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Daily News Egypt
4 days ago
- Politics
- Daily News Egypt
Egypt's Sports Minister unveils national youth and sports strategy for 2025-2032
Egypt on Tuesday launched its first National Strategy for Youth and Sports for 2025–2032, a comprehensive plan aimed at developing the two sectors to serve over 61% of the country's population, the Ministry of Youth and Sports said. The strategy was launched under the patronage of Prime Minister Mostafa Madbouly, in partnership with United Nations organisations in Egypt, the cabinet's Information and Decision Support Centre, and the Arab Academy for Science, Technology, and Maritime Transport. The launch coincided with International Youth Day. In a recorded message, Prime Minister Madbouly said the state is determined to turn the strategy into a 'tangible reality' through careful monitoring, integration between entities, and investment in the capabilities of its youth, whom he described as 'the true wealth of Egypt.' Minister of Youth and Sports, Ashraf Sobhy, said that work on the strategy began in 2019 and overcame challenges including the COVID-19 pandemic and global changes. He stated it was the first national strategy of its kind for the youth and sports sectors in Egypt. 'The strategy represents a major step in developing the youth and sports sectors in cooperation with civil society institutions, to serve more than 61% of the population,' Sobhy said during the launch event. He explained that the plan is based on four main pillars: the integrated upbringing and development of youth; promoting sports and physical activity as a lifestyle; enhancing athletic competition and achieving leadership; and improving governance in the youth and sports sectors to boost their contribution to the economy and sustainable development. 'The main goal of the national strategy is the optimal investment in the energies and potentials of Egyptian youth, turning them into a driving force for sustainable development,' Sobhy added. In her own recorded message, Minister of Planning and International Cooperation, Rania Al-Mashat, said that despite global challenges, the government has set ambitious development goals under its action programme and Egypt's Vision 2030, with investment in youth energies being a strategic necessity for achieving comprehensive and sustainable economic development. The launch event was attended by the Minister of Education, Mohamed Abdel Latif, as well as former ministers, heads of authorities, ambassadors, university presidents, public figures, and representatives of civil society, the private sector, and youth and sports federations and clubs.
Egypt Today
08-05-2025
- Business
- Egypt Today
Nearly 500 reforms in effect as part of efforts to bolsters private sector-led growth: IDSC
Cairo – May 8, 2025: Egypt has rolled out nearly 500 reform measures between May 2022 and December 2024 as part of a sweeping initiative to strengthen private sector involvement in the national economy, according to a comprehensive report from the Information and Decision Support Centre (IDSC). The report, reviewed by Prime Minister Mostafa Madbouly, details progress aligned with the State Ownership Policy Document, a key strategy to shift Egypt toward a private sector-led growth model. The reforms span six key pillars: monetary policy, competitive neutrality, industrial development, business environment enhancement, regulatory reform, and implementation of the State Ownership Policy itself. According to Osama El-Gohary, Assistant to the Prime Minister and Head of IDSC, the initiative aims to tackle structural barriers, attract investment, boost exports, and generate employment. Focused Reform in Business and Industry Two sectors—investment climate improvement and industrial support—dominated the reform agenda. Together, they accounted for nearly 65 percent of all measures implemented. A total of 189 initiatives supported investment and the broader business environment, while 134 targeted the industrial sector. The pace of reform accelerated in 2024, with 321 measures enacted, representing 64.2 percent of the total reforms for the period. These focused on investment facilitation (121 measures), legislative and institutional reform (96), and industrial sector promotion (83), constituting 93.5 percent of all 2024 measures. Monetary Policy and Inflation Targeting In a notable shift, the Central Bank of Egypt (CBE) introduced 11 monetary