Egypt targets 70% private sector contribution to economy – minister

Egypt is making significant strides to boost private sector partnerships, aiming for them to constitute 70 per cent of the national economy and become the primary driver of economic growth, Egyptian Minister of Finance Mohamed Maait stated on Monday.

He emphasised the need for innovative, affordable development financing tools that cater to the needs of low- and middle-income countries.

During the annual meetings of the Islamic Development Bank (IsDB) in Riyadh, Maait highlighted the role of mixed financing from multilateral development banks. This approach enhances the private sector’s role in developing emerging economies and increases its contributions to the domestic product.

Maait also stressed the importance of international financial institutions adopting financing initiatives that stimulate private investments in sectors such as health, education, water, and energy.

He underscored the need for stronger multilateral development co-operation to fill the financing gaps of emerging economies with low-cost, adaptable mechanisms and tools.

These tools should be capable of mitigating the effects of global crises and be flexible in dealing with internal and external shocks. This approach is crucial, especially considering the escalating international and regional geopolitical tensions and the immense financing pressures on developing countries’ budgets.