Egypt’s Minister of Planning, Dr. Rania Al-Mashat, took center stage at the International Monetary Fund’s (IMF) inaugural research conference for the Middle East and North Africa, held in Cairo in collaboration with the American University’s Onsi Sawiris School of Business. Titled “Navigating Macroeconomic and Structural Policies in a Changing Global Economic Landscape,” the conference convened global experts, academics, central bank governors, and key figures, including Nigel Clarke, IMF Deputy Managing Director, and Jihad Azour, Director of the IMF’s Middle East and Central Asia Department.
New Economic Model for Egypt
Dr. Al-Mashat outlined Egypt’s ambitious plan to transform its economic model, emphasizing a shift toward tradable and export-oriented sectors to drive sustainable growth and job creation. “Since March 2024, the government has pursued a qualitative shift in our economic framework to shield it from internal and external shocks,” she stated, highlighting the need for cohesive fiscal and monetary policies to enhance economic resilience.
The minister announced the upcoming launch of Egypt’s National Narrative for Economic Development next month, a strategic framework designed to align with Egypt’s Vision 2030 and adapt to evolving regional and global dynamics. This narrative will prioritize sectors with high growth and employment potential, bolstered by comprehensive macroeconomic policies, foreign direct investment incentives, and strategies to localize industries and promote green economic transitions.
Structural Reforms and Private Sector Empowerment
Egypt’s decade-long investment in infrastructure—ports, electricity networks, and roads—has laid the foundation for this economic transformation, Al-Mashat noted. These developments have created an enabling environment for private sector investment, a cornerstone of Egypt’s new economic model. “The government is reducing public investment to make room for the private sector,” she said, pointing to the manufacturing sector’s growing contribution to GDP and a notable rise in Egyptian exports, driven by a flexible exchange rate system.[](https://www.elaosboa.com/2239031/)
The minister underscored the government’s commitment to structural reforms to ensure macroeconomic stability and improve the business environment. These reforms, supported by coordinated efforts among Egypt’s economic ministerial group, aim to enhance competitiveness and attract investment. The IMF’s periodic reports have endorsed Egypt’s approach, emphasizing the importance of fiscal and monetary policy alignment to foster a stable and investor-friendly economy.
Leveraging International Partnerships
Al-Mashat highlighted Egypt’s strengthened ties with international financial institutions, which have facilitated $15 billion in concessional financing for the private sector over the past five years, including $4.2 billion in 2024 despite regional geopolitical challenges. These funds have reduced financing costs and risks, enabling private sector growth.[](https://www.elaosboa.com/2239031/)[](https://www.dostor.org/5076346)
The conference also featured prominent voices, including François Bourguignon, Honorary President of the Paris School of Economics; Barry Eichengreen, Professor of Economics and Political Science at the University of California; Martin Galstyan, Governor of the Central Bank of Armenia; Youssef Boutros Ghali, member of Egypt’s Specialized Council for Economic Development; and Dr. Mahmoud Mohieldin, UN Special Envoy for Financing the 2030 Sustainable Development Agenda. Their contributions underscored the global significance of Egypt’s economic reforms.
Despite global economic challenges, including sluggish growth and geopolitical tensions, Al-Mashat framed these headwinds as opportunities for Egypt to strengthen its position in global value chains. “The challenges present promising investment and industrial opportunities that can drive job creation and local production,” she said, emphasizing Egypt’s strategic focus on enhancing productivity and competitiveness.
The IMF conference, hosted in Cairo, marks a significant milestone in fostering knowledge-sharing and supporting regional development. As Egypt prepares to unveil its National Narrative for Economic Development, the country is poised to redefine its economic trajectory, leveraging infrastructure, private sector dynamism, and international partnerships to achieve sustainable and inclusive growth.
