In a move designed to boost the efficiency and transparency of local government investments, Egypt’s Ministry of Planning, Economic Development, and International Cooperation announced the results of its “Incentives for Excellence in Managing Public Investment at the Local Level” initiative for the fiscal year 2024/2025. Eight governorates, including Beni Suef, Aswan, Menoufia, Sharqia, Giza, Alexandria, Qena, and the Red Sea, have been awarded EGP 300 million in performance incentives, as part of a broader effort to enhance local governance and align with national development goals.
The initiative, which included the participation of 22 governorates, is designed to strengthen the role of public investment in achieving Egypt’s sustainable development objectives. Minister of Planning, Dr. Rania El-Mashat, emphasized that the program aims to improve the effectiveness of public spending at the local level, encourage best international practices, and foster transparency and accountability in the allocation of government investments.
“This initiative is a key component in advancing Egypt’s Vision 2030, aligning local development projects with national goals and sustainable growth,” Dr. El-Mashat said. “By incentivizing governorates to improve their planning, implementation, and monitoring processes, we aim to ensure that investments truly benefit citizens and contribute to their communities’ prosperity.”
The initiative focuses on a set of 26 specific conditions across 8 key performance areas. These criteria include encouraging participatory planning where local governments involve citizens in creating investment plans that reflect their priorities. Governorates are also required to conduct feasibility studies for investment projects to ensure better efficiency, while monitoring mechanisms track the implementation of investment plans to evaluate results and ensure that local services improve.
Other aspects of the initiative focus on increasing transparency, providing training and capacity-building for local government employees, greening investment plans by integrating environmental considerations, and promoting self-sufficiency through resource development at the local level.
This program marks a significant step towards decentralizing economic development and empowering local communities to manage and allocate public resources more effectively. Governorates are encouraged to apply international best practices in areas such as planning, monitoring, and performance evaluation, which further aligns with Egypt’s broader development strategy under Egypt Vision 2030.
The selected governorates will use the performance incentives to continue improving local services, which are seen as vital to boosting the standard of living for citizens. The initiative is also aligned with the recently enacted State General Planning Law, which seeks to create a more transparent, accountable, and effective public investment system across the nation.
As the program continues to unfold, the hope is that it will serve as a model for more robust governance structures and help Egypt move toward its broader economic and sustainable development goals.
