Urgent: Madbouly: The Central Bank Governor confirmed that the state's foreign exchange resources fully covered its needs over the past two months.
The Prime Minister confirmed that Egypt may not need a new economic reform program with the International Monetary Fund.
Prime Minister Dr. Mostafa Madbouly said that the Governor of the Central Bank confirmed, during his meeting with President Abdel Fattah El-Sisi yesterday, that the state's foreign exchange resources have fully covered its needs over the past two months, including petroleum requirements.
During his weekly press conference following the Cabinet meeting, Madbouly noted that the Minister of Investment recently witnessed the signing of a land usufruct agreement to establish a Russian industrial zone in the Suez Canal Economic Zone, similar to the Chinese zone.
In a related development, Madbouly stated that Aton Resources Mining Company announced a major commercial gold discovery in Egypt's Abu Marawat region. He noted that Egypt's reliance on foreign companies in this regard stems from the high cost of extracting and refining gold, as the company operating the Sukari mine had spent $2 billion before production began.
In another development, the Prime Minister confirmed that Egypt may not need a new economic reform program with the International Monetary Fund after the current program ends in late 2026 or early 2027 at the latest, revealing that the government is currently preparing a detailed program through 2030.
In another development, Madbouly said the government is considering adding a major governorate to the second phase of the comprehensive health insurance system. He explained that the governorate being selected by the Ministry of Health has a population of more than 5 million citizens, which poses a major challenge for the government and represents a real test in its management of the system.
The Prime Minister began his speech by referring to the 2025 harvest season opening ceremony, saying: “This morning we were at an event that always brings joy and hope to us all. We were honored, in the company of President Abdel Fattah El-Sisi, to open the harvest season in the New Delta. Within the framework of this very important event, we witnessed the opening of a group of very large development projects in the New Delta region: the silos area, which reached 500,000 tons, a large industrial area, and a logistics area. This area will truly be the future of Egypt, God willing, because this area is equivalent to the size of three to four new governorates entirely, as the President indicated in his many interventions today. We are talking about agricultural lands being reclaimed and cultivated there, amounting to more than 2 million acres, equivalent to the size of three to four governorates or more, in addition to industrial, logistics and service development projects.”
He continued, "Just as the President pointed out, if just one job opportunity is created per acre, we are talking about 2 million job opportunities, which means 2 million families. Therefore, God willing, this region will truly represent Egypt's promising future, in addition to the other regions the state is focusing on with regard to agricultural development and the various related industries, service projects, and logistics."
Madbouly said: "We all witnessed today, during the presentation at the celebration, very large projects, and God willing, good things will come to Egypt in the field of agricultural reclamation and related industries, with a total area of more than 4 million acres over the next three years."
The Prime Minister then moved on to talk about international activities and events during this week, saying: “The most important international events during this week were the attendance of His Excellency the President at the Arab Summit in the Iraqi capital, Baghdad, and his historic and extremely important speech, in which the President outlined Egypt’s firm position on all existing conflict issues, foremost among which is the Palestinian issue. During it, His Excellency stressed that no matter what normalization with Israel takes place, there will be no peace or stability in the region without the establishment of the Palestinian state and the right of the Palestinian people to establish their independent state.”
In this regard, Madbouly stressed that Egypt's principles remain unwavering throughout the ages, adding that despite all the crises, Egypt has not wavered from its unwavering stance, which will always support the Palestinian cause in various fields.
The Prime Minister also referred to the visit of Lebanese President Joseph Aoun to Egypt, who commended the strong bilateral relations between the two sisterly countries and Egypt's support for Lebanon in all fields. He added that the two sides discussed the support Egypt will provide to Lebanon during the upcoming period, given the new political change.
Regarding domestic affairs, particularly the economic file, Madbouly explained that an International Monetary Fund delegation is in Egypt this week for the fifth review. He referred to the previous joint press conference held by the Prime Minister with Nigel Clark, Deputy Managing Director of the International Monetary Fund, who is responsible for the Egyptian file on the Fund's Board of Directors. He pointed to his speech, which included praise for what has been achieved in Egypt and the significant progress in the Egyptian economic reform process and in implementing its national program, saying: This is a very important matter that I always like to emphasize.
The Prime Minister added that during the discussion he held with the Deputy Managing Director of the International Monetary Fund, he stated that the Egyptian government is working to implement this program, whether in cooperation with the Fund or not, because we are fully convinced that this is the appropriate path for economic reform that Egypt must follow, given the surrounding circumstances and current events that we have experienced and continue to experience. He also added that these reforms and serious steps have begun to bear fruit, as confirmed by all the figures related to unemployment, inflation, and growth rates.
