Many reasons stand behind the debt rise in FY2022/2023 compared to FY2021/2022, including geopolitical tensions, shortage of US dollar liquidity, and the $17 billion financing gap which led the government to rely heavily on borrowing.

However, Egypt's agreement with the IMF to extend its loan from $3 to $8 billion and inking the $35 billion Ras El-Hekma deal, the country's largest foreign direct investment (FDI) agreement, have helped lower Egypt's external and domestic debt.

In addition, the EU has committed 7.4 billion euros worth of investments to the country during the Egypt-EU Investment Conference.

All of these factors cushioned the impact of currency devaluation that happened in March.

The government has made it a top priority in its plan to encourage both the domestic and foreign private sector and foster an attractive environment for investors.

Furthermore, it targets decreasing the debt to below 80 percent in 2027.

Egypt’s debt service witnessed a rise by 48 percent from FY2021/2022 to FY2022/2023, rising from $5.81 billion to $7.52 billion.

It declined in the following year FY2023/2024 by 49,59 percent, reaching $3.79 billion.