Prime Minister Mostafa Madbouly during his meeting with representatives of the global investment funds in Cairo on Tuesday (Photo courtesy of the Egyptian Cabinet)
Madbouly said that now is a critical stage for the whole world, especially for emerging markets, after the pandemic and the Russian-Ukrainian crisis created obstacles to the global business community and the investment climate.
He stressed that the Egyptian government has taken a number of steps, measures and policies to confront these difficult challenges and enhance the economy’s resilience.
The PM explained Egypt recently set up a unit to solve investors’ problems, which reports directly to the prime minister.
Madbouly stressed that the government is currently adopting new policies based on enhancing the participation of the private sector in the Egyptian economy and increasing its contribution from 30 to 65 percent of total investments in Egypt during the next three years.
The state will also offer state-owned assets to the private sector worth $40 billion over four years, in addition implementing measures to revitalise the trading process in the Egyptian stock exchange.
Egypt has announced its intention to issue the State Ownership Policy Document soon, which aims to delineate the state's presence in the economic sectors and activities to increase participation of the private sector. The document will outline the sectors from which the state plans to exit, and those in which it will continue in light of its plan to raise the participation of private sector companies in the country's investment over the next three years.
President Abdel-Fattah El-Sisi said in a speech in December that the state seeks to encourage non-state-run companies to participate further in housing, agricultural, energy, transport, and road projects.
During the meeting, the prime minister referred to the great importance the government attaches to increasing investments in renewable energy, green hydrogen and green ammonia.
“We expect that the current fiscal year will end with a growth rate of more than 6 percent, which is a good rate in light of the current global conditions and compared to the growth rates of emerging markets.
On Tuesday, the World Bank (WB) said it expects the Egyptian economy will grow from 5.9 percent to 6.1 percent in the fiscal year (FY) 2021/22.
El-Sisi, who has repeatedly invited the private sector to participate in new projects with the public sector, has said that Egypt is implementing – in partnership with private sector – development projects “worth EGP 1.1 trillion, and these projects have created jobs for more than 3 million families.”
In a briefing held in mid-May to explain the country's plan to handle the repercussions of the global crises on the Egyptian economy, Madbouly said a four-year programme with a total value of EGP 40 billion for the private sector partnership would be declared soon.
The country aims to attract $10 billion in new investments over each of the next four years by offering stakes in state-owned assets in renewable energy projects, real estate in new cities, desalination, and telecommunications projects and projects in the education sector.
Additionally, Egypt will offer 12 companies under the government’s initial offering programme (IPO) on the EGX by the end of 2022, including two Armed Forces-run companies and other firms that are under the umbrella of the public business sector.