Egypt's private sector to drive country’s economic recovery in 2024: Finance minister

Maait expected that the Egyptian economy would significantly improve in the upcoming fiscal year 2024/2025.

“These projections stem from the private sector's pivotal role in supporting economic growth and the government's concerted efforts to create a favourable environment for both local and foreign private investments,” he added.

Maait's statements align with the government's plan to promote the private sector's participation and increase its contribution to the national economy from the current 30 percent to 65 percent in the coming years.

The government has taken substantial measures in recent months to bolster private entrepreneurship, ensuring equitable treatment between public and private sectors while enhancing the overall investment climate in the country.

Egypt has already secured $2.1 billion in concessional financing for the private sector from international partners since the beginning of 2023, Minister of International Cooperation Rania Al-Mashat said in August.

Additionally, the Public-Private Partnerships (PPP) Committee has approved partnerships between four state-owned development projects and the private sector, along with 17 other infrastructure projects offered for PPPs.

Furthermore, the government launched its Initial Public Offering (IPO) programme, intending to offer 35 state-owned companies to strategic investors by the end of June 2024, as outlined in the State Ownership Policy Document.

A list of 32 companies was initially released in February, with three additional companies, namely Eastern Company, Al Ezz Dekheila, and Telecom Egypt, being added later in 2023.

Boosting exports
 

To attract more investments and bolster the role of the private sector, the Egyptian government has implemented various incentives to support production expansion and exports, according to Maait.

The country aims to enhance its exports, thereby attracting more foreign currency, which has been in short supply since the outbreak of the Russia-Ukraine war.

Egypt's exports increased by 19.4 percent in 2022, reaching $52.1 billion, up from $43.6 billion in 2021, as reported by the Central Agency for Public Mobilization and Statistics (CAPMAS).

In line with its ambitious goals, Egypt has set a target to achieve a total annual export value of $100 billion by 2030.