File Photo: Dr. Mahmoud Mohieldin, UN Special Envoy on Financing for Development. Photo courtesy of Dr. Mahmoud Mohieldin website.
Speaking on Al Arabiya Business on Sunday, Mohieldin stressed that Egypt’s economic performance over the past decade has primarily focused on managing crises, which was necessary during the implementation of the IMF-supported programme.
However, he said, “It is time for Egypt to take a different economic path — one that focuses less on debt and more on private investment.”
He emphasised that while Egypt represents 1.3 percent of the world’s population, its economy accounts for less than 0.3 percent of global GDP. He added that the country needs to expand its economy to four times its current size to align with its demographic weight.
Mohieldin called for lowering interest rates to reduce financing costs for the private sector, boosting savings, exports, and public revenues, and giving a greater role to private investment as an alternative to reliance on domestic and external borrowing.
While acknowledging that Egypt has achieved progress in addressing short-term challenges — such as foreign exchange shortages and primary budget surpluses — Mohieldin emphasised that deeper issues remain.
“If we are talking about sustainable development, competitiveness, eradicating extreme poverty, and ensuring fairer distribution of income and wealth, these challenges cannot be tackled without increasing investment and reducing reliance on debt,” he said.
He outlined the need for a comprehensive national program that extends beyond the IMF’s focus on fiscal and monetary imbalances to address priorities like education, healthcare, infrastructure, technology, and resilience against economic shocks.
He also urged a shift away from managing the economy as if it were in constant crisis, toward building a competitive environment that supports growth across Egypt’s governorates.
According to Mohieldin, such reforms would not only stimulate growth and job creation but also help ease inflationary pressures, strengthen the middle class, and improve living standards for lower-income groups.
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