Egypt plans to increase total investments to an unprecedented 3.5 trillion Egyptian pounds in the 2025/26 fiscal year, as part of a renewed push to revive growth and expand private sector involvement, Planning Minister Rania Al-Mashat told lawmakers Sunday. The government is projecting GDP growth of 4.5 per cent, recovering from a modest 2.4 per cent in the 2023/24 fiscal year, supported by improved macroeconomic stability and structural reforms. The outlook comes as Egypt navigates persistent global uncertainty and regional geopolitical tensions. The plan, presented to the Senate, aims to lift the investment-to-GDP ratio to 17.1 per cent, and sharply increase private sector contribution to 63 per cent of total investments, or 1.94 trillion pounds, up from 40 per cent just a few years ago. "This marks a turning point for Egypt's investment strategy," Minister Al-Mashat said. "We're focusing on quality, sustainability, and maximising private sector engagement." Green Shift and Local Development The FY2025/26 blueprint includes 28 billion pounds for local development, with 35 per cent allocated to Upper Egypt, and earmarks 25 billion pounds for the continuation of the Hayah Karima (Decent Life) rural development initiative. The plan also aims to increase green public investments to 55 per cent, in line with the government's commitment to sustainability. Egypt continues to implement a cap on public capital expenditure to encourage private investment in infrastructure, energy, and manufacturing. Minister Al-Mashat emphasised that the government will maintain fiscal discipline while supporting projects aligned with national priorities, including digital transformation, renewable energy, and agricultural development. The country is working closely with international partners, including the International Monetary Fund (IMF), to reinforce reform momentum and attract foreign direct investment. Attribution: Amwal Al Ghad English
