"Al-Mashat": We aim to shift towards an economic growth model based on manufacturing, export, and tradable sectors.
Integration among Economic Group Ministries to adopt policies that enhance the confidence of the business community and the private sector and stimulate investments.
The diversity of the Egyptian economy offers significant opportunities to enhance Egypt's regional position, particularly in the energy and logistics sectors.
Governance of public investments has opened up greater room for the growth of private sector investments, accounting for 63% in the first quarter of the current fiscal year
The government adopts clear policies to enhance debt sustainability and consolidate macroeconomic stability.
IMF's Approval for the fourth review of Egypt's program and the decrease in inflation rates boosting investor confidence in the Egyptian market.
Soon ... the launch of the annual report of the Ministry of Planning, Economic Development, and International Cooperation and Egypt’s Integrated National Financing Strategy for development.
Egypt and the United Kingdom share a strong trade and investment partnership, with £547 million in investments from the British International Investment (BII) in Egypt.
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, met with members of the British Egyptian Business Association (BEBA) during the association's annual Sohour ceremony. The event was attended Mr. Gareth Bayley, British Ambassador to Egypt, Eng. Khaled Nosseir, Chairman of British Egyptian Business Association (BEBA), Eng. Tarek El Molla, former Minister of Petroleum, Mr. Hisham Zaazou, former Minister of Tourism, and representatives of the business community and financial institutions.
*Economic Performance Development*
During the event, H.E. Dr. Rania A. Al-Mashat reviewed the government's efforts to improve economic performance, promote growth, increase employment rates, and enhance confidence in the business environment. It’s worth noting that the Ministry of Planning, Economic Development and International Cooperation has established the Framework for Sustainability and Financing Economic Development, which harmonizes planning and international cooperation mechanisms to achieve comprehensive and sustainable economic development by focusing on human development, industrial development, increasing foreign direct investment, stimulating entrepreneurship, creating a business environment, and driving green transformation. In addition to using economic diplomacy to mobilize blended finance and technical support to bridge development gaps, in parallel with the governance of public investments.
* Macro-economic Stability Consolidation*
H.E. Dr. Al-Mashat pointed out that in order to achieve economic development, the government sought to adopt clear policies to consolidate macroeconomic stability. This has been implemented through measures taken since March last year, as well as moving forward with the implementation of Egypt’s National Structural Reform Programme in order to diversify the sources of growth of the Egyptian economy, enhance debt sustainability, drive growth and increase the competitiveness of the economy.
*Empowering the Private Sector*
The Minister of Planning, Economic Development and International Cooperation emphasized that the private sector is a key driver and leader of efforts to achieve economic development and sustainable growth. Therefore, there is coordination and integration between the economic ministerial group and other specialized ministerial groups to integrate policies between policies that stimulate the business environment, support the competitiveness of the Egyptian economy and open avenues for foreign direct investments.
*Diversity of the Egyptian Economy*
H.E. Minister Al-Mashat highlighted the significant diversity in the Egyptian economy, which has an industrial base and advanced infrastructure, in addition to skilled labor. In this regard, the state is working to strengthen Egypt's position as a regional hub for green and sustainable energy, in addition to leveraging its distinguished geographical location to support its competitiveness in regional logistics and commercial centers, affirming that this approach is supported by what the state is already encouraging industrial sectors and focusing on tradable sectors that achieve added value and work to increase exports.
*Economic Growth Rates*
H.E. Dr. Al-Mashat highlighted the growth rates achieved in the first quarter of the current fiscal year. She explained that although they are high, the most important characteristic of growth is not the indicator, but the quality of growth, as we witnessed significant growth in the non-oil manufacturing sector, which reinforces the Egyptian economy's orientation towards industrialization and increasing exports.
The Minister noted that the Egyptian economy is expected to achieve 4% growth by the end of the current fiscal year; the government prioritizes increasing growth and creating job opportunities.
Furthermore, H.E. Minister Al-Mashat reviewed the development of indicators reflecting private sector investment growth. She noted that the Purchasing Managers’ Index (PMI) showed positive growth by the end of February, reflecting the results of government efforts to create space for the private sector. H.E. added that the governance of public investments has contributed to increasing private sector investments to account for 63% of total investments in the first quarter of the current fiscal year.
*Economic and Social Development Plan*
The Minister of Planning, Economic Development and International Cooperation presented some indicators of the development plan for the upcoming fiscal year, noting that 45.3% of government investments in the plan are directed towards human development, compared to 42% in the current fiscal year. while 35% of government investments are for industrial development and 19% of investments are for local development.
*Financing for Development*
Regarding financing for development, H.E. Dr. Rania Al-Mashat explained that blended financing to stimulate private sector investments amounted to about $4.2 billion during 2024, while the total concessional development financing from development partners to the private sector in Egypt from 2020 to 2024 amounted to about $14.5 billion.
H.E. Dr. Al-Mashat emphasized that the ministry is working to attract more development financing to the private sector through the "HAFIZ" platform, which provides all financial and technical support services from international partners to the private sector in Egypt.
The meeting also reviewed some developments related to the implementation of the country platform for the "NWFE" program and the volume of investments attracted by the platform in the renewable energy sector, and the preparations for the launch of the Egypt’s Integrated National Financing Strategy for development and the ministry's annual report for 2024 in the coming period.
*Knowledge-Based Economy*
The Minister of Planning, Economic Development and International Cooperation pointed to the efforts of the Ministerial Group for Entrepreneurship, which includes various relevant government entities, alongside over 100 representatives from the startup community and venture capital funds, to accelerate knowledge-based economic growth and encourage innovation, in support of the government's efforts to create job opportunities.
The Minister of Planning, Economic Development and International Cooperation underscored that the successive positive indicators reflect the direction pursued by the state, as we witnessed the International Monetary Fund's approval of the fourth review of the cooperation program with Egypt reinforces confidence in the Egyptian economy, and inflation rates decreased by the end of February due to the impact of the base year, all of which are indicators that support foreign direct investment confidence in Egypt and consolidate economic stability.
*Egypt-UK Relationship*
H.E. Dr. Rania Al-Mashat also affirmed the strong relations between the Arab Republic of Egypt and the United Kingdom on both trade and investment levels. The trade exchange rate between the two countries reached approximately £4.7 billion last year. The UK is one of the largest investors in Egypt through various private sector companies across multiple fields, noting the relationship with the British International Investment (BII), which has an investment portfolio of approximately £547 million in 64 companies.