Egypt's Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, has detailed government plans for a significant shift in the country's economic growth model towards tradable and exportable sectors, alongside ongoing structural reforms. Speaking at the inaugural IMF MENA Research Conference in Cairo, held in cooperation with the American University in Cairo's Onsi Sawiris Business School, Al-Mashat stated: "We seek to achieve a qualitative change in the economic growth model based on tradable and exportable sectors." The conference, titled "Steering Macroeconomic and Structural Policies in A Shifting Global Economic Landscape," was attended by the IMF Deputy Managing Director Nigel Clarke, IMF Director of the Middle East and Central Asia Department Jihad Azour, along with international specialists, academics, and central bank governors. Al-Mashat announced that a report, "Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience," will be launched next month. This report will outline the new economic model designed to support the transformation, encourage growth and employment, and be based on comprehensive macroeconomic policies, measures to stimulate foreign direct investment, and strategies for localising industry and promoting a green economy. "The Government of Egypt is working to pursue consistent fiscal and monetary policies and create a new economic model that enhances macroeconomic stability and follows comprehensive and continuous structural reforms," Al-Mashat said. "This, in turn, leads to comprehensive development and sustainable growth, which is reflected in increased resources, stimulates local and foreign investments, and supports flexibility and competitiveness." She emphasised that "continued structural reforms are necessary for macroeconomic stability and continuous improvement of the business environment." Al-Mashat added that "infrastructure projects over ten years have paved the way for the transformation of the Egyptian economic model." The minister noted the government's approach, stating, "The government follows an approach based on policy harmonization and the integration of the economic ministerial group for effective policy-making." She affirmed that since March 2024, efforts have intensified to implement this qualitative change to prevent a recurrence of past economic shocks. Al-Mashat highlighted the government's strategy of reducing public investments to create space for the private sector. Consequently, she observed that the non-petroleum manufacturing sector is now a prominent contributor to economic growth, and Egyptian exports have seen a remarkable recovery, reflecting the positive impact of a flexible exchange rate system. The minister stated that this approach aligns Egypt's Vision 2030 with the government's work program amidst evolving local, regional, and international dynamics. While infrastructure expansion was previously essential, the focus now is on utilising these assets to attract job-creating, productivity-enhancing investments. Despite global economic challenges, Al-Mashat sees an opportunity for Egypt to strengthen its position in global value chains, attracting investment and industrial opportunities. She also highlighted that efforts to strengthen economic relations with international financial institutions have enabled the private sector to secure concessional financing totalling $15bn over the past five years, including $4.2bn in 2024, despite regional geopolitical difficulties. This, she noted, has helped reduce financing costs and mitigate risks. Other participants in the conference included Prof. François Bourguignon, Honorary Chairman of the Paris School of Economics; Prof. Barry Eichengreen, Professor of Economics and Political Science at the University of California; Martin Galstyan, Governor of the Central Bank of Armenia; and Youssef Boutros Ghali, Member of the Specialised Council for Economic Development. Dr. Mahmoud Mohieldin, UN Secretary-General's Special Envoy for Financing the 2030 Sustainable Development Agenda, also took part alongside other specialists and officials.
