Egypt announces end to year-long load shedding program

CAIRO – 19 September 2024: Prime Minister Mostafa Madbouly announced the conclusion of the load shedding program, which started in July 2023 across Egypt, as he addressed citizens in a press conference on Thursday.

Madbouly stated that power outages will not reoccur as the necessary shipments have been secured to ensure uninterrupted supply.

Madbouly announced the allocation of LE 7 billion to the Ministry of Electricity to ensure the implementation of energy projects.

The prime minister mentioned the prosecution of around 513,771 electricity theft cases, saying: "If half of these thefts did not exist, there would be no [electricity supply] problems again."

Since last summer, Egypt has implemented a load shedding program amidst unprecedented local consumption due to the consequent heatwaves across the country.

Madbouly said in July that the daily consumption rate exceeded 37.5 gigawatts, up by more than 12 percent compared to the previous year.

The government has halted power cuts since 21 July for two months and pledged to resolve the crisis by the end of this year.

Madbouly said Egypt will be able to restore normal gas production rate from the Zohr field as before the global economic crisis before the end of June.

Surging prices

Commenting on price hikes, Madbouly highlighted the recent increase in the price of butane cylinders from LE 100 to LE 150, stating that “the level of state subsidies in fuel and energy has exceeded the Egyptian state's budgetary capacity.”

He said Egypt consumes 280 million butane cylinders annually, with each cylinder costing LE 340, while previously sold at LE 100.

Madbouly also attributed a recent hike in tomato price to tomato production being greatly affected by current high temperatures, which resulted in a shortage in the market and consequently price increases.

He reassured citizens that tomatoes will be boosted in markets by mid-October with the arrival of new harvests to control tomato price.

Fresh investments

During the press conference, Madbouly revealed plans for Saudi private sector to engage in new investments in Egypt, highlighting the Egyptian commitment to boosting investments over the coming period.

Madbouly stated that 5,700 Egyptian companies are investing in Saudi Arabia.

He confirmed Saudi Arabia’s plan to invest $5 billion in several sectors in Egypt, saying the new investment has nothing to do with deposits.

The prime minister said the government has identified 4 or 5 areas for development on the Red Sea coast, not just the Ras Banas area, similar to the landmark Ras El Hekma deal.

He also noted that recent visit by Germany’s President Frank-Walter Steinmeier to Cairo witnessed discussions between officials from the two countries on major projects and expansions of German investments in Egypt.

Moreover, the Egyptian-Kuwaiti higher committee discussed the activation of Kuwaiti investments in Egypt in the near future.