down to business — egypt economy public announcement

Transcript کامل قسمت

Hello everyone, Skip Montreux here.

You are about to listen to a sample of a Down to Business English members-only episode.

In this episode, Des Morgan and I report on the economic challenges the country of Egypt is currently facing.

we look at the impact the Israel-Hamas conflict is having on Egypt's economy, the falling value of the Egyptian pound, as well as the increase in the cost of living.

But it isn't all bad news.

We also report on the UAE's recent investment in the Ras el-Hekma project.

Our goal at Down to Business English is to help you learn and retain business English by reporting on current business news stories and teaching useful words, phrases, and expressions that are related to those headlines.

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Just go to D2BEnglish.com forward slash membership to sign up.

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Now, sit back, relax, and enjoy this sample of a D2B members-only episode.

From Tokyo, Japan and Changsha, China, this is Down to Business English with your hosts, Skip Montreux and Des Morgan.

Des Morgan, good to be back with you.

How are things on your side this month?

Not so bad, Skip.

But the weather here in China has been pretty severe, though.

Oh, extreme weather.

Yeah.

Earlier this month, it seemed mainland China was getting hit by storm after storm after storm.

In fact, several cities in Guangdong province flooded.

Really?

Where is Guangdong in relation to you in Changsha?

It's the neighbouring province.

But you were okay there in your city.

We had a lot of rain, but fortunately no severe flooding.

Well, that is good to hear.

On a different note, I understand it was Labor Day in China earlier in May.

Is that right?

It was, yeah.

May 1st to 5th.

Why do you ask?

Well, you and I last recorded on May 4th, and you didn't mention one thing about it.

I see.

Well, I didn't really do anything, so I didn't really have anything special to report.

Ah, so you were just hanging out at home.

Pretty much.

Stayed home and caught up on my reading.

In fact, I just finished a very interesting book about the history of the Mongol Empire and Genghis Khan.

Really fascinating stuff.

Hmm, I don't know too much about it, other than something like 0.5% of Genghis Khan's DNA can be found in the world's male population.

That's true, that man did get around.

But the Mongol Empire, that was only 800 years ago.

Personally, I have always been more interested in ancient history, particularly Egypt.

Where did the pyramids come from?

And mummies?

Stuff like that.

I didn't know you were an Egyptologist there, Skip.

Just a wee bit.

Well then, you'll be very interested in the business story I want to focus on today.

Oh?

What did you want to report on today?

My report is, in fact, the Egyptian economy and the challenges it's facing going forward.

Great.

I am all ears.

Then let's do it.

Let's get D2B down to business with Egypt's economic headwinds.

Egypt's economic headwinds.

So, there is more than one.

Heard there are.

One of the biggest headwinds is a significant drop in the number of container ships using the Suez Canal, a major source of revenue for Egypt.

Is this related to the drone and rocket attacks on container ships by the Houthis, that armed rebel group in Yemen?

It is.

Ships en route to Europe from Asia via the Suez Canal need to pass through the narrow Bab al-Mandab Strait that connects the Gulf of Aden to the Red Sea.

That strait is right next to Yemen.

And the Houthis are launching these attacks to show solidarity with the Palestinians and Hamas in the Gaza Strip in their war against Israel.

Correct?

Precisely.

Since the Israel-Hamas war started, the Houthis have been quite active.

In addition to hijacking a commercial vessel and actually sinking a UK-owned ship, there have now been more than 50 attacks since November.

Making it very risky for shipping companies to use the Suez Canal.

And the upshot of that risk is many of those shipping companies have taken the decision to reroute their vessels around the Cape of Good Hope in South Africa.

rather than transiting through the Suez Canal.

Wow!

That must make the journey quite a bit longer.

It does.

According to a report from the IMF, the route around South Africa adds about 10 days to a voyage from Asia to Europe.

The IMF?

The International Monetary Fund?

That's right.

And getting back to the impact on Egypt...

The same IMF report states that container traffic through the canal in the first two months of 2024 was down 50% compared to a year earlier.

50%?

That must be a huge revenue loss for Egypt.

According to Osama Rabi, the chairman of the Suez Canal General Authority, January revenue was just $428 million this year compared to...

I hope you enjoyed that sample of a D2B members-only episode.

Thank you very much for listening.

To listen to the full episode and to support D2B, just go to d2beenglish.com forward slash membership and become a D2B member today.

One more time, that's d2beenglish.com forward slash membership.

On behalf of Des, Samantha and myself, we thank you for your support.