Egypt to review private sector wages today amid broader economic reforms

The Egyptian government is set to review the minimum wage for private sector employees, with the National Council for Wages scheduled to meet on Sunday to discuss potential adjustments in light of recent economic developments. The move comes as part of a broader strategy aimed at strengthening the country’s economic stability, boosting private sector participation, and attracting foreign investments.

During the Akhbar Al-Youm Economic Conference, Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, emphasised the government’s commitment to fostering a resilient and investment-friendly economy. She highlighted that Egypt has finalised comprehensive strategies for foreign direct investment (2025-2030) and industrial development, setting a clear vision for increasing investments and localising industries in collaboration with key international institutions.

The minister pointed to a shift in Egypt’s investment landscape, revealing that for the first time in 2024, private sector financing surpassed government funding. Private enterprises accounted for 63 per cent of total investments in the first quarter of the current fiscal year. To further encourage private sector growth, the government has imposed a cap of 1 trillion pounds on public investments, ensuring that more opportunities are available for private businesses to take the lead in driving sustainable economic expansion.

As part of its commitment to enhancing infrastructure and energy capacity, the government has allocated 7 billion pounds from its financial reserves to support the electricity grid and integrate new renewable energy projects. This investment is designed to improve industrial productivity and meet the growing energy demands of businesses and manufacturers.

In a move to bolster entrepreneurship and innovation, the government is developing a startup financing initiative aimed at supporting 5,000 emerging companies, with 500 high-growth firms expected to secure investments exceeding $1 million each. This initiative aligns with Egypt’s long-term vision of positioning itself as a regional hub for innovation and private sector-driven economic growth.

Despite ongoing global economic challenges, Egypt’s economy grew by 3.5 per cent in the first quarter of the current fiscal year, driven by non-oil manufacturing, information technology, tourism, and transportation sectors. The government remains optimistic about maintaining growth, with projections indicating a 4 per cent GDP increase by the end of the fiscal year, the minister noted.

Minister Al-Mashat also underscored the need for reforming the global financial system to ensure it is more equitable and responsive to the needs of developing nations. She urged international institutions to provide fairer access to financing, debt relief, and greater representation for emerging economies.

As Egypt continues implementing structural reforms and pro-business policies, the country is solidifying its position as an attractive destination for investment and economic expansion. The government’s ongoing efforts aim to shift the economy toward production-driven growth, increase exports, and reinforce Egypt’s standing as a key player in the regional and global markets.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser