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Egypt Today
18-03-2025
- Business
- Egypt Today
Egypt Transitions to Medium-Term Economic Planning in FY2026/2027
Egypt's Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, announced that the ministry is currently preparing the economic and social development plan for FY2025/2026. However, beginning FY2026/2027, the planning process will transition from an annual cycle to a three-year framework, in line with the Unified Public Finance Law. Discussing the performance of the FY2023/2024 plan, Al-Mashat noted that the initially projected economic growth rate of 4.1 percent had slowed to 2.4 percent by the end of the fiscal year. This decline continues a downward trend from 3.8 percent in FY2022/2023 and 6.6 percent in FY2021/2022. The minister attributed this slowdown to external shocks, economic pressures, and geopolitical instability, which significantly affected key sectors, including the Suez Canal, petroleum, and manufacturing industries. Despite these challenges, total executed investments for FY2023/2024 reached LE 1.626 trillion, reflecting a 5.8 percent increase compared to the previous year, with an execution rate of 98.5 percent of the targeted LE 1.65 trillion. Public investments alone amounted to LE 926 billion, showing 6.3 percent growth year-on-year but achieving only 88 percent of the targeted LE 1.05 trillion. Consequently, the share of public investments within total investments fell to 57 percent, compared to the original target of 64 percent, aligning with the government's strategy to encourage private sector-led economic growth. Al-Mashat made these remarks during a meeting with the Senate's Financial, Economic, and Investment Affairs Committee, where she reviewed the implementation of the FY2023/2024 investment plan. The minister also highlighted positive GDP growth indicators in the first quarter of the current fiscal year, which stood at 3.5 percent. Additionally, she emphasized the positive impact of public investment governance measures and structural economic reforms, which have spurred a surge in private sector investments. In the first quarter of the current fiscal year, the private sector contributed 63 percent of total investments, surpassing public sector investments. Regarding the FY2025/2026 development plan, Al-Mashat introduced a new methodology aimed at directing public investments toward priority projects that support Egypt's sustainable development goals.
Zawya
10-02-2025
- Business
- Zawya
Egypt prioritizes macroeconomic stability, private sector growth: Al-Mashat
The Egyptian government is committed to enhancing macroeconomic stability and strengthening resilience against global changes, according to Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation. Addressing the Akhbar Al-Youm Economic Conference, Al-Mashat outlined the government's plans to foster private sector growth, attract foreign investment, and promote sustainable economic development. Al-Mashat also participated in a session focused on industry as a driver for economic development, alongside investors and industrialists. Senior government officials, including Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, Mahmoud Esmat, Minister of Electricity and Renewable Energy, and Ahmed Kouchouk, Minister of Finance, attended the conference. In her speech, Al-Mashat explained that the government's plan aims to 'establish macroeconomic stability, supporting its resilience against global changes, enhancing the flexibility of fiscal policies, improving the business environment, providing job opportunities for youth, and protecting the most vulnerable groups through comprehensive and sustainable social programs.' Al-Mashat added that the government prioritises industrial development, human development, and entrepreneurship, reflected in specialised ministerial groups focused on export-promoting sectors, localising industries, developing human resources, and creating opportunities for startups. While recognising the importance of macroeconomic stability, Al-Mashat stated that it was 'not sufficient for achieving economic development.' Therefore, the government is continuing to implement the national structural reform program, highlighting measures taken to improve the business environment and open up opportunities for private sector participation. Al-Mashat also mentioned the government's public investment ceiling of one trillion pounds and the Ministry of Planning, Economic Development, and International Cooperation's role in monitoring compliance to open more opportunities for private sector development. The government also activated the Unified Public Finance Law to set an annual ceiling for public debt. Al-Mashat highlighted the results of these efforts, noting the private sector's share of investments accounted for 63% in the first quarter of the current fiscal year, and that financing directed to the private sector exceeded that for the government in 2024 for the first time. Al-Mashat also noted that the ministry has been working with other ministries to formulate a strategy for enhancing foreign direct investment in Egypt (2025-2030), as well as the national industrial development strategy and trade enhancement in cooperation with the World Bank Group. Al-Mashat affirmed that the ministry's framework focuses on enhancing economic growth, increasing productivity, driving investment-based growth, and diversifying the structure of Egypt's economy to shift from non-productive sectors to productive sectors that contribute to increasing exports. The ministry is currently preparing a report on growth and employment: the national narrative for economic development. Al-Mashat