SFE is in line for a shakeup: In its first session back, the House of Representatives preliminary approved government-drafted amendments to the law regulating how the Sovereign Fund of Egypt (SFE) operates.

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More power to Madbouly: If passed, the amendments will give the prime minister the power to appoint the minister in charge of the fund — the responsibility currently falls to the planning minister.

A cabinet-affiliated SFE: Under the amendments the fund will be directly under the cabinet’s control and deemed a cabinet-affiliated fund.

And an assembly shakeup: The amendments state that the fund’s general assembly includes the minister named by the prime minister, along with the ministers of finance, investment, planning and international cooperation, in addition to the central bank deputy governor and seven financial experts.

The rationale: The amendments come in line with the July’s cabinet shuffle and with the aim to boost the SFE’s contribution to the country’s economic development and optimize the use of its affiliated assets.

For or against? Some MPs argued against the amendments, claiming that they would impact the fund’s independence, while others argued that making the PM in charge of appointing the minister responsible for the fund “is just a political move which will not impact SFE’s independence.”

What’s next? The amendments will be up for a final vote in an upcoming session.

MPs also approved:

  • A presidential decree approving increasing our subscription to the IMF by 50% — which will be worth some USD 1.4 bn and EGP 48 bn.
  • An agreement eliminating dual taxation between Egypt and Oman.
  • A USD 15 mn USAID grant to help us fight climate change, with a specific focus on conserving coral reefs in the Red Sea and reducing pollution.
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