H.E. Minister of Planning, Economic Development, and International Cooperation Holds Comprehensive Meeting with the Budget and Plan Committee to Review Key Economic Indicators and the Implementation of the 2023/2024 Development Plan

 

H.E. Al-Mashat: “We are committed to ongoing coordination with the esteemed Parliament through a participatory approach in planning and implementing developmental programs.”

EGP 1.6 trillion: Total planned investments for the 2023/2024 fiscal year, with an implementation rate exceeding 98%.

  Private sector investments surpassed targets last fiscal year, reaching EGP 700 billion, a growth rate of 5.3%, accounting for 43% of total investments.

 Public sector investments declined to 57% of total investments in the 2023/2024 plan as the state shifts focus toward enabling greater private sector participation.

The government is determined to increase private sector investments by implementing effective measures to improve the business environment, in line with the State Ownership Policy Document.

 The Economic Ministerial Group is working in full coordination to boost investment, enhance productivity, and drive sustainable growth.

 Despite slowed growth, the 2023/2024 development plan maintained its primary focus on expanding human and social development sectors.

A slowdown in key sectors such as the Suez Canal, extractive industries, and manufacturing contributed to a reduced economic growth rate of 2.4% in the last fiscal year.

The government remains committed to macroeconomic stability and stimulating private sector activity to achieve further recovery and improvement in the coming period.

Key Achievements and Initiatives

•             35% of local development investments are directed to Upper Egypt governorates.

•             Construction and development of 23 hospitals and family health centers for EGP 11.5 billion, with the first phase of the Comprehensive Health Insurance Project launching 8 hospitals.

•             Establishment and renovation of 8,000 classrooms for general and Azhar education, 10 applied technical schools, and completion of educational infrastructure projects across 27 governorates to expand educational services in rural areas.

•             EGP 28 billion invested in the National Housing Project last fiscal year, providing 69,200 housing units, benefiting 350,000 citizens.

•             Strengthening the national electricity grid with new projects to secure the country’s energy needs.

•             Continued implementation of the "Decent Life" Initiative to improve living conditions in rural areas.

•             Provision of EGP 65.6 billion in small and microloans to 2.9 million citizens in "Decent Life" villages.

During the session, H.E. Dr. Rania Al-Mashat stated that reviewing the implementation of the 2023/2024 economic and social development plan reflects the Ministry’s collaborative efforts with various government entities. The plan, approved by the esteemed Parliament after extensive discussions with the Budget and Plan Committee, incorporates programs and projects that meet citizens' aspirations and contribute to inclusive economic and social development.

These remarks came during H.E. Dr. Al-Mashat’s presentation on the conclusion of the 2023/2024 economic and social development plan, future projections, and an assessment of the performance of economic authorities before the Budget and Plan Committee of the House of Representatives, chaired by Dr. Fakhry El-Fekki and attended by committee members.

H.E. Dr. Al-Mashat emphasized that the current period is marked by unprecedented disruptions and economic and geopolitical challenges, which have had significant repercussions on global economies, including Egypt’s. These challenges have inevitably impacted the performance indicators and outcomes of the economic and social development plan.

2.4% Growth Rate at the Conclusion of the Previous Fiscal Year

H.E. Dr. Rania Al-Mashat stated that the economic plan initially projected a growth rate of 4.1% for FY 2023/2024. However, the fiscal year ended with a slowdown in Egypt's real GDP growth to 2.4%, down from 3.8% in FY 2022/2023 and 6.6% in FY 2021/2022. External shocks, economic challenges, and geopolitical tensions negatively impacted key sectors, including the Suez Canal, the oil and gas extraction sector, and manufacturing industries. Additionally, the state implemented contractionary monetary and fiscal policies to restore macroeconomic stability and enhance governance of public investments.

Inflation Rates and Monetary Policies

The plan’s inflation target for FY 2023/2024 was set at 16%. However, with the adoption of a flexible exchange rate policy, inflation peaked at 40.3% in September 2023 before declining to 34.1% by the end of the fiscal year.

