Egypt Prioritizes Macroeconomic Stability, Private Sector Growth: Al-Mashat

(MENAFN- Daily News Egypt) 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.

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