Its pre-coronavirus levels, and we also witnessed a decline in the fiscal deficit to 6.51%, while we are moving towards reducing the public debt-to-GDP ratio to between 85% and 871%.
Madbouly noted that there is no doubt that all these indicators confirm that we are on the right track towards achieving sustainable economic growth, led by the private sector, which constitutes the main pillar for stimulating the national economy. He added that these positive developments would not have been possible without launching a comprehensive structural reform program that aims to enhance economic stability, improve the investment climate, and support the transition to a green economy. He emphasized that these reforms came within the framework of strategic partnerships with international financial institutions, which contributed, through financing packages and technical support programs, to supporting the government’s efforts towards adopting effective policies and clear reform procedures.
Madbouly explained during his speech that, in addition to this, significant financial resources have been directed through international partnerships to enhance economic stability, expand the social safety net, increase transparency, and improve the investment environment. Reforms have also been implemented to facilitate the integration of the informal sector and provide a fair legal environment for small and medium-sized enterprises, especially those owned or managed by women, enabling them to integrate into the formal economy, enhancing growth opportunities, and creating job opportunities. He pointed out that these joint efforts have yielded tangible results, manifested in reducing uncertainty among investors and enhancing the private sector's ability to grow and contribute to achieving sustainable economic development. This is in light of the commitment to continuing the reform process and strengthening cooperation with international partners to propel the Egyptian economy towards a more inclusive and sustainable future.
The Prime Minister commended the important role played by development partners and international financing institutions in supporting development programs in Egypt, not only through financing, but also through the transfer of technical knowledge, the provision of strategic advice, and capacity building, which enhances the state’s ability to implement reforms and expand the scope of partnership with the private sector. He also commended the important role played by the Ministry of Planning, Economic Development and International Cooperation, as the ministry responsible for developing and strengthening economic cooperation relations between the Arab Republic of Egypt and regional and international financing institutions, as it contributes to opening up horizons for the private sector to benefit from various services provided by international development partners and enhancing direct communication with the business community through the “Hafez” platform for financial and technical support to the private sector.
During his speech, Madbouly stated that these efforts have been reflected in the increase in private sector development financing to $4.2 billion in 2024, exceeding government development financing for the first time. Since 2020, this financing has reached more than $15.6 billion. He added that the government is working, through a partnership with the International Finance Corporation, to move forward with the government's offering program. The corporation also provides specialized advisory services to the government to enhance partnerships with the private sector in the management and operation of Egyptian airports. This will improve services provided at airports, attract private sector financing to develop this vital sector, and support the state's efforts to increase inbound tourism to Egypt.
The Prime Minister pointed out that the state's vision for the future is based on a genuine partnership between the state and the private sector, whereby the state fulfills its regulatory role, and the private sector leads the process of production, employment, and innovation. In this regard, he emphasized the commitment to continuing efforts to accelerate reforms, overcome obstacles, and enhance governance and transparency in order to achieve a strong, competitive, and investment-attractive economy.
Madbouly noted that today we are witnessing a new chapter in the relationship between Egypt and its development partners, with the announcement of the Investment Guarantee Mechanism in partnership with the European Union. This mechanism will represent a strong impetus towards providing innovative financing tools to encourage efforts to attract investment to the Egyptian market. This mechanism is also a product of the Egyptian-European summit held in March 2024, chaired by President Abdel Fattah El-Sisi and Ursula von der Leyen, President of the European Commission.