and exchange rate reforms, including a March 2024 announcement to adopt a flexible inflation-targeting framework. The strategy targets an inflation rate of 7 percent (±2 percent) by end-2026 and 5 percent (±2 percent) by end-2028. The move has already begun to improve investor sentiment, with net foreign direct investment reaching $46.1 billion in FY 2023/2024 and portfolio investment net inflows hitting $14.5 billion. Boosting Competitive Neutrality Efforts to enhance market competition resulted in 14 policy measures, such as implementing a pre-merger regulatory framework and advancing the goals of the Competition Protection Agency's 2021–2025 strategy. Egypt's competition watchdog received international accolades in 2024 for its 'Arab Competition Authority Simulation Model,' recognized by both the World Bank and the International Competition Network. Industrial Development and Export Growth The government took a series of steps to ease industrial procedures, including the adoption of National Food Safety Authority certification requirements and logistics upgrades like 24/7 port operations. These changes helped create 960 new export opportunities valued at $2.3 billion. Between July 2023 and June 2024, LE 67.5 billion in credit facilities were allocated to nearly 2,600 businesses, with 96 percent directed toward working capital—78 percent for industry and 22 percent for agriculture. In December 2024, the government launched a new LE 30 billion initiative for priority industrial sectors and reactivated a soft loan program. The result: industry accounted for 15.7 percent of new company registrations in FY 2023/2024, and industrial zones signed 218 new project contracts worth over $5.1 billion. Total exports of Egyptian goods rose 14 percent to $40.8 billion in 2024. Investment Incentives and Regulatory Reform The investment and business climate reforms included tax incentives and the issuance of 'golden licenses' to 46 companies by March 2025. Additionally, the Small and Medium Enterprises Development Authority issued over 1,300 temporary and final licenses. An export support program injected LE 70 billion between 2019 and 2024, benefiting more than 2,500 companies. A landmark $35 billion investment deal with the United Arab Emirates to develop Ras El-Hekma city was a major milestone in 2024. The deal is expected to unlock $150 billion in additional investment and draw 8 million tourists, with Egypt retaining a 35 percent profit share. Private sector investment has surged from LE 213.5 billion in FY 2016/2017 to an estimated LE 700 billion in FY 2023/2024. In the second quarter of FY 2024/2025 alone, the private sector contributed LE 148.5 billion, representing 53.3 percent of total investments, a year-on-year rise of 35.4 percent. Legal and Institutional Reform The reform drive also extended to Egypt's regulatory landscape, with 128 measures taken to improve the legal and institutional environment. These included a draft resolution to structure the Ministry of Investment and Foreign Trade and a newly published list of foreign-investment-regulated economic activities. A Prime Ministerial decree also formed the Industrial Ministerial Group. Improvements in governance indicators followed: Egypt's Regulatory Quality Index rose by 2.4 points, the Rule of Law Index improved by 1.4 points, and the Government Effectiveness Index jumped by 7.6 points in 2023. Advancing the State Ownership Policy As part of the formal implementation of the State Ownership Policy Document, 24 reforms were introduced, including legislation approved in May 2024 regulating state ownership and restructuring 59 economic bodies by year-end 2024. Private Sector Making Gains The reforms are beginning to yield measurable outcomes. In FY 2022/2023, the private sector contributed 74.8 percent of Egypt's GDP, up from prior years. Its share of total investment rose to 37 percent in FY 2023/2024, while 81.3 percent of new jobs in 2023 were created by the private sector, compared to a 76.3 percent average between 2013 and 2022. International Recognition Egypt's reform program has drawn praise from global institutions. The World Bank welcomed the CBE's inflation-targeting strategy. StartUp Blink named Egypt's start-up ecosystem one of the strongest in North Africa. McKinsey highlighted improvements in the country's investment landscape, while the United Nations ESCWA acknowledged the launch of new digital platforms for registering foreign investments.
