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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.

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Kazakhstan and China sign commercial agreements worth $565m

Kazakhstan and China sign commercial agreements worth $565m

On Tuesday (28 March) it was announced that Kazakh and Chinese business leaders signed 16 different documents strengthening bilateral relations. The agreements were signed on the sidelines of the "Second friendly dialogue of cross-border cooperation between the Republic of Kazakhstan and the Xinjiang Uygur Autonomous Region (XUAR) of the People's Republic of China". The documents included six interregional agreements, five memoranda of understanding, and five commercial agreements totalling a value of $565m. The agreements cover the sectors of construction, energy, mining, agriculture, food industry, engineering, tourism, investment, and others. The forum was held alongside a visit of the Political Bureau of the Central Committee of the Chinese Communist Party and Communist Party Secretary of XUAR, Ma Xingrui, to Kazakhstan. At the meeting, Chinese and Kazakh officials and entrepreneurs discussed ways to improve the efficiency of checkpoints, logistics centers, and transport infrastructure along the almost 1,800km-long border. Speaking at the event, the Kazakh Deputy Prime Minister and Minister of Trade and Integration Serik Zhumangarin said Kazakhstan is ready to export some 135 industrial and agricultural products worth over $1 billion to China.
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Blinken heads to Central Asia on charm offensive amid increasing international interest in the region

Blinken heads to Central Asia on charm offensive amid increasing international interest in the region

The US Secretary of State Antony Blinken has headed to Kazakhstan and Uzbekistan on his first official visit to the region as President Biden’s top diplomat. Announcing his departure from US soil overnight on 26-27 February, Secretary of State Blinken said that he was looking forward to “advancing our Central Asian partnerships”. After visiting the Kazakh and Uzbek capitals, he would then head to India for the coming G20 summit. The timing of the visit is notable, coming only days after the first anniversary of Russia’s disastrous full-scale invasion of Ukraine, which as one of its consequences has seen Central Asia reassert itself regionally and rapidly explore ties with other neighbouring power blocs including the EU, the Middle East, and China. On 28 February, Blinken had a joint meeting in Astana with the foreign ministers of all five Central Asian nations: Mukhtar Tileuberdi of Kazakhstan; Jeenbek Kulubaev of Kyrgyzstan; Rasit Meredov of Turkmenistan; Sirojiddin Muhriddin of Tajikistan; and Bakhtiyor Saidov of Uzbekistan. He also met with each FM in person in Astana, with the exception of the latter, whom he met later in Tashkent.