Dr. Rania Al-Mashat:

The economic and structural reform measures implemented by the government since March 2024 have strengthened macroeconomic stability.

The government continues to implement further reforms that reinforce economic resilience and open up opportunities for the private sector.

The European Union is a strategic partner for Egypt, and we have started negotiations for the second phase of the macroeconomic support mechanism.

Economic reform policies have enhanced the recovery of economic growth despite regional tensions.

Settling foreign partners' dues paves the way for the return of exploration activities and shifts the extraction sector from contraction to growth.

Non-petroleum manufacturing industries led growth rates in the first quarter, and the government is working to diversify the structure of the Egyptian economy.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, received a delegation from JPMorgan Chase and a group of investors to discuss prospects for future cooperation and to learn about the latest developments in the Egyptian economy. 

The delegation included Soha Ali, Egypt Country Rep J.P. Morgan, Mr. Gbolahan Taiwo, Africa Chief Economist J.P. Morgan, along with a number of officials and portfolio managers from the bank.

H.E. Minister Rania Al-Mashat presented an overview of Egypt's economic developments since the beginning of the previous year, as well as the government's efforts to implement an economic and structural reform program through cooperation with the International Monetary Fund and international partners. 

H.E. Dr. Al-Mashat pointed out that the government successfully restored macroeconomic stability through efforts made since March, following the challenges faced by Egypt's economy in recent months. 

H.E. Dr. Al-Mashat also outlined clear steps to consolidate this stability through the implementation of the national structural reform program, governance of public investments, taking measures to control public finances, and creating a more favorable investment environment for the private sector to stimulate local and foreign investments. Moreover, the government successfully concluded the Ras Al-Hikma deal, the largest foreign direct investment deal in Egypt's history.

H.E. Dr. Al-Mashat also highlighted the ministry's efforts to monitor the implementation of the national economic and structural reform program in coordination with all concerned ministries and authorities, and in collaboration with international development partners, to attract financing to support budget reforms and implement structural adjustments. 

H.E. Minister Al-Mashat noted Egypt's strategic partnership with the European Union, which includes the macroeconomic support mechanism to address the budget deficit with a value of 5 billion euros. Egypt received 1 billion euros of this amount by the end of last year, and the ministry has started preparations to negotiate with the EU for the next tranche to ensure macroeconomic stability, increase private sector investments, enhance competitiveness, improve the business environment, and support the transition to a green economy for comprehensive and sustainable development.

H.E. Dr. Rania Al-Mashat emphasized that cooperation between Egypt and the EU is a pivotal element in the state’s efforts to achieve sustainable development and strengthen regional stability. She pointed out that this cooperation enhances cultural and economic ties and contributes to creating a better future for citizens, making the EU partnership a strategic priority for Egypt. 

H.E. Minister Al-Mashat also mentioned that the EU financial package under the strategic and comprehensive partnership between Egypt and the EU includes six shared priorities: enhancing political relations, boosting economic stability, promoting investment and trade, strengthening migration and mobility frameworks, supporting security, and promoting human-centered initiatives such as skill development and education.

H.E. Dr. Al-Mashat also discussed the government's commitment to controlling public finances, improving the efficiency of investment spending, and adhering to the set cap of 1 trillion Egyptian pounds, which contributed to a decline in public investments in the first quarter of the current fiscal year, while private investments increased. Furthermore, subsidized financing for the private sector exceeded the financing directed to the government for the first time in 2024.

The Minister noted that, as a result of the state's efforts to improve the investment climate for the private sector and reduce government investments, subsidized financing for the private sector from international partners increased to exceed government financing in 2024, reaching $4.2 billion. Financing for the private sector from 2020 to 2024 amounted to $14.5 billion. This financing was directed to various sectors, including startups, technology and innovation, manufacturing, health, green transition, transport, and logistics services.

H.E. Dr. Al-Mashat reviewed developments in GDP growth during the first quarter of the current fiscal year, which showed a recovery due to the economic and structural reforms the government began implementing in March, reaching 3.5%. 

H.E. Minister Al-Mashat added that growth in this period achieved positive development not only in terms of growth rates but also in their quality. Non-petroleum manufacturing industries experienced a growth rate of 7.1% in the first quarter, the highest since Q3 of fiscal year 2021/2022.

H.E. Dr. Al-Mashat also pointed to the rise in exports during this period, as a result of measures the government took to release production inputs and increase manufacturing rates across multiple sectors, including finished and semi-finished goods. She noted that most economic sectors saw positive growth, except for extraction industries and the Suez Canal due to regional tensions. However, it is expected that the extraction sector will return to positive growth in the upcoming period, especially after settling dues to oil companies and resuming exploration activities. Furthermore, the tourism sector, which plays a major role in Egypt’s economy, grew by 8.2% in the first quarter of the current fiscal year.

H.E. Minister Al-Mashat also referred to the Country Platform for the "NWFE" Program, under which renewable energy agreements with a capacity of 4,200 MW were signed by the end of 2024, and funding for the private sector companies executing these projects was made available in the amount of $3.9 billion. Additionally, the operation of thermal power plants with a capacity of 1,200 MW was suspended. She highlighted that one of the most important features of the National Platform for the "NWFE" Program is its ability to promote renewable energy projects to attract the private sector and provide innovative financing options for both local and foreign companies.