
<p>By <em>Akinwumi Adesina, President of the&nbsp;</em><a rel="noreferrer noopener" href="https://www.afdb.org/en" target="_blank"><em>African Development Bank</em></a></p>



<p>These are very difficult days, as the world faces one of its worst challenges ever: the novel coronavirus pandemic. And it seems almost no nation is spared. As infection rates rise, so does panic across financial markets, as economies drastically slow down, and supply chains are severely disrupted.&nbsp;</p>



<p>Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual.&nbsp;</p>



<p><strong>FOR MORE ON COVID-19 VISIT:</strong>&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>



<p>Each day, the situation evolves and requires constant reviews of precautionary measures and strategies. In the midst of all this, we must all worry about the ability of every nation to respond to this crisis. And we must ensure that developing nations are prepared to navigate these uncharted waters fully.&nbsp;</p>



<p>That&#8217;s why I support the UN Secretary-General Antonio Guterres&#8217; urgent call for special resources for the world&#8217;s developing countries.&nbsp;</p>



<p>In the face of this pandemic, we must put lives above resources and health above debt. Why? Because developing economies are the most vulnerable at this time. Our remedies must go beyond simply lending more. We must go the extra mile and provide countries with much-needed and urgent financial relief &#8211; and that includes developing countries under sanctions.&nbsp;</p>



<p>For decades, sanctions have decimated investments in public health care systems in quite a number of countries<a href="#_ftn1">[1]</a>.&nbsp;Today, they are unable to face up to a clear and present danger that now threatens our collective existence<a href="#_ftn2">[2]</a>.</p>



<p>Only those that are alive can pay back debts.&nbsp;&nbsp;</p>



<p>Sanctions work against economies but not against the virus. If countries that are under sanctions are unable to respond and provide critical care for their citizens or protect them, then the virus will soon &#8220;sanction&#8221; the world.</p>



<p>In my Yoruba language, there is a saying, &#8220;be careful when you throw stones in the open market. It may hit a member of your family.&#8221;&nbsp;&nbsp;</p>



<p>That&#8217;s why I also strongly support the call by the UN Secretary-General that debts of low-income countries be suspended and in these fast-moving and uncertain times.&nbsp;</p>



<p>But I call for even bolder actions, and there are several reasons for doing so.&nbsp;</p>



<p>First, the economies of developing countries, despite years of great progress, remain extremely fragile and ill-equipped to deal with this pandemic. They are more likely to be buried with the heavy fiscal pressure they now face with the coronavirus.&nbsp;</p>



<p>Second, many of the countries in Africa depend on commodities for export earnings. The collapse of oil prices has thrown African economies into distress. They simply are not able to meet budgets as planned under pre-coronavirus oil price benchmarks<a href="#_ftn3">[3]</a>.</p>



<p>The impact has been immediate in the oil and gas sector, particularly affecting eight countries -Algeria, Angola, Chad, Egypt, Equatorial Guinea, Gabon, Nigeria, and the Republic of Congo- that between them generate nearly half of Africa&#8217;s GDP<a href="#_ftn4">[4]</a>.&nbsp;</p>



<p>Those exporting other commodities besides oil, such as agricultural produce or minerals and metals, are facing drastic cuts in demand<a href="#_ftn5">[5]</a>. In the current environment, there is an acute shortage of buyers who, for understandable reasons, have re-allocated resources to addressing the COVID-19 pandemic. African countries that depend on tourism receipts as a key source of revenue are also in a straight-jacket.&nbsp;</p>



<p>Third, while rich countries have resources to spare, evidenced by trillions of dollars in fiscal stimulus, developing countries are hampered with bare-bones resources.&nbsp;</p>



<p>The fact is, if we do not collectively defeat the coronavirus in Africa, we will not defeat it anywhere else in the world. This is an existential challenge that requires all hands to be on deck. Today, more than ever, we must be our brothers and sisters&#8217; keepers.&nbsp;&nbsp;</p>



