Egypt targets 4.5% growth under FY25/26 economic plan

Doaa A.Moneim , Friday 29 Aug 2025

Egypt’s Ministry of Planning, Economic Development and International Cooperation has unveiled the key pillars of its FY2025/2026 Economic and Social Development Plan, aiming for a 4.5 percent GDP growth rate and EGP 3.5 trillion in total investments.

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Tawfiqiya shopping market in downtown Cairo. Ahram Online

 

According to the ministry's statement on Thursday, the plan also gives impetus for the private sector to play a stronger role as the country navigates ongoing global and regional challenges. 

The plan, which officially came into effect in July 2025, outlines the government's renewed strategy for financing development through a unified and modernised framework that consolidates national and sectoral goals while aligning with fiscal realities and investment priorities.

According to Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat, the document reflects a new phase following the merger of the planning, economic development, and international cooperation portfolios, centred around a "Financing for Development" approach. This strategy seeks to maximise the impact of both public funds and concessional financing from development partners.

"We are committed to a ceiling on public investments while focusing on attracting FDI and strengthening public-private partnerships," Al-Mashat said.

Investment targets and economic outlook
 

The plan sets investment targets as follows:

* EGP 3.5 trillion in total investments for FY2025/2026, compared to EGP 2.6 trillion estimated for FY2024/2025 and EGP 1.8 trillion in actual investments for FY2023/2024.

* Private sector investments are projected to reach EGP 1.94 trillion, accounting for 63 percent of the total, while public investments are set at EGP 1.16 trillion, or 37 percent.

* The investment-to-GDP ratio is expected to rise to 17.1 percent, up from 15 percent in FY2024/2025 and 13 percent in FY2023/2024.

Egypt's GDP at constant prices is projected to grow to EGP 9.1 trillion, while at current prices it is forecasted to reach EGP 20.4 trillion, up from EGP 17.3 trillion in the previous fiscal year, representing an 18 percent increase.

A strategic, medium-term approach
 

The plan adopts a medium-term budgetary framework covering FY2025/2026 to 2028/2029, synchronising efforts between the Ministry of Planning and the Ministry of Finance. It also emphasises a participatory approach, in line with Planning Law No. 18 of 2022, and integrates modern planning tools to improve investment efficiency, track performance, and evaluate economic impact.

Sectoral and geographic priorities
 

The development plan focuses on sectors where Egypt holds a competitive advantage, including agriculture, manufacturing, communications and IT, tourism and logistics.

In parallel, it prioritises investment in essential services, including healthcare, education, and scientific research. The plan also seeks to close regional development gaps by ensuring equitable distribution of investments across governorates.

The plan also reinforces Egypt's ongoing National Structural Reform Program, centred on strengthening macroeconomic stability, enhancing the business environment, expanding the private sector's role, supporting the transition to a green economy, and promoting export-oriented, high-productivity sectors.

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