Madbouly pointed out during his speech to previous reports from the World Bank and the International Monetary Fund reviewing the Egyptian economy's growth figures positively and upwards in the past few days. This was confirmed by the European Bank for Reconstruction and Development, which stated that the Egyptian economy's growth rates during the coming year will exceed 4.21 TP3T, which is consistent with our initial estimates in this file of about 4.51 TP3T growth for the Egyptian economy during the coming period. This also includes a decline in debt indicators, the size of debt relative to GDP, a decline in the overall budget deficit, an increase in foreign direct investment, and an increase in the private sector's share of total investments, which exceeds 601 TP3T, with the target of reaching more than 651 TP3T in the next budget. This is in addition to the stability and increase in remittances from Egyptians working abroad, which will have a very significant impact on the economy.
The Prime Minister noted that he and the Governor of the Central Bank were honored to meet President Abdel Fattah El-Sisi yesterday, where the Governor presented a number of indicators related to monetary policy. He noted in this regard that we have always said that the challenge is managing hard currency and achieving balance in this matter. Through what the Governor presented during yesterday's meeting, he indicated that during the past two months, and specifically during the past month, we have witnessed Egypt's ability to fully cover its uses, including petroleum uses, through the available local resources of foreign currency from various activities. This is very important, given the volume of petroleum uses, which amounts to $2 billion per month, to meet the state's needs for the consumer sector for car traffic and other, as well as the petroleum materials needed to produce electricity, the needs of the industrial sector, and other activities.
Madbouly reiterated that the country's domestic hard currency resources from various activities were sufficient to cover the country's needs and requirements, without restricting industrial and production activity. He emphasized that there were no backorders or waiting lists for the release of any goods, merchandise, or essential supplies for production operations. He noted that conditions were stable, which was clearly reflected in the growth achieved by the private sector in Egypt.
Regarding the industry file and its support and development, the Prime Minister pointed out in this regard to the interest enjoyed by the automotive industry sector, noting his participation in the opening of one of the most important new factories of the global company “Sumitomo” for the production of electrical braids, which is the company’s eighth factory in Egypt, and the fourth in the last five years. He explained that this factory is the largest factory for the company outside Japan, in addition to being considered one of the largest factories in the Middle East, and even the world, adding: “The opening ceremony witnessed speeches from the Chairman of the Board of Directors of the global company “Sumitomo”, as well as a representative of the global company “Toyota”, who explained that this factory will be mainly relied upon to provide production requirements for Toyota cars, in addition to many other global brands.”
In the same context, the Prime Minister expressed his pleasure at participating in the opening of this giant factory, which employs approximately 2,000 Egyptian workers who are receiving training and qualifications at the highest level. He expects the number to increase to 3,000 by the end of the current year, noting that this is the type of industry the Egyptian state is targeting.
Madbouly continued, saying, "This impressive project received the Golden License in September 2023, and then began implementation in December 2023. Within a year, the trial operation had begun." He noted that these types of giant companies are provided with all possible support, including the Golden License and facilitating the acquisition of land permits. He also noted that we provide them with all the facilities and support to help them launch in this field.
In a related context, the Prime Minister pointed out that over the past week, we had a number of field visits to the Suez Canal Economic Zone, in East and West Port Said, and in the Sokhna area. We also witnessed the opening of a large number of large projects there, especially the opening of the Chinese “Xin Xing” factory for the production of pipes made of ductile iron. He pointed out that we used to import these pipes worth $600 million annually, and today this factory covers the country’s local needs, and also exports its production to various countries around the world. He also pointed out that the value of the contracts concluded by the factory over just two days, including the day the factory was visited and the following day, amounted to more than 34 billion pounds, both with the state in Egypt and abroad, which confirms to us that supporting such a large industry works to reduce the import bill, while providing job opportunities for our Egyptian youth.
In the same context, Madbouly added that new factories are entering service every day, and that final contracts are being signed. He pointed out that the state has invested heavily in the economic zone, and this year we have begun to feel that we are reaping the fruits of these investments and development. He expressed his confidence that the coming period will witness more investments in other areas similar to the economic zone, pointing out that the Minister of Investment recently visited Russia to attend the joint Russian-Egyptian committee, where he witnessed the signing of a usufruct contract for the land of the Russian zone in the Suez Canal area. Therefore, this zone is already attracting foreign investments from all over the world, and this is what we are working to encourage, and attract all international companies to the Suez Canal Economic Zone.
During the press conference, the Prime Minister noted that the Senate had approved the government's 2025/2026 economic and social development plan, noting that this plan is a recovery plan from the economic crisis that has plagued Egypt over the past two years.
Madbouly explained that the plan includes an increase in the volume of total investments to 3.5 trillion Egyptian pounds, compared to 2.6 trillion pounds last year. It also includes a continued rise in the investment rate and its percentage of the gross domestic product, as the increase rate will exceed 171 trillion Egyptian pounds next year, compared to 151 trillion Egyptian pounds this year. In addition, there is an increase in private investments, which we estimate will not be less than 631 trillion Egyptian pounds, and we hope it will reach 651 trillion Egyptian pounds.