Private Sector Investments

Dr. Al-Mashat emphasized that the Ministry continued to monitor the implementation of the economic and social development plan for FY 2023/2024, aligned with the state’s comprehensive and sustainable development goals. Total investments executed during the year reached EGP 1.626 trillion, reflecting a 5.8% growth compared to the previous year, with 98.5% of the planned EGP 1.65 trillion achieved.

Public sector investments totaled EGP 926 billion, marking a 6.3% increase from the previous year and achieving 88% of the targeted EGP 1.05 trillion. Consequently, the share of public investments in total investments declined to 57%, below the targeted 64%. This shift underscores the state's commitment to fostering a private sector-led economic development model.

On the other hand, private sector investments grew to EGP 700 billion in FY 2023/2024, a 5.3% increase, surpassing the planned EGP 600 billion by 16%. Private investments accounted for 43% of total investments, exceeding the target of 36%. This growth in private investments compensated for the shortfall in public investments, reaffirming the state’s policy direction as outlined in the State Ownership Policy Document.

Despite these developments, the investment-to-GDP ratio declined to 13%, compared to the targeted 15.2%. Dr. Al-Mashat noted that this necessitates increased investments to accelerate production and job creation, an effort currently being prioritized by the economic ministerial group.

Focus on Developmental Sectors

The plan maintained the state's developmental priorities, particularly in education, higher education, scientific research, and healthcare. These sectors received investments of EGP 107.9 billion, surpassing the target and accounting for 34.6% of total public investments, compared to the 24.4% target.

Meanwhile, infrastructure sectors received EGP 180.6 billion, representing 57.9% of public investments, which was below the target of 66.3%. This reallocation reflects the state's focus on human development, with an increased share for these sectors in the current year’s plan, now accounting for 42.4% of total public investments. This aligns with the state’s constitutional commitments and its priority to support human development initiatives.

Development in Upper Egypt

Dr. Al-Mashat highlighted the continued prioritization of local development investments, with an emphasis on allocating resources to the most underdeveloped regions based on developmental gaps. This approach adheres to the financial distribution formula, which considers population size, human development indicators, poverty rates, and the unique needs of border governorates. Initiatives such as the presidential “Decent Life” program remain central to these efforts.

Local development investments reached EGP 23.2 billion, representing 7.5% of total public investments, exceeding the targeted 7.2%. Notably, Upper Egypt received 35% of these investments, compared to 21.4% in the previous fiscal year.

Enhancing Public Spending Efficiency

The Ministry has also focused on improving the efficiency of public spending and maximizing the developmental impact of public investments, particularly in local development projects. As part of these efforts, the Ministry introduced an initiative to replace asphalt paving with interlocking concrete tiles, which offers several economic advantages:

•             Cost Efficiency: The cost per square meter of interlocking tiles ranges between EGP 400–500, compared to EGP 800–1,000 for asphalt.

•             Support for Local Industry: Currently, local manufacturing covers 40% of interlocking tile production needs, reducing reliance on imports and conserving foreign currency.

•             Industrial Growth and Employment: The initiative stimulates local industrial production and creates job opportunities.

This initiative underscores the state’s commitment to sustainable development, optimizing resource allocation, and enhancing the effectiveness of local development plans.

H.E. Dr. Rania Al-Mashat stated that the increase in public investments during the 2023/2024 fiscal year resulted in 11,231 projects across various economic and social development sectors.

Healthcare Sector

In the healthcare sector, numerous initiatives and developmental projects were carried out to enhance the quality of health services provided to citizens, reflecting the government’s prioritization of this sector. Among these accomplishments:

•             23 hospitals and family health centers were newly built or developed and are now operational, costing EGP 11.5 billion. These include:

o             8 hospitals as part of the first phase of the Comprehensive Health Insurance System, targeting six governorates: Port Said, Ismailia, Suez, Aswan, Luxor, and South Sinai.

o             10 therapeutic care hospitals and specialized medical centers.

o             5 family health centers.