Daily News Egypt
06-05-2025
- Business
- Daily News Egypt
Egypt implements 500 reforms to empower private sector, boost economy: IDSC
The Egyptian government implemented nearly 500 reform measures between May 2022 and December 2024 aimed at enhancing the private sector's role in driving the country's economic growth, according to a comprehensive report by the Information and Decision Support Centre (IDSC) at the Cabinet, reviewed by Prime Minister Mostafa Madbouly. The reforms target obstacles to private sector participation, aiming to increase its Gross Domestic Product (GDP) contribution, generate employment, attract investment, and boost exports, aligning with Egypt's State Ownership Policy Document strategic shift towards private sector-led growth. Osama El-Gohary, Assistant to the Prime Minister and Head of IDSC, stated that the government introduced a wide range of reforms across six key areas: monetary policy and exchange rate reforms; enhancing competition and promoting competitive neutrality; supporting the industrial sector; improving the investment climate and business environment; reforming legal and regulatory frameworks; and implementing the State Ownership Policy Document. Improving the business environment and supporting investment (189 measures) and encouraging the industrial sector (134 measures) constituted the largest share, at approximately 64.6% of total reforms, the report noted. In 2024 alone, 321 reform measures were implemented, 64.2% of the total for the period. These predominantly focused on investment support (121), institutional and legislative framework reform (96), and industry encouragement (83), accounting for about 93.5% of reforms in 2024. Regarding monetary policy and exchange rate flexibility, 11 reform measures (2.2% of the total) were introduced. A key step was the Central Bank of Egypt's (CBE) March 2024 commitment to a gradual shift towards a flexible inflation-targeting framework, aiming for 7% (±2%) inflation by the end of 2026 and 5% (±2%) by the end of 2028. This shift has positively impacted the investment climate, with net foreign direct investment (FDI) in fiscal year (FY) 2023/2024 reaching $46.1bn and portfolio investments registering $14.5bn in net inflows. To enhance competition and competitive neutrality, 14 reforms (2.8% of total) were implemented. These included achieving the interim goals of the Competition Protection Agency's strategy (2021–2025) and introducing a pre-merger and acquisition regulatory system in June 2024. Consequently, Egypt's Competition Protection and Anti-Monopoly Practices Agency received an honorary prize in 2024 from the World Bank and the International Competition Network for its 'Arab Competition Authority Simulation Model' initiative. Reforms to encourage the industrial sector totalled 134 measures (26.8%). Key actions included ministerial decisions facilitating industrial procedures, such as adopting National Food Safety Authority health and food safety certificates (effective early 2025), and logistical and customs facilitations like seven-day port operations, helping create 960 export opportunities valued at approximately $2.3bn. To support productive sector financing, EGP 67.5bn in credit facilities were allocated to nearly 2,600 clients between July 2023 and June 2024, with 96% for working capital (78% to industry, 22% to agriculture). In December 2024, an EGP 30bn initiative for priority industrial sectors was launched, alongside a reactivated soft loan programme. The impact saw industry account for 15.7% of new companies registered in FY 2023/2024. Industrial zones attracted 218 new project contracts worth more than $5.1bn. Egyptian goods exports grew 14% in 2024 to $40.8bn, from $35.8bn in 2023. Measures to support investment and enhance the business environment comprised 189 reforms (37.8%), the largest share. These included tax incentives and the 'golden licence', granted to 46 companies by March 2025. The Small and Medium Enterprises Development Authority issued 616 temporary licences, 242 final licences, and 499 temporary regularisation licences. Export support saw EGP 70bn injected between 2019 and 2024, benefiting over 2,500 companies. A 2024 investment deal with the UAE, valued at $35bn, focuses on developing Ras El-Hekma city, expected to attract a further $150bn in investment and welcome approximately 8m tourists. Egypt is set to receive about 35% of the project's profits. Private investments rose from EGP 213.5bn in FY 2016/2017 to around EGP 700bn in FY 2023/2024. In Q2 FY 2024/2025, private sector investments reached EGP 148.5bn (53.3% of total investments), a 35.4% year-on-year increase. Reforms in legal, regulatory, and institutional frameworks involved 128 measures (25.6%). Initiatives included a draft resolution to organise the Ministry of Investment and Foreign Trade and publication of a list of economic activities under foreign investment controls. A Prime Ministerial decree established the Industrial Ministerial Group. These reforms positively impacted international governance indicators in 2023: the Regulatory Quality Index rose 2.4 points to 26.9, the Rule of Law Index improved 1.4 points to 44.3, and the Government Effectiveness Index increased 7.6 points to 42. Implementing the State Ownership Policy Document involved 24 measures (4.8%), including approving a draft law in May 2024 regulating state ownership and initiating restructuring of 59 economic bodies in December 2024. The reforms significantly impacted private sector empowerment: its GDP contribution rose to 74.8% in FY 2022/2023, its share of total investments increased to 37% in FY 2023/2024, and it contributed 81.3% of new jobs in 2023, up from a 76.3% average between 2013 and 2022. The reforms have drawn international recognition. The World Bank commended the CBE's March 2024 decisions. StartUp Blink ranked Egypt's start-up ecosystem among North Africa's strongest. McKinsey noted an improved investment environment, and the UN's ESCWA recognised Egypt for launching electronic platforms for foreign investment registration. The IDSC report indicated this package of reforms underscores Egypt's commitment to creating a more competitive, diversified, and private sector-driven economy, aiming to unlock new opportunities for sustainable growth and position Egypt as a regional hub.