He added: "We have a ceiling for public investments of EGP 1.16 trillion, compared to EGP 1 trillion during the current fiscal year. This budget also includes EGP 700 billion allocated to all human development sectors, especially education and health, compared to EGP 447 billion in the current fiscal year's budget, an increase of approximately EGP 561 billion in allocations for human development sectors."
Madbouly touched on his visit to the Sukari mine, saying: “We have all heard about the Sukari mine, but during my visit to the mine, I saw with my own eyes the size and magnitude of the investments in this promising and very large sector in Egypt. As the company’s chairman announced, this mine is one of the 20 or 25 largest gold mines in the world.” He pointed out that the company, after numerous explorations in this mine, confirmed that it has reserves that will suffice for an additional 10 years. With the presence of this giant company, it is expected that the volume of gold production that will come out of this mine during the next eight years will be several times what was extracted during the previous 15 years.
The Prime Minister explained that the question is always raised as to whether we, as a country, can carry out gold mining on our own. He responded that the extensive technical expertise that these companies possess is not easily available anywhere, assuming that the required financing and investment are available. He pointed out that in order for commercial production to begin at the Sukari mine, the company spent more than $2 billion to reach the current production level. He added that gold mining requires huge investments, and therefore the country welcomes cooperation with international companies in this field. Therefore, we, as a country, certainly need this type of partnership with international partnerships.
The Prime Minister concluded his remarks by saying: In this regard, you have followed today the announcement of one of the companies that obtained an exploration concession in Egypt, namely “Aton Resources”, a partner of the Egyptian Mineral Resources Authority, announcing a large commercial gold discovery in the “Abu Marawat” gold mining area. The company published this announcement on its website, as it is a company registered on the global stock exchange and must disclose this matter. Their estimates for this gold mine discovered in Egypt are that it will be large and massive. This is all promising news for the Egyptian economy, and God willing, the coming period will bring all good things.
In response to journalists' questions, the Prime Minister answered a question about the Egypt's Future Authority project and how to settle people in this vast area. He explained that this region will remain based on modern systems in agriculture, industry and mechanization, and therefore the labor density there will not be similar to that of the old Delta and traditional areas, as they are based on a mechanized system. The President of the Republic has directed the provision of modern harvesting equipment and other things. He pointed out that the most important thing is that these vast areas will be offered for partnership with the private sector, in several forms. These areas target large entities to maintain the volume of agricultural production, and not to divide them greatly, which affects the economics of production in this region, so we return to face challenges like those we witnessed in other agricultural areas. He added that regarding the residential areas in this region, there is a plan being finalized based on establishing cities and villages in these areas, not similar to graduate villages, but rather as integrated development areas with all the activities necessary for development. The project is not based on agriculture alone, but also industrial activities, service areas, markets, and various activities.
Regarding the state's keenness to formulate a vision for the post-cooperation period with the International Monetary Fund, to preserve the gains achieved and reflected in the current positive economic indicators, Madbouly stressed that the government is working on preparing a detailed plan until 2030. Therefore, it is not only looking forward to the IMF program, which ends at the end of 2026 or the beginning of 2027 at the latest, but rather looking beyond the program. We are looking forward to developing a national program for the Egyptian state without relying on other international institutions. This will be linked to progress for the first time next year with a three-year budget, which is currently being worked on, linked to targets that the state is able to achieve. The most important thing is ensuring the continuation of high growth rates, maintaining low inflation rates and low unemployment rates, and focusing on the strong social dimension that is increasing every year. An example of this is the Takaful and Karama program, which has become a huge program and a fundamental pillar in the state's programs, and we will continue to do so. There are many indicators of industrial development, and advanced technology will be the basis in the coming period, with the maximization of the tourism, communications and information technology sectors, and anticipating all advanced systems and artificial intelligence tools in All walks of life.
In response to a media person's question about the dairy industry and efforts to provide subsidized Egyptian milk for children, the Prime Minister pointed out that this project is one of the major projects that require significant investments. He explained that this issue was presented to a number of private sector companies, and that many meetings were held with a number of major dairy producers and dairy product manufacturers to discuss and review the opportunities to start this project. He pointed out in this regard that the output of every 10 kilos of natural milk is 1 kilo of powdered or diluted milk that is used in baby milk and other uses, which reflects the huge cost.
Madbouly noted President Abdel Fattah El-Sisi's directives for the state to enter into such an important industry in partnership with the private sector, to assist and support the private sector in this endeavor, stressing that this industry is a top priority for the government in the coming period.
