Egypt has provided EGP 65.6bn in loans for micro, small, and medium-sized enterprises to over 2.9 million beneficiaries in villages covered by the "Decent Life" presidential initiative, according to Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat. The loans were disbursed from various financing entities. The details were presented on Sunday during Al-Mashat's overview of the final results of the fiscal year (FY) 2023/24 socio-economic development plan to the Planning and Budget Committee of the House of Representatives, which is chaired by Fakhry El-Feki. Economic Challenges Al-Mashat highlighted that the current global economic landscape is unstable, with both economic and geopolitical challenges impacting economies worldwide. She stated that the Egyptian economy has been affected, impacting the performance and implementation of the socio-economic development plan. The plan initially projected a 4.1% economic growth rate for FY 2023/24. However, Egypt's real GDP growth slowed to 2.4% by the end of the fiscal year. This is a decline from 3.8% in FY 2022/23 and 6.6% in FY 2021/22. The performance of key economic sectors such as the Suez Canal, the extractive and petroleum sector, and manufacturing industries have been negatively impacted by external shocks, economic challenges, and geopolitical issues, Al-Mashat said. She added that contractionary monetary and fiscal policies were adopted by the state in order to restore macroeconomic stability and govern public investments. The plan had also projected an inflation rate of 16% for FY 2023/24. Due to a flexible exchange rate policy, inflation peaked at 40.3% in September 2023 before declining to 34.1% by the end of the fiscal year. Investment Figures Al-Mashat revealed that total investments under the FY 2023/24 plan reached approximately EGP 1.626trn, a 5.8% increase compared to the previous fiscal year. The plan, which had allocated EGP 1.650trn, saw an implementation rate of approximately 98.5%. Public investments totalled EGP 926bn, representing a 6.3% growth compared to the previous year, and 88% of the planned EGP 1.050trn. As part of the government's strategy to foster private sector-led economic development, the proportion of public investments to total investments decreased to approximately 57%, compared to a target of 64%. Private investments reached EGP 700bn in FY 2023/24, exceeding the targeted EGP 600bn with an implementation rate of 116%. This represents a 5.3% growth rate, increasing its share of total investments to approximately 43% compared to a planned 36%. The investment rate as a percentage of GDP decreased in FY 2023/24 to 13%, compared to a planned rate of 15.2%, according to Al-Mashat. She stressed the need for more investments to accelerate production and employment across all sectors, which the ministerial economic group is currently addressing. Development Objectives Al-Mashat stated that the plan's implementations maintained the state's key developmental objectives, particularly in human and social development. This includes sectors such as school and university education, scientific research, and health services, which received approximately EGP 107.9bn. Despite the decline in investment volume and economic growth, these sectors exceeded their targets, accounting for 34.6% of total government investments, compared to a planned 24.4%. Infrastructure sectors received around EGP 180.6bn, representing 57.9% of government investments, which is below the targeted 66.3%. Local development investments totalled approximately EGP 23.2bn, which is 7.5% of total government investments, exceeding the planned 7.2%. Approximately 35% of total local development investments went to Upper Egypt governorates, compared to 21.4% the previous year. The increase in public investments during the FY 2023/24 fiscal year resulted in the completion of 11,231 projects across various economic and social development sectors, Al-Mashat added. Sectoral Achievements In the health sector, 23 hospitals and family health centres were completed at a total cost of EGP 11.5bn. This includes eight hospitals to complete the first phase of the comprehensive health insurance system, targeting six governorates, as well as ten specialised treatment hospitals and medical centres, and five family health centres. Al-Mashat said the state's efforts to improve healthcare services led to an increase in "the percentage of beneficiaries from comprehensive and traditional health insurance services" to approximately 70%, compared to 52% in 2013. This has helped to increase the "average life expectancy at birth" to 71.6 years. Public investments in education led to a 63% decrease in primary school dropout rates over ten years and an 84% drop in preparatory school dropouts, Al-Mashat said. The rate of accessible classrooms suitable for the middle class increased from 3% in FY 2013/14 to 7% in FY 2023/24. There are now 179 schools of this type, including applied technology, Japanese, official international, and outstanding schools. Furthermore, the percentage of graduates from applied technology schools who are employed or pursuing university education has increased to 82%. Al-Mashat confirmed that investments in higher education have achieved 100% coverage in public universities, 70% coverage in private universities, and 33% coverage in technological universities across all governorates. Regarding public utilities, 57 drinking water and sewage projects were completed with a total production capacity of approximately 310,500 cubic meters per day at a cost of EGP 8.3bn. Seven treatment plants were also completed with a total capacity of 350,000 cubic meters per day at a cost of EGP 2.8bn. This resulted in a 31% increase in the length of sewage networks, raising sewage service coverage from 50% to 67% nationwide, and from 12% to 43% in rural areas. Social housing investments reached EGP 28.4bn during FY 2023/24, representing 89% of the planned EGP 32bn. This resulted in 69,255 housing units, accommodating approximately 350,000 citizens. In the renewable energy sector, the Suez Gulf wind farm with a capacity of 252 megawatts has begun commercial operation, as well as the trial operation of the 200-megawatt Acwa Power solar plant. 635 villages were supported with electricity services, worn-out networks were replaced in 3,193 villages and 54 small villages and communities were provided with electricity. Additionally, 32 distributors were replaced, and 1,478 distribution transformers were expanded and replaced. The construction of the railway complex in Bashteel was completed. Investments in the sector have resulted in a 71% increase in passenger transport capacity by rail between 2014 and 2023, reaching 1.2 million passengers daily. Freight transport capacity by rail increased by 31%, reaching 5.9 million tons annually. The number of metro and electric traction trains increased from 106 to 220, a growth of 107%, which resulted in an increase in passenger capacity to over 5 million passengers per day. Investments in roads and railways have helped Egypt improve its ranking in the road quality index to 18th globally, compared to 41st in 2019, according to the Travel and Tourism Competitiveness Index issued in 2024. Road traffic fatalities decreased by 25%, and train accidents decreased by 78.2%. In the water resources and irrigation sector, 225 projects were completed at a cost of EGP 4.8bn, including projects to rehabilitate canals, equip wells to operate on solar power, and construct lakes and earthen barriers. Al-Mashat said that approximately 18 million citizens in around 1,500 villages, 68% of whom live in Upper Egypt, have benefited from the first phase of the "Decent Life" initiative. The cost of this phase exceeds EGP 350bn, with 23,000 projects. Approximately 17,000 projects have been completed in the first phase, with an implementation rate of 86%. The development of 100 villages was completed at a total cost of EGP 21bn, benefiting 1.2 million people and improving the "rate of access to basic services" by 69 percentage points.
