Private sector investment in Egypt comprised 40 percent of the total in the current fiscal year, according to Dr. Hala Elsaid, Minister of Planning and Economic Development. During her participation at IFC Day, Elsaid added that Egypt aims to increase the private sector’s investment share to 50 percent next year.
In addition, the private sector increased its contribution to the gross domestic product (GDP) to 71 percent this year and its share in employment to 80 percent.
Commenting on her participation, Elsaid stated on the social media platform X: “Today, the private sector is no longer just an engine of growth, but a critical partner in achieving SDGs. Forward-thinking economies are recognizing the power of innovation to tackle challenges, and this is the type of collaborative and impactful private sector engagement that will truly empower a nation’s long-term success.”
Egypt’s reform plan
The minister also highlighted Egypt’s structural reform plan, which the government launched in 2021 to strengthen the private sector’s role in building the country’s future. The reform plan encompasses several areas, including modernizing the labor market and catering to Egypt’s youth population.
Elsaid explained that the first phase of the reform plan started in 2016 and focused on financial and monetary interventions and strategic infrastructure investments. Meanwhile, the second phase focuses on enhancing the real economy and boosting the private sector’s role and contributions to Egypt’s growth.
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Structural reform support growth
“Egypt’s commitment to a thriving private sector is evident through its structural reform agenda,” added Elsaid in her post. Hence, the country has implemented multiple measures to simplify the process of investment and development in the country. Moreover, Egypt has restructured its public-private partnership framework and established the Egyptian Sovereign Fund. This has contributed to the increase in private sector investment in several sectors including fintech, infrastructure, and green initiatives.
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