Egypt's Planning Minister Rania Al-Mashat met with an International Monetary Fund (IMF) mission on Wednesday to review the country's macroeconomic performance and discuss structural reforms and external financing to help cover a growing funding shortfall. Minister Al-Mashat said Egypt's economy has shown signs of recovery, with growth accelerating to 4.3 per cent in the second quarter of the current fiscal year, up from 2.4 per cent in the previous quarter, following a package of corrective measures introduced in March 2024. Growth was driven by non-oil manufacturing, tourism, communications, and technology, despite disruptions to Suez Canal revenues due to regional tensions, she said. Egypt's reform path is focused on building a resilient economy centered on "tradable and export-oriented sectors," Minister Al-Mashat said during the meeting with IMF officials led by Ivanna Vladkova Hollar. The minister emphasised the government's focus on fiscal discipline, cutting public debt, and reining in state investment to create more space for private enterprise. She also highlighted efforts to work with development partners, particularly the European Union, to unlock €4 billion in budget support through a package of macroeconomic and green transition reforms. While budgetary support remains critical, Minister Al-Mashat noted that more than $14.5 billion in concessional finance has been secured for the private sector over the past five years through a mix of direct investments and credit lines. "Our relationship with international partners is not limited to budget support. The private sector also benefits significantly through direct and indirect investments and credit lines that promote growth and job creation." Minister Al-Mashat said. "Development financing to the private sector has exceeded $14.5 billion in the past five years. The Ministry continues to strengthen partnerships with international institutions to provide additional financing tools." The Egyptian minister added that the government is enforcing strict governance of public investments to maintain macroeconomic stability and allow greater space for private sector growth. She noted that private enterprises have received over $14.5 billion in concessional finance in the past five years. The government also aims to increase renewable energy investments through its Nexus of Water, Food, and Energy (NWFE) platform, which has secured $3.9 billion for projects totalling 4.2 gigawatts of capacity. Egypt targets $10 billion in green energy funding by 2030, raising the share of renewables in its energy mix to 42 per cent. Debt-for-development swap programmes are also being used strategically with partners including Germany, Italy, and China—not just to ease fiscal pressures but to fund employment and sustainable growth, the minister noted. The IMF mission is in Cairo as part of ongoing discussions under Egypt's Extended Fund Facility programme, which supports the government's efforts to navigates structural challenges, stabilise the economy, and attract foreign investment. Attribution: Amwal Al Ghad English