Al-Ahram Weekly
12-02-2025
- Business
- Al-Ahram Weekly
More room for the private sector in Egypt - Egypt - Al-Ahram Weekly
Al-Ahram Weekly asks experts for their views on the second assessment of moves to widen the role of the private sector in the economy. The cabinet's Information and Decision Support Centre (IDSC) has issued its second report tracking the progress of the government's implementation of the State Ownership Policy Document, which sets out ways to widen the role of the private sector in the economy, from March 2022 to June 2024. The report revealed that 288 per cent of the targeted implementation rate, with regards to the value of deals, had been achieved during this period, bolstered by the proceeds from the Ras Al-Hekma real estate deal on the North Coast, which is worth $30 billion. The State Ownership Policy Document is a long-term strategy rolled out by the government in 2022 that entails the partial or full withdrawal of the state from more than 79 industries, helping to double the private sector's share of the economy to 65 per cent. According to the report, the private sector's contribution to GDP rose from 70 to 74 per cent in the 2022-23 financial year, and its total investments reached 37 per cent in 2023-24, with a targeted increase to 47 per cent in 2024-25 and ultimately to 65 per cent. The private sector's contribution to employment increased by 81 per cent in 2023, up from 76 per cent over the past 10 years, while its share in exports increased from 91 to 93.6 per cent in the last decade. The report showed that efforts to activate trading and enhance market depth on the Egyptian Stock Exchange (EGX) had elevated market capitalisation to LE1.072 trillion, or 17 per cent of GDP, compared to 11 per cent of GDP in 2020. Alia Al-Mahdi, a professor of economics at the American University in Cairo, lauded the government's achievements outlined in the Document, noting that it supports the enhanced role of the private sector in the economy, an essential objective the state has pursued for decades to boost overall growth rates. However, she cautioned that the lack of consistency in the report's presentation, with some figures in dollars and others in Egyptian pounds, could lead to inaccurate results. She recommended unifying the monetary values, preferably in dollars, as this would offer greater ease of evaluation. For instance, the increase in the market capitalisation of the EGX should be presented within a broader context that accounts for the inflation rates that impacted the pound in 2023 and 2024, she said. It would also be valuable to reference the number of new companies listed on the EGX and the percentage of foreign investment inflows. Regarding indications that the private sector's contribution to employment has reached 81 per cent, Al-Mahdi said that it was important to consider that this percentage reflects the cumulative effect of investments over many years. It also encompasses employment in the informal sector. While the report highlights ambitious targets, such as a 10 per cent increase in the private sector's contribution to the economy within one year and reaching the final goal of 65 per cent, these figures face a set of challenges. The most prominent are high interest rates, the need for procedural reforms, the provision of industrial land, and efforts to encourage small and medium-sized enterprises (SMEs) to operate in the formal economy. Creating a conducive environment for both local and foreign investment is a complex, large-scale process that goes beyond ensuring the availability of financing, Al-Mahdi said. When considering the broader context, it is important to note that Egypt and Turkey are the only two countries in the region offering loans at high interest rates, while other countries in the region have maintained interest rates not exceeding five per cent. The interest rate on loans in Egypt is 28.25 per cent. Ali Abdel-Raouf, an economic expert, referred to the global context in the light of the new US Administration and the ongoing trade war between the US and China. He said these developments added further complexity to the challenges of implementing Egypt's objectives outlined in the State Ownership Policy Document and the broadening of the private sector's contribution to the economy. Abdel-Raouf said there was a need to assess the effects of unilateral US decisions, such as the imposition of higher customs duties and the threat of additional measures, as well