However, public investments significantly declined by 60.5 percent to EGP 57 billion in the first quarter (Q1) of FY2024/2025, from 1 July to 30 September, down from EGP 144.4 billion Q1 of FY2023/2024.

On Sunday, the Ministry of  Planning, Economic Development, and International Cooperation announced that the total investments executed in FY2023/2024, which ended on 30 June, reached 98.5 percent of the targeted EGP 1.65 trillion.

This drop in public investment reflects the government’s efforts to foster a more competitive environment for the private sector. These efforts align with ongoing structural reforms aimed at improving the business climate and strengthening the governance of public investments.

Enhancing and boosting the private sector's role in the Egyptian economy is a key pillar of the country's $8 billion Extended Fund Facility (EFF) loan programme. Egypt aims to increase the private sector's contribution to 65 percent of total investments by 2030.

Therefore, Egypt will list over 10 companies on the Egyptian Stock Exchange (EGX) in 2025, including four affiliated with the Egyptian Armed Forces. The country also plans to privatize the management and operation of several airports.

Data on total investments was launched for the first time since 2020, reflecting the government’s commitment to enhancing the national accounts system and improving the accuracy of economic indicators.

Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat revealed that the ministry has also focused on developing a new methodology for estimating private investments in collaboration with international experts and local institutions.

She clarified that this provides a more accurate and comprehensive view of the distribution of investments between the public and private sectors.

Al-Mashat said the methodology development process involved several workshops and meetings over the past two years.

Furthermore, she explained that the new approach captures contributions from the informal private sector and includes expenditures in research and development, technological infrastructure, software development, electronic media, new residential housing by households, and major maintenance of existing homes.

The minister also highlighted that this update aligns with the government’s goal of increasing the private sector's share of total investments to 50 percent by FY2024/2025.

"This aligns with the objectives of the State Ownership Policy, the National Structural Reform Programme, and the updated Egypt Vision 2030, which aims to empower the private sector as a key driver of economic growth," Al-Mashat stated.

She emphasized that the ministry remains committed to continuously refining its tools and methodologies to support a comprehensive vision for sustainable economic development and enhance the confidence of local and international investors in the Egyptian economy.

In addition, she said the ministry continues to collaborate with international multilateral and bilateral development partners to secure concessional financing for the private sector, aligning with Egypt's development agenda.

Consequently, concessional financing for the private sector significantly increased in 2024, reaching $4.2 billion, compared to approximately $2.9 billion in 2023.

Key development partners, including the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB), contributed to this funding.

These resources have been strategically directed to key sectors, including renewable energy through Egypt’s Country Platform for the Nexus of Water, Food, and Energy (NWFE), small and medium enterprises, transport, industry, agriculture, and trade. These are essential sectors for promoting sustainable economic growth.

In contrast, concessional development financing for the government sector decreased from $3.8 billion in 2023 to $3.1 billion in 2024.

In December 2023, the ministry also launched the "Hafiz" platform, an integrated initiative designed to provide financial and technical support to the private sector.

The platform implements recommendations from the economic conference held in October 2022 and leverages innovative financing mechanisms to boost private sector involvement.

It also serves as a bridge between development partners, the government, and the business community, improving communication and addressing information gaps.

Additionally, the platform offers over 85 financing services, technical support from 32 development partners, and information on tenders and local and international initiatives, enhancing access and competitiveness in global markets.