Egypt's rush to build flyovers may not end Cairo's traffic issues


Hamza Hendawi
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The government behind the ambitious, all-out construction drive in Egypt’s capital says that new flyovers sprouting up in Cairo are needed to ease the city’s nightmarish traffic.

But others, who point to poor planning, strongly disagree. They say flyovers are a short to mid-term solution to traffic congestion and the key is to move from car-centred strategies and invest heavily in public transport.

The tussle that pits the government and its planners against independent experts and urban activists is the kind that can be found almost anywhere in the world, but in Egypt the tensions are particularly fraught.

Construction is a cornerstone of the domestic policy of President Abdel Fattah El Sisi’s government and will probably be the defining feature of his legacy.

Dozens of flyovers are under construction in Cairo as part of a government-led effort to ease congestion in the city. Mahmoud Nasr/ The National
Dozens of flyovers are under construction in Cairo as part of a government-led effort to ease congestion in the city. Mahmoud Nasr/ The National

The work – under way since 2014 – spans dozens of flyovers; bridges on the Nile; new cities, including a new capital in the desert; thousands of kilometres of new roads; and low-income housing projects.

This overhaul of Egypt’s infrastructure is being overseen down to the smallest detail by the hands-on president, who often reminds Egyptians of the gross neglect the country suffered for decades before he took office in 2014.

But of all the mega projects Mr El Sisi’s government is undertaking, the flyovers in Cairo – as many as 25 by some accounts – are the most hotly debated in conversation and on social media by many of the capital’s 23 million residents who have for decades endured unbearable traffic congestion and suffocating pollution.

Now it looks set to get worse.

A general view of buildings by the Nile River in Cairo, Egypt September 26, 2019. Reuters
A general view of buildings by the Nile River in Cairo, Egypt September 26, 2019. Reuters

The flyovers encourage car culture to grow and disrupt the social fabric of neighbourhood communities while undermining small roadside businesses, critics said.

In Heliopolis, a leafy suburb that is home to the president’s palace, building flyovers has meant sacrificing trees and greenery, while elsewhere in the city real estate value has plummeted because flyovers take up the width of a street and residents can literally touch them from apartment windows.

“A lot of what is being done is in many ways needed to stimulate the economy, but sometimes we do that at the expense of 100-year-old trees or areas of historical significance,” said Ahmed El Dorghamy, a prominent energy and environment consultant.

About 1.1 trillion Egyptian pounds ($70 billion) worth of transport projects and 1,000 bridges and flyovers are either planned or already under way between now and 2024, he said.

Construction of a flyover in Cairo. Mahmoud Nasr/The National
Construction of a flyover in Cairo. Mahmoud Nasr/The National

According to Mr El Sisi, 200,000 new cars are added to the country's roads every year, mostly in Cairo and the Mediterranean city of Alexandria. On a popular television talk show this month, he said that “we need flyovers to reduce pollution, ease psychological pressure [on motorists] and save time”.

He also assured critics that his government was investing just as much on key sectors like health and education.

Experts agree with the desperate need to ease traffic congestion in Cairo, a vast, Nile-side metropolis where densely populated shanty towns and wealthy neighbourhoods have existed side by side for decades.

But many say that mass transport projects announced in recent months, including plans for electric trains, a monorail, expansion of the city’s subway and a substantial overhaul of the railways, are a more sustainable and long-term solution.

Crowds and traffic pass through Al Ataba market in Cairo after Egypt's government ended its coronavirus lockdown in late June 2020. Reuters
Crowds and traffic pass through Al Ataba market in Cairo after Egypt's government ended its coronavirus lockdown in late June 2020. Reuters

“We are treating a city with clogged veins by unclogging those veins. That’s a simplistic approach because we also need to factor in heritage, preservation and public space as well as road safety,” said Mr El Dorghamy, who lives in Heliopolis.

He said the flow of traffic was quicker with the new flyovers on Cairo streets but said the city would return to its former levels of congestion after a few years. “Maybe we will not even be back at square one because, by then, we would not have the public space we once had.”

In the past two years, at least six new flyovers were built in Heliopolis alone, mostly running through residential areas and public spaces that had contributed to a quality of life rated among Cairo’s best.

Some activists claim that the special qualities of Heliopolis were sacrificed to building flyovers that create easy and quick access to the new capital farther out in the desert, the crown jewel in all the mega projects undertaken by the government.

The government categorically denied the allegation.

According to Michel Hanna, an activist from the area, Heliopolis lost more than 4,000 square metres of greenery and about 500 trees to make way for flyovers.

“I think the person who was in charge of planning built a bridge at every available space,” he said.

Excessive reliance on flyovers characterised urban development in Egypt for decades and made their shortcomings all the more apparent today.

“If you look at the history of planning in Egypt going back decades, you’ll find that overpasses are an easy and quick solution that allow people to move faster, but they don’t address the core of the problem,” said Engy Hegazy, an expert on mobility in Cairo.

“They’re just giant concrete structures that are pragmatic but void of any beauty. They lack social life. They take up space that could otherwise be a square or a street that brings people together.”

The May 15th bridge is a case in point. Built in the 1980s, it split the upmarket neighbourhood of Zamalek, slicing through the district’s high street and dividing the community.

Mohammed Hegazy, another independent consultant on mobility in cities, agrees with Ms Hegazy’s argument. “Much of the world now is moving away from widening roads and building overpasses that allow the focus to be on private cars and not public transport,” he said.

Mr Hegazy, however, is positive about the effect on the city when a multitude of environment-friendly public transport projects come online.

“The rate of change in Cairo has accelerated in the last few years,” he said. “I am excited about this change because, as we effect change, we will be able to identify what works for us and what does not.”

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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