Madbouly's remarks came during an open dialogue with the chief editors of Egyptian newspapers and online platforms at the government headquarters in the New Administrative Capital.
During the talks, the prime minister affirmed the government is also working to expand private sector leadership, accelerate renewable energy projects, and achieve ambitious targets across industry, exports, and tourism.
Homegrown vision amid regional turbulence
Madbouly acknowledged that regional conflicts, especially the war in Gaza, have strained Egypt’s economy, even though the country is not a party to them, emphasizing the importance of national unity and public awareness to navigate these challenges.
In this respect, he referred to President Abdel-Fattah El-Sisi’s recent speech at the Arab-Islamic Summit in Doha that included a message to the Israeli public, warning that ongoing conflicts threaten decades of peace efforts.
Madbouly also highlighted Egypt’s active diplomacy, including participation in summits in Japan and China, where world leaders — among them those from China, Russia, India, Iran, Turkey, and Europe — emphasized the need for global cooperation.
“No country can face these challenges alone,” he said.
On domestic stability, he warned against attempts to destabilize the country and called on citizens to stay informed about the challenges ahead, noting that stability and resilience at home are central to Egypt’s strength abroad.
He said that foreign investments are accelerating, reflecting confidence in Egypt’s stability, but warned of misinformation campaigns aimed at undermining public trust.
He concluded by reaffirming Egypt’s commitment to national and regional security, highlighting the government’s coordination with Islamic nations and reliance on “firm principles and prudent policies” under President El-Sisi’s leadership.
Reforms paying off
Madbouly said that reforms since 2016 have helped Egypt withstand economic shocks by stabilizing monetary policy, achieving a primary budget surplus, restructuring public investment, and attracting new capital.
“We are building on what we started since 2016,” he said, adding that the most important outcome has been the emergence of positive financial indicators, stronger governance over investments, and a greater role for the private sector.
He explained that the new economic narrative will remain open for expert and public input for 2-3 months before being finalized into a comprehensive plan covering industry, agriculture, tourism, ICT, renewable energy, and services.
Private sector takes the lead
Madbouly stressed that private sector investment accounted for more than 60 percent of total investments in 2024, marking a structural shift in economic leadership.
“The private sector is now driving growth,” he said, adding that the state will increasingly focus on strategic interventions, such as mega-projects or critical sectors.
He stressed that the government is shifting its role to that of “a coordinator and facilitator,” while maintaining presence in a limited set of essential industries.
By doing so, the private sector can continue to expand its influence, while the government ensures stability and provides the infrastructure to enable sustainable investment growth.
Energy and infrastructure as growth drivers
Madbouly said that 60 percent of Egypt’s electricity still comes from natural gas, but renewables already generate 22 percent and are expected to surpass 40 percent ahead of the original 2030 target.
This acceleration of solar, wind, and hydropower generation, he said, is more than an environmental choice; it is a strategic necessity to free up gas resources for industry and exports, while providing investors with confidence in Egypt’s long-term energy stability.
He added that Egypt has halved its arrears to foreign petroleum partners and expects to clear more by the end of the year to encourage further exploration and discoveries.
Madbouly credited Egypt’s infrastructure upgrades — roads, ports, energy, water, and finance — as key enablers of private investment.
“None of today’s investment momentum would have been possible without these foundations,” he stressed.
Debt, trade, and growth goals
According to Madbouly, Egypt’s debt-to-GDP ratio dropped from 96 percent in mid-2022 to 85 percent in mid-2023 and is expected to reach about 80 percent this year, with a goal of reaching the low 70s within five years. External debt will be cut by $1–2 billion annually.
On trade, he acknowledged that the deficit remains a challenge, though exports are growing robustly by 20-22 percent compared to 3-4 percent growth in imports, most of which are raw materials or production inputs.
He emphasized the government’s focus on developing domestic supply chains to substitute imported inputs, thus easing costs and helping to stabilize prices.
He added that Egypt’s ambitions include sustaining 7 percent GDP growth over several years, lifting industry’s share of GDP to 18-20 percent, increasing annual tourist arrivals to 30 million visitors, raising exports of goods and services to $145 billion by 2030, and cutting the budget deficit from 7 to 3.5 percent of GDP.
Social services, housing, and healthcare
Madbouly highlighted progress in housing, including the relocation of 300,000 families from unsafe areas to modern housing with full services. Social housing, slum redevelopment, sewage expansion, and public transit modernization have seen major investment.
Seven million families benefit from the Takaful and Karama programmes. Egypt has nearly eradicated hepatitis C, earning WHO recognition, and cleared surgical waiting lists for 2.8 million patients needing critical procedures.
Phase 2 of the universal health insurance system will soon include Alexandria, covering more than a quarter of the population within two years.
He also reviewed the Hayah Karima (Decent Life) initiative, which is transforming rural communities. Phase 1 is complete, Phase 2 is in progress, and billions of pounds have been invested to raise living standards.
National economic “compact”
Madbouly said the reforms and targets are Egyptian-made, not dictated from abroad, and expressed hope to leave the IMF programme as the economy stabilizes.
He emphasized that the national narrative reflects broad participation, with each working group led by independent experts to incorporate input from professionals, academics, and citizens.
“When society and the private sector agree on these targets, they become like a constitution — a compact that guides whoever comes after us,” he concluded.
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