Egypt embarks on new era of private sector-led growth

Egypt is poised to enter a new phase of economic stability and growth, fuelled by the private sector, Deputy Minister of Finance, Yasser Sobhy, said on Monday.

The country is actively seeking partnerships with both domestic and international private entities to foster a more competitive, diversified, and capable economy that can elevate living standards.

Sobhy praised Egypt’s push for private sector involvement in vital sectors like transport, health, education, and infrastructure. The government has made strides in this area and plans to enhance partnership opportunities for private sector.

The government is adopting fiscal reforms to boost private sector involvement in development, expand domestic production base, and enhance competitiveness in global markets.

Sobhy added that efforts are underway to improve public finance management, increase government spending efficiency, achieve fiscal balance, and lighten the budget load. This involves capping government spending, and focusing on key sectors like health, education, and infrastructure.

The government aims to improve the business environment by enhancing the tax-business relationship, establish trust, ensure tax stability, streamline administrative processes, boost transparency, and create a competitive climate.

Soby emphasised the importance of investment incentives, highlighting a new incentives package that has been introduced to boost key sectors such as industry, export, tourism, renewable energy, and technology.

The government also aims to achieve fiscal discipline and reduce the debt-to-GDP ratio to below 85 per cent within the next three years. Egypt has already reduced external debt by $4 billion as of June, Sobhy added.

Attribution: The Egyptian Cabinet statement

Subediting: M. S. Salama