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Egyptian economy transitioning to productivity model, says Planning Minister

Businessmen Team news 16 December 2025 02:24 PM
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Egyptian economy transitioning to productivity model, says Planning Minister

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, affirmed that the Egyptian economy is undergoing continuous improvement and a transition toward an economic model based on productivity, investment, industry, and exports.

 The Minister made the remarks during the opening session of a conference on the competitiveness of the Egyptian economy, attended by Finance Minister Ahmed Kouchouk,, Public Business Sector Minister Mohamed Shimi, Financial Regulatory Authority Chairman Dr. Mohamed Farid, and General Authority for Investment and Free Zones (GAFI) Chairman Hossam Heiba, along with private sector representatives.

Al-Mashat delivered several key messages to the private sector and investors, underscoring that growth and employment-supportive reforms and policies are continuous and irreversible. She asserted that the positive economic indicators confirm that 2026 will witness a "different leap" for the Egyptian economy, built on current achievements and the government's commitment to implementing reforms.

The Ministry is working with the Ministry of Finance to prepare the 2026/2027–2029/2030 medium-term Socio-Economic Development Plan and Budgetary Framework. This plan will be linked to programs and performance to ensure spending efficiency and connect financial allocations with achieved results.

Al-Mashat emphasized that concessional development financing from development partners is increasingly available to the private sector amid global financial constraints. Concessional funding for the private sector since 2020 has exceeded $15 billion. This includes $5 billion secured through the national "NWFI " program platform, which provided funding to major private companies like Infinity Power, AMEA Power, ACWA Power, and Scatec.

She stressed that macroeconomic stability is the foundation for the Egyptian economy's launch. The government is working to cement this stability through fiscal and monetary policies, financial discipline, and governance of public investments.

Since 2023, the Ministry has mobilized approximately $9.5 billion in concessional financing from international partners to support the state budget. These funds contribute to extending debt maturity, reducing burdens, and diversifying funding sources to support economic reform. This financing was tied to over 150 economic, structural, sectoral, and clear development policy reforms.

The Minister noted that the Ministry adhered to the investment spending ceiling set at EGP 1 trillion for the last fiscal year (2024/2025). Preliminary indicators show that actual investments totaled about EGP 922 billion (92% of the target). This discipline helps control public finances, reduce debt burdens, and make way for the private sector to increase its share of total investments to 63% in the current fiscal year.

Al-Mashat concluded that the Egyptian economy has moved from the stage of challenge management to one of entrenching stability and expanding economic opportunities while empowering the private sector. She highlighted ongoing labor market reforms to boost employment and decent work, as well as efforts to encourage innovation and entrepreneurship through the adoption of a unified definition for startups to ensure they benefit from government incentives.

The upcoming period is expected to see more capital investments in both startups and major companies from international institutions, as well as increased financing through European investment guarantees totaling €1.8 billion and guarantees available from the Multilateral Investment Guarantee Agency (MIGA). The Minister stressed that Egypt has become a platform for international institutions to empower the private sector.