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Initiative Stories
Egypt's power choices appease public, squeeze industry
CAIRO, Aug. 27, 2015 (Reuters) - Far fewer Egyptians are complaining about the kind of power cuts that fuelled unrest in the past but government energy policies apparently focused on appeasing the public are dealing a blow to industries vital for economic growth.
Companies say production will continue suffering unless the government starts diverting some of the gas supplied to electricity plants powering homes to factories.
Egypt's cotton U-turn highlights wider policymaking problems
SHUBRA KHEIT, Egypt, Aug 11, 2015 (Reuters) - Standing waist deep in a cotton field, Egyptian farmer Mohamed Khalil cannot mask his anger; after the agriculture ministry banned cotton imports to help local producers, the cabinet abruptly vetoed the idea - the latest in a series of economic policy U-turns and delays under President Abdel Fattah al-Sisi.
"I can't believe this. Just weeks ago they said we wouldn't have to worry about imported cotton," said the white-turbaned farmer, who rents a plot from the state to grow high-quality cotton at the Nile Delta village of Shubra Kheit.
Such schizophrenic decision-making is also a symptom of wider policy problems affecting Egypt, which is struggling to re-energize its economy and attract foreign investment after years of turmoil since 2011.
Sisi has imposed some tough reforms such as reducing fuel subsidies which swallowed up huge parts of the state budget, winning praise from the IMF. But he has focused much of his economic policy on mega-projects like extending the Suez Canal and a planned new capital city.
Meanwhile, other state initiatives have run into trouble. The government backtracked on plans to implement a capital gains tax in May, a central component of its reform agenda, after stock market players complained it would hamper investment.
It has also delayed the roll out of a fuel smart card system meant to cut the government’s energy bill, as well as the introduction of a value-added tax (VAT).
Cotton illustrates the problem well. In July, the agriculture ministry banned imports in order, it said, to boost local production. Egypt grows a high-quality and extra long staple cotton, once known as "white gold", but output has been shrinking for years.
Egypt confounds wheat thieves with hi-tech U.S. storage
(Shadi Bushra/Reuters)
ALEXANDRIA, Egypt, July 8, 2015 (Reuters) - A move to store Egypt's wheat in state-of-the-art warehouses monitored by a control center in Cairo could end losses from theft and waste, cutting its $3 billion bread subsidy bill, an executive at the U.S. firm designing the project said.
By automating and centralizing monitoring and access the new system is designed to save Egypt, the world's top wheat importer, $200 million annually. Theft is rampant at open-air sites, contributing to post-harvest losses estimated at 40 percent.
"Just bringing the wheat indoors and putting a roof over it drastically reduces how much wheat is spoiled," said Peter Blumberg, vice-president at Blumberg Grain.
Sudan maintains balancing act with Saudi, Iran
KHARTOUM, April 30, 2015 (Reuters) - The war in Yemen has given Omar Hassan al-Bashir, a skilled political operator who has ruled Sudan for a quarter-century, an opportunity to show wealthy Sunni powers that he can be an asset against Iranian influence -- if the price is right.
Bashir has maintained power amid region wide unrest in part by navigating a shifting patchwork of alliances that has seen Khartoum at different times draw close to Osama bin Laden, the United States, and Iran.
Now it appears that Bashir and many of his countrymen hope that supporting a month-old Saudi-led bombing campaign against Iran-backed Houthi rebels in Yemen will encourage Gulf powers to pour aid and investment into Sudan's struggling economy.
If Bashir, who this week won another five-year term, pulls off yet another juggling act by winning Arab cash without completely alienating Iran, it will strengthen his argument at home and abroad that only he can steer his fractious country through an increasingly complicated region.
Sudan's youth activists battle restraints and apathy
KHARTOUM, April 19, 2015 (Reuters) - When the Arab Spring uprisings burst out four years ago, Bedreldin Mohamed believed that, finally, many of his Sudanese countrymen would join him in calling for an alternative to President Omar Hassan al-Bashir, now in his 25th year in power.
But this week, with national elections looking likely to re-elect Bashir after security forces cracked down on protest movements, opposition parties and the media, the 25-year-old activist's optimism has faded.
"After the peace with the south in 2005, and throughout the Arab Spring, we could make speeches outdoors and meet on campus," he said. "Now we're meeting in the dark or at home. Things have changed."
What can $300 billion buy in Egypt? A new capital or a pipedream
CAIRO, April 19, 2015 (Reuters) - It is a project as ambitious as Egypt's ancient pyramids.
