Minister Al-Mashat announced this during her meeting with the House of Representatives Planning and Budget Committee, where she discussed implementing the economic and social development plan for FY2023/2024.
The minister added that total investment reached EGP 1.626 trillion, a 5.8 percent increase from FY2022/2023.
The total investments targeted in the current FY2024/2025 plan amount to EGP 1.987 trillion, with EGP 1 trillion in public investments and EGP 987 billion in private investments, according to Al-Mashat.
Public and private sector investment breakdown
The minister explained that public sector investments amounted to EGP 926 billion, marking a 6.3 percent increase from FY2022/2023, achieving 88 percent of the planned EGP 1.05 trillion.
However, the share of public sector investments among total investments dropped to 57 percent, below the targeted 64 percent, highlighting the government’s push for a private sector-driven economic model.
In contrast, private sector investments grew to EGP 700 billion, a 5.3 percent increase, surpassing the EGP 600 billion target by 16 percent.
These investments now account for 43 percent of total investments, exceeding the 36 percent target, compensating for the shortfall in public investments.
Al-Mashat also emphasized that the increase in public investments during that fiscal year resulted in 11,231 projects spanning various economic and social development sectors.
Despite the overall increase in investments, the investment-to-GDP ratio declined to 13 percent, falling short of the targeted 15.2 percent.
This highlights the need for further investment to drive production and job opportunities, particularly in developmental sectors such as education, healthcare, and infrastructure.
Education, healthcare, and scientific research received allocations of EGP 107.9 billion, while the infrastructure sector received EGP 180.6 billion.
Resilience amid global struggles
Moreover, Al-Mashat addressed the global economic situation, highlighting the significant disruptions the global economy has recently experienced, including trade disruptions, geopolitical tensions, and the lingering effects of the COVID-19 pandemic.
All these factors have strained global growth and raised concerns about future economic instability.
Like other countries, Egypt has been impacted by these global disruptions, slowing the country’s growth.
Trade restrictions, investment limitations, and challenges facing technological cooperation and labour mobility have contributed to the slowdown.
As a result, Egypt’s growth rate in FY2023/2024 fell to 2.4 percent, down from 3.8 percent in FY2022/2023 and 6.6 percent in FY2021/2022.
Despite these challenges, Al-Mashat highlighted the positive momentum seen in Egypt’s economy in recent months, particularly within the manufacturing sector.
She clarified that the government’s economic reforms, aimed at stabilizing the macroeconomic environment and stimulating the private sector, are driving recovery.
Inflation and economic policies
Al-Mashat also touched on inflation, stating that the FY2023/2024 target was 16 percent.
However, inflation surged to 40.3 percent in September 2023 due to the adoption of a flexible exchange rate policy.
By the end of the fiscal year, inflation gradually eased to 34.1 percent, reflecting the impact of the contractionary monetary and fiscal policies implemented to stabilize the economy.
The government focuses on increasing finance for the private sector development, with more than $14.5 billion in concessional financing from international partners since 2020. This supports sectors like banking, energy, and transport.
Additionally, $3.9 billion in concessional financing has been secured for private sector clean and renewable energy projects under the "NWFE" programme, which focuses on the energy, water, and food sectors. This has led to the production of 4,200 megawatts of clean energy.
Private sector financing and green economy commitments
Al-Mashat noted that the government has allocated EGP 7.6 billion to enhance transport infrastructure for renewable energy and set clear targets for increasing its share in Egypt’s energy mix.
This initiative is part of Egypt’s broader commitment to a green economy by 2050, driven by structural reforms.
Furthermore, the government has significantly invested in the energy sector, adding 5,735 megavolt amperes in transformer station capacity and 536.7 kilometres of overhead transmission lines.
Additionally, commercial operations have begun at the Arish Power Plant (250 MW) and the Gulf of Suez Wind Farm (252 MW), while the ACWA Power solar plant (200 MW) has commenced trial operations.
Enhancing public spending efficiency
The ministry has also focused on improving public spending efficiency and maximizing investments' developmental impact, particularly in local development projects.
One such initiative involves replacing asphalt paving with interlocking concrete tiles, which are cost-efficient, support local industry, and promote industrial growth.
