Home / economy / Finance Minister confirms successful cut to external debt

Finance Minister confirms successful cut to external debt

Businessmen Team economy 22 December 2025 01:25 PM
Share Article:
Finance Minister confirms successful cut to external debt

Egypt is positioning itself as a regional manufacturing and export hub for Africa, Europe, and Asia by prioritizing private sector-led growth, Finance Minister Ahmed Kouchouk announced.

Speaking at a meeting of the Union of Arab Chambers, Kouchouk emphasized that the government’s fiscal policy now "bets on a larger role for the private sector" to drive the economy. He noted that private investment surged by 73% during the last fiscal year.

The Minister highlighted significant improvements in Egypt's financial indicators:

Debt-to-GDP Ratio: Dropped from 96% to 86% over the last two years, with further aggressive cuts planned for 2024/25.

External Debt: Budgetary external debt was reduced by approximately $2 billion.

Liquidity: Net foreign assets in the banking sector and foreign reserves have shown marked improvement.

"We are paying back more than we borrow," Kouchouk told the assembly.

To boost competitiveness, the Finance Ministry is launching a series of reforms aimed at building trust with the business community. A new package of tax and customs facilities is being rolled out to streamline operations. In coordination with the Ministry of Investment, a major package will soon be announced to accelerate trade flow and reduce customs clearance times. Kouchouk noted that Egypt’s special economic zones are currently attracting a "diverse range of companies" focused on export-oriented production.

Ahmed El-Wakil, head of the Federation of Egyptian Chambers of Commerce, praised the reforms, stating the government is successfully shifting toward a "partnership-based" tax system to stimulate private sector contribution to GDP.