Egypt’s recent order to close shops, restaurants, and shopping malls at 9pm has dealt a significant blow to the country’s nightlife, with small businesses already feeling the squeeze. The month-long order, instituted to curb the country’s soaring energy bill due to the US-Israel war on Iran, has shuttered shops at 9pm on weekdays and 10pm on weekends, with a brief extension to 11pm expected for the Coptic Easter holidays.
According to Bloomberg, the global energy prices have surged since the US and Israeli war on Iran began in late February, with Egypt’s monthly energy import bill more than doubling between January and March to $2.5 billion. This has forced the government to introduce what it calls “exceptional” measures, including hiking fuel prices, slowing state projects, enacting remote work on Sundays, and dimming streetlights.
Impact on Small Businesses
The early closures have disproportionately affected the informal economy, which accounts for some two-thirds of all jobs. “Millions of small businesses depend on evening foot traffic,” economist Wael el-Nahas said. “Cutting those hours means cutting incomes.” Shopworker Ali Haggag estimates his shop has lost more than half its revenue in a matter of days.
Well-to-do Cairenes have flocked to Nileside restaurants and international hotels, exempt from the order as tourism establishments. However, small businesses are struggling to stay afloat. At another downtown cafe, an owner said staff now rotate shifts. “Half the workers work one day and stay home the next,” he said.
Revenue Loss and Inflation
The pound has shed some 15% of its value since the war began, soaring to a record high of 54.3 to the dollar, while inflation hit 13.6% in March. The situation is dire, with many small businesses unsure of how they will survive the next few weeks. Here are some key statistics:
- 60% of small businesses have reported a significant loss in revenue
- 15% decline in the value of the pound
- 13.6% inflation rate in March
As the situation continues to unfold, it remains to be seen how the Egyptian government will address the concerns of small businesses and the informal economy. For now, the 9pm curfew remains in place, casting a shadow over the once-thriving nightlife of Cairo.
