MEMPHIS REISEN

Private sector investments reach 40% of total: Egypt’s Planning Minister – Dailynewsegypt

Egypt’s private sector investment share has risen to 40% in the current fiscal year, and the government aims to increase this to 50% in the next fiscal year, according to Planning and Economic Development Minister Hala El Said. This was announced during her participation in the “Public Sector Meets Private Sector: Unleashing Sustainable Investment in Egypt” session at the IFC Day in Egypt conference.

El Said also highlighted the private sector’s increased contribution to the gross domestic product (GDP), reaching 71% this year, and its 80% share in employment. She emphasised the private sector’s crucial role as a driver of sustainable development and a major source of employment in the country.

“Egypt’s Vision 2030 and its updated version rely on developing Egypt’s economy towards a diverse knowledge based society through on a conducive and encouraging work environment,” El Said explained. “The private sector is a key player in this context.”

The minister outlined Egypt’s structural reform plan, launched in late 2021, which aims to strengthen the private sector’s role in building the country’s future. This plan focuses on several key areas, including modernising the labour market to meet the demands of the modern economy and cater to Egypt’s large youth population.

El Said detailed the two phases of reforms implemented in Egypt. The first phase, initiated in 2016, focused on financial and monetary interventions and strategic infrastructure investments. The second phase shifted towards enhancing the real economy and boosting the private sector’s role.

“To further enhance the dynamics of the private sector, the state has implemented a set of measures ranging from simplifying procedures in investment laws to formulating a state-owned property policy,” El Said noted. She also highlighted the restructuring of the public-private partnership framework and the establishment of the Egyptian Sovereign Fund, which has attracted private investments in various sectors such as financial technology, infrastructure, and green initiatives.

El Said concluded by affirming the state’s commitment to enhancing a dynamic economic system with the private sector at its core. “The journey towards development requires continuous efforts, collaboration, and effective coordination among all stakeholders, both domestically and internationally,” she stated.