Egypt has entered what officials are calling a decisive phase in its economic recovery, unveiling a comprehensive development blueprint for fiscal year 2025/2026 that aims to reinforce macroeconomic stability, stimulate private-sector investment, and accelerate human capital development.
In a keynote address before the Egyptian Senate, Dr. Rania Al-Mashat, Minister of Planning, outlined the key pillars of the national economic and social development plan. The strategy, she noted, is a direct outcome of economic correction measures launched in March 2024—a turning point in Egypt’s efforts to break out of a prolonged cycle of financial volatility.
“We have begun a structured and synchronized process of economic rebalancing,” Al-Mashat told lawmakers. “It reflects a new era of fiscal and monetary coordination, enhanced investment governance, and targeted reforms to unlock Egypt’s vast potential.”
Growth Signals Amid Global Headwinds
According to the minister, the positive impact of reform is already visible: economic growth reached 3.5% in Q1 and 4.3% in Q2 of FY2024/2025, driven by robust performance in non-oil manufacturing, a strong rebound in tourism, and continued expansion in ICT sectors.
Despite ongoing geopolitical tensions and disruptions in Suez Canal revenues, the government forecasts a 4% overall growth rate for the current fiscal year—signaling resilience in the face of global economic shocks.
A Strategic, Balanced Roadmap
The FY2025/2026 plan, she emphasized, is anchored in a balanced, crisis-resilient approach. It aims to accelerate inclusive and sustainable development across economic, social, and environmental dimensions, while enhancing Egypt’s attractiveness as a destination for foreign investment.
Key features of the plan include:
- EGP 700 billion in total investment targeting human development sectors such as education, healthcare, and social services—a 56% increase year-over-year.
- A renewed focus on local industrialization, with priority given to innovation-driven and tech-enabled industries.
- Continued implementation of Egypt’s National Structural Reform Program, with an emphasis on expanding the role of the private sector and transitioning to a green, knowledge-based economy.
A New Framework for Sustainable Finance
This plan marks the first to be developed under the Ministry’s newly unified structure, which integrates economic planning with international cooperation. It aligns with the ministry’s broader strategic vision: “Sustainability and Finance for Economic Development.”
The framework synchronizes national and sectoral development plans with available domestic and international financing instruments, ensuring that resource allocation is both effective and future-proof.
Al-Mashat explained that the document is structured within a medium-term budgetary framework (2025–2029), in accordance with Egypt’s Planning Law No. 18 (2022) and Unified Public Finance Law No. 6 (2022). The participatory design process, she noted, involved collaboration with various ministries, private stakeholders, and development partners.
Unleashing Private Sector Potential
One of the plan’s cornerstone goals is to further liberalize and energize Egypt’s private sector. To this end, the government is introducing investment incentives, easing bureaucratic barriers, and negotiating concessional financing with international development institutions.
“We are committed to enabling the private sector to take the lead in driving growth,” Al-Mashat affirmed, highlighting initiatives to lower transaction costs and enhance access to funding.
Through its partnerships with global financial institutions, Egypt aims to channel low-cost capital to entrepreneurs and investors in strategic sectors—especially those aligned with sustainable development goals and green transition priorities.
Education, Health, and Innovation as Growth Engines
The FY2025/2026 development plan allocates nearly EGP 327 billion in public investment for education, healthcare, and scientific research—accounting for over 28% of total public spending.
This emphasis on human capital is central to Egypt’s strategy to “build the Egyptian citizen,” one of the state’s flagship strategic objectives.
Innovation and entrepreneurship are also receiving targeted attention. The government will expand initiatives under its National Entrepreneurship Council, aiming to cultivate a competitive, tech-savvy ecosystem that can generate productive employment and export-ready enterprises.
Dr. Al-Mashat concluded her Senate presentation by emphasizing the plan’s vision to transition Egypt toward a resilient, inclusive economy, fueled by local value-added production and global competitiveness.