These projects aim to provide high-quality healthcare to citizens, contributing to a healthy, productive, and vibrant society. Health indicators, a key measure of human development, reflect these efforts. For instance:

•             The percentage of beneficiaries under comprehensive and traditional health insurance systems increased to 70%, compared to 52% in 2013.

•             Life expectancy at birth improved to 71.6 years.

Education Sector

Dr. Al-Mashat highlighted significant achievements in both pre-university and university education, including:

•             Constructing, replacing, and renovating 8,000 classrooms for general and Al-Azhar education.

•             Establishing 10 technical applied schools and expanding the competencies system in technical education schools.

•             Equipping 12 non-profit universities affiliated with government universities and four international universities (King Salman, Galala, New Mansoura, and Al-Alamein).

•             Equipping nine technological universities, including those in New Cairo, Delta, Beni Suef, and others.

•             Developing educational and dormitory facilities in 27 government universities.

Public investments directed toward education contributed to reducing classroom overcrowding, improving educational quality, and increasing access to education in rural and underserved areas. Key achievements include:

•             A 63% reduction in the primary school dropout rate and an 84% reduction in middle school dropouts over the past decade.

•             Expansion of competitive and high-quality schools for middle-class families, with the number of such schools (e.g., applied technology, Japanese, international, Nile schools) reaching 179 schools, accounting for 7% of total classrooms compared to 3% in 2014.

•             82% of graduates from applied technology schools are now employed or pursuing higher education.

University Education

Public investments in university education achieved:

•             100% coverage of government universities in all governorates.

•             70% coverage of non-profit universities and 33% coverage of technological universities.

Efforts are underway to achieve full coverage of non-profit and technological universities in every governorate in the coming years.

These developments have increased the gross enrollment rate in higher education to 40.7%, compared to 32% in 2013/2014.

Utilities Sector

Dr. Al-Mashat emphasized the state’s commitment to providing drinking water and sanitation services, which directly impact public health and align with environmental sustainability standards. Key projects include:

•             Completing 57 drinking water and sanitation projects with a total production capacity of 310,500 cubic meters per day at a cost of EGP 8.3 billion.

•             Establishing 7 wastewater treatment plants with a total capacity of 350,000 cubic meters per day at a cost of EGP 2.8 billion.

This expansion led to a 22% increase in water networks and a 31% increase in sanitation networks between 2014 and 2023, raising sanitation service coverage from 50% to 67% nationwide and from 12% to 43% in rural areas.

National Social Housing Project

Dr. Al-Mashat noted that the National Social Housing Project promotes social justice by providing suitable housing for low-income citizens, youth, and residents of unsafe areas. During the 2023/2024 fiscal year:

•             Investments in the project reached EGP 28.4 billion, achieving 89% of the planned target (EGP 32 billion).

•             69,255 housing units were delivered, benefiting approximately 350,000 citizens.

Electricity & Renewable Energy

Dr. Al-Mashat emphasized the strategic importance of electricity and renewable energy sectors in driving economic development. Achievements include:

•             Adding 5,735 megavolt-amperes in transformer station capacity.

•             Establishing 536.7 kilometers of overhead transmission lines.

•             Commencing commercial operations of two gas units at the Al-Arish Power Plant, with a total capacity of 250 megawatts.

In renewable energy:

•             The 252-megawatt Gulf of Suez Wind Farm began commercial operations.

•             The solar plant by ACWA Power, with a capacity of 200 megawatts, started trial operations.

•             Electrical services were extended to 635 villages, while 3,193 villages received upgraded networks.

Railways Sector

Dr. Al-Mashat highlighted significant advancements in the railway sector, including:

•             The inauguration of the Bashteel Railway Complex, attended by the President in October.

