Geopolitical Tensions Cause Egypt Billions of Dollars in Losses

Starting Tuesday, October 1, Egypt will assume the chairmanship of the African Union Peace and Security Council (AUPSC). According to Mohamed Gad, Egypt’s Permanent Representative to the African Union, “Cairo will work to strengthen the Council’s role as a body responsible for maintaining peace, security, and stability, as well as addressing security challenges and the development of the African continent.” Under the Egyptian chairmanship, several missions are planned in Sudan “to strengthen AUPSC’s solidarity with the Sudanese people and support the country’s state institutions.”

By heading the AUPSC, Egypt intends to work all around to find political solutions to crises not only in Africa, where the residence of the United Arab Emirates ambassador in Khartoum, Sudan, was air-raided, but even in nearby areas, which seriously harms Cairo’s financial interests.

According to Egyptian President Abdel Fattah Al-Sisi, due to the growing geopolitical tensions in the region, Egypt has recorded losses amounting to 6 billion dollars: “The Suez Canal has lost between 50% and 60% of its revenues, equivalent to more than 6 billion dollars due to regional tensions over the past eight months.” Economic hardship is linked to the ongoing conflict in Gaza and the actions of the pro-Iranian Shiite rebels Ansar Allah (Houthis) in Yemen. The Houthis, who control Yemen’s capital Sana’a, have stepped up attacks on ships passing through the southern Red Sea, accusing them of collaborating with Israel. Escalating tensions have seriously affected maritime traffic through the Suez Canal, one of the most important trade routes in the world. “The current developments on Egypt’s eastern (Gaza), southern (Sudan), and western (Libya) borders are alarming and could lead to an expansion of the conflict, so we must remain vigilant,” President Al-Sisi emphasized.