<p>Around the world, countries at more advanced stages in the outbreak are announcing liquidity relief, debt restructuring, forbearance on loan repayments, relaxation of standard regulations and initiatives. In the United States, packages of more than $2 trillion have already been announced, in addition to a reduction in Federal Reserve lending rates and liquidity support to keep markets operating. In Europe, the larger economies have announced stimulus measures in excess of 1 trillion Euros. Additionally, even larger packages are expected.&nbsp;</p>



<p>As developed countries put in place programs to compensate workers for lost wages for staying at home for social distancing, another problem has emerged &#8212; fiscal distancing.</p>



<p>Think for a moment what this means for Africa.&nbsp;</p>



<p>The African Development Bank estimates that COVID-19 could cost Africa a GDP loss between&nbsp;$22.1 billion (see attached Bank report), in the base-case scenario, and $88.3 billion in the worst-case scenario. This is equivalent to a projected GDP growth contraction of between 0.7 and 2.8 percentage points in 2020. It is even likely that Africa might fall into recession this year if the current situation persists.</p>



<p>The Covid-19 shock will further squeeze fiscal space in the continent as deficits are estimated to widen by 3.5 to 4.9 percentage points, increasing Africa&#8217;s financing gap by an additional $110 to $154 billion in 2020.&nbsp;</p>



<p>Our estimates indicate that Africa&#8217;s total public debt could increase, under the base case scenario, from $1.86 trillion at the end of 2019 to over $2 trillion in 2020, compared to $1.9 trillion projected in a no-pandemic scenario. These figures could reach $2.1 trillion in 2020 under the worst-case scenario.</p>



<p>This, therefore, is a time for bold actions. We should temporarily defer the debt owed to Multilateral Development Banks and International Financial Institutions. This can be done by re-profiling loans to create fiscal space for countries to deal with this crisis.&nbsp;&nbsp;</p>



<p>That means that loan principals, due to International Financial Institutions in 2020, could be deferred. I am calling for temporary forbearance, not forgiveness. What&#8217;s good for bilateral and commercial debt must be good for multilateral debt.</p>



<p>That way, we will avoid moral hazards, and rating agencies will be less inclined to penalize any institution on the potential risk to their Preferred Creditor Status.&nbsp; The focus of the world should now be on helping everyone, as a risk to one is a risk to all. There is no coronavirus for developed countries and a coronavirus for developing and debt stressed countries. We are all in this together.&nbsp;&nbsp;</p>



<p>Multilateral and bilateral financial institutions must work together with commercial creditors in Africa, especially to defer loan payments and give Africa the fiscal space it needs. We stand ready to support Africa in the short term and for the long haul. We are ready to deploy up to $50 billion over five years in projects to help with adjustment costs that Africa will face as it deals with the knock-on effects of COVID-19, long after the current storm subsides.&nbsp;</p>



<p>But more support will be needed. Let&#8217;s lift all sanctions, for now. Even in wartime, ceasefires are called for humanitarian reasons. In such situations, there is a time to pause for relief materials to reach affected populations. The novel coronavirus is a war against all of us. All lives matter. For this reason, we must avoid fiscal distancing at this time. A stitch in time will save nine.&nbsp;&nbsp;</p>



<p>Social distancing is imperative now. Fiscal distancing is not.&nbsp;&nbsp;&nbsp;</p>



<p></p>



<hr class="wp-block-separator"/>



<p><a href="#_ftnref1">[1]</a>&nbsp;(<a href="https://www.odi.org/publications/384-impact-economic-sanctions-health-well-being" target="_blank" rel="noreferrer noopener">https://www.odi.org/publications/384-impact-economic-sanctions-health-well-being</a>, page 15)</p>



<p><a href="#_ftnref2">[2]</a> (<a href="https://www.ghsindex.org/" target="_blank" rel="noreferrer noopener">https://www.ghsindex.org/</a>)</p>



<p><a href="#_ftnref3">[3]</a> AEO 2020&nbsp;<a href="https://www.afdb.org/en/knowledge/publications/african-economic-outlook" target="_blank" rel="noreferrer noopener">https://www.afdb.org/en/knowledge/publications/african-economic-outlook</a>)</p>



