Egypt plans LE3.7TN investments under 2026/2027 development strategy

Ahmed Rostom, Minister of Planning and Economic Development, reviewed the targets of Egypt’s economic and social development plan for fiscal year 2026/2027, alongside the medium-term framework extending to 2029/2030, during a meeting of the House of Representatives’ Plan and Budget Committee chaired by Member of Parliament Mohamed Soliman.

Rostom stressed the importance of continued coordination with Parliament and its specialized committees to monitor the implementation of development plans and support national development goals. He reaffirmed the government’s commitment to President Abdel Fattah El-Sisi’s directives aimed at improving economic performance and raising living standards, while prioritizing national projects and the comprehensive health insurance program.

The minister said the Egyptian economy has demonstrated notable resilience despite regional and global challenges, noting that growth during the first half of the current fiscal year reached 5.3 percent. He added that the new plan targets growth ranging between 5.2 percent and 5.4 percent, with the rate expected to rise to 6.8 percent by the end of the medium-term framework.

Rostom explained that five main sectors are expected to account for 64 percent of targeted growth, led by manufacturing industries at 29 percent, followed by wholesale and retail trade at 11.3 percent, tourism at 9.3 percent, construction at 7.2 percent, and agriculture at 7 percent.

On investments, the plan aims to increase total investments to LE3.7 trillion, including LE1.5 trillion in public investments representing 41 percent, and LE2.2 trillion in private investments accounting for 59 percent. The government also targets raising the investment rate to 17 percent of GDP while strengthening the role of the private sector through governance of public investments and rationalization of spending.

The minister revealed that the medium-term plan seeks to raise the investment rate to 20 percent of GDP by 2029/2030, while increasing the share of private investments to 64 percent.

Regarding human development, Rostom noted a 25 percent increase in health sector allocations and the expansion of the comprehensive health insurance project. He also highlighted a 57 percent increase in social solidarity allocations, alongside an 11 percent rise in funding for both pre-university and higher education.

Rostom also warned of the impact of regional tensions on the global economy due to supply chain disruptions and rising energy and food prices.

He stressed that the government is working to strengthen strategic reserves of essential commodities, secure energy needs, expand reliance on renewable energy sources, and continuously monitor the impact of external developments on economic targets.