Prime Minister Mostafa Madbouly speaks during a press briefing following the weekly cabinet meeting. Photo courtesy of Egyptian cabinet.
Madbouly was outlining the state’s debt management strategy, which he said will be released soon.
He stated that the country aims to reduce its debt-to-GDP ratio to below 75 percent within three years. This reduction, he noted, will allow the allocation of more funds for health and education, including for projects such as the Universal Health Insurance System (UHIS), where funding has already exceeded EGP 48 billion, and the Decent Life rural development programme.
Egypt has recently joined the Japan-led Universal Health Coverage Knowledge Hub (UHC Hub) to help low- and middle-income countries strengthen their health systems through capacity building and knowledge exchange.
Moreover, the Prime Minister noted that President Abdel-Fattah El-Sisi has instructed providing major incentives to enhance economic growth. He cited the recent launch of the batch of tax facilitations.
Fitch ratings and the IMF
International credit rating agency Fitch Ratings increased its outlook for Egypt’s economic growth from 4.9 to 5.2 percent in FY2025/2026, keeping its Sovereign rating for Egypt at ‘B’. This outlook is based on the prediction that the growth rate will reach 5.3 in the first quarter of the fiscal year. It is also based on the increase in investments and exports, the improvement in macroeconomic indicators, and the stability of the EGP. Fitch also predicts higher revenue from the Suez Canal in the upcoming period.
The International Monetary Fund mission in Egypt will be wrapping up its work for its fifth and sixth reviews of its Extended Fund Facility Programme and its first review for its Resilience and Sustainability Facility within the next two days. Madbouly said all discussions are going well, but provided no further details.
During the cabinet meeting, the ministers discussed amending existing laws to combat the spreading of rumors and false information by increasing fines. A new law is currently being drafted to be issued soon.
Madbouly urged media agencies across Egyptian ministries to take faster action to correct information and address rumors, news, and false claims on social media. He added that these measures should be taken to prevent confusion and loss of public trust.
The government, Madbouly pointed out, was also working on expediting procedures for exporters benefitting from the returns from the export incentive programme, including support for small companies and start-ups, to expand the exporters' base.
Egypt recently announced the launch of a new set of incentives to increase investments in various areas, including industry, tourism, agriculture, and communications and information technology. The incentives aim to increase private sector investments, create more job opportunities, and increase local production and exports, as per the new economic development narrative for the next five years.
Cabinet approved agreements
Furthermore, the cabinet approved an offer submitted by a consortium involving Orascom Construction, Engie, and Toyota to establish a 900 megawatt wind power project in Ras Shukeir.
The cabinet also approved a signed power purchase agreement between the Egyptian Electricity Transmission Company (EETC) and the consortium and a signed land use agreement with the New and Renewable Energy Authority (NREA).
Moreover, the cabinet approved an offer submitted by Norwegian renewable energy firm Scatec to implement a solar power and battery storage project with a constant 24-hour capacity. A power purchase agreement and a grid connection agreement between the EETC and Scatec, as well as a land usufruct agreement between the NREA and Scatec, were also approved.
In addition, the cabinet has also approved the completion of procedures to propose the 580 megawatt wind power plant in Jabal Al Zeit under the NREA, as per the government’s privatization program.
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