Built from scratch to escape Cairo's choking pollution, a planned new capital will feature an airport larger than London's Heathrow, a building taller than Paris's Eiffel Tower and more than 10,000 km (6,200 miles) of boulevards, avenues and streets.
The city, meant to be built within just seven years, was unveiled last week at the Sharm El-Sheikh economic summit, where President Abdel Fattah al-Sisi urged foreign investors to help Egypt recover from the turmoil triggered by the 2011 uprising.
But the plan was not universally welcomed, with residents of Cairo questioning the need to replace their 1,000-year-old capital with a shiny new city that, if it ever rises from the nearby desert, will rely heavily on Gulf Arab financing.
"If we need to move some buildings and some government employees, that's fine. But buildings don't make a capital, history does," said Amr Karim, a doorman at one of Cairo's art deco buildings in the Agouza district.
Egypt's dollar shortage squeezes private wheat importers
CAIRO, March 12, 2015 (Reuters) - Egypt's currency market reforms are inflicting a heavy toll on many private sector wheat traders struggling to secure shipments for the world's largest wheat importer.
Last month, the central bank devalued the Egyptian pound and capped dollar deposits in banks to $50,000 a month in order to undermine the black market.
But restrictions on unofficial dollar flows were not matched by significant increases in dollars available through official channels, leading to a country-wide hard currency shortage that has hit importers particularly hard.
"Firms can no longer buy dollars on the black market and then place them in banks to open up letters of credit for import," said Jason Tuvey, Middle East economist at Capital Economics.
Egypt imports over 10 million tonnes of wheat annually, mostly by the state. State grain buyer GASC told Reuters it had no payment delays as a result of the new regulation.
But the private sector, responsible for about 4.5 million tonnes of imports, is hurting.
"The bank lets you deposit $50,000 per month. Most of my shipments are worth $700,000. So I'm supposed to wait 14 months to pay my supplier?" asked a trader at a small wheat importer.
#WhereIsTheBomb warns Egyptians of violence-related traffic
CAIRO, Feb. 12, 2015 (Reuters) - Egypt's long-suffering drivers, worn down by decades of jams and crashes, are turning to social media to stave off a new, even more pressing threat -- the traffic chaos caused by roadside bombs.
The makers of mobile travel app "Bey2ollak" have started sending their users and online followers warnings on bomb scares and resulting hold-ups in Cairo and Alexandria using the hashtag #WhereIsTheBomb.
The label has become so popular that it "trended" as one of the most used phrases by Egyptian Twitter users this week.
"We really wish we didn't need to incorporate such a feature," the app's co-creator Gamal ElDin Sadek told Reuters.
Egypt's energy reforms spark rush of oil and gas deals
MILAN/CAIRO, Feb. 6, 2015 (Reuters) - Energy-hungry Egypt's willingness to push fuel market reforms and stick to debt repayment plans has led to an unexpected resurgence in oil and gas exploration and supply deals previously delayed by political upheaval.
The country has emerged as a major new oil and gas market as the government looks to ease the worst energy crunch in decades.
In January alone Egypt clinched 15 new exploration deals, amended two more, and closed major tenders to import liquefied natural gas (LNG) from Algeria to Russia, opening up to global energy pricing norms as the government seeks to scrap crippling subsidies by 2019.
Anger, calls for calm in Middle East over new Charlie cartoons
CAIRO/ISTANBUL, Jan. 14, 2015 (Reuters) - Muslim clerics in the Middle East who have denounced last week's attack on Charlie Hebdo criticized the French satirical weekly on Wednesday for publishing new cartoons depicting Islam's Prophet Mohammad in its first issue after the killings.
On the front of its "survivor's edition", which swiftly sold out its multi-million copy print run in France, the newspaper printed a cartoon of a tearful Mohammad carrying a sign reading "I am Charlie", under the headline "All is forgiven".
While mainstream Muslim leaders around the world have strongly condemned the attack on the newspaper, many said its decision to print more cartoons of Mohammad was an unnecessary provocation and sign of disrespect that would create a new backlash.
Lower oil price 'double-edged sword' for energy-hungry Egypt
CAIRO, Dec. 23, 2014 (Reuters) - The fall in global oil prices will cut Egypt's fuel subsidy bill but could hit the finances of oil-exporting Gulf allies who have showered it with billions of dollars in aid.
