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Al-Mashat: Clear plan to strengthen economy against global shocks

فريق رجال الأعمال news 08 February 2025 09:01 PM
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Al-Mashat: Clear plan to strengthen economy against global shocks

Dr. Rania Al-Mashat participated in the opening session of the Akhbar El Youm Economic Conference, themed "Industry and Investment... Government and Private Sector... Together We Can." The session was attended by several dignitaries, including Engineer Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, Mr. Ahmed Kouchouk, Minister of Finance, Engineer Abdel Sadek El Shorbagy, Chairman of the National Press Authority, Mr. Islam Afifi, Chairman of the Board of Directors of the Akhbar El Youm Foundation, members of the House of Representatives, and numerous representatives from the private sector and business community.

Dr. Al-Mashat also participated in the first session of the conference, which focused on the industrial sector as a key driver of Egypt's economic development. The session included discussions with a select group of investors and industrialists.

In her address, the Minister of Planning and Economic Development and International Cooperation emphasized that the Egyptian government is pursuing a clear and well-defined plan to strengthen macroeconomic stability, enhance resilience against global changes, improve the flexibility of financial policies, create job opportunities for youth, and protect vulnerable groups through comprehensive and sustainable social programs.

She further stated that the government prioritizes industrial development, human development, and entrepreneurship. This is evidenced by the formation of specialized ministerial groups, demonstrating the state's focus on export-oriented sectors, localizing industry, prioritizing human development, and creating opportunities for startups and entrepreneurs, ultimately fostering innovation and a knowledge-based economy.

Al-Mashat emphasized that while macroeconomic stability is essential, it is insufficient for achieving comprehensive economic development. Therefore, the government continues to implement the national structural reform program. Over the past year, numerous measures have been implemented to improve the business environment and expand private sector participation. These include implementing the electronic investment licensing system, issuing regulations for the energy certificate of origin, and enacting the law governing state ownership in companies it owns or in which it has a stake, among other initiatives.

She also mentioned the government's establishment of a one trillion pound ceiling for public investments, and the role of the Ministry of Planning and Economic Development and International Cooperation in monitoring compliance with this limit across all state agencies. This aims to create more opportunities for the private sector to once again lead the drive for development and sustainable growth. Furthermore, the government activated the unified public finance law to set an annual ceiling for public debt and established a maximum for annual borrowing based on financial sustainability criteria.

She also highlighted the positive outcomes of these efforts, including a rise in private sector investment, which accounted for 63% of total investments in the first quarter of the current fiscal year. Furthermore, for the first time in 2024, concessional financing for the private sector surpassed that allocated to the government.

The Minister of Planning and Economic Development and International Cooperation added that her ministry is working closely with the Ministries of Investment and Foreign Trade, and Industry to develop a strategy for promoting foreign direct investment in Egypt (2025-2030), as well as the National Industrial Development and Trade Promotion Strategy, in partnership with the World Bank Group.

She emphasized that the most crucial aspect of economic growth is not merely its quantity but its quality, including the development of vital sectors such as non-oil manufacturing industries. This reflects the state's focus on transitioning to productive, export-driven sectors.

The Minister announced that, in light of recent economic developments, the National Wages Council will convene tomorrow, Sunday, to discuss the minimum wage for the private sector.

She also discussed the growth of investments in the renewable energy sector, noting that the government has allocated 7 billion pounds from the development plan's reserve for the current fiscal year to strengthen the electricity grid and integrate additional renewable energy projects.

She added that international partnerships and development funding from external institutions are not exclusively for the government; the private sector also benefits. She emphasized that Egypt is considered an attractive platform for foreign investment and development funding due to its established credibility. Given current challenges, regional blocs and trade between Egypt and its neighboring countries will be of particular importance in the coming period.