Egypt's Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, met with an International Monetary Fund (IMF) mission, led by Ivanna Vladkova Hollar, on Wednesday to review macroeconomic indicators, the national structural reform programme, and external financing to bridge the funding gap. The 14 May 2025 meeting covered developments in the Egyptian economy, measures to enhance economic growth by shifting towards tradable and export-oriented sectors, and state initiatives to promote private sector participation in development efforts. Governance of public investments to maintain macroeconomic stability and expand the private sector's role was also discussed. Al-Mashat stated that economic growth is improving, "driven by non-oil manufacturing industries, tourism, communications, and technology, supported by the corrective measures of March 2024." She also emphasised the "strict implementation of public investment governance to maintain macroeconomic stability and create space for the private sector." The minister highlighted that the Egyptian economy has regained momentum since the implementation of economic reform measures in March 2024. She noted that prior to these measures, the economy faced significant challenges, but growth has since rebounded, recording 2.4% in the last quarter of the previous fiscal year, followed by 3.5% and 4.3% in the first and second quarters of the current fiscal year, respectively. Al-Mashat added that indicators point not only to improved figures but also to an enhanced quality of growth. Non-oil manufacturing has led this growth, alongside the communications and information technology, tourism, transportation, and storage sectors, despite the negative impact of geopolitical tensions on Suez Canal activities, which have recently seen a significant decline. She outlined the strategic transformation the Egyptian government is pursuing, focusing on tradable, export-oriented sectors and value-added goods. This is coupled with structural reforms aimed at fiscal discipline, reducing public debt, and encouraging foreign direct investment. Al-Mashat underscored cooperation with international development partners to mobilise budget support financing for comprehensive structural reforms. She specifically mentioned the macroeconomic support mechanism and budget deficit support with the European Union, where a package of measures is being implemented to enhance macroeconomic stability, improve the business climate, and promote a green transition, with a second phase aiming to unlock about €4bn in budgetary support. "Our relationship with international partners is not limited to budget support," Al-Mashat said. "The private sector also benefits significantly through direct and indirect investments and credit lines that promote growth and job creation. Development financing to the private sector has exceeded $14.5bn in the past five years. The Ministry continues to strengthen partnerships with international institutions to provide additional financing tools." The minister reviewed the implementation of the "NWFE" (Nexus of Water, Food, and Energy) programme, particularly its energy pillar. This initiative has attracted $3.9bn in concessional financing for private sector renewable energy projects over two years, with a capacity of 4.2 GW. The Ministry aims to increase this financing to $10bn for projects totalling 10 GW, with the goal of raising Egypt's share of renewable energy to 42% by 2030. Additionally, Al-Mashat outlined the Ministry's debt swap programmes with international partners, describing them as tools not only for alleviating debt burdens but also for driving growth, employment, and sustainable economic development. Egypt is implementing key programmes in this area with Italy and Germany and has previously signed an MoU with China.