<p><a href="#_ftnref4">[4]</a> (AEO 2020&nbsp;<a href="https://www.afdb.org/en/knowledge/publications/african-economic-outlook" target="_blank" rel="noreferrer noopener">https://www.afdb.org/en/knowledge/publications/african-economic-outlook</a>)</p>



<p><a href="#_ftnref5">[5]</a> <a href="https://www.opec.org/opec_web/en/press_room/5870.htm" target="_blank" rel="noreferrer noopener">https://www.opec.org/opec_web/en/press_room/5870.htm</a>&nbsp;&#8211; <a href="https://edition.cnn.com/2020/03/08/investing/oil-prices-crash-opec-russia-saudi-arabia/index.html">https://edition.cnn.com/2020/03/08/investing/oil-prices-crash-opec-russia-saudi-arabia/index.html</a></p>


adesina

Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing


<p>NKC African Economics expects the coronavirus-related knock to economic
growth in Africa’s three largest economies alone to shave off 1 ppt from the
continent’s GDP growth this year, from 3.8% to 2.8%. </p>



<p>Preliminary estimates point towards the weakest continental growth
since the early 1990s.</p>



<p>The continent’s three largest economies, South Africa, Nigeria and
Egypt – together accounting for just under 60% of African GDP – will see a
significant weakening in economic growth this year. </p>



<p>This slowdown in economic activity will permeate through the
continent as these countries are salient drivers behind economic growth in
their respective regions.&nbsp; </p>



<p>In addition to the indirect effects stemming from weakness in the
largest economies, other African nations will also have to deal with a much
more volatile external economic environment. </p>



<p>The collapse in tourism will weigh on economic growth in many
countries (particularly the island nations, Morocco, Egypt, and Tunisia), while
a reduction in both export demand and commodity prices will weaken fundamentals
in Africa’s more export-oriented economies (most notably the oil producing
nations).&nbsp; </p>



<p>The escalation in the Covid-19 outbreak in Africa implies there is
a lot more at stake than foregone economic production. </p>



<p>Most African countries will not be able to effectively implement
the severe restrictions on movement that we have seen globally. The
impracticality of implementing widespread self-quarantine in shantytowns or
informal settlements means that this will not be an option. Mismanagement of
the situation could lead to human costs far exceeding economic losses.</p>



<p>Tourism is a key forex generator and employment creator across the
continent. Severe travel restrictions, border closures and lockdowns in key
source markets will result in a collapse in tourism during the first half of
the year, at least. </p>



<p>Domestic and intra-Africa tourism have been key drivers behind
growth in overall tourism in recent years, but as more Covid-19 cases are
confirmed on the continent we will see an increase in domestic travel
restrictions and regional border closures. </p>



<p>The island nations will be hardest hit, but the mainland will feel
the effects in the North (particularly in Tunisia, Morocco and Egypt), South
(Namibia, Botswana), East (Tanzania, Rwanda, Kenya) and West (Côte d’Ivoire,
The Gambia, Cameroon). </p>



<p>Low barriers to entry have led to tourism becoming a key source of
employment. The island nations in particular are dependent on tourism to
generate employment, most notably the Seychelles (where tourism accounts for
around 44% of formal employment), Cape Verde (39%) and Mauritius (19%). </p>



<p>Tourism has also become a salient job creator on the African
mainland, and a slump in the sector could result in rapid job losses given the prevalence
of micro- and small-sized enterprises operating in the sector.&nbsp; </p>



<p>The slowdown in global economic activity will translate into a
reduction in demand, while lower commodity prices will compound this negative
effect on exports. </p>



<p>Africa’s energy exporters will struggle to come to terms with a
much more hostile external environment. Countries such as Nigeria, Angola and
Gabon are highly dependent on oil exports not only to generate forex but also
to fund government spending. </p>



<p>Countries including Namibia, Zambia, Botswana and Mozambique are
dependent on mineral exports for the same reasons. </p>