These tiles cost EGP 400–500 per square metre, compared to EGP 800–1,000 for asphalt, with 40 percent of production needs covered by local manufacturing. This reduces reliance on imports.
Utilities and housing investments
Al-Mashat also highlighted the completion of 57 drinking water and sanitation projects, with a total capacity of 310,500 cubic metres per day, along with the establishment of seven wastewater treatment plants with a capacity of 350,000 cubic metres per day.
These efforts have led to a 22 percent increase in water networks and a 31 percent increase in sanitation networks.
The National Social Housing Project also saw investments of EGP 28.4 billion. It delivered 69,255 housing units and benefited approximately 350,000 citizens, achieving 89 percent of its target.
Enterprise support hub
The ministry has launched the Hub for Advisory, Finance & Investment for Enterprises to support the private sector with financial and technical assistance, enhancing communication between businesses and development partners.
Moreover, the "Hafiz" platform connects development partners, government agencies, and local businesses, bridging information gaps and providing access to financial and non-financial solutions.
In addition, Al-Mashat noted that the ministry has increased efforts to promote entrepreneurship, focusing on job creation and sustainable economic growth, with a particular emphasis on startups.
The Ministerial Group for Entrepreneurship has been established to address policy, legislation, and sector challenges while drafting a charter to reduce startup migration abroad.
Health sector's initiatives
Numerous initiatives were implemented to improve healthcare services, including constructing and developing 23 hospitals and family health centres at the cost of EGP 11.5 billion.
These projects include eight hospitals as part of the first phase of the Comprehensive Health Insurance System in six governorates, 10 therapeutic care hospitals, and five family health centres.
These initiatives have contributed to a healthier society, as reflected in the rise of health insurance coverage to 70 percent, up from 52 percent in 2013, and an increase in life expectancy to 71.6 years.
Education sector's achievements
Al-Mashat also highlighted the ministry’s educational achievements, including constructing, replacing, and renovating 8,000 classrooms for general and Al-Azhar education.
The ministry also established 10 technical applied schools, expanded technical education competencies, and equipped 12 non-profit universities, four international universities, and nine technological universities.
Additionally, it focused on improving government university facilities. The ministry has upgraded 27 universities.
Key achievements in education also include a 63 percent reduction in primary school dropout rates and an 84 percent reduction in middle school dropouts over the past decade.
The expansion of competitive and high-quality schools, such as applied technology and international schools, has led to the establishment of 179 schools, accounting for seven percent of total classrooms, compared to three percent in 2014.
Furthermore, 82 percent of applied technology school graduates are employed or pursuing higher education.
Public investments in university education resulted in 100 percent coverage of government universities in all governorates, 70 percent coverage of non-profit universities, and 33 percent coverage of technological universities. Efforts are underway to achieve full coverage in all governorates.
These investments have increased the gross enrollment rate in higher education to 40.7 percent, up from 32 percent in 2013/2014.
Haya Karima initiative
Al-Mashat also underscored the achievements of the Haya Karima initiative, further emphasizing the government’s commitment to improving citizens' lives across Egypt through sustainable development and social equity programmes.
She stated that the initiative's first phase, costing over EGP 350 billion, has benefited 18 million citizens across 1,500 villages, with 86 percent of the 23,000 projects completed. This includes the development of 100 villages at EGP 21 billion.
National project for Egyptian family development
Al-Mashat emphasized the ministry's commitment to integrating efforts to manage and monitor the National Project for the Development of the Egyptian Family, aligning it with presidential initiatives like the Decent Life Initiative.
The project has been key in achieving the goals of Egypt's Vision 2030. It focuses on balancing economic and population growth and aims to ensure equitable distribution of investments across regions.
The ministry has allocated EGP 2 billion for the project in partnership with the Ministry of Health and Population, the Ministry of Social Solidarity, and the National Council for Women.
As of October 2024, the project has benefited 28 million citizens, with 90 percent of them being women.
Key achievements include establishing 1,641 daycare centres (exceeding the target of 1,000) and 10 family development centres, with a goal of 52.
Additionally, 24,000 projects were implemented, creating 120,000 job opportunities through micro-projects and vocational training centres.
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