Dr. Rania Al-Mashat: The new plan aims to increase total investments to EGP 3.5 trillion for the first time, compared to the expected investments for 2024/2025 amounting to around EGP 2.6 trillion

H.E. Dr. Rania A. Al-Mashat Presents Economic and Social Development Plan for 2025/2026 at the general session of the Senate today

 

Dr. Rania Al-Mashat: The new plan aims to increase total investments to EGP 3.5 trillion for the first time, compared to the expected investments for 2024/2025 amounting to around EGP 2.6 trillion.

The continued rise in the investment rate to reach 17.1% of GDP in 2025/2026, compared to lower rates in the previous two years.

The expectation of an increase in private investments to reach around EGP 1.94 trillion, representing 63% of total investments compared to 37% for public investments.

Public investments allocated to local development amount to EGP 28 billion in 2025/2026, including EGP 24.3 billion for the governorates, 35% of which is allocated to Upper Egypt governorates.

An allocation of EGP 25 billion in the plan for the upcoming fiscal year to continue implementing the second phase of the presidential initiative “Hayah Karima.”

The plan aims to increase the percentage of green investment projects to about 55% of total public investments.

The continued application of the investment spending cap to allow for broader private sector participation in development efforts.

The continued inclusion of the environmental dimension in the planning system and the implementation of the Environmental Sustainability Standards Guide to increase the percentage of green projects in the plan.

 

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, presented the targets of the Economic and Social Development Plan for the fiscal year 2025/2026 during the general session of the Senate held today—Sunday—under the chairmanship of H.E. Counselor Abdel Wahab Abdel Razeq, Speaker of the Senate, and in the presence of honorable members of the council.

 

 

Expected Growth Rate

 

In her speech, H.E. Dr. Al-Mashat stated that the 2025/2026 plan aims to achieve an economic growth rate of around 4.5%, which is relatively high compared to the modest rate of 2.4% recorded in 2023/2024. She added that targeting this rate reflects a direction toward continuing recovery from its repercussions, while at the same time closely monitoring the implications of geopolitical and economic developments in the Middle East and the world, along with the uncertainty they impose.

H.E. Dr. Al-Mashat highlighted that the three sources of economic growth (final consumption – investment – change in net exports) are estimated to contribute positively and in a balanced manner to achieving the targeted growth rate of 4.5%, as previously mentioned. Final consumption expenditure is expected to contribute about 27%, investment expenditure 37%, and the net change in exports 36%.

 

Total Investments

 

On the investment front, Al-Mashat stated that the new plan aims to increase the total targeted investments in the plan to approximately EGP 3.5 trillion for the first time, compared to the expected investments for 2024/2025 amounting to about EGP 2.6 trillion, and the actual investments for 2023/2024, which were estimated at EGP 1.8 trillion. This reflects the state's conviction in the vital role of investment as a key driver of economic growth.

She noted the continued rise in the investment rate, projected to reach 17.1% of GDP in 2025/2026, compared to lower rates in the previous two years (15% in 2024/2025 and 13% in 2023/2024).

She pointed to the expected increase in private investments, which are projected to reach about EGP 1.94 trillion, representing approximately 63% of the total, versus 37% for public investments. This comes in line with the state’s direction to support efforts aimed at accelerating the growth pace of the private sector, while upholding the principles of good governance and competitive neutrality.

 

 

Cap on Public Investments

 

H.E. Minister Al-Mashat affirmed the commitment to the public investment cap, set at EGP 1.16 trillion in the 2025/2026 plan, compared to expected investments of around EGP 1 trillion in 2024/2025. This comes as part of efforts to rationalize public spending, reduce the debt burden resulting from servicing both domestic and external public debt, and open up wider opportunities for local private sector participation in development efforts.

She pointed out that the 2025/2026 plan is keen on continuing to enhance the efficiency of public investment—both in the planning and resource allocation stages, and in the implementation monitoring and performance evaluation stages—by emphasizing the importance of adhering to proposed mechanisms for improving and enhancing public investment efficiency, with a focus on prioritizing completion projects and intensifying field follow-ups.

On another note, the plan emphasizes ensuring the availability of the necessary financial allocations to improve citizen services across various governorates, in a manner that promotes equitable distribution of investments.

Public investments allocated to local development amount to EGP 28 billion in the plan year (2025/2026), including EGP 24.3 billion for the governorates. The regional distribution of local investments considered directing about 35% of the total to Upper Egypt governorates, in an effort to reduce development gap disparities across the republic’s governorates.

Al-Mashat added that, as an incentive for governorates to improve performance levels, the Ministry of Planning, Economic Development, and International Cooperation will continue implementing the "Performance Excellence Incentives Initiative" in managing local-level investments, and will distribute awards to the governorates that apply international best practices in planning, monitoring, and performance evaluation.

 

Presidential Initiative “Hayah Karima” to Enter Second Phase

 

The 2025/2026 plan aims to continue the implementation of the second phase of the presidential initiative Hayah Karima(Decent Life). This phase covers 20 governorates, encompassing 52 centers and a total of 1,667 villages inhabited by 21.3 million citizens. The plan allocates EGP 25 billion to begin implementing the targets of this second phase, particularly in the areas of drinking water and sanitation.

 

Transition to a Green Economy

 

In the area of environmental improvement and the transition to a green economy, Dr. Rania Al-Mashat explained that the Ministry is working to enhance green investments and support sustainable infrastructure within the framework of the state’s efforts to shift toward a green economy. This is being achieved by continuing to integrate the environmental dimension into the planning system and implementing the "Environmental Sustainability Standards Guide." According to these standards, the target is to increase the percentage of green investment projects included in the investment plan for the fiscal year 2025/2026 to approximately 55% of total public investments, compared to 50% in the current year (2024/2025).