•             Civil upgrades to 835 level crossings and system upgrades to 704 crossings.

•             Procuring 100 locomotives, 140 freight cars, and 946 new passenger coaches.

•             Manufacturing and supplying 312 railway cars, supporting the localization of strategic industries.

These comprehensive projects underscore the government’s commitment to sustainable development and improving citizens’ quality of life across various sectors.

H.E. Dr. Rania Al-Mashat emphasized that investments in the railway sector over the past decade have yielded significant results, including a 71% increase in passenger transport capacity, rising from 2014 to 2023, to reach 1.2 million passengers daily. Additionally, freight transport capacity has grown by 31%, reaching 5.9 million tons annually. The number of metro trains and electric traction vehicles has also doubled from 106 to 220, a growth rate of 107%, enabling the daily transport of over 5 million passengers.

She further noted that investments in roads and railways have contributed to Egypt’s rise in the Road Quality Index, moving to 18th place globally in 2024 compared to 41st in 2019, as reported in the Travel and Tourism Competitiveness Index. Moreover, road accident fatalities decreased by 25%, while railway accidents declined by 78.2%.

In the Water Resources and Irrigation Sector, 225 projects have been completed at a cost of EGP 4.8 billion. These projects include the rehabilitation of irrigation canals, equipping wells to operate with solar energy, and constructing lakes and soil barriers.

The Presidential Initiative "Hayah Karima"

Dr. Al-Mashat also shed light on the presidential initiative “Hayah Karima” (Decent Life), a comprehensive development project aimed at transforming the lives of millions of Egyptians. The initiative, the largest of its kind in Egypt and globally in terms of funding and beneficiaries, aligns with all sustainable development goals. It seeks to enhance living conditions in rural areas by improving human development services, providing social protection, upgrading infrastructure and urban services, stimulating development, and increasing employment opportunities through investment and microfinance initiatives. This contributes to localizing sustainable development goals and achieving balanced regional growth, both central to Egypt’s Vision 2030.

She highlighted that during its first phase, the initiative has benefited approximately 18 million citizens across 1,500 villages, 68% of whom reside in Upper Egypt. The first phase, with a cost exceeding EGP 350 billion, includes 23,000 projects. So far, 17,000 projects (86% completion) have been delivered, including the development of 100 villages at a cost of EGP 21 billion, benefiting 1.2 million individuals. These efforts have improved the Basic Services Availability Index by 69 percentage points.

In the Education Sector, the initiative has supported state efforts to address classroom overcrowding and literacy challenges by constructing and upgrading 15,000 classrooms, renovating 1,300 schools, and eradicating illiteracy for 510,000 citizens.

In the Sanitation Sector, nearly 50% of the first phase budget has been allocated to sanitation and drinking water projects. Completed projects include the construction and upgrading of 21 wastewater treatment plants, 937 sanitation projects, and 1.4 million household sewer connections. These efforts have resulted in a 45% increase in sanitation service coverage in first-phase villages from 2021 to 2024. The goal is to raise coverage in these villages to 90%, ultimately reaching 60% coverage in all rural areas, compared to just 12% in 2013/2014.

In the Drinking Water Sector, 248 drinking water plants have been built and upgraded, alongside 1,380 network extension projects spanning 5.4 thousand kilometers, and 1,292 household water connections benefiting 455,000 homes.

The initiative has also supported Micro, Small, and Medium Enterprises (MSMEs), providing EGP 65.6 billion in financing to over 2.9 million beneficiaries.

Dr. Al-Mashat further noted advancements in Financial Inclusion, with the establishment and development of 137 bank branches and 1,254 ATMs, ensuring 100% ATM coverage in local administrative units. Additionally, 160,000 internet banking accounts, 78,000 mobile wallets, 340,000 prepaid cards, and 8,325 retail points of sale and QR codes have been provided, improving the Financial Inclusion Index by 11 percentage points.