Oil has dropped dramatically over the past six months, with Brent crudetrading at $60.87 a barrel on Tuesday, down 47 percent from this year's peak just over $115 in June.
If it stays at that level, the government expects to save 30 billion Egyptian pounds($4.2 billion) on fuel subsidies for its 86 million people in the 2014-15 fiscal year. But that is less than half the total Gulf aid it received in the last fiscal year alone.
BG in advanced talks with BP over Egypt deal
CAIRO, Dec. 10, 2014 - British gas company BG (BG.L) is in advanced talks that could boost supplies to power-hungry Egypt by allowing rival BP (BP.L) to use its pipelines, the head of BG Egypt told Reuters.
A deal could enable BG to raise production at its Egyptian operations, which account for about one-fifth of its global gas output but have been hit hard by the turmoil that followed the overthrow of Egyptian president Hosni Mubarak in 2011.
The companies are in talks to link their gas developments off Egypt's north coast by routing around 350 million cubic feet of gas a day from two undeveloped BP fields into BG's under-used WDDM offshore pipeline network.
Egypt hopes to attract $10-12 billion at investment summit in March
CAIRO, Nov. 22, 2014 - Egypt hopes to attract investment of $10-$12 billion in 20 projects, including in energy, transport and water, at a major conference in mid-March, the minister for international cooperation said on Saturday.
The conference is seen as a critical part of the government's economic reform plan that has resulted in slashed energy subsidies and raised taxes. The government has also resolved disputes with existing investors as it seeks to revive an economy battered by political turmoil since a 2011 uprising.
Egypt's cement firms overcome gas shortages by importing coal
LONDON/CAIRO Nov. 5, 2014 - Several of Egypt's major cement producers have begun retrofitting their plants to run on energy from imported coal, beating high gas prices and energy shortages that have curbed industrial output this year.
Egypt has been suffering from an energy crisis in recent years as supply from state-owned Egyptian Natural Gas Holding Company (EGAS) has been intermittent and power blackouts commonplace.
The government has targeted energy-intensive cement companies for cutoffs while its priority has been to preserve gas for power generation, which would avoid blackouts and public unrest.
Mobinil may opt out of Egypt fixed-line market, to decide in weeks- CEO
CAIRO, Nov. 5, 2014 - Egyptian mobile phone carrier Mobinil may opt out of the government's recently-approved unified mobile and landline licence unless the price improves and it gets more clarity on the terms, the company's chief executive said on Wednesday.
A decision by one of the country's three mobile operators to not participate in the new license would be a blow to Egypt's long-awaited plans to reform the telecommunications sector.
Opposition leader suggests 'soft exit' for Sudan's Bashir
CAIRO, Oct. 28, 2014 - Leading Sudanese opposition figure Sadiq al-Mahdi has urged President Omar Hassan al-Bashir not to extend his 25-year rule and suggested offering him sanctuary from a war crimes trial if he relinquishes power.
It is the first time the opposition has publicly put forth such an idea, with Mahdi hoping that the notion of a "soft exit" could encourage factions within Bashir's own party to push for his departure and end Sudan's international isolation.
The International Criminal Court (ICC) has issued arrest warrants for Bashir for crimes against humanity, war crimes and genocide relating to bloodshed in Sudan's Darfur region.
He has denied the allegations and refuses to go before the Hague-based court. If he leaves office, he would have to entrust his fate to his successor and concern over the charges was a key driver in his move to seek another term in next April's presidential elections, political sources say.
Twenty-five years after being overthrown by Bashir, Mahdi called his bid to keep hold of power a "historic mistake" that would worsen Sudan's isolation and cripple an economy in turmoil since the oil-rich south seceded in 2011.
Egypt tourism minister confident of recovery, despite challenges
CAIRO, Oct. 22, 2014 - Egypt's tourism minister hopes to fully revive one of the country's most vital industries by next April but persuading the world that it is safe to visit the ancient pyramids or Red Sea resorts after three years of upheaval is a daunting task.
Hisham Zaazou is mounting public relations campaigns, inviting foreign officials to visit and assess Egypt's stability for themselves and boosting security at airports and hotels.
He is fully aware that a single attack by Islamist insurgents or new street protests in a nation destabilized by political turmoil since the fall of autocrat Hosni Mubarak in 2011 could instantly undermine what he says is progress.
Zaazou's campaign is highly vulnerable to travel warnings issued by Western states who were the source of most tourists before a slump in business hammered the economy.
