El-Sisi pushes for bold reforms to boost investment and economic resilience

President Abdel-Fattah El-Sisi has directed the Egyptian government to intensify efforts aimed at attracting more foreign direct investment (FDI), enhancing the role of the private sector, and ensuring energy stability ahead of the summer season. The directives came during two separate high-level meetings this week with Prime Minister Mostafa Madbouly and other top officials.

Strengthening the investment climate

During a meeting with the prime minister and Central Bank Governor Hassan Abdallah, El-Sisi emphasized the importance of creating a favorable environment for foreign investors. He called for the development of a comprehensive legislative and regulatory framework that supports economic growth, encourages private enterprise, and strengthens financial and monetary policy reforms. The president also highlighted the need for targeted incentives that make Egypt more competitive on the global investment stage.

Empowering the private sector

The discussions included strategies to empower the private sector as a key engine of economic growth. El-Sisi stressed the importance of integrating private businesses into national development plans, aiming to diversify the economy, boost job creation, and improve GDP growth. Officials reviewed the performance of macroeconomic indicators and reaffirmed their commitment to reducing inflation and strengthening foreign currency reserves.

Positive signs of economic recovery

Prime Minister Madbouly reported encouraging economic data, citing a 3.9 percent GDP growth rate in the first half of FY2024/2025 and a significant drop in inflation to 13.9 percent in April, compared to over 37 percent during the same period the previous year. He also noted an 80 percent increase in private sector investments and a 17 percent rise in foreign direct investment between July and December 2024. Non-oil exports grew by 33 percent during the first nine months of the fiscal year.

Fiscal reforms and IMF collaboration

Egypt is continuing its reform agenda under the $8 billion IMF Extended Fund Facility. The government aims to reduce the debt-to-GDP ratio to 85 percent by June 2025, down from 96 percent in 2023, while also narrowing the budget deficit from 6.7 to 6.5 percent. These efforts were positively received by the visiting IMF delegation, which credited the government’s decisions for the progress seen in stabilizing the economy.

Ensuring energy stability ahead of summer

In a separate meeting with the prime minister and Minister of Petroleum and Mineral Resources Karim Badawi, President El-Sisi directed swift action to ensure uninterrupted electricity supply during the upcoming summer. He ordered preemptive measures to maintain grid reliability and meet the growing seasonal demand for power.

Accountability for fuel quality issues

El-Sisi also addressed the recent controversy surrounding substandard gasoline, instructing officials to hold those responsible accountable. Minister Badawi confirmed that the issue had been quickly contained, with legal and administrative steps already underway.

Focus on energy sector investment

The meeting also explored opportunities to expand regional cooperation in oil and gas, settle outstanding payments to international energy companies, and resolve barriers facing investors. Discussions included proposed amendments to the Egyptian General Petroleum Corporation Law, as part of broader efforts to revitalize the energy and mining sectors.