Egypt’s Minister of Planning and Economic Development, Dr. Rania Al-Mashat, presented the outcomes of the National Structural Reform Program during a meeting with members of the Economic Affairs Committee in Egypt’s House of Representatives. Chaired by Representative Mohamed Suleiman, this meeting highlighted the government’s ongoing efforts to create a more robust and competitive economic environment, with a particular focus on private sector involvement, fiscal discipline, and green economic transition.
Stabilizing the Macro-Economy and Enhancing the Business Environment
The National Structural Reform Program is a cornerstone of Egypt’s broader strategy to stabilize the macroeconomy and foster a more business-friendly environment. Minister Al-Mashat emphasized that the program aims to transform Egypt’s economic structure from reliance on consumption-driven sectors to a greater focus on exportable and tradable industries. “Our goal is to shift Egypt’s economy from a consumer-based model to a production-driven one,” she said, underlining the importance of developing sectors that can contribute to export growth and enhance national competitiveness.
The program, which is designed to reinforce the stability of the macroeconomy, has already shown promising results. The country achieved a 4.3% growth rate in the second quarter of the current fiscal year, largely driven by strong performance in non-petroleum manufacturing industries, as well as notable growth in exports. Additionally, key sectors such as telecommunications, IT, transportation, and agriculture have demonstrated solid growth, reinforcing Egypt’s transition towards a more diversified and resilient economy.
Private Sector: The Driving Force for Economic Growth
A major theme of the meeting was the growing importance of the private sector in driving Egypt’s economic growth. The Minister highlighted that private sector investments now account for over 53% of total investments in the first half of the current fiscal year, signaling a shift toward greater private sector participation. Public investments, on the other hand, decreased by 25.7%, while private sector investments surged by 35.4%, reflecting a shift toward market-driven growth.
The government is also focusing on improving the governance of public investments, with a clear objective to create more room for private sector involvement. “Our focus on governance, transparency, and fiscal discipline is key to fostering a competitive environment that attracts both local and foreign investments,” said Al-Mashat.
Green Transition: A Growing Opportunity for Egypt’s Economy
In addition to strengthening the macroeconomic framework, the government is placing a strong emphasis on green economic growth. Minister Al-Mashat underscored the role of green investments in fostering long-term economic sustainability. “The green transition is an essential pillar of our economic future,” she explained, highlighting how Egypt is leveraging its position as a regional hub for energy and logistics, as well as its growing expertise in renewable energy.
Green investments, such as renewable energy projects, sustainable infrastructure, and clean technologies, are not only helping to mitigate environmental challenges but also attracting substantial private sector investments. Furthermore, the government is diversifying green financing tools, including green bonds and debt-for-climate swaps, to further accelerate this transition.
Structural Reforms: Enhancing Competitiveness and Business Environment
The Minister highlighted that achieving macroeconomic stability alone is not enough. Structural reforms are essential to ensure that Egypt’s economy remains competitive and adaptable to regional and global challenges. The government is committed to implementing 147 structural reforms in the coming period, focusing on key areas such as simplifying tax policies, enhancing regulatory frameworks, and improving market competition.
These reforms aim to create a more transparent and efficient investment climate, improve the ease of doing business, and ensure that the private sector plays a leading role in Egypt’s economic development. Key reforms will include tax simplification, digitalization of services, and the promotion of fair competition through regulatory enhancements.
Financing for Development: A Comprehensive Strategy
Minister Al-Mashat also discussed Egypt’s comprehensive strategy for financing sustainable development, which aims to mobilize resources in line with the country’s Vision 2030 and the UN’s Sustainable Development Goals (SDGs). The strategy seeks to identify financing gaps and optimize resource allocation to priority sectors. This will enable Egypt to address pressing economic, social, and environmental challenges while attracting more private sector investments.
A noteworthy development was the rise in development financing for the private sector, which exceeded government financing for the first time, totaling $14.5 billion from 2020 to 2024. This surge in private sector financing is attributed to a range of mechanisms, including credit lines, direct investments, and technical support, all of which are made available through platforms like the “Hafiz” initiative.
Egypt as a Regional Hub for Green Investment
Al-Mashat also emphasized Egypt’s growing role as a regional center for green economic activities. Through reforms in environmental regulations and the diversification of green financing tools, such as climate-linked debt swaps and green bonds, Egypt is positioning itself as a leading destination for sustainable investments.
“By attracting green investments, we are not only contributing to global climate goals but also creating new economic opportunities for the private sector,” Al-Mashat remarked.
Roadmap for Long-Term Growth and Stability
The National Structural Reform Program represents a critical step toward transforming Egypt’s economy into one that is more diversified, competitive, and sustainable. By focusing on stabilizing the macroeconomy, enhancing the business environment, and promoting green growth, the Egyptian government is laying the groundwork for long-term economic prosperity.
With 147 structural reforms set to be implemented in the coming months, Egypt is on track to achieve its economic goals. These reforms, along with a stronger focus on private sector participation and green investment, will ensure that the country remains resilient in the face of global economic challenges. As Egypt continues to push forward with its reform agenda, it is clear that the path to sustainable economic growth is within reach.
