the volume of vessels going through has declined rapidly.

The canal is run by the Egyptian government, and fewer ships means less foreign currency coming into the economy.

And it’s not just revenue from ships that Egypt is losing, it’s also losing tourists, as many people cancel their trips and spend their dollars elsewhere.

We speak to businesses in Cairo to see how they’re being impacted by these changes, and ask, as Egypt loses out, are other countries winning? Presented and produced by Hannah Mullane (Image: A ship transits the Suez Canal towards the Red Sea on November 3, 2024 in Egypt. Credit: Getty Images)

Transcript

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0:00.0

Hello and welcome to Business Daily. I'm Hannah Malayne.

0:09.0

Today we head to Egypt to take a look at the economy and how it's being impacted by the ongoing conflict in the Middle East.

0:17.0

Over the past year, Egypt has seen traffic along the Suez Canal more than half.

0:23.3

It's a key trade route for global shipping and an important source of foreign currency for the country.

0:28.6

But it's not the only area of the economy that's been impacted.

0:32.1

Change is significant.

0:34.7

We have to understand this impact on the Suez traffic is coming alongside the other

0:40.9

consequences of the Gaza War, namely the decline in tourism and pressure on the foreign exchange

0:48.8

reserves and the currency. Tourism is an important sector for Egypt, contributing to around a quarter of the country's GDP last year.

0:57.0

And as the country receives less foreign currency from the tourism sector and from the Suez Canal,

1:02.7

local businesses are feeling the impact.

1:05.1

It's a roller coaster without seeing an end. That's the thing.

1:10.4

We'll head to Cairo to see how companies that rely on tourism are coping.

1:14.5

And as trade moves away from Egypt, where does it go instead?

1:18.7

We'll look at other countries that might be benefiting.

1:21.7

That's all coming up on Business Daily from the BBC World Service.

1:37.3

I'm here in Sturielgona.

1:42.7

In the site, they are bags, different shape, different colour.

1:49.4

They made from recycling plastic bags and there are shirts.

1:57.0

Yara Yassin is the co-founder of Fuse, an eco-friendly fashion brand in Cairo. One of her shop assistants has been showing me around the store on a video call. There are canvas toothpick, different colour.

2:04.1

We recycle plastic waste into fashion apparel.

2:07.3

We sell locally and globally.

...

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