Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation:

09 December 2024

A new methodology has been adopted for preparing the economic and social development plan for the upcoming fiscal year.

The activation of the Planning Law and the approval of its executive regulations to enhance the efficiency of the planning system in line with the latest international trends.

Restoring the role of the private sector in development efforts is a key objective for the government to achieve sustainable economic growth.

Continuing the implementation of governance procedures for public investments and strengthening follow-up and evaluation mechanisms.

The total investments for the current fiscal year amount to EGP 2 trillion, with 49.7% allocated to the private sector.

Commitment to the investment spending limit, with increased spending on health, education, and social protection.

The Ministerial Committee for Entrepreneurship is opening its doors to all concerned parties to discuss the mechanisms and policies supporting the sector.

A set of supporting measures for the start-up community will be announced in the first quarter of 2025.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, delivered the keynote address at the 6th Economic Conference organized by Hapi Journal discussing resilient reform and economic challenges. The event was attended by Mr. Ahmed Kouchouk, Minister of Finance, and representatives of private sector companies.

H.E. Dr. Al-Mashat emphasized that the state, through its various institutions, is committed to implementing a clear and consistent economic reform agenda aimed at advancing the Egyptian economy and strengthening its resilience in light of ongoing regional and international developments. This is particularly following the geopolitical and economic challenges since 2020, which have significantly impacted developing and emerging countries striving to catch up with development.

Global Growth

H.E. Minister Al-Mashat referred to a recent report from the World Bank on global economic prospects, highlighting that while major shifts were expected on the development front as we approach 2030, the report indicated that global economic growth over the past five years has been the weakest in 30 years.

H.E. Dr. Al-Mashat noted that continued geopolitical conflicts, sluggish global trade, tightening financial conditions, and the negative effects of climate change have increased risks to the global economy, reducing the global growth forecast for 2024 to 2.4% for the third consecutive year, down from 2.6% the previous year. Developing and low-growth countries are particularly affected, which limits their ability to achieve their developmental agendas.

H.E. Dr. Al-Mashat also pointed out that the development gaps in these countries have widened, necessitating flexible policies and comprehensive, innovative actions to preserve development gains and ensure macroeconomic stability through 2030 and beyond.

Economic and Structural Reform Program

H.E. Minister Al-Mashat stated that the Egyptian government has embarked on a multi-dimensional economic and structural reform program that covers various aspects of economic activity. The program's central goal is to empower the private sector to address the challenges facing the Egyptian economy and enhance comprehensive and sustainable development.

In this regard, the Ministry of Planning, Economic Development, and International Cooperation is adopting a new philosophy to improve the effectiveness of development plans, integrate domestic and international resources, and support the government's program targets.

H.E. Minister Al-Mashat highlighted that the structural reforms currently being implemented focus on three main pillars: strengthening macroeconomic resilience, enhancing economic competitiveness and improving the business environment, and supporting economic diversification and the green transition. H.E. added that Egypt's green transformation offers numerous investment opportunities for the private sector.

Preparing the Economic and Social Development Plan

H.E. Dr. Al-Mashat revealed that the Ministry is currently working on implementing a new methodology for preparing the economic and social development plan for the upcoming fiscal year 2025/2026, which is being discussed with various ministries and state agencies. This methodology is based on an integrated development perspective aligned with Egypt’s Vision 2030, the government’s work program, sectoral plans, and strategies. It will also incorporate the modern approaches outlined in the new Planning Law and its executive regulations, which are nearing completion, in order to support the government’s efforts to implement the "State Ownership Policy Document" and open up space for the private sector.

H.E. Dr. Al-Mashat explained that this methodology reflects the government's primary objective for the upcoming phase: to develop a planning system that is efficient and effective, driving comprehensive and sustainable development using all available tools. This includes improving the efficiency of investment spending, governing and monitoring public investments, strengthening follow-up and evaluation efforts, and coordinating with ministries to improve the quality of development plans through the "Economic and Social Development Plan Preparation Guide" and by providing spatial information to support the planning process via the "Spatial Information Infrastructure System."

Investment Spending Ceiling

H.E. Minister Al-Mashat added that, alongside the new methodology for the next fiscal year, the Ministry is monitoring the implementation of the current fiscal year’s economic and social development plan (2024/2025), while adhering to the public investment ceiling set by the Cabinet for the first time, which is EGP 1 trillion. As a result, the total investments this year are approximately EGP 2 trillion, with EGP 1 trillion allocated to public investments and EGP 987 billion (49.7%) for the private sector. H.E. emphasized that the investment spending ceiling, in addition to enabling the private sector, also helps reduce the state’s budget deficit.

Empowering the Private Sector

H.E. Dr. Al-Mashat confirmed that empowering the private sector and restoring its role in leading development efforts is a key objective for the government. As part of this effort, the government is building on the comprehensive economic and structural reforms implemented in recent years through the National Structural Reform Program, which aims to stimulate private sector participation in development and open space for local and foreign investments.

H.E. Minister Al-Mashat affirmed that the Ministry of Planning, Economic Development, and International Cooperation has implemented a Development Policy Financing Program in collaboration with several international partners, which provides funding to support the budget and assist in the implementation of structural reforms in partnership with various national entities.

H.E. Dr. Al-Mashat also highlighted the Integrated National Financing Strategy, launched by the Ministry during the Summit of the Future in New York, which works to strengthen both domestic and international financing for development. The ministry secured concessional financing of approximately USD 12 billion for the private sector from international financing institutions over the past four and a half years, reflecting the strong partnership between Egypt and its development partners.

Governance of Public Investments

H.E. Dr. Al-Mashat noted that governance procedures for public investments and monitoring and evaluation are being applied through three main pillars: investment planning, where project evaluation criteria have been updated, agencies are required to submit feasibility studies, and investment accounting methodologies are being developed; investment allocation, which involves developing a financing equation to cover development gaps between governorates and linking investments to incentives; and investment implementation monitoring, which includes automating the monitoring process and tracking investment assets.

Ministerial Committee for Entrepreneurship

H.E. Minister Al-Mashat added that, recognizing the importance of entrepreneurship in creating an economy based on innovation and unconventional developmental solutions, the government has established the Ministerial Committee for Entrepreneurship. This sector can drive economic growth, and the committee’s organizational framework includes all relevant government entities and the start-up community through a technical committee and working groups. These groups are open to all stakeholders to discuss challenges and gather proposals to promote this vital sector.

H.E. Dr. Al-Mashat mentioned that working group meetings are ongoing to prepare the "Start-Up Charter," a document that will outline all recommendations and strategies the government will follow in this area, serving as a roadmap for the future. This charter will set out the priorities for both the government and private sector to support entrepreneurship, and supportive measures for the start-up community will be announced in the first quarter of next year. H.E. Dr. Al-Mashat also referred to the World Bank's "Middle-Income Trap" report, which emphasizes the importance of innovation and digital transformation for middle-income countries to boost growth.

H.E. Minister Al-Mashat concluded her speech by reaffirming the ongoing coordination and collaboration within the Economic Ministerial Committee and the government's commitment, under the leadership of Prime Minister Dr. Mostafa Madbouly and H.E. President Abdel Fattah El-Sisi, to advance economic reforms to support macroeconomic stability. This will include expanding social spending, particularly in health, education, and social protection, to alleviate the burden on lower-income groups and enhance investment in human capital and nation-building.