The Prime Minister added: "We are primarily working to encourage the private sector to enter this industry, and this is what His Excellency the President directed today to encourage and motivate the private sector to enter this industry, stressing the state's readiness to partner with the private sector in this industry to support its continuity and success in such important projects."
Regarding the question about the possibility of using “Diploma of Commerce” schools in various governorates and utilizing their educational buildings to transform them into modern technology schools required by the current labor market, so that students themselves study modern technology curricula instead of the “Diploma of Commerce,” which no longer enjoys a large labor market, the Prime Minister confirmed that he had already assigned the Minister of Education and Technical Education to do so, not only at the level of Diploma of Commerce schools, but also for all technical education schools, within the framework of keeping pace with the needs of the era and the current labor market.
Madbouly said that a study is currently being prepared by the Minister of Education to restructure these schools and redevelop them in partnership with the private sector, adding: “We have already seen models of technology schools and schools whose management has been assigned to the private sector, as well as models of schools such as WE for Communications and Information Technology. All of these schools address the future, and their graduates head directly to the labor market upon completion of their studies. Therefore, the Minister of Education has been tasked, and he is scheduled to present to the government in the coming period, a comprehensive vision for these schools and their re-exploitation in a way that qualifies our children and provides them with real opportunities in the labor market.”
He said, "There's another important issue, which concerns students who have already graduated from these schools." In this regard, he noted the "Digital Pioneers" initiative launched by President Abdel Fattah El-Sisi, the Minister of Communications, and the Military Academy. He emphasized that these graduates can apply to these types of initiatives and programs to change their career path and find job opportunities.
The Prime Minister continued: "I assure our youth that, regardless of their level of education, there is still an opportunity to enter the communications and information technology job market, which is the future. During our visits to outsourcing companies, we saw examples of these young people."
In response to a question about how the government was preparing to ensure the smooth running and security of the electoral process, the Prime Minister pointed out that the electoral process has a defined system and timing, and the government will secure it, like any other electoral process, and fully guarantee the freedom of citizens and the integrity and smooth running of the electoral process. Therefore, what concerns us is the complete security of the electoral system. He added, "This was the core of my remarks in the last meeting with the governors, where I emphasized the need for good preparation for the electoral process."
The Prime Minister also answered a question about the Holy Family Trail project and how citizens would benefit from it, saying: “The Egyptian state has been working on this project for some time, and there is a vision from the private sector to invest in a number of projects that serve the Holy Family Trail and put it on the global tourism map. We encourage the private sector to join us in this project, and we asked the companies that presented us with an initial vision to provide us with a detailed vision because they confirmed that they are able to finance the project.” He stressed that the state is keen to put this trail on the global tourism map.
Regarding the problems facing elderly pensioners, especially those who are denied pensions due to errors, the Prime Minister stressed the appreciation and respect for all members of the Egyptian people, especially the Egyptian symbols who are appreciated and respected. He pointed to the pension system and the extent of development and automation it has witnessed in recent times, noting that some errors are likely to occur, and in this context, there is a directive to the Social Insurance Authority to continuously audit and update the system, in an effort to prevent the recurrence of this type of individual problems.
The Prime Minister noted the swift handling of a recent incident involving one of Egypt's most iconic figures, artist Abdel Rahman Abu Zahra, and an apology was issued for this unintended and unintentional error. This is not only true for the distinguished artist, but also for any Egyptian citizen who might be subjected to the same unintended error.
Madbouly pointed out that the Cabinet's government complaints system is part of the mechanism through which citizens can submit their complaints to the relevant authorities regarding pension issues. He noted that some individual cases involving citizens have occurred, and immediate intervention was made to address such issues through the complaints system, in cooperation with the relevant authorities.
In response to a question about the government's handling of the challenges facing the comprehensive health insurance system, Madbouly indicated that the second phase of the comprehensive health insurance system includes five governorates, confirming that a study is underway to add one of the largest governorates, with a population exceeding five million, to the second phase. This would bring the number of governorates implementing the system to 15, which would represent a very large number of citizens entering the system.
The Prime Minister also highlighted the importance of ensuring financial sustainability for the comprehensive health insurance system, confirming the existence of a comprehensive actuarial study of the system and explaining the reason for not starting with densely populated governorates to strengthen the existing financial system from specific revenues.
Dr. Mostafa Madbouly also confirmed that the initial study has been revised to ensure its continuity and stability over a 50-year period. He explained that the previous study targeted a 20-year period before being revised. He emphasized that the system is based on ensuring financial sustainability, and that some major countries have not yet succeeded in implementing this system due to a lack of financial sustainability.
The Prime Minister added that to ensure the sustainability of this system, it must be ensured that the funds allocated to the Comprehensive Health Insurance Authority are able to meet its needs in order to implement and generalize it at the level of the governorates of the country.
