Egypt targets 4.5% growth amid regional uncertainty
The Ministry of Planning, Economic Development, and International Cooperation (MOPEDIC) stated that growth in the first nine months of the current fiscal year has also improved, based on preliminary data.
Planning Minister Rania Al-Mashat presented the government’s economic and social development plan to address regional instability and economic challenges through structural reforms and targeted investment.
Public investment priorities
The new plan allocates EGP 1.158 trillion in public investment — up from about EGP 1 trillion in FY2024/25 — with a focus on human development sectors such as health, education, and public services, which will receive EGP 327 billion or 28 percent of the total.
Of this, EGP 219 billion will come directly from the state budget. Sectoral allocations include:
- EGP 85.6 billion for health
- EGP 63.4 billion for education
- EGP 178 billion for other social services
Rural development and Decent Life initiative
The government reaffirmed its support for the Haya Karima (Decent Life) programme, which targets rural development.
Phase one has received EGP 350 billion to serve 18 million people in 1,477 villages across 20 governorates.
Phase two includes EGP 25 billion for water, sewage, and utilities infrastructure and EGP 20 billion for expanding universal health insurance.
State ownership and public sector reform
The budget also reflects the government’s ongoing push to reduce its footprint in economic activities.
A new State Ownership Policy Law, approved by parliament, aims to increase private sector participation — part of a broader reform agenda endorsed by the Supreme Council for Investment.
A review is underway to restructure 59 economic authorities, with assessments to determine whether entities should be merged, dissolved, or reclassified. A high-level committee with technical support oversees the process.
Governance and investment efficiency
Al-Mashat said the government would continue to cap public investment to support macroeconomic stability and encourage foreign investment.
Efforts include training public bodies to manage investment data through a centralized digital platform covering 270 state-owned companies.
The government has also expanded the Adaa performance evaluation system, which now tracks 4,000 performance indicators across 36 ministries and public bodies.
The system allows for quarterly evaluations aligned with sustainable development and fiscal goals.
Land compensation and economic data
Funding for land compensation related to national projects has increased to EGP 16 billion for FY2024/25 and FY2025/26 — up from EGP 12.35 billion in the previous year.
Over EGP 3.4 billion of these funds will serve projects in Giza.
Egypt plans to launch a new economic census via the Central Agency for Public Mobilization and Statistics (CAPMAS) to improve policymaking and better understand the informal economy.
The census will map economic activity and the contribution of unregistered enterprises.