CAIRO: In an attempt to surround soaring unemployment rates, a national holding company for recruitment will be established soon by the Egyptian government, which aims to employ 1.5 million unemployed Egyptian youth, according to Minister of Planning Ashraf Al-Arabi, Youm7 reported Sunday evening.
“The details of the company’s entity and the sources of its needed finance will be disclosed by the beginning of next Sept.,” he said, pointing out that the launching of the company will cost around 10 billion EGP.
The government will fund 20 percent of the company, while the other 80 percent will be funded by participation at the Egyptian Stock Exchange, he said, “intensive meetings between the investors’ association, the Federation of Egyptian Industries and the work organizations will be held to provide the needed finance.”
An imminent decision from the Cabinet will be issued soon for approving the establishment of the company, providing the needed finance along with defining its investment orientations.
In its last statistical bulletin, the Central Agency for Public Mobilization and Statistics CAPMAS noted that, Egypt’s unemployment rate reached 13.3 percent during the second quarter of 2013-14 of the country’s total labor force compared to 9.0 percent in the same quarter of 2010, with an increase of 4.3 percent, according to CAPMAS’s report issued August 15.
During the same period, the number of unemployed citizens reached 3.7 million people of a total of 27.6 millionpeople, the reportdisclosed.
The unemployment rate being a great challenge for the Egyptian government during the forthcoming period, the government embarked on executing a number of major projects as to surround unemployment, boost national economy and achieve sustainable development, Prime Minister Ibrahim Mahlab told Al-Nahar on Aug. 6.
The major projects comprise the new Suez Canal project, which aims to build a new 72-km branch of the Suez Canal with a total cost of $4 billion that will offer almost one million jobs as well as the anticipated national project to develop the Suez Canal Axis with a total cost of 50 billion EGP.
The national project for developing the Suez Canal Axis will provide 1.5 million job opportunities and the expected annual revenues in the next seven years might reach $100 billion.