Cairo goes dark as Egypt struggles to cope with fall out from Iran war

Lead

Cairo, a city once known for its bustling nightlife, has seen its streets and storefronts go dark at night as Egypt enforces early-closing orders to cope with soaring energy costs. The month-long measure, which shutters shops at 9pm on weekdays and 10pm on weekends, is part of the government's response to energy shortages triggered by the US-Israeli war on Iran, according to multiple reports.

Coverage Comparison

Reports from various outlets highlight the impact of the closures on Cairo's residents and businesses. Africa News and Dawn emphasize the personal stories of affected individuals, describing the shift as "jarring" for nocturnal Cairenes. Al Jazeera focuses on the broader context of energy shortages caused by the conflict, noting that global energy prices have surged since the war began. The accounts consistently attribute the closures to a combination of the war's impact on energy prices and the Egyptian government's measures to curb electricity use.

Key Claims

Energy Crisis and Government Measures:

Egypt is facing energy shortages due to the US-Israeli war on Iran, as global energy prices have surged since the conflict began, according to multiple sources. The government has issued a month-long early-closing order for commercial establishments, including malls, shops, and restaurants, to conserve electricity, as confirmed by Egyptian Prime Minister Mostafa Madbouly, per Reuters. The order, which took effect last week, also includes a brief extension to 11pm for the Coptic Easter holidays.

Impact on Cairo's Nightlife and Businesses:

The closures have dramatically altered Cairo's nocturnal culture. Residents like Abu Ali, a 63-year-old cafe customer, told AFP they now head home by 11pm at the latest, a stark contrast to the late-night gatherings that were once common. Police patrols enforce the closures, leaving only delivery scooters on the streets after business hours.

Small businesses are disproportionately affected. Shopworker Ali Haggag estimates his clothing store has lost more than half its revenue in a matter of days. The informal economy, which relies heavily on evening foot traffic, is particularly vulnerable. Cinemas are reportedly losing more than 60% of their revenues, as most box-office income comes from screenings after 9pm. Tourism, a crucial source of foreign currency, also fears a heavy setback, with historic attractions like the Khan el-Khalili bazaar seeing reduced activity.

Economic and Financial Strain:

Egypt's monthly energy import bill more than doubled between January and March to $2.5 billion, with around 60% of the country's $20 billion annual oil budget going toward powering the grid, according to a single-source report. The Egyptian pound has shed about 15% of its value since the war began, reaching a record high of 54.3 to the dollar, while inflation hit 13.6% in March, also per a single-source report.

Perspectives

Residents and Small Business Owners:

Many Cairenes express frustration and a sense of loss. The closures have upended their routines and livelihoods. As one shopworker put it, the city "feels like Covid again," recalling the 2020 lockdowns. Small business owners, particularly in the informal sector, worry about their ability to sustain their operations.

Government and Officials:

Officials defend the measures as necessary, citing the country's heavy reliance on imported fuel and the need to manage energy consumption during a period of high global prices. Tourism establishments, such as Nileside restaurants and international hotels, are exempt from the order, which some see as a measure to protect a key economic sector.

Economic Analysts:

While no experts are quoted directly in the reports, the economic data suggest significant strain. The doubling of the energy import bill and the currency depreciation highlight the broader fiscal challenges Egypt faces, which the closures are designed to mitigate, albeit with social and economic costs.