as their influence on the dollar's value and inflation rates, especially after US President Donald Trump said he did not favour the decision to maintain interest rates unchanged in the US. The high interest rates on loans in Egypt inhibits the willingness of the Egyptian and foreign private sector to engage in new partnerships, acquisitions, or investments, Abdel-Raouf said. The investment climate is still in need of reforms, he said, adding that while the entry of foreign investors is facilitated, the process for these investors to exit and transfer their profits in dollars is not as easy. The fact that nearly 50 per cent of the companies in which the government has a stake are unprofitable indicates a need for a different management strategy integrated into the productive capacity of the Egyptian economy. Abdel-Raouf said that utilising this capacity or redirecting productive activity would be more feasible than seeking liquidity at high interest rates to establish new factories and companies. The data analysis, conducted by the IDSC in collaboration with the relevant state institutions, involved the creation of a comprehensive database encompassing all state-owned companies. In August 2024, this database recorded approximately 709 state-owned companies distributed across 18 sectors. The ownership of these companies is held by 33 entities, including 18 ministries, nine governorates, the Central Bank of Egypt, the Financial Supervisory Authority, the Radio and Television Union, the Unified Procurement Authority, the Upper Egypt Development Authority, and the Suez Canal Authority. Companies affiliated with the Ministry of Public Enterprise represent about 44.7 per cent of the total. The report says that out of the total 709 state-owned companies, 452 do not have clearly specified government shareholdings. The government's stake exceeds 75 per cent in 158 companies, while in 80 its shareholding is less than 25 per cent. Some 54 per cent of the companies in which the government has a stake are profitable, compared to 42.2 per cent that are incurring losses. The remaining 3.8 per cent have an unclear status regarding whether they are making profits or losses, the report said. * A version of this article appears in print in the 13 February, 2025 edition of Al-Ahram Weekly Short link:
Al-Ahram Weekly
11-02-2025
- Business
- Al-Ahram Weekly
More room for the private sector - Egypt - Al-Ahram Weekly
The cabinet's Information and Decision Support Centre (IDSC) has issued its second report tracking the progress of the government's implementation of the State Ownership Policy Document, which sets out ways to widen the role of the private sector in the economy, from March 2022 to June 2024. The report revealed that 288 per cent of the targeted implementation rate, with regards to the value of deals, had been achieved during this period, bolstered by the proceeds from the Ras Al-Hekma real estate deal on the North Coast, which is worth $30 billion. The State Ownership Policy Document is a long-term strategy rolled out by the government in 2022 that entails the partial or full withdrawal of the state from more than 79 industries, helping to double the private sector's share of the economy to 65 per cent. According to the report, the private sector's contribution to GDP rose from 70 to 74 per cent in the 2022-23 financial year, and its total investments reached 37 per cent in 2023-24, with a targeted increase to 47 per cent in 2024-25 and ultimately to 65 per cent. The private sector's contribution to employment increased by 81 per cent in 2023, up from 76 per cent over the past 10 years, while its share in exports increased from 91 to 93.6 per cent in the last decade. The report showed that efforts to activate trading and enhance market depth on the Egyptian Stock Exchange (EGX) had elevated market capitalisation to LE1.072 trillion, or 17 per cent of GDP, compared to 11 per cent of GDP in 2020. Alia Al-Mahdi, a professor of economics at the American University in Cairo, lauded the government's achievements outlined in the Document, noting that it supports the enhanced role of the private sector in the economy, an essential objective the state has pursued for decades to boost overall growth rates. However, she cautioned that the lack of consistency in the report's presentation, with some figures in dollars and others in Egyptian pounds, could lead to inaccurate results. She recommended unifying the monetary values, preferably in