The announcement came in a report issued on Monday, highlighting the initiative’s progress since its launch in 2019.
Phase 1 resulted in the completion of 23,000 projects across 1,477 villages, reaching 18 million citizens in 20 governorates.
The ministry reported an implementation rate of 86.5 percent, with EGP 298.3 billion spent. Upper Egypt governorates received 68 percent of the total funding.
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said Hayah Karima represents “a model of economic and urban development,” reaching about 60 percent of Egypt’s population.
The initiative has gained international recognition, being listed on the UN Sustainable Development Goals Acceleration Platform in 2020 and the Best International Practices Platform in 2021.
Phase 2 targets
The second phase will cover 20 governorates, 52 centres, and 1,667 villages, benefiting 21.3 million citizens.
Planned projects include 2,350 km of new water networks, 18 drinking water plants, 315,000 household connections, 97 wastewater facilities with a 1 million cubic metre/day capacity, and 1.8 million household sewage connections.
To improve transparency and citizen participation, the ministry launched the Sharek (Participate) 2030 app, allowing residents to track progress, view project data, and submit feedback.
The initiative also includes environmental goals through the Green Village programme, which aims to align rural communities with global environmental standards.
Tangible improvements from Phase 1
Phase 1 investments, worth EGP 350 billion, achieved the following: 100 percent access to drinking water in target villages, an increase in sanitation coverage from 20 to 90 percent, 261 water plants, 22 wastewater plants, and completion of 455,000 water connections.
They also include the delivery of 685 health units, 365 ambulance stations, and 15,000 classrooms; the upgrading of 925 youth centres; and the enrollment of 596,000 citizens in literacy programmes.
Minister Al-Mashat affirmed that the initiative is a cornerstone of Egypt’s sustainable development goals, stressing continued monitoring to meet President Abdel-Fattah El-Sisi’s directives for timely project delivery.
Supporting and expanding the social protection coverage is a cornerstone of Egypt’s current Extended Fund Facility (EFF) loan programme with the International Monetary Fund (IMF).
The IMF-supported programme underscores that macroeconomic stabilization in Egypt must go hand in hand with protecting vulnerable groups and safeguarding the middle class.
Against the backdrop of high inflation and a recalibrated fiscal consolidation path, the programme gives priority to preserving critical social spending while pressing ahead with reforms that pave the way for inclusive, private-sector-led growth.
According to the IMF, the government has expanded targeted social protection by scaling up the Takaful and Karama cash transfer programme to reach over five million households, alongside new support packages that raise the public sector minimum wage and provide additional assistance for teachers and healthcare workers.
Fiscal policy has been adjusted to make room for these programmes while maintaining debt sustainability, the IMF noted. This includes greater efforts to mobilize domestic revenue and cut back on untargeted spending such as broad energy subsidies.
On the monetary front, policy remains firmly geared toward bringing down inflation, which disproportionately weighs on low- and middle-income families. Lower inflation, the IMF said, will ease cost-of-living pressures and strengthen household consumption and savings.
Structural reforms are also being advanced to unlock growth and job creation. These reforms focus on reducing the state’s role in the economy, ensuring fair competition, and improving the business climate, all of which are expected to benefit entrepreneurs, small firms, and Egypt’s growing youth workforce.
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