London's young techs find anti-immigrant mood a drag
LONDON, Sept. 17, 2014 - When Efe Cakarel picked London as a new base for his video streaming company, he was counting on its location, capital markets and infrastructure, but also on the city's reputation as a hub for talented people from Europe and beyond.
Four years later, the 38-year-old entrepreneur has a half-dozen engineering vacancies that he says haven't been filled for nearly a year because of a local shortage of top-tier programmers. Immigration restrictions, he says, have made it harder to tap into the global pool of talent, costing his 7-year-old startup, MUBI, subscribers and revenue.
"We're ready to grow, but without the right workers, we just can't expand," he said.
Tech entrepreneurs say Cakarel's experience reflects a broader problem facing London, Europe's startup hub and an engine of innovative growth. To compete globally, its tech firms need to import talent. But young firms say nationwide curbs on immigration have put constraints on their ability to hire.
Putin's Ukraine gamble hastens exodus of Russian money and talent
LONDON, Aug 14 (Reuters) - The Kremlin's worst clash with the West since the 1991 collapse of the Soviet Union has accelerated the outflow of two of Russia's most prized assets: money and brains.
Vladimir Putin's annexation of Crimea and support for rebels accused of shooting down a passenger plane over Ukraine then hindering the recovery of the 298 bodies have shredded Western hopes of a lasting alliance with Moscow.
Sanctioned by the United States and European Union, Putin's courtiers are under fire, Russia's $2 trillion economy is threatened with isolation and millions of Russians across the world are wondering what next.
Russia is still earning much-needed revenues from pipelines carrying oil and gas to the West, but, less happily for the Kremlin, capital and talent are flowing in the same direction.
More people, less water mean rising food imports for Egypt
CAIRO/LONDON, July 9, 2014 - In the northwest corner of the Nile Delta, Ibrahim Sharaf Al-Dein fires up his diesel-powered pump next to a murky canal only to watch it spew out a yellowish froth.
For the past 15 years, antiquated irrigation systems and a government conservation drive have kept many farmers from nutrient-rich Nile waters, forcing them to tap sewage-filled canals despite their proximity to the world's longest river.
"This water ruins our pumps, it breaks our machines, it's bad for our production," Sharaf Al-Dein, 50, said of the canal.
But even as Egypt wrestles with dwindling water from its only major source, the Nile, it pushes farmers to grow more to supply the country's costly subsidized food program. The two goals, farmers and experts say, are at odds with one another.
Sheets like metal - Dylan tries hand at welding in new art venture
LONDON, Nov. 14, 2013 - Bob Dylan has swapped his guitar for a blowtorch for his latest artistic endeavor, welding massive iron gates from scrap metal that went on show in London on Thursday.
The "Mood Swings" exhibition at the Halcyon Gallery in central London marks the U.S. singer-songwriter's transition to a new form of art after publicly displaying his paintings for the past several years.
The imposing metal works, made over three years by welding together items such as wrenches, a meat grinder, a rollerskate and other scrap metal, appears chaotic at first glance.
But the works, priced from 35,000 pounds ($56,000), were described by the gallery as a statement on a bygone era of manufacturing in Dylan's hometown of Hibbing in Minnesota that is home to the world's largest open-pit iron ore mine.
Malaysia PM says curb on use of "Allah" key to stability
LONDON, Oct. 31, 2013 - Malaysia's Prime Minister Najib Razak defended a court ruling banning a Christian newspaper from using the word "Allah" to refer to God, saying on Thursday it would help ensure stability.
The court decision this month fanned religious tensions and raised questions over minority rights in the mainly Muslim country.
Christians there have used the word for centuries, but the three Muslim judges ruled The Herald's usage of it in its Malay edition would "cause confusion in the community".
Gay Lebanese singer with 'Freddie Mercury' edge fronts band
LONDON, Oct. 28, 2013 - A man singing about wanting to be another man's wife, pampering his children and cooking him dinner isn't all that unusual in this age of same-sex marriage and advancing gay rights.
But for Mashrou' Leila, a Lebanese alternative rock band, there was quite a risk in making lead singer Hamed Sinno's sexuality as much a part of their act as danceable tunes and darkly satirical lyrics attacking the Middle Eastern mindset.
Fans say Sinno's ability to channel voices ranging from a megaphone-amplified protester to a falsetto glam-rocker or a cigarette-singed taxi driver is one of the group's appeals.