<p>Generally speaking, countries that have a GDP structure orientated
towards exports will feel the pain of a weaker external environment.</p>



<p>Lower international energy prices will have a detrimental impact
on the continent’s oil exporters, but many other countries stand to benefit. </p>



<p>A reduction in the oil imports bill will have a favourable impact
on external balances while also containing consumer price inflation. Lower
inflation will support consumer spending at a time when a weak external
environment increases the importance of domestic consumption in driving overall
economic growth.&nbsp; </p>



<p>The South African economy had already entered 2020 on a very
fragile footing before the dramatic external developments related to the
Covid-19 pandemic. NKC forecasts a 5% real GDP contraction this year. Domestic
policy uncertainty and supply-side constraints have now been accompanied by a
deterioration in global business sentiment and a drop in demand for South
African goods, all weighing on the country’s economic recovery prospects. </p>



<p>In addition, the three-week long nationwide lockdown, which
commenced on March 27, will result in a collapse in consumer spending. The
outlook could deteriorate further if the lockdown is extended.&nbsp; </p>



<p>The coronavirus has not as yet, as far as we know, taken
significant hold in Nigeria. However, the weaker external environment and more
specifically, the recent collapse in international oil prices, will have a
marked impact on the economy’s performance this year.</p>



<p>Lower oil prices will result in tighter FX liquidity, rising
inflation, falling investment, lower fiscal expenditure and easing consumption
growth. </p>



<p>As a result, NKC has revised its growth projection sharply lower
to 1.2% this year, with risks still firmly stacked to the downside. </p>



<p>A more severe domestic outbreak of Covid-19 would cause
significant disruption to daily economic activity, particularly when
considering the population density in the country’s biggest cities. </p>



<p>Despite the Egyptian government’s efforts, the number of confirmed
Covid-19 cases continues to rise considerably. </p>



<p>The president has urged all citizens to stay at home for a two-week
period and a night-time curfew has been declared, while the possibility of a
formal lockdown in some regions is also circulating in local media. </p>



<p>The fiscal deficit is set to widen significantly over fiscal year
(FY) 2019/20 and FY 2020/21 following the announcement of a stimulus and
bail-out package to the value of approximately E£100bn. </p>



<p>Government revenues already came in far below budget during the
first half of FY 2019/20 and will take a massive knock during the second half
of the fiscal year, which ends in June. </p>



<p>Lower economic growth reflects weaker consumption, investment, and
exports. </p>



<p>The recently announced fiscal stimulus measures, however, should
prevent a collapse in domestic demand. </p>



<p>The economic impact of the coronavirus epidemic will be
considerable, but the human costs will be higher yet. </p>



<p>As of end March South Africa remains the hardest-hit African
country from a confirmed-case perspective and the expected economic hardship
reflects this. </p>



<p>However, South Africa is also arguably the best-placed country on
the continent to deal with the pandemic. While it does have a large
immuno-compromised population due to its struggles with HIV, the country might
be able to leverage its sophisticated private healthcare sector to supplement
inadequate public services. </p>



<p>Most other African nations will not have this benefit. </p>



<p>Confirmed Covid-19 cases will undoubtedly increase across the
continent in coming weeks, and timely and effective government responses will
be required to ensure that this does not become another African tragedy.</p>



<p><em>Jacques Nel – Head of Africa Macro</em></p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

Op-Ed: African giants to stumble due to Covid-19 pandemic

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The Ethiopian government has rejected the decision by the Arab League to endorse Egypt’s position on the Nile waters. Meanwhile, Sudan has urged Egypt and Ethiopia to return to negotiations to reach a deal regarding the Grand Ethiopian Renaissance Dam. CNBC Africa spoke to Mikael Arage, Analyst for more.</p>


Finding solutions to the Egypt-Ethiopia Nile dam dispute

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Nigeria, Algeria, Morocco, Egypt, Senegal, Tunisia and now SA &#8211; the corononavirus is making inroads on the continent. CNBC Africa spoke to a SA athlete with hopes of taking part at this year’s Olympics in Japan about the impact of COVID-19.</p>


