Private sector overtakes state in Egypt’s investment drive

Egypt has entered a new investment phase as private capital outpaced public spending for the first time in five years, official figures for FY2024/2025 revealed.

The Ministry of Planning, Economic Development, and International Cooperation reported that private investment climbed to LE 590.7 billion, up from LE 474.7 billion a year earlier, lifting its share to 47.5 percent of total executed investments. By contrast, public investment fell to LE 526.6 billion, down from LE 627.5 billion, reducing its share to 43.3 percent.

Planning Minister Rania Al-Mashat said the figures highlight the success of reforms aimed at easing the state’s financial burden and enabling the private sector to play a larger role in growth. “The government is creating room for private investors while focusing public funds on projects of strategic importance,” she explained.

The data coincides with stronger private sector credit growth. In February 2025, lending to businesses surged 19.9 percent year-on-year as inflation cooled, before moderating to 7.03 percent in June, still well above the 2.24 percent growth recorded in June 2024. Nearly half of private sector credit facilities in February went to industry, reflecting efforts to boost production and exports.

Egypt’s long-term strategy under Egypt's Narrative of Economic Development envisions raising the private sector’s share of total investment to 66 percent by 2030. The government argues that deeper private sector participation is vital for job creation, competitiveness, and improved living standards.

According to the Ministry, the changing investment balance demonstrates progress toward a new growth model, one that positions the private sector as the engine of sustainable development, backed by modern infrastructure and a redefined role for the state.