Dr. Rania Al-Mashat:
• The decline in public investments reflects the state's direction toward creating space for the private sector and the effectiveness of implemented reform policies.
The Ministry of Planning, Economic Development and International Cooperation announced the GDP growth data for the fourth quarter and the last fiscal year 2024/2025. Indicators showed that the structure of implemented investments witnessed a shift during the year; public investment declined to 43.3% of the total, while private investment increased to reach 47.5%, which is its highest level in the last five years. This reflects the state's direction toward rationalizing public investments and enhancing the private sector's role in leading sustainable growth.
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, pointed out that the investment structure saw a significant change. Public investment decreased from about EGP 627.5 billion in 2023/2024 to EGP 526.6 billion in 2024/2025, while private investment increased from EGP 474.7 billion to EGP 590.7 billion, reflecting a growing role for the private sector in investment activity during the last year.
Dr. Al-Mashat highlighted that this decline in public investments reflects the state's direction toward governance and rationalization of public investments, with a focus on priority projects, in exchange for fostering and stimulating the private sector's role in leading investment activity. This direction comes within the framework of reform policies aimed at expanding the base of economic participation. Creating space for the private sector is considered a positive step to increase efficiency and enhance competitiveness, contributing to driving economic growth more sustainably.
This development coincides with the recovery of the real growth rate of domestic credit directed to the private business sector. In 2025, the growth rate showed stronger momentum, witnessing a sharp leap in February, reaching 19.9% with the annual inflation rate declining by about 10 percentage points, before slowing to about 7.03% in June, compared to 2.24% in June 2024. Credit directed to the private sector is expected to accelerate during 2025, supported by the ongoing monetary easing cycle, which is anticipated to gradually improve financing conditions and stimulate private investment.
It is noteworthy that in February 2025, 43.22% of the credit facilities provided to the private sector were directed to the industrial sector, reflecting the government policies' orientation toward supporting the exportable sector.
Dr. Rania Al-Mashat added that, based on the state's efforts to empower the private sector and increase its participation in achieving development, “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience” aims to increase the private investment share of total investments to 66% in 2030, compared to 60% in the current fiscal year's plan.
Dr. Al-Mashat reaffirmed that the private sector is the state's strategic partner in implementing Egypt’s narrative, as it translates policies and plans into projects, investments, and job opportunities, thus ensuring the achievement of comprehensive growth, sustainable development, and an improved standard of living for citizens.
It is worth noting that this positive performance reflects what the government seeks to achieve through “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience” to transition toward a new economic model that focuses more on sectors with higher productivity and greater ability to access export markets, benefiting from the accomplished sophisticated infrastructure which represents a supportive base for industrialization and investment, and redefining the state's role in the economy, thereby boosting the competitiveness of the Egyptian economy and stimulating private sector participation.