Minister of Planning, Economic Development, and International Cooperation reviews with the IMF mission macroeconomic indicators, the formulation and implementation of the national structural reform program, and external financing to bridge the funding gap

Al-Mashat:

 

Economic growth is improving, driven by non-oil manufacturing industries, tourism, communications, and technology, supported by the corrective measures of March 2024.

 

Strict implementation of public investment governance to maintain macroeconomic stability and create space for the private sector.

 

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, held a meeting with the International Monetary Fund (IMF) mission, headed by Ms. Ivanna Vladkova Hollar. The meeting reviewed macroeconomic indicators, the formulation and implementation of the national structural reform program, and external financing to bridge the funding gap.

 

The meeting touched on developments in the Egyptian economy across various areas, measures to enhance the path of economic growth by shifting toward tradable and export-oriented sectors, as well as steps taken by the state to promote private sector participation in leading development efforts, and governance of public investments to preserve macroeconomic stability and expand the private sector's role.

 

At the beginning of the meeting, H.E. Minister Al-Mashat highlighted that the Egyptian economy has regained momentum since the implementation of economic reform measures in March 2024. Prior to that, the economy faced significant challenges, but since the last quarter of the previous fiscal year, growth has rebounded, recording 2.4%, then 3.5%, and 4.3% in the first and second quarters of the current fiscal year, respectively.

 

H.E. Dr. Al-Mashat added that indicators show not only improved figures but also improved quality of growth, with non-oil manufacturing leading the growth during the recent period, along with the communications and information technology, tourism, transportation, and storage sectors—despite the negative impact of geopolitical tensions on Suez Canal activities, which saw a significant decline recently.

 

H.E. Minister Al-Mashat mentioned the strategic transformation of the Egyptian economy, which the government is pursuing to focus on tradable, export-oriented sectors and value-added goods, along with implementing structural reforms aimed at fiscal discipline and reducing public debt, and encouraging foreign direct investment.

 

H.E. Minister Al-Mashat also underscored the cooperation with international development partners to mobilize budget support financing for the implementation of comprehensive structural reforms in Egypt’s economy—particularly regarding the macroeconomic support mechanism and budget deficit support with the European Union. A comprehensive package of dozens of measures is currently being implemented to enhance macroeconomic stability, improve the business and investment climate, and promote the green economy transition. The second phase aims to unlock about €4 billion in budgetary support.

 

H.E. Dr. Al-Mashat stated: “Our relationship with international partners is not limited to budget support. The private sector also benefits significantly through direct and indirect investments and credit lines that promote growth and job creation. Development financing to the private sector has exceeded $14.5 billion in the past five years. The Ministry continues to strengthen partnerships with international institutions to provide additional financing tools.”

 

H.E. Minister Al-Mashat reviewed the implementation of the country platform for the "NWFE" (Nexus of Water, Food, and Energy) program, particularly in the energy pillar, which succeeded in attracting $3.9 billion in concessional financing for private sector renewable energy projects over two years, with a capacity of 4.2 GW. The Ministry aims to increase financing to $10 billion to implement renewable energy projects with a total capacity of 10 GW, raising Egypt’s share of renewable energy to 42% by 2030.

Additionally, H.E. Dr. Al-Mashat outlined the Ministry’s debt swap programs with international partners, which are not only tools for alleviating debt burdens but also for driving growth, employment, and achieving sustainable economic development. Egypt is implementing key programs in this regard with Italy and Germany and previously signed an MoU with China.

Minister of Planning, Economic Development, and International Cooperation reviews with the IMF mission macroeconomic indicators, the formulation and implementation of the national structural reform program, and external financing to bridge the funding gap