Madbouly talks energy, taxes during latest presser: Prime minister Moustafa Madbouly touched on several issues during his weekly press conference, those include energy supplies, tax reforms, among other key issues, according to cabinet statements (here, here).

#1- The plan to boost energy supplies: The Oil Minister will be meeting with foreign energy players starting this week to look into boosting local production starting early 2025.

Remember: The government has set aside USD 1.2 bn for energy imports this summer to help fill a supply gap and put a temporary end to blackouts during the hottest months of the year. After becoming a net exporter of LNG in 2018 and signaling its intention to become an important energy exporter to the region and Europe, production falls and rising domestic demand led to Egypt having to ramp up imports to bridge the supply gap.

#2- A very ambitious renewables target: The state aims to add 28 GW of renewable energy to the country’s energy mix over the next 5-7 years, Madbouly said. He previously said that the government wants to see 3-4 GW-worth of renewable energy projects go live and start feeding the national grid by next summer to fill the energy supply gap.

#3- Fresh investment incentives incoming? The government plans to announce “revolutionary” tax reforms next month, Madbouly said, adding that the reforms aim to meet investor demands and encourage exports.

#4- Don’t hold your breath waiting for wage hikes: Madbouly ruled out fresh wage hikes with the anticipated social support package, saying that “since the latest wage hike was recent, it will be a while before we consider raising wages again.”

Remember: Two government sources told Enterprise earlier this month that the government is getting ready to roll out a new package of social protection measures in September, with plans to implement it starting October. The package reportedly includes pension increases, alongside other forms of support for low-income households to mitigate the impact of inflationary pressures.

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