H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, Holds an Extensive Meeting with the National Press Authority, Attended by Editors-in-Chief of Newspapers and Prominent Journalists

Minister Rania Al-Mashat presents the Ministry of Planning, Economic Development, and International Cooperation’s vision in light of the government's program for the next three years.

We launched the Sustainability and Financing for Economic Development Framework to enhance the effectiveness of development plans and achieve integration between local and external resources.

Strengthening evidence-based development policy formulation and optimizing resource utilization to bridge sectoral development gaps and achieve qualitative, sustainable growth.

Human development sectors remain a top priority for the state, despite governance in public investment spending.

Economic diplomacy for development financing is a key pillar of the Ministry of Planning, Economic Development, and International Cooperation’s framework.

Economic and structural reform measures have boosted industrial production indices and contributed to growth recovery in the first quarter of the current fiscal year.

We expect the Egyptian economy to grow by 4% in the current fiscal year in response to the economic reforms being implemented by the state.

The government is committed to governance in public investment spending, maintaining public investments worth EGP 1 trillion, and prioritizing projects with more than 70% completion.

Structural reform is an ongoing process to keep up with local and regional changes, improve the business environment, and empower the private sector.

Diversifying the production structure with a focus on real economy sectors, primarily manufacturing, agriculture, and information and communication technology.

A new methodology for preparing the 2025/2026 development plan based on the Unified Planning Law and its executive regulations to enhance the efficiency and effectiveness of plans and increase private sector engagement.

Concessional development financing for the government decreased last year, while financing directed to the private sector increased.

Completion of the Foreign Direct Investment and Industrial Development Strategies in Q1 2025 in partnership with the World Bank and relevant national entities.

We have initiated negotiations with the European Union and international partners for the second phase of the Macro-Financial Assistance Mechanism and budget support worth EUR 4 billion, along with EUR 1.8 billion in investment guarantees.

Concessional financing to support the budget enables the state to continue economic reform measures and enhance fiscal space.

We increased investments in the electricity grid as part of the 2024/2025 development plan to ensure grid stability during the summer.

The private sector secured $14.5 billion in concessional development financing from international partners between 2020 and 2024.

For the first time, concessional international financing for the private sector exceeded government financing in 2024.

Signed agreements for renewable energy projects with a capacity of 4,200 MW under the "NWFE" program.

Comprehensive Meeting with the National Press Authority

On January 13, 2025, H.E. Dr. Rania Al-Mashat, the Minister of Planning, Economic Development, and International Cooperation, held an extensive meeting with the National Press Authority (NPA), chaired by Eng. Abdel Sadek El-Shorbagy, at the Authority’s headquarters. The meeting was attended by members of the Authority, several chief editors, and journalists.

At the outset of the meeting, Eng. Abdel Sadek El-Shorbagy, Chairman of the NPA, welcomed Dr. Rania Al-Mashat and congratulated her on the renewed confidence of the political leadership in her role. He emphasized the vital role the Ministry plays in managing public investments, empowering the private sector, and fulfilling the government’s vision of achieving a competitive economy that attracts investment, particularly amid the significant internal and external challenges facing the Egyptian economy.

Vision and Strategy of the Ministry

During the meeting, the Minister outlined the ministry’s vision and strategy following the merger of the portfolios of Planning, Economic Development, and International Cooperation. She explained the government's philosophy behind this merger, emphasizing that the Egyptian economy is currently undergoing a significant transformation aimed at achieving comprehensive and sustainable economic development while enhancing both quantitative and qualitative growth.

Dr. Al-Mashat highlighted the ministry’s launch of the "Sustainability and Financing for Economic Development Framework," which primarily targets economic development by promoting evidence-based policy-making and optimizing resource utilization to bridge sectoral development gaps and achieve sustainable, qualitative growth. She emphasized that the ministry’s vision is aligned with Egypt’s Vision 2030, the National Program for Structural Reforms, and the National Integrated Strategy for Development Financing, which aims to mobilize sustainable financing to close the financing gap. This approach supports private investments and promotes the green transition.

