FY2024/2025 public investments locked at LE 1trn to promote private sector investments, Egypt targets 3% growth by end of FY
Cairo – April 21, 2024: Egypt is targeting a 3 percent growth rate this fiscal year with an aim to increase it to 4.2 percent in FY2024/2025, explained Minister of Planning and Economic Development, Hala El Said, in an interview with Al Arabiya Business on Sunday.
On the sidelines of the spring meetings of the International Monetary Fund and the World Bank Group in Washington, the minister outlined plans to inject investments totaling LE 800 billion in FY2023/2024.
Public investments for the upcoming fiscal year are capped at LE 1 trillion to bolster private sector involvement, aiming to raise private investment to 50 percent of total investments, up from 40 percent this year.
El Said added that Egypt is working on the IPO program in a sustainable manner, but international and geopolitical circumstances have caused some uncertainty. The minister also highlighted that the government aims to secure $1.5 billion from the program by the end of 2024.
The minister also emphasized the comprehensive vision for Cairo’s downtown area as ministries relocate to the New Administrative Capital. The area is slated for redevelopment, with El Said revealing that 7 international firms have expressed interest in developing the area.
During a roundtable hosted by the U.S. Chamber of Commerce last week, El Said revealed that Egypt looks to achieve a growth rate of 7-8 percent by 2027, with 35 percent expected to come from the agriculture, manufacturing, communications and information technology sectors.
Despite facing global challenges such as the COVID-19 pandemic, the Russia-Ukraine war, European energy crises, global supply chain disruptions, shipping cost increases, goods shortages, inflation, and climate change, Egypt’s economy has demonstrated resilience. Growth rates stood at 5.6 percent in 2018/2019, 3.6 percent in 2019/2020, 3.3 percent in 2020/2021, 6.6 percent in 2021/2022, and 3.8 percent in 2022/2023.