dollars, as this would offer greater ease of evaluation. For instance, the increase in the market capitalisation of the EGX should be presented within a broader context that accounts for the inflation rates that impacted the pound in 2023 and 2024, she said. It would also be valuable to reference the number of new companies listed on the EGX and the percentage of foreign investment inflows. Regarding indications that the private sector's contribution to employment has reached 81 per cent, Al-Mahdi said that it was important to consider that this percentage reflects the cumulative effect of investments over many years. It also encompasses employment in the informal sector. While the report highlights ambitious targets, such as a 10 per cent increase in the private sector's contribution to the economy within one year and reaching the final goal of 65 per cent, these figures face a set of challenges. The most prominent are high interest rates, the need for procedural reforms, the provision of industrial land, and efforts to encourage small and medium-sized enterprises (SMEs) to operate in the formal economy. Creating a conducive environment for both local and foreign investment is a complex, large-scale process that goes beyond ensuring the availability of financing, Al-Mahdi said. When considering the broader context, it is important to note that Egypt and Turkey are the only two countries in the region offering loans at high interest rates, while other countries in the region have maintained interest rates not exceeding five per cent. The interest rate on loans in Egypt is 28.25 per cent. Ali Abdel-Raouf, an economic expert, referred to the global context in the light of the new US Administration and the ongoing trade war between the US and China. He said these developments added further complexity to the challenges of implementing Egypt's objectives outlined in the State Ownership Policy Document and the broadening of the private sector's contribution to the economy. Abdel-Raouf said there was a need to assess the effects of unilateral US decisions, such as the imposition of higher customs duties and the threat of additional measures, as well as their influence on the dollar's value and inflation rates, especially after US President Donald Trump said he did not favour the decision to maintain interest rates unchanged in the US. The high interest rates on loans in Egypt inhibits the willingness of the Egyptian and foreign private sector to engage in new partnerships, acquisitions, or investments, Abdel-Raouf said. The investment climate is still in need of reforms, he said, adding that while the entry of foreign investors is facilitated, the process for these investors to exit and transfer their profits in dollars is not as easy. The fact that nearly 50 per cent of the companies in which the government has a stake are unprofitable indicates a need for a different management strategy integrated into the productive capacity of the Egyptian economy. Abdel-Raouf said that utilising this capacity or redirecting productive activity would be more feasible than seeking liquidity at high interest rates to establish new factories and companies. The data analysis, conducted by the IDSC in collaboration with the relevant state institutions, involved the creation of a comprehensive database encompassing all state-owned companies. In August 2024, this database recorded approximately 709 state-owned companies distributed across 18 sectors. The ownership of these companies is held by 33 entities, including 18 ministries, nine governorates, the Central Bank of Egypt, the Financial Supervisory Authority, the Radio and Television Union, the Unified Procurement Authority, the Upper Egypt Development Authority, and the Suez Canal Authority. Companies affiliated with the Ministry of Public Enterprise represent about 44.7 per cent of the total. The report says that out of the total 709 state-owned companies, 452 do not have clearly specified government shareholdings. The government's stake exceeds 75 per cent in 158 companies, while in 80 its shareholding is less than 25 per cent. Some 54 per cent of the companies in which the government has a stake are profitable, compared to 42.2 per cent that are incurring losses. The remaining 3.8 per cent have an unclear status regarding whether they are making profits or losses, the report said. * A version of this article appears in print in the 13 February, 2025 edition of Al-Ahram Weekly Short link:
