Egypt accomplished 98.5% of its FY23/24 investment target

Minister Al-Mashat announced this during her meeting with the House of Representatives Planning and Budget Committee, where she discussed implementing the economic and social development plan for FY2023/2024.

The minister added that total investment reached EGP 1.626 trillion, a 5.8 percent increase from FY2022/2023.

The total investments targeted in the current FY2024/2025 plan amount to EGP 1.987 trillion, with EGP 1 trillion in public investments and EGP 987 billion in private investments, according to Al-Mashat.

Public and private sector investment breakdown
 

The minister explained that public sector investments amounted to EGP 926 billion, marking a 6.3 percent increase from FY2022/2023, achieving 88 percent of the planned EGP 1.05 trillion.

However, the share of public sector investments among total investments dropped to 57 percent, below the targeted 64 percent, highlighting the government’s push for a private sector-driven economic model.

In contrast, private sector investments grew to EGP 700 billion, a 5.3 percent increase, surpassing the EGP 600 billion target by 16 percent.

These investments now account for 43 percent of total investments, exceeding the 36 percent target, compensating for the shortfall in public investments.

Al-Mashat also emphasized that the increase in public investments during that fiscal year resulted in 11,231 projects spanning various economic and social development sectors.

Despite the overall increase in investments, the investment-to-GDP ratio declined to 13 percent, falling short of the targeted 15.2 percent.

This highlights the need for further investment to drive production and job opportunities, particularly in developmental sectors such as education, healthcare, and infrastructure. 

Education, healthcare, and scientific research received allocations of EGP 107.9 billion, while the infrastructure sector received EGP 180.6 billion.

Resilience amid global struggles
 

Moreover, Al-Mashat addressed the global economic situation, highlighting the significant disruptions the global economy has recently experienced, including trade disruptions, geopolitical tensions, and the lingering effects of the COVID-19 pandemic.

All these factors have strained global growth and raised concerns about future economic instability.

Like other countries, Egypt has been impacted by these global disruptions, slowing the country’s growth.

Trade restrictions, investment limitations, and challenges facing technological cooperation and labour mobility have contributed to the slowdown.

As a result, Egypt’s growth rate in FY2023/2024 fell to 2.4 percent, down from 3.8 percent in FY2022/2023 and 6.6 percent in FY2021/2022.

Despite these challenges, Al-Mashat highlighted the positive momentum seen in Egypt’s economy in recent months, particularly within the manufacturing sector.

She clarified that the government’s economic reforms, aimed at stabilizing the macroeconomic environment and stimulating the private sector, are driving recovery.

Inflation and economic policies
 

Al-Mashat also touched on inflation, stating that the FY2023/2024 target was 16 percent.

However, inflation surged to 40.3 percent in September 2023 due to the adoption of a flexible exchange rate policy.

By the end of the fiscal year, inflation gradually eased to 34.1 percent, reflecting the impact of the contractionary monetary and fiscal policies implemented to stabilize the economy.

The government focuses on increasing finance for the private sector development, with more than $14.5 billion in concessional financing from international partners since 2020. This supports sectors like banking, energy, and transport.

Additionally, $3.9 billion in concessional financing has been secured for private sector clean and renewable energy projects under the "NWFE" programme, which focuses on the energy, water, and food sectors. This has led to the production of 4,200 megawatts of clean energy.

Private sector financing and green economy commitments

Al-Mashat noted that the government has allocated EGP 7.6 billion to enhance transport infrastructure for renewable energy and set clear targets for increasing its share in Egypt’s energy mix.

This initiative is part of Egypt’s broader commitment to a green economy by 2050, driven by structural reforms.

Furthermore, the government has significantly invested in the energy sector, adding 5,735 megavolt amperes in transformer station capacity and 536.7 kilometres of overhead transmission lines.

Additionally, commercial operations have begun at the Arish Power Plant (250 MW) and the Gulf of Suez Wind Farm (252 MW), while the ACWA Power solar plant (200 MW) has commenced trial operations.

Enhancing public spending efficiency
 

The ministry has also focused on improving public spending efficiency and maximizing investments' developmental impact, particularly in local development projects.

One such initiative involves replacing asphalt paving with interlocking concrete tiles, which are cost-efficient, support local industry, and promote industrial growth.

These tiles cost EGP 400–500 per square metre, compared to EGP 800–1,000 for asphalt, with 40 percent of production needs covered by local manufacturing. This reduces reliance on imports.

Utilities and housing investments
 

Al-Mashat also highlighted the completion of 57 drinking water and sanitation projects, with a total capacity of 310,500 cubic metres per day, along with the establishment of seven wastewater treatment plants with a capacity of 350,000 cubic metres per day.

These efforts have led to a 22 percent increase in water networks and a 31 percent increase in sanitation networks.

The National Social Housing Project also saw investments of EGP 28.4 billion. It delivered 69,255 housing units and benefited approximately 350,000 citizens, achieving 89 percent of its target.