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Egypt’s Al-Sisi dismisses claims that army controls half of economy

December 24, 2016 at 3:26 pm

Egyptian President Abdel Fattah Al-Sisi said today that the military’s economic activity accounted for no more than two per cent of the country’s output, dismissing suggestions that the military could control as much as half of the economy.

Speaking at an event celebrating the expansion of a military-owned company, Sisi said the military made up 1.5-2 per cent of economic output which he said was 3-4 trillion Egyptian pounds ($160 billion-$213 billion).

That would put the military’s share of economic activity at between $2.39 billion and $4.26 billion, though many estimate the figure is significantly higher.

“It has been said that the military’s economy is worth 20 or even 50 per cent of the economy. I wish. We have nothing to hide; the military accounts for between 1.5 to 2 per cent of the economy,” Sisi said, adding that the military paid taxes on all projects and that they were subject to regulations and auditing.

“We would love for it to be 50 per cent.”

Al-Sisi, a former general who took office in 2014 after he executed a bloody putsch, has promised to revive the economy, which has struggled since a 2011 uprising scared away investors and tourists, Egypt’s main sources of foreign currency.

He has called in the military to assist in major infrastructure projects and with distribution of subsidised commodities to keep a lid on rising prices amid an acute shortage of dollars.

The economic weight of the military, which produces everything from bottled water to macaroni, has long been a topic of speculation in Egypt but official comment on the scope of its economic activities is rare.