Why this athlete won’t let COVID-19 derail her Olympic dreams

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Egypt and Morocco have pipped South Africa to the post in RMB’s 2020 Where to Invest in Africa report reflecting Africa&#8217;s most industrialised country’s constrained levels of growth.</p>


Revealed: The best African countries to invest in during 2020

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<p>Egypt is blaming Ethiopia for the failure to come to an agreement in the latest sit down between the two countries in what has turned out to be a controversial Renaissance dam. Global Chairman of, Fairfax Africa Fund, Zemedeneh Negatu joins CNBC Africa on the latest stand-off between the two countries.</p>


Ethiopia asks SA to mediate talks over Nile Dam debacle with Egypt

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<p>The Basketball Africa League (FIBA) announced cities in Egypt, Senegal, Nigeria, Angola, Morocco and Tunisia as the host and the host city for the first-ever BAL Final Four and BAL Final will be Kigali. Additionally, Nike and Jordan Brand will be the exclusive outfitter of the new professional league featuring 12 club teams from across Africa and scheduled to begin play in March 2020. Amadou Gallo Fall, Basketball Africa League President, joins CNBC Africa for more.</p>


BAL President Amadou Gallo Fall on how sport is driving economics on the continent

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<p>The theme of this year&#8217;s African Economic Conference focuses on jobs, entrepreneurship and capacity development for African youths. This was jointly organised by African Development Bank (AfDB), United Nations Economic Commission for Africa (UNECA) and United Nations Development Programme (UNDP) in Sharm el-Sheikh, Egypt. Hanan Morsy, Director for Macroeconomic Forecasting and Research at AfDB joins CNBC Africa to discuss the ways to build capacity development for African youths.</p>


African Economic Conference: Hanan Morsy on how to build capacity development for African youths

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<p>The European Bank for Reconstruction and Development has invested more than $11 billion over the past seven years into developing the private sector and market economies in North Africa. They are currently in Morocco, Tunisia and Egypt. The Bank’s Managing Director, Janet Heckman, spoke to CNBC Africa’s Kopano Gumbi on the second day of the Africa Investment Forum held in Sandton.</p>


Africa Investment Forum: Foreign investors look to African assets

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<p>Egypt and Ethiopia have agreed to resume talks to resolve a dispute over the construction of the Grand Ethiopian Renaissance Dam on the Nile River, now according to Nigeria&#8217;s Vice President, speaker of Egypt&#8217;s parliament has asked the West African country&#8217;s leadership to help mediate the talks. Analyst, Ken Agutamba joins CNBC Africa for more.</p>


Analysis: How Nigeria can help broker the Egypt-Ethiopia dam dispute

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<p>South Africa tops the ABSA financial markets index for 2019. This index highlights economies with the clearest growth prospects in Africa. This year Botswana, Kenya and Namibia joined the ranks that scored over 50 in its pillar 1 structure and Egypt holds the highest score in macroeconomic opportunity. George Asante, Head of Global Markets at Absa Regional Operations joins CNBC Africa for more.</p>


SA tops ABSA financial markets index for 2019 – This is how other African countries fared

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<p>Egyptian President Abdel Fattah al-Sisi and Ethiopian Prime Minister Abiy Ahmed are set to meet in Russia to discuss a dispute over a hydropower dam that Ethiopia is building on the River Nile, which has caused a long-running diplomatic standoff. Ethiopia aims to provide electricity to homes of its 105 million citizens and Egypt wants a steady supply of water for its 98 million citizens. Global Chairman at Fairfax Africa Fund (US), Zemedeneh Negatu joins CNBC Africa for more.</p>


Egypt, Ethiopia to hold talks over Nile dam hydropower dispute


<p>ADDIS ABABA (Reuters) &#8211; Ethiopia on Wednesday rejected a proposal by Egypt to operate a $4 billion hydropower dam the Horn of Africa country is constructing on the Nile, further deepening a dispute between the two nations over the project.</p>