The Minister also mentioned that the ministry is finalizing a comprehensive vision and strategy to enhance growth and sustainability, focusing on government priorities, especially in terms of foreign direct investment (FDI) and industrial development. She noted that the ministry is working in partnership with the World Bank and relevant ministries to complete both the FDI and industrial development strategies during the first quarter of this year.

Progress in GDP Growth

Al-Mashat discussed the developments in GDP growth during the first quarter of the current fiscal year, which saw a recovery as a result of the economic and structural reforms initiated by the government last March, reaching a growth rate of 3.5%. She added that the growth during this period showed positive progress not only in terms of the growth rate but also in its quality. The non-petroleum manufacturing sector grew by 7.1% in the first quarter, marking the highest growth rate since the third quarter of the 2021/2022 fiscal year.

The Minister also pointed to the increase in exports during this period, driven by the government's efforts to release production inputs from customs and enhance manufacturing in various sectors, both for finished and semi-finished goods. She noted that most economic sectors achieved positive growth, with the exception of the extraction sector and the Suez Canal, which were affected by regional tensions. However, the extraction sector is expected to return to positive growth in the upcoming period as the government settles debts owed to petroleum companies and continues exploration efforts.

Furthermore, Dr. Al-Mashat highlighted the growth of the tourism sector, which holds significant importance for the Egyptian economy, with an 8.2% increase in the first quarter of the fiscal year. She expressed optimism that the state’s efforts in this sector, along with the opening of the Grand Egyptian Museum, would yield positive results and increase the number of tourists visiting Egypt.

Private Investments

Al-Mashat explained that as part of the ministry’s efforts to present a structured narrative for the Egyptian economy and uphold the principles of transparency, it announced the volume of private investments during the first quarter of the current fiscal year. Private investments grew by approximately 30.1%, reaching EGP 133 billion, accounting for 63.5% of total investments. She emphasized that these indicators are vital for the Egyptian economy and reflect the government's determination to continue governing investment spending and creating a conducive environment for private sector expansion. These developments were also reflected in the growth of real credit for the private sector in the first quarter.

On the other hand, public investments significantly decreased during the same period, shrinking by around 60.5% to EGP 99.7 billion, compared to EGP 180.4 billion in the corresponding period.

National Structural Reform Program

Al-Mashat discussed the efforts of the Ministry of Planning, Economic Development, and International Cooperation in monitoring the implementation of the National Economic and Structural Reform Program. This is being coordinated with all relevant ministries and entities, in collaboration with international development partners, to secure budget support funding aimed at implementing structural reforms. These reforms aim to enhance economic competitiveness, improve the business environment, strengthen the macroeconomic resilience to external shocks, support the green transition, and open new horizons for inclusive and sustainable development.

The Minister outlined the key goals of the reform program, which include enhancing macroeconomic stability, diversifying the country’s production structure, and promoting the green economy. Specifically, the program focuses on five main pillars:

1.            Enhancing macroeconomic stability through prudent fiscal and monetary policies.

2.            Diversify Egypt’s production structure by emphasizing key sectors such as manufacturing, agriculture, information technology, and telecommunications.

3.            Improving competitiveness and the business environment to attract more foreign direct investment.

4.            Supporting the transition to a green economy by investing in sustainable energy solutions and technologies.

5.            Enhancing the flexibility and efficiency of the labor market, as well as investing in the development of vocational education and training systems to meet the needs of a rapidly evolving job market.

She also mentioned that last year the state succeeded in implementing 86 structural reform measures aimed at stabilizing the Egyptian economy and improving the business environment. As a result of implementing this program, Egypt received budget support funding from development partners, including the European Union and the World Bank. The ministry is now working on initiating negotiations with the European Union regarding the second phase of the Macro-Financial Assistance mechanism, with a budget support value of €4 billion, as well as investment guarantees worth €1.8 billion.

