During her meeting with the Senate’s Financial, Economic, and Investment Affairs Committee, Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, reviewed the Ministry’s report on the performance of Egypt’s economic and social plan for the 2024/2023 fiscal year, as well as preparations for the upcoming fiscal year’s plan. Dr. Al-Mashat also discussed key economic developments and investment strategies moving forward.
Dr. Rania Al-Mashat: Economic Growth and Development Outlook
In her presentation, Dr. Al-Mashat stated that the government is targeting steady growth in the country’s economy. She noted that the Egyptian economy had been impacted by global and geopolitical challenges, resulting in a slowdown in GDP growth during the 2023/2024 fiscal year. Nevertheless, she highlighted the positive aspects of the economy, including ongoing recovery signs in various sectors, including non-petroleum manufacturing and production.
Dr. Al-Mashat also emphasized Egypt’s long-term commitment to transforming the economic structure, focusing on tradable sectors to boost manufacturing and exports. “Our goal is to transition towards more export-oriented industries to create sustainable growth, benefiting both the economy and employment,” she explained.
Investment Performance and Government Initiatives in FY 2024/2023
Dr. Al-Mashat provided insights into the government’s progress on its economic and social development plan for FY 2024/2023, highlighting key investment figures. She reported that total executed investments for the fiscal year amounted to EGP 1.626 trillion, marking a growth rate of 5.8% compared to the previous fiscal year. This represents approximately 98.5% of the targeted EGP 1.65 trillion. Public investment reached EGP 926 billion, achieving a growth rate of 6.3% and accounting for 57% of total investments, slightly under the target of 64%.
She noted that the plan for the previous year focused on human development projects, including health and education, in line with Egypt’s Vision 2030. Moreover, the government prioritized projects that had reached over 70% implementation, while also excluding new projects that had not yet begun, encouraging the participation of the private sector through the State Ownership Policy Document.
Continued Recovery of Egypt’s GDP Growth
Dr. Al-Mashat shared optimistic indicators for Egypt’s GDP growth, with Q1 2024/2023 showing a 3.5% growth rate, primarily driven by the non-petroleum manufacturing and productive sectors. She projected further growth in Q2, supported by the government’s focus on improving governance and investment policies, particularly in the public sector. “We are committed to continuing these efforts to improve Egypt’s investment climate and to ensure that the private sector plays a key role in the country’s economic development,” she said.
New Methodology for Preparing the Economic and Social Development Plan
In preparation for the 2026/2025 fiscal year plan, Dr. Al-Mashat explained a new methodology being adopted by the Ministry to prioritize public investments that align with Egypt’s sustainable development goals. The approach focuses on the development of sector-specific strategies, ensuring that each ministry plays an active role in the country’s long-term vision, particularly in achieving the updated “Egypt Vision 2030.”
Starting in FY 2027/2026, the Ministry plans to shift from preparing annual plans to preparing three-year plans, in line with the Unified Public Finance Law. This change will allow for greater long-term planning and more efficient implementation of key projects.
Sustainability and Financing for Economic Development
Dr. Al-Mashat also addressed the Ministry’s integrated sustainability and financing framework aimed at bridging Egypt’s development gaps. She stressed that qualitative growth would be at the forefront of government priorities, focusing on equitable distribution, sustainability, and human development. The Ministry’s strategy aims to improve the macroeconomic environment, promote structural reforms, and optimize resource allocation, while stimulating private-sector investments.
The Ministry’s approach to financing sustainable development also emphasizes cooperation with various stakeholders and partners to close financing gaps and reduce future financial risks. Priority sectors for financing include social protection, education, health, sanitation, climate change, women’s empowerment, and transportation.
Key Projects: “Haya Karima” and “National Family Development Program”
Dr. Al-Mashat also reviewed the progress of major national initiatives, such as the first phase of the “Haya Karima” project, which is set to allocate EGP 350 billion to fund over 23,000 projects across 1477 villages in 52 districts, benefiting 18 million citizens. She emphasized that the development of Upper Egypt will receive the largest share, with 68% of the funding directed toward the region.
The “National Family Development Program” was also highlighted, with Dr. Al-Mashat noting that 28 million citizens (90% women) have benefited from its services, which include financial literacy training, job creation, and health and childcare support.
Structural Reforms and Entrepreneurship Initiatives
Dr. Al-Mashat discussed the government’s structural reforms under the “National Structural Reform Program” launched in 2021. She outlined three key pillars: strengthening macroeconomic stability, boosting competitiveness, and promoting green transition. The program includes a range of policies designed to diversify Egypt’s economic structure and foster a more competitive business environment.
Furthermore, the Ministry continues to support entrepreneurship through the “Ministerial Entrepreneurship Group,” which aims to enhance the startup ecosystem and create a sustainable and competitive environment for entrepreneurs. The group’s efforts focus on improving access to financing, fostering innovation, and integrating local talent into global markets. The Ministry’s strategic focus on governance, investment, and structural reforms will be key to achieving Egypt’s long-term development goals.
