Egypt signals private-sector growth push in talks with Moody’s
Egypt outlined plans to accelerate private-sector-led growth and deepen structural reforms during talks with Moody’s Ratings, as the government seeks to reassure investors and rating agencies about the durability of its economic recovery.
Planning, Economic Development and International Cooperation Minister Rania Al-Mashat met a Moody’s delegation led by Matt Robinson, associate managing director for Middle East and Africa sovereign ratings, according to a ministry statement on Thursday.
Al-Mashat said the government’s National Narrative for Comprehensive Development aims to boost competitiveness and productivity while delivering sustained, private sector-led growth, as Egypt works to consolidate macroeconomic stability following reforms launched in March 2024.
She said tighter fiscal and monetary policies, combined with stronger governance of public investment, have helped restore macroeconomic stability, while a national structural reform programme is being rolled out to improve the business environment and crowd in private investment.
The strategy integrates Egypt Vision 2030 with updated sectoral plans, focusing on export-oriented industries, human capital development and redefining the state’s role from market participant to regulator, Al-Mashat said.
Growth has increasingly been driven by non-oil manufacturing, tourism, and information technology, even as activity in the Suez Canal declined due to regional tensions and output from the oil and extractives sector contracted, she added.
Egypt expects real GDP growth of about 5 per cent in the past fiscal year, with the government aiming to diversify growth sources and expand productive capacity.
Al-Mashat told Moody’s that more than $17 billion in concessional development financing has been mobilised since 2020 to support private-sector projects, while reforms continue to entrench a flexible exchange-rate regime, move towards inflation targeting and strengthen the framework governing state assets.
On energy, she said Egypt’s green transition is a structural driver of growth, with the country targeting 42 per cent renewable energy by 2030. The government’s NWFE Platform has secured more than $4.5 billion to finance 5.2 gigawatts of private renewable-energy projects, out of a 10-gigawatt target.
The minister also highlighted efforts to broaden the export base in tradable sectors such as manufacturing, modern agriculture, and information technology, citing improvements in indicators that track economic diversification and complexity.
Al-Mashat said the government remains focused on improving the quality of growth, not just headline figures, through greater transparency, fiscal discipline, and higher productivity.
Attribution: Amwal Al Ghad English