InsiderBLM Africa
Egypt has relaxed the requirements for granting nationality to foreigners who invest in dollars in the country, which is plagued by inflation and a lack of foreign currency, according to local media on Wednesday.
An amendment to a law passed by the prime minister in 2019 allowed for the acquisition of Egyptian nationality through investment, such as when purchasing real estate in dollars or making a deposit in an Egyptian bank.
According to the recent changes reported by the Egyptian media on Wednesday, foreigners can now obtain an Egyptian passport by making a deposit in an Egyptian bank account of 500,000 dollars, as opposed to the previous requirement of 750,000 dollars, or by purchasing a publicly traded company or state-owned real estate property worth at least $300,000 dollars.
This decision by Prime Minister Mostafa al-Madbouly is the most recent in a series of steps taken to bolster the state’s finances by luring in foreign investment as the nation is under pressure from its creditors and its 105 million citizens continue to suffer from inflation.
Egypt is currently experiencing one of its worst economic crises ever. The Egyptian pound has lost half of its value against the dollar in a single year, and the nation’s foreign exchange reserves have vanished.
Egypt, one of the biggest grain importers in the world, was significantly impacted by the rise in wheat prices, which put strain on its foreign exchange reserves.
Experts on hyperinflation estimate that inflation was actually nearly four times higher in January than what was reported, making the nation one of those in the world most at risk of defaulting on its debt.
20% fewer dollars are now held in reserves, totaling $34.2 billion, of which $28 billion came from the Gulf.
The IMF granted Egypt a fresh loan in December, but the three billion dollars that will be disbursed over roughly four years won’t amount to much given that the debt service alone for 2022–2023 will cost 42 billion dollars.
In exchange, since 2016, the government has been carrying out an economic reform program that includes gradually eliminating subsidies for petroleum products. Early in March, there was a 20% increase in fuel prices.
