Egypt’s private sector investment share has risen to 40% this year, and the government aims to raise this to 50% next year, said Hala El Said, Minister of Planning and Economic Development. This was announced during her participation in the session “Merging the Public and Private Sectors: Unlocking Sustainable Investment in Egypt” at the IFC Day Conference in Egypt.
Mr. El Said also highlighted that the private sector’s contribution to gross domestic product (GDP) has increased, reaching 71% this year, and the private sector’s share in employment has reached 80%. He emphasized the important role of the private sector as a driver of sustainable development and a major source of employment in the country.
“Egypt’s Vision 2030 and its latest edition rely on developing the Egyptian economy towards a diverse and knowledge-based society through a conducive and encouraging working environment,” El-Sayed explained. “The private sector has an important role to play in this context.”
The minister outlined Egypt’s structural reform plan, launched at the end of 2021, aimed at strengthening the role of the private sector in building the country’s future. The plan focuses on several key areas, including modernizing the labor market to meet the demands of a modern economy and cater to Egypt’s large youth population.
Mr. El-Sayed detailed the two phases of reforms implemented in Egypt. The first phase, launched in 2016, focused on monetary and financial interventions and strategic infrastructure investments. In the second phase, we moved to strengthening the real economy and strengthening the role of the private sector.
“To further strengthen the vitality of the private sector, the state has implemented a series of measures ranging from the simplification of investment law procedures to the formulation of state property policy,” El-Sayed said. He also highlighted the restructuring of the public-private partnership framework and the establishment of the Egyptian Sovereign Fund, which is attracting private investment in various areas such as financial technology, infrastructure and green initiatives.
Mr. El-Sayed concluded by affirming the country’s commitment to strengthening a dynamic economic system with the private sector at its core. “Development efforts require sustained efforts, cooperation and effective coordination between all stakeholders, domestic and international,” she said.