Economic and Social Development Plan

Al-Mashat highlighted the economic and social development plan for the fiscal year 2023/2024. The total investments reached EGP 1.62 trillion, with a 98.5% execution rate and a growth rate of 5.8%. Private sector investments rose by 5.3%, reaching EGP 700.4 billion with an execution rate of 116%, while public investments amounted to EGP 925.9 billion with an execution rate of 88%.

H.E. emphasized that the target is to increase the share of private sector investments to 50% of total investments by the end of the current fiscal year.

The plan also focuses on continuing to prioritize local development investments, ensuring that funds are allocated to the governorates most in need based on developmental gaps. This follows the financial allocation formula for distributing local investments, which considers several indicators to ensure balanced regional development. These indicators include the population percentage in each governorate, the Human Development Index (HDI), poverty rates, and the specific needs of border governorates.

Additionally, the plan continues to implement and support local development initiatives, most notably the presidential initiative Hayah Karima (Decent Life).

In this regard, local development investments executed during the year amounted to EGP 23.2 billion, accounting for 7.5% of total government investments, exceeding the targeted 7.2%. Upper Egypt governorates received approximately 35% of the total local development investments, compared to 21.4% in the previous year.

Facilitated Financing for the Private Sector

Al-Mashat emphasized that due to the government's efforts to improve the investment climate for the private sector and reduce government investments, facilitated financing for the private sector from international partners surpassed government financing in 2024, reaching $4.2 billion. From 2020 to 2024, the total financing for the private sector amounted to $14.5 billion. These funds have been directed to various sectors, including startups, technology and innovation, manufacturing, healthcare, green transformation, and transportation and logistics services.

She also highlighted that through the Hub for Advisory, Finance & Investment for Enterprises, the ministry provides not only financing but also technical support to various types of private sector businesses, including large companies, small and medium enterprises (SMEs), and startups.

Dr. Al-Mashat mentioned the national platform for the "NWFE" Country Platform, under which agreements for renewable energy projects with a capacity of 4,200 MW were signed by the end of 2024, and financing of $3.9 billion was made available to the private sector companies executing these projects. Additionally, 1,200 MW thermal power plants were decommissioned.

The unique feature of the NWFE  country platform, she explained, is its ability to promote renewable energy projects to attract the private sector and provide innovative financing options for both local and foreign companies. She also mentioned that the Japan International Cooperation Agency (JICA) provided financing for the private sector within the program for the first time.

In this context, Dr. Al-Mashat pointed out that investments have also been made to enhance the electricity grid's capacity during the summer to maintain a stable power supply and attract foreign investments.

Enhancing Efficiency and Governance of Public Investments

Al-Mashat highlighted the ministry's efforts within the framework of the government's program to enhance the efficiency of public spending and increase the effectiveness of public investments to achieve the desired developmental impact. Several measures have been taken to govern public investments and reassess the priorities for the 2024/2025 plan, while ensuring compliance with the set cap for public investments for the current year, amounting to 1 trillion Egyptian pounds, as per the decision of the Prime Minister (Decision No. 739 of 2024).

She pointed out that the current year's plan is being implemented based on several key determinants, including securing the required investments for projects expected to be completed, focusing on projects that have exceeded 70% completion, and excluding new projects that have not yet started. Additionally, consideration is given to the impact of economic conditions on the rising cost of public investments. The ministry is also working on exiting some projects' financing, allowing the private sector to participate, in line with the State Ownership Policy Document.

Development Plan

H.E. Al-Mashat discussed the structure of the total investments for the 2024/2025 fiscal year plan, highlighting an increase in the targeted total investments, which will approach 2 trillion Egyptian pounds. This includes 1 trillion pounds in public investments, accounting for approximately 50.3% of the total investments, and 987 billion pounds in private investments, representing 49.7% of the total. The plan aims to direct more than two-thirds of public investments toward human development, with 42.4% allocated to this sector, reinforcing the government's focus on developmental sectors and its commitment to building the Egyptian citizen. Following that, the water and sanitation sector will receive 25.4% of total public investments.

