Networking Business Lunch

Dr. Mohamed Maait stressed that the Government is continuing its plans to implement a comprehensive package of structural reforms that aims to ensure economic stability and launch a high, sustainable growth path, that ultimately aids the country in dealing positively with the interlocking repercussions of external shocks that lead to unprecedented pressures on the country’s budgets.

Minister of Finance

With its diversified economy, Egypt is not only able to circumvent local and global challenges but also works on maintaining a great balance that secures a safe economic path for the country and enables it to overcome the effects of successive crises.

During a meeting with members of the “Arab Bankers Association” in London, Minister Maait further elaborated that the Egyptian economy has the ability to attract foreign inflows, adding that the measures and reforms undertaken by the Government to empower the private sector has paved the way to increasing foreign direct investment to reach USD 5.7 billion during the first half of the current fiscal year (FY 2022/23). Pointing to the significant increase in Egyptian exports and the increase in non-oil exports which witnessed a remarkable growth during the previous fiscal year, the Minister shed light on the performance of the Egyptian economy, which also witnessed the recovery of the tourism sector during the past fiscal year, in addition to a significant and sustainable increase in the revenues generated by the Suez Canal.

Pivotal to the local operating investment climate, the recent decisions of the Supreme Investment Council guarantee competition within the Egyptian market, behind the inclusion of a legislative amendment that entails the cancellation of tax and customs exemptions in addition to other preferential treatment for state-owned companies and entities. The Minister highlighted during the meeting that such amendment is expected to yield further private investments, pointing out that the Government is targeting a USD 2 billion during the next period with its largest IPO program, set to instigate local and foreign investments, attract new segments of investors, and pave the way for the growth of the private sector.

Minister Maait also stressed that the Government is committed to achieving financial discipline and reducing debt rates to less than 80% by FY 2026/2027, besides reducing the average debt life to range from 4.5 to 5 years. The Government is also set on achieving a 1.5% primary surplus by the end of the current fiscal year (FY 2022/23) and 2.5% by the next fiscal year (FY 2023/24), which will ultimately aid in expanding the social safety nets, reducing the burdens on citizens, and ensuring the economy’s strong, rapid response in dealing with global challenges.

The Minister’s statement also touched on the state’s public treasury, which bears an additional EGP 12 billion behind the difference in the interest rate, and targets providing EGP 160 billion in credit facilities to support the agricultural and industrial production and boost the tourism sector. During FY 2021/22, the Government reached a primary surplus of 1.3% of GDP and reduced the total deficit to 6.1% of the GDP, with the debt-to-GDP ratio reaching 80.7%.