Planning Minister Participates in OECD Economic Report Launch for Egypt at OECD Headquarters in Paris

H.E. Dr. Hala El Said, Minister of Planning and Economic Development, participated in the conference held by the Organization for Economic Cooperation and Development (OECD) in the French capital, Paris, to review the detailed economic study of Egypt issued by the organization.

During her participation, Dr. Hala El Said emphasized that the economic report for Egypt is being prepared for the first time as part of activating the activities of the country program. The report reviews the most important features of the Egyptian economy and provides the organization's recommendations in designing effective policies to overcome economic challenges, enhance the performance of the Egyptian economy, and drive comprehensive and sustainable growth.

El Said explained that the report provides a comprehensive study of the economic situation, highlighting recent developments, challenges, and policy measures. The report covers about 60 policy recommendations under four main pillars, all aligned with the objectives of Egypt Vision 2030 and the National Program for Structural Reforms. She added that the report's chapters were selected based on national priorities, focusing on the business environment and the quality of job opportunities.

El Said noted that the committee formed to study and review the economic report for Egypt was formed using a participatory approach, with the participation of about 10 national entities from the Egyptian government, including the Prime Minister's Office, the Ministries of Planning and Economic Development, Communications and Information Technology, Finance, Trade and Industry, Social Solidarity, Social Solidarity, the General Authority for Investment and Free Zones, the Small and Medium Enterprises Development Agency, and the Central Bank of Egypt, in addition to consulting with representatives from the private sector, academics, and civil society.

El Said pointed out the updated Egypt Vision 2030, which includes four governing principles: placing human beings at the center of development, achieving justice and accessibility, enhancing flexibility and adaptability, and achieving sustainability, in addition to six strategic objectives: quality of life and standard of living, social justice and equality, integrated and sustainable ecosystem, competitive knowledge-based economy, advanced infrastructure, in addition to governance and partnerships, in addition to adopting the vision on seven enabling factors: providing financing, achieving technological progress and innovation, enhancing digital transformation, producing and providing data, preparing a supportive legislative and institutional environment, providing a supportive cultural values system, and regulating population growth.

The Minister of Planning affirmed that Egypt Vision 2030 is a dynamic strategy that prioritizes the development of human capital, while enhancing justice and access to services to achieve comprehensive economic growth and social development.

Dr. Hala El Said also highlighted Egypt's efforts towards sustainable reforms, noting the Economic Reform Program launched in 2016, and the National Program for Structural Reforms launched in 2021, which constitutes the second phase of the economic reform program and includes structural reforms focused on the real economy and aimed at radical solutions to structural economic problems to enhance the flexibility of the Egyptian economy. The program aims to transform the Egyptian economy into an export-oriented economy with increased productivity and enhanced competitive advantages, and to increase the relative weight of key sectors in the economy, namely industry, agriculture, communications and information technology, tourism, and logistics services, accompanied by supportive measures to achieve the desired objectives of the program in line with Egypt Vision 2030.

El Said continued that Egypt, like other countries around the world, has been subjected to a set of global changes that have affected it, yet the Egyptian state is committed to implementing the plan of structural reforms, both in terms of the role of the private sector and the social protection package announced by the President, which is scheduled to be implemented next March.

Minister El Said reiterated Egypt's focus on enhancing private sector participation, in addition to improving the labor market through attention to technical and vocational education and the provision of specialized fields that align with the job market. She emphasized the importance of maintaining low unemployment rates while increasing women's participation in the labor market through training and qualification.

El Said stated that there is synergy between ongoing national efforts and the recommendations of the Economic Report for Egypt, highlighting Egypt's efforts to improve the business environment and streamline new licensing and operational procedures. Egypt aims to increase the role of the private sector in line with the Sustainable Development Goals by increasing its share in total investments to 65% by 2030. 

Egypt implemented 22 measures in May 2023 to support the business and investment climate. She also pointed out the State Ownership Policy Document launched in 2022 to demonstrate the state's role in various sectors as an organizer of economic activity according to market mechanisms.

El Said added that the UN's World Investment Report 2023 indicated that Egypt topped African countries in terms of foreign direct investment inflows, which rose to $11.4 billion in 2022. Egypt also ranked second in Africa in terms of foreign direct investment stocks in 2022, with a value of $148.9 billion, and second in the Arab region after the UAE in terms of foreign direct investment inflows.

Regarding green transition and green projects, El Said reported that Egypt seeks to intensify its efforts towards green transition by increasing the share of renewable energy, achieving energy efficiency, promoting green hydrogen, reducing carbon emissions, and achieving sustainable development goals. She noted the goal to increase the share of green investments in total public investments to 50% and increase electricity generation from new renewable energy sources to 42% by 2035.

El Said also mentioned the issuance of the National Climate Change Strategy 2050, the launch of green incentives, and the allocation of EGP 91 billion mainly to adaptation programs in areas related to sustainable sanitation, clean water, and sustainable irrigation.

Regarding Egypt's efforts towards digital transformation, El Said stated that Egypt's digital exports reached around $4.9 billion in 2022, with the aim to increase to $9 billion by 2026. She highlighted Egypt as the first Arab and African country to commit to the OECD recommendation on artificial intelligence and the launch of Egypt's first National Strategy for Artificial Intelligence in 2021. Egypt ranks 49 in the Government AI Readiness Index 2023, occupying the 62nd position out of 193 countries.

El Said provided various statistics, such as the number of users of online banking services reaching 14.4 million and mobile banking services reaching 13.2 million. She mentioned Egypt's ranking at 89 in the Global Innovation Index, being among the top 5 African countries with 50% of software developers, ranking second in Africa and third in the Middle East and North Africa in financial technology venture capital investments, and among the top 4 African countries as hotspots for venture capital investments in Africa. 

Egypt is also one of the top two African countries in diversifying the sector evenly and third in the Middle East and North Africa in talent and financial technological experience.

Regarding the labor market and social safety nets, El Said stated that Egypt aims to increase the employment rate to 42% by 2030 and increase women's participation in the labor market to 24%, highlighting the "Decent Life" initiative aimed at improving the lives of citizens in rural Egypt.

In conclusion, El Said welcomed the recommendations of the OECD, affirming that efforts will be made to implement the report's recommendations in collaboration with the OECD, especially in the areas of professional labor market and productivity enhancement. She also emphasized the good cooperation relations between Egypt and France, where discussions were held with French officials during her presence in France on areas of mutual cooperation.