• Private sector investments in constant prices amounted to EGP 133 billion in the first quarter of the current fiscal year, representing a 30% growth and accounting for 63.5% of total investments.
• The government's efforts to create space for the private sector and improve the business environment have resulted in a 60% decline in public investments, bringing them down to EGP 57 billion in the first quarter of the fiscal year.
• Development financing for the private sector has seen a steady increase throughout 2024, reaching USD 4.2 billion compared to USD 2.9 billion in 2023.
• Development financing for the government sector has decreased from USD 3.8 billion in 2023 to USD 3.1 billion in 2024.
• A new methodology has been developed to estimate private sector investments, in collaboration with various institutions and experts, to provide a more accurate and comprehensive view of investment distribution.
• Private sector investments are expected to increase to 50% of total investments by the end of June 2025, in alignment with the State Ownership Policy Document and Egypt’s Vision 2030.
In alignment with the government’s commitment to enhancing the national accounts system and improving the accuracy of economic indicators, the Ministry of Planning, Economic Development and International Cooperation has announced the publication of total investment data for the first time since 2020. This follows a thorough review of private investment figures using an updated methodology. This initiative is part of the government's broader strategy to promote transparency and accuracy in economic data, which is essential for attracting private investments and driving sustainable economic growth.
According to recent data, private investments reached EGP 133.1 billion at constant prices in the first quarter of FY 2024/2025, representing approximately 63.5% of total investments, with a growth rate of 30% compared to the first quarter of the previous fiscal year. In contrast, public investments experienced a significant decline of 60.5%, recording EGP 57 billion, down from EGP 144.4 billion in the corresponding quarter of the FY 2023/2024. This is in line with the Egyptian government's efforts to level the playing field for the private sector in light of the structural reforms being adopted to enhance the business environment, as well as to enhance the governance of public investments.
Dr. Rania Al-Mashat emphasized that the Ministry was keen to develop the new methodology to estimate private investments in coordination with several international experts and local institutions, aiming to provide a more accurate and comprehensive view of the distribution of investments between the public and private sectors. The development process of the methodology included a number of workshops and meetings during the past two years. She explained that the new methodology focuses on capturing the contributions of the informal private sector and includes expenditures in areas such as research and development, technological infrastructure, software development, electronic media, new residential dwellings by households, and major maintenance of existing dwellings.
Dr. Al-Mashat underscored that this update comes in line with the government’s objectives to increase the share of private investment to reach 50% of total investments by the fiscal year 2024/2025. This supports the objectives of the State Ownership Policy Document, the National Structural Reform Program, and the updated Egypt Vision 2030, which focuses on empowering the private sector as one of the main drivers of economic growth. The Ministry reaffirms its commitment to continuously developing its tools and methodologies to contribute to a comprehensive vision for sustainable economic growth and to enhance the confidence of both local and international investors in the Egyptian economy.
In its ongoing efforts to empower the private sector and solidify its pivotal role in achieving inclusive sustainable economic growth, the Ministry of Planning, Economic Development, and International Cooperation continues to collaborate with international multilateral and bilateral development partners to provide concessional financing for the private sector, in line with Egypt's development agenda. Consequently, concessional finance directed to the private sector significantly increased in 2024 reaching $4.2 billion, compared to approximately $2.9 billion in 2023. Key development partners, including the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB), contributed to this financing. These funds have been strategically allocated to vital sectors such as renewable energy through Egypt’s Country Platform for the Nexus of Water, Food and Energy (NWFE), as well as small and medium enterprises, transport, industry, agriculture, and trade, all of which are integral to fostering sustainable economic growth. In contrast, concessional developmental financing for the government sector declined from $3.8 billion in 2023 to $3.1 billion in 2024.
Furthermore, the Ministry of Planning, Economic Development, and International Cooperation launched, in December 2023, the "Hafiz" platform, an integrated initiative designed to provide financial and technical support to the private sector. This platform implements the recommendations of the economic conference held in October 2022 and leverages innovative financing modalities to encourage greater private sector engagement. It connects development partners, the government, and the business community to enhance communication and address the information gap. It offers over 85 financing services and technical support from 32 development partners, along with information on tenders and local and international initiatives, thereby improving access and competitiveness in global markets.