Egypt will implement a new methodology for preparing its economic and social development plan for the 2025-2026 fiscal year, Planning and International Cooperation Minister Rania Al-Mashat announced at the 6th Economic Conference organised by Hapi Journal. The new approach aims to create a more efficient planning system aligned with international best practices and Egypt's Vision 2030. The conference was attended by Finance Minister Ahmed Kouchouk and representatives from the private sector. Al-Mashat highlighted the government's commitment to a comprehensive economic reform agenda designed to strengthen Egypt's economic resilience amid global challenges. She noted the impact of geopolitical and economic difficulties since 2020, particularly on developing economies. Referring to a recent World Bank report, Al-Mashat observed that global economic growth has been the weakest in 30 years, with a forecast of 2.4% for 2024, down from 2.6% the previous year. This slowdown, she explained, is driven by continued geopolitical conflicts, sluggish global trade, tightening financial conditions, and the negative effects of climate change. These factors disproportionately affect developing nations, widening development gaps and necessitating flexible policies to maintain progress. The Egyptian government, Al-Mashat stated, has launched a multi-faceted economic and structural reform program focusing on strengthening macroeconomic resilience, enhancing competitiveness and the business environment, and supporting economic diversification and the green transition. The green transition, she added, presents significant investment opportunities for the private sector. The new planning methodology, currently under development in consultation with various ministries and agencies, will adopt an integrated perspective aligned with Vision 2030, the government's work program, and sectoral plans. It will incorporate modern approaches from the new Planning Law and its executive regulations, designed to support the "State Ownership Policy Document" and facilitate greater private sector involvement. Al-Mashat emphasised the government's objective of creating an efficient and effective planning system that promotes sustainable development. This involves improving investment spending efficiency, strengthening public investment governance and monitoring, and enhancing follow-up and evaluation mechanisms. The ministry will also leverage the "Economic and Social Development Plan Preparation Guide" and the "Spatial Information Infrastructure System" to improve plan quality and provide spatial planning support. For the current fiscal year (2024/2025), the total investments amount to EGP 2 trillion. This includes EGP 1 trillion in public investments and EGP 987bn(49.7%) allocated to the private sector. Al-Mashat highlighted the government's adherence to a public investment ceiling of EGP 1trn, a measure intended to reduce the budget deficit and support the private sector. Empowering the private sector is central to the government's strategy. Building on the National Structural Reform Program, the government is actively promoting private sector participation through various initiatives, including a Development Policy Financing Program implemented in collaboration with international partners to support budget and structural reform implementation. Al-Mashat also highlighted the Integrated National Financing Strategy, which seeks to strengthen domestic and international development financing. Over the past four and a half years, the ministry has secured approximately $12bn in concessional financing for the private sector from international financial institutions. The government is implementing governance procedures for public investments using a three-pillar approach: investment planning (updated project evaluation, feasibility studies, and investment accounting methodologies); investment allocation (developing a financing equation to address regional disparities and link investments to incentives); and investment implementation monitoring (automating monitoring and tracking investment assets). Recognising the importance of entrepreneurship, the government has established the Ministerial Committee for Entrepreneurship, comprising relevant government entities and the start-up community. This committee is open to all stakeholders to address challenges and develop proposals for supporting the sector. A "Start-Up Charter," outlining government strategies to support entrepreneurship, is under development. Supportive measures for the start-up community will be announced in the first quarter of 2025. Al-Mashat concluded by reaffirming the government's commitment, under Prime Minister Mostafa Madbouly and President Abdel Fattah Al-Sisi, to advancing economic reforms, maintaining macroeconomic stability, and expanding social spending in health, education, and social protection to alleviate the burden on lower-income groups.
