File Photo: One of the newly made roads. Ahram.
According to a ministry report on public investment efforts, public investments fell to 43.3 percent of Egypt’s total investment in FY2024/2025, while private investments increased to 47.5 percent during the same year, the highest level in the past five years.
This increase reflects ongoing efforts to strengthen the private sector’s role in the economy under Egypt's new economic narrative.
The milestone in investment spending aims to reduce the debt burden, improve fiscal discipline, control expenditures relative to GDP, and provide space for private sector investments to reach 63 percent of total investment in FY2025/2026.
Investments grew by 64 percent to EGP 68.9 billion during the first four months of FY2025/2026.
Egypt’s economy is projected to grow by more than five percent in the same fiscal year, driven by private-sector activity and reforms, with industry and tourism sectors accounting for most private investments.
Al-Mashat said nearly 48 percent of public investments in the FY2025/2026 plan are directed towards human development sectors.
Egypt’s share of private investment in the economy jumped from 38.5 percent to around 60 percent in the first half of FY2024/2025, according to the International Monetary Fund (IMF).
As part of Egypt’s Vision 2030, the goal is to raise private investments to 66 percent of total investment by 2030. The share of private investments in GDP is projected to increase to 11.9 percent by 2030, compared to 9.1 percent in the current fiscal year.
Moreover, the government plans to maintain positive economic indicators, pursue tighter fiscal and monetary policies, expand private-sector participation, and improve the investment climate through debt-for-investment swaps and debt-for-development agreements.
The efforts aim to ease pressure on external financing needs. The swaps will help reduce its debt-to-GDP ratio to 40 percent or below by the end of FY2025/2026, down from around 44 percent currently.
The IMF reached a staff-level agreement with Egypt last week on the fifth and sixth reviews of the Extended Fund Facility (EFF) programme and the first review under the Resilience and Sustainability Facility (RSF) deal.
The IMF said the Central Bank of Egypt (CBE) has maintained an appropriately tight stance but should accelerate reforms to support a more competitive, private sector-led growth model.
The ministry report also highlighted the work of a public investment monitoring committee under the supervision of the General Authority for Investment and Free Zones (GAFI), which developed a digital platform to monitor public firms’ investments in real time to increase transparency. A new investment ceiling of EGP 1 trillion has been set for FY2025/2026.
Additionally, the ministry is implementing initiatives to improve local services, apply international planning and monitoring standards, enhance performance evaluation, and increase the efficiency of public spending. New criteria are also being introduced to guide approved investments.
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