<p>In a press conference in Ethiopia’s capital Addis Ababa, Sileshi Bekele, minister for water, irrigation and energy described Egypt’s plan including the volume of water it wants the dam to release annually as “inappropriate.”</p>



<p>“The proposal from Egypt was unilaterally decided&#8230;(it) didn’t consider our previous agreements,” he said.</p>



<p>“We can’t agree with this&#8230;we will prepare our counter proposal.”</p>



<p>The Grand Ethiopian Renaissance Dam (GERD), announced in 2011, is designed to be the centrepiece of Ethiopia’s bid to become Africa’s biggest power exporter, generating more than 6,000 megawatts.</p>



<p>The two nations disagree over the annual flow of water that should be guaranteed to Egypt and how to manage flows during droughts.</p>



<p>Egypt relies on the Nile for 90% of its fresh water and it wants the GERD’s reservoir to release a higher volume of water than Ethiopia is willing to guarantee, among other disagreements.</p>



<p>“An Egyptian expert can’t control our dam,” Sileshi said and described the Egyptian plan as a potential violation of Ethiopia’s sovereignty.</p>



<p>Sileshi did not say how much water Ethiopia wants to release, but Egypt wants the dam to release a minimum of 40 billion cubic metres of water from the GERD annually.</p>



<p>Following construction delays, Ethiopia has said GERD will start power production by the end of 2020 and be fully operational by 2022.</p>



<p>Writing by Elias Biryabarema; Editing by Lisa Shumaker </p>


Why Ethiopia has rejected Egypt’s plan for operating giant dam on the Nile

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<p>South Africa has fallen to third place in Rand Merchant Bank’s edition of its Where to invest in Africa report. South Africa’s fall is due to low levels of growth but still remains as a hotspot for portfolio investment. The North African countries Egypt and Morocco top the ranks with its attractive markets. Celeste Fauconnier, Sub-Saharan Africa Economist at RMB joins CNBC Africa for more.</p>


RMB Where to invest in Africa: SA falls to third, here’s how other countries fared

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<p>Ambassador Chiedu Osakwe Director General of the Nigerian Office for Trade Negotiations says he is convinced that the country will do the right thing regarding the signing of the Africa Continental Free Trade Agreement, but the ultimate decision lies with the President. He discussed this with CNBC Africa’s Godfrey Mutizwa at the Intra-Africa Trade Fair in Egypt.</p>


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<p>The UNECA reported its urgency for African countries to broaden and deepen their tax and revenue collection bases while leveraging digital technologies to boost collection and compliance.  At the Conference of African Ministers in Marrakesh, Morocco CNBC Africa’s Fifi Peters caught up with Ahmed Kamaly, Deputy Minister of Planning for Planning Affairs for Egypt, about how reducing corporate taxes will not increase investment.</p>


