Privatising Suez Canal could be key to solving Egypt’s economic crisis

The Egyptian government denies, but it is rumored there may be plans to sell off parts of the Suez Canal. In February, President Sisi called the rumors “a lie”. However, in December last year, the Egyptian parliament approved a change to the law that allows the Suez Canal Authority (SCA) to establish a fund through which it can sell or lease some of its asset.

By Harry Clynch of African Business.

Since its nationalisation in 1956 the Suez Canal has provided Egypt with a rich source of revenue as well as a sense of national pride – but could hard economic times mean that privatisation is now on the cards?

While any sell-off of the Suez Canal – partial or complete – remains a long way off for now, it does appear that the Egyptian government is more open to foreign involvement in the canal than has previously been the case. It is possible that Cairo sees the canal’s assets, at least in theory, as part of the answer to the country’s shortage of hard currency and other economic problems.

But whether it would be politically possible for an Egyptian government to survive an attempt to privatise the Suez Canal – given its strategic and symbolic importance – is another question.

MORE >> Privatising Plans Suez Canal.