The Ministry of Planning, Economic Development, and International Cooperation has also started preparing the draft of the 2025/2026 economic and social development plan, in line with the medium-term budget framework for 2025/2026–2028/2029. This preparation involves consultations and coordination with all ministries, public authorities, governorates, the private sector, and civil society. The planning process adheres to the General Planning Law No. 18 of 2022 and the Unified Public Finance Law No. 6 of 2022, with the state's general budget being prepared based on the medium-term budget framework (covering the fiscal year and the following three fiscal years). The goal is to integrate inclusive growth and sustainability standards, ensuring effective public spending for comprehensive and balanced development that meets the long-term national planning objectives and the state's medium and short-term priorities.

Additionally, the Minister of Planning addressed questions from editors-in-chief and journalists regarding the priorities for the upcoming phase. She emphasized the ongoing efforts to restructure the National Investment Bank to maximize its developmental role, resolve financial entanglements with other national entities, and mentioned the completion of debt settlements with the National Bank of Egypt, as well as the ongoing settlement process with the Egyptian Postal Authority.

Efforts to Restructure the Global Financial System

Al-Mashat highlighted Egypt’s strong partnerships with international financial institutions and multilateral development banks, emphasizing that global development and overcoming the challenges faced by emerging markets cannot be achieved without restructuring the global financial system. In light of Egypt's strong international relations and the Ministry's efforts to enhance economic diplomacy, Egypt actively contributes to international forums to advance comprehensive dialogue aimed at expanding innovative financing mechanisms and restructuring the global financial system.

Ministerial Group for Entrepreneurship

Dr. Al-Mashat also discussed the efforts being made to support Egypt's knowledge-based economy by fostering entrepreneurship and startup communities. The Ministerial Group for Entrepreneurship adopts an integrated and comprehensive approach to supporting Egyptian youth in the field of entrepreneurship. The primary goal of establishing the Ministerial Group for Entrepreneurship is to enhance the capacity of startups and the entrepreneurial ecosystem to achieve sustainable and accelerated economic growth based on competitiveness and knowledge, contributing to the creation of decent job opportunities.

Under the organizational framework of the Ministerial Group for Entrepreneurship, the group works through its technical secretariat and four working groups to discuss a series of tax and financial incentives aimed at supporting the entrepreneurial environment and attracting more foreign investments. Discussions focus on mechanisms to activate incentives that encourage large companies to invest in startups and foster partnerships between the two sectors. Various stakeholders participate in these discussions to formulate incentives that will bring the greatest benefits to the startup community.

The Presidential Initiative "Decent Life" (Haya Karima)

The Minister also highlighted the Presidential Initiative for the Development of Egyptian Rural Areas, "Decent Life." This comprehensive development initiative aims to make a qualitative shift in the lives of millions of Egyptians. It is the largest initiative in Egypt's history and the world in terms of financing value and the number of beneficiaries. The initiative covers all the SDGs and seeks to improve the living conditions of rural inhabitants by enhancing the quality of human development services, providing social protection and care, improving infrastructure and urban services, and driving development through increased job opportunities by stimulating investment and offering subsidized financing for small projects. These efforts contribute to the national goals of achieving balanced regional development and implementing Egypt's Vision 2030.

In the first phase of the project alone, approximately 18 million people benefited, residing in about 1,500 villages, 68% of whom live in Upper Egypt. The total cost for this phase exceeds 350 billion Egyptian pounds, with a total of 23,000 projects. Nearly 17,000 projects (86% completion rate) were completed in the first phase, with the development of 100 villages at a cost of 21 billion pounds, benefiting a total of 1.2 million individuals. This contributed to a significant improvement in the "availability of basic services" index, which rose by around 69 percentage points.

Joint Committees

Al-Mashat highlighted that the Ministry oversees 54 joint committees, which serve as a platform for fostering economic development cooperation, South-South cooperation, and economic opportunities with other countries. She noted that in 2024, several joint committees were held, including with Tajikistan and Poland. Additionally, preparations are underway for upcoming joint and high-level committees with countries such as Hungary, Armenia, and others. These efforts aim to strengthen international partnerships and enhance bilateral economic collaboration.