also referred to the ministerial group for entrepreneurship, pointing out the group approved a unified definition of startups, along with incentives, facilities, and a unified financing initiative for the sector, targeting more than 5,000 companies. Looking at the broader economic picture, Al-Mashat pointed to the positive development in Egypt's economy during the first quarter of the current fiscal year, recording 3.5% growth. The Minister of Planning, Economic Development, and International Cooperation also revealed that the National Wages Council is scheduled to meet to discuss the minimum wage for the private sector. Al-Mashat also discussed renewable energy investments, with the government allocating 7 billion pounds from the development plan reserve to enhance the capacity of the electricity grid and add renewable energy projects. Turning to the global economic situation, Al-Mashat emphasized that the international community must continue to reform the global financial system to make it more efficient and fair, respond to the challenges of developing countries, ensure greater representation in international institutions, and accelerate the reform of multilateral development banks. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Daily News Egypt
09-02-2025
- Business
- Daily News Egypt
Egypt prioritizes macroeconomic stability, private sector growth: Al-Mashat
The Egyptian government is committed to enhancing macroeconomic stability and strengthening resilience against global changes, according to Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation. Addressing the Akhbar Al-Youm Economic Conference, Al-Mashat outlined the government's plans to foster private sector growth, attract foreign investment, and promote sustainable economic development. Al-Mashat also participated in a session focused on industry as a driver for economic development, alongside investors and industrialists. Senior government officials, including Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, Mahmoud Esmat, Minister of Electricity and Renewable Energy, and Ahmed Kouchouk, Minister of Finance, attended the conference. In her speech, Al-Mashat explained that the government's plan aims to 'establish macroeconomic stability, supporting its resilience against global changes, enhancing the flexibility of fiscal policies, improving the business environment, providing job opportunities for youth, and protecting the most vulnerable groups through comprehensive and sustainable social programs.' Al-Mashat added that the government prioritises industrial development, human development, and entrepreneurship, reflected in specialised ministerial groups focused on export-promoting sectors, localising industries, developing human resources, and creating opportunities for startups. While recognising the importance of macroeconomic stability, Al-Mashat stated that it was 'not sufficient for achieving economic development.' Therefore, the government is continuing to implement the national structural reform program, highlighting measures taken to improve the business environment and open up opportunities for private sector participation. Al-Mashat also mentioned the government's public investment ceiling of one trillion pounds and the Ministry of Planning, Economic Development, and International Cooperation's role in monitoring compliance to open more opportunities for private sector development. The government also activated the Unified Public Finance Law to set an annual ceiling for public debt. Al-Mashat highlighted the results of these efforts, noting the private sector's share of investments accounted for 63% in the first quarter of the current fiscal year, and that financing directed to the private sector exceeded that for the government in 2024 for the first time. Al-Mashat also noted that the ministry has been working with other ministries to formulate a strategy for enhancing foreign direct investment in Egypt (2025-2030), as well as the national industrial development strategy and trade enhancement in cooperation with the World Bank Group. Al-Mashat affirmed that the ministry's framework focuses on enhancing economic growth, increasing productivity, driving investment-based growth, and diversifying the structure of Egypt's economy to shift from non-productive sectors to productive sectors that contribute to increasing exports. The ministry is currently preparing a report on growth and employment: the national narrative for economic development. Al-Mashat also referred to the ministerial group for entrepreneurship, pointing out the group approved a unified definition of startups, along with incentives, facilities, and a unified financing initiative for the sector, targeting more than 5,000 companies. Looking at the broader economic picture, Al-Mashat pointed to the positive development in Egypt's economy during the first quarter of the current fiscal year, recording 3.5% growth. The Minister of Planning, Economic Development, and International Cooperation also revealed that the National Wages Council is scheduled to meet to discuss the minimum wage for the private sector. Al-Mashat also discussed renewable energy investments, with the government allocating 7 billion pounds from the development plan reserve to enhance the capacity of the electricity grid and add renewable energy projects. Turning to the global economic situation, Al-Mashat emphasized that the international community must continue to reform the global financial system to make it more efficient and fair, respond to the challenges of developing countries, ensure greater representation in international institutions, and accelerate the reform of multilateral development banks.