Africa urged to broaden tax base as to improve revenue collection

<p>Natasha Turak</p>
<p>Source: <a href="https://www.cnbc.com/2019/02/12/egypt-president-sisi-pushes-toward-term-extensions-in-constitution.html">Egypt&#8217;s Sisi set to dramatically extend presidency, despite previously pledging no changes to constitution</a></p>
<ul>
<li>Egyptian lawmakers are pushing ahead for a change to the country&#8217;s constitution that would enable Sisi to stay in power until 2034. Currently, the former armed forces chief is due to stand down after completing two four-year terms in 2022.</li>
<li>Just last week, a parliamentary committee in Cairo approved proposed constitutional amendments that would increase presidential terms from four to six years and essentially reset the clock, allowing Sisi two additional terms.</li>
<li>In an exclusive interview with CNBC in November 2017, Sisi said he was committed to the limits set out by the current constitution.</li>
</ul>
<p><img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/12/07130244/105097713-Egypt_al-Sisi.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="MOHAMED EL-SHAHED | AFP | Getty Images"/></p>
<p>Egypt&#8217;s President Abdel Fattah el-Sisi is likely to win constitutional changes allowing him to dramatically extend his tenure in power — just over a year after telling CNBC that he would never pursue such a thing.</p>
<p>Discussing the political developments while at the Milken Summit in Abu Dhabi Tuesday, Egyptian billionaire businessman Naguib Sawiris told CNBC&#8217;s Hadley Gamble that he expected the controversial move would be pushed through. Asked whether he believed it was the right or wrong step for Egypt, the country&#8217;s second-richest man simply replied, &#8220;We&#8217;ll see.&#8221;</p>
<p>Egyptian lawmakers are pushing ahead for a change to the country&#8217;s constitution that would enable Sisi to stay in power until 2034. Currently, the former armed forces chief is due to stand down after completing two four-year terms in 2022.</p>
<p>Just last week, a parliamentary committee in Cairo approved proposed constitutional amendments that would increase presidential terms from four to six years and essentially reset the clock, allowing Sisi two additional terms.</p>
<p>In an exclusive<br />
interview with CNBC<br />
 in November 2017, Sisi said he was committed to the limits set out by the current constitution.</p>
<p>&#8220;I am with preserving two four-year terms and not to change it &#8230; I am not for any amendments to be made to the constitution in this period,&#8221; Sisi told CNBC. &#8220;The constitution grants the right of the parliament and the president to request amendments. I am talking about the four-year terms. We will not interfere with it.&#8221;</p>
<p>He added that any continuation of terms could not take place &#8220;without the will of the Egyptian people.&#8221;</p>
<p>&#8220;So, the one who is in the president&#8217;s seat will not be able to stay after the term allowed by law and the constitution. And what determines this will be the elections by the Egyptian people.&#8221;</p>
<p>Crackdowns on opposition</p>
<p>The 64-year old leader, described by many as a dictator for his heavy crackdown on civil liberties and opposition groups, came to power in 2014 following a military coup that overthrew and arrested the democratically-elected President Mohamed Morsi of the Muslim Brotherhood.</p>
<p>Sisi was re-elected in April of last year with 97 percent of the vote, in a contest widely labeled a sham. The general faced little competition as his opponents either dropped out or were arrested.</p>
<p>Supporters of the constitutional changes say Sisi needs to remain in power in order to maintain stability in the country of 98 million and continue implementing the economic reforms currently underway.</p>
<p>Critics in and outside of Egypt have signaled alarm at what they say is blatant authoritarianism and yet another affront to democracy. In the five years of Sisi&#8217;s rule, more than 60,000 people have been arrested or charged by Egyptian security forces, according to Human Rights Watch.</p>
<p>&#8220;Project to amend #Egypt constitution unfolding &amp; in full throttle,&#8221; Egyptian Nobel Prize winner Mohamed ElBaradei tweeted last week. &#8220;Arab Spring in reverse!&#8221;</p>
<p>Tweet1</p>
<p>Additional proposed amendments to the constitution include bolstering the executive&#8217;s control of the judiciary and allowing the president more power in appointing judges and public prosecutors.</p>
<p>Constitutional changes require approval of two-thirds of parliamentarians and a subsequent referendum. Egypt&#8217;s 596-member parliament overwhelmingly backs the president.</p>
<p>Macroeconomic improvement</p>
<p>Egypt has seen significant macroeconomic improvement since the Arab Spring revolution and successive coups and terrorist attacks that rocked the country from 2011 onward. Government-implemented structural reforms and subsidy cuts recommended by the International Monetary Fund have brought the Middle East&#8217;s most populous country its highest economic growth in a decade, and it&#8217;s now targeting 5.8 percent growth for 2019, up from 5.3 percent last year.</p>
<p>Sawiris praised those efforts by the Sisi administration, saying, &#8220;They&#8217;re getting it right that they were not stubborn and they executed all the demands of the IMF because, this was for the good.&#8221;</p>
<p>But the cost of these austerity measures has been steep. Basic costs for Egyptians have skyrocketed while wages have stagnated.</p>
<p>Private sector engagement will be crucial to support Egypt&#8217;s burgeoning population, currently facing unemployment of around 10 percent. Some investors remain wary of a still-tense political situation, a fragile banking sector, regional insecurity and insufficient infrastructure.</p></p>


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