Egypt’s economic recovery appears to be losing steam as inflation edged higher in October, rising to 12.5% from 11.7% in September.
The uptick, driven primarily by a recent increase in fuel prices, signals renewed pressure on the North African nation’s cost of living despite months of progress in stabilizing its economy.
The rise in inflation contrasts with earlier signs of improvement that had seen figures decline steadily throughout 2025.
In February, Egypt recorded its lowest inflation rate since 2022 — dropping from 24% in January to 12.8% — after authorities resolved a year-long foreign currency crisis that had triggered parallel market trading for dollars.
In 2024, the government allowed the Egyptian pound to depreciate by over 35% against the dollar and raised interest rates to record highs in an effort to attract foreign investment and restore balance to the economy.
By mid-2025, the International Monetary Fund (IMF) praised Egypt’s progress toward macroeconomic stability, while urging the government to broaden its revenue base to sustain growth.
The Central Bank of Egypt has since adjusted interest rates several times to stimulate investment and manage debt-servicing costs, lowering borrowing rates by a cumulative 625 basis points this year.
Still, the benchmark interest rate remains elevated at 21%, maintaining Egypt’s appeal to foreign portfolio investors but straining domestic borrowing.
In September, Prime Minister Mostafa Madbouly expressed optimism that Egypt’s economic challenges were largely behind it, noting improvements in debt repayment and fiscal management. However, the latest data suggest persistent vulnerabilities as the country continues to balance growth with inflation control.
With the IMF projecting continued growth through 2025, Egypt’s policymakers now face the delicate task of sustaining economic momentum without reigniting inflationary pressures — a test that will define the country’s post-crisis recovery trajectory.
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Profit before tax stood at ₦566.5 billion ($380 million), compared to ₦610.9 billion ($411 million) in 2024, while earnings per share declined from ₦14.64 to ₦10.65.
Group Managing Director, Adebowale Oyedeji, described the performance as evidence of “solid earnings capability and operational resilience,” noting that the decline in pre-tax profit was mainly due to the normalization of fair value gains and deliberate efforts to strengthen the balance sheet. He further disclosed that the group’s non-performing loan ratio had improved to 8.5%.
Oyedeji said FirstBank’s recapitalisation programme is progressing well, with the first phase of its private placement successfully completed and full execution expected by November 2025 pending regulatory approval.
He added that proceeds from subsequent capital raises would be used to deepen financial innovation and pursue new growth opportunities.
Positioned for long-term expansion, First HoldCo remains on track to achieve its 2029 financial and operational targets, bolstered by what Oyedeji described as “fundamental strength, resilience, and scalability.”
