Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, delivered the opening speech at the sixth economic conference organized by “Hapi” newspaper under the title “Flexible reform…a quiet crossing of economic challenges,” in the presence of Ahmed Kajouk, Minister of Finance, and representatives of private sector companies.
Dr. Rania Al-Mashat stressed that the state, with its various institutions, seeks to implement a clear and consistent agenda for economic reform, in order to advance the Egyptian economy and enhance its ability to withstand in light of the successive regional and international developments, especially in light of the successive regional and international geopolitical and economic developments since 2020, which have become It is a real challenge that directly affects developing and emerging countries, which are trying to catch up with development.
*Global growth*
The Minister of Planning, Economic Development and International Cooperation referred to the report recently issued by the World Bank Group on global economic prospects. While the world was waiting for major transformations to occur in terms of development as we approached the year 2030, the report indicated that the growth performance of the global economy in the five years In the past 30 years, it is the weakest.
She noted that the continuation of conflicts and geopolitical tensions in many regions of the world, in addition to the slowdown in global trade, tightening financial conditions, and the negative effects of climate change, contributed to increasing the risks surrounding the global economy, so that growth expectations in 2024 slowed to 2.4% for the third year in a row, compared to 2.6% last year, in addition to developing and least developed countries being affected by these developments, which limits their ability to move forward in achieving their development agenda.
The development gaps in these countries have also widened, which requires the formulation of flexible policies and the adoption of comprehensive and innovative measures in order to preserve development gains and ensure macroeconomic stability in these countries until 2030 and beyond.
*Economic and structural reform program*
She stated that the Egyptian government has begun implementing a multi-dimensional economic and structural reform program that includes various aspects of economic activity, keeping in mind empowering the private sector as a major and indispensable goal in order to overcome the challenges facing the Egyptian economy and increase rates of comprehensive and sustainable development. In this regard, the Ministry of Planning, Economic Development and International Cooperation seeks, through its activities and programmes, to apply a different philosophy in order to improve the effectiveness of development plans and integration between local and international resources, and to support the objectives of the government programme.
She noted that the structural reforms being implemented are based on 3 main axes: Strengthening macroeconomic resilience, enhancing economic competitiveness, improving the business environment, and supporting economic diversification and green transformation, noting that the green transformation in Egypt includes many investment opportunities for the private sector.
*Preparing an economic and social development plan*
She revealed that the Ministry is currently working on implementing a new work methodology in preparing the economic and social development plan for the next fiscal year 2025/2026, which is being discussed with various ministries and state agencies, based on a comprehensive development perspective stemming from Egypt’s Vision 2030, the priorities of the government’s work program, and plans. And sectoral strategies, while applying the modern trends stipulated in the new planning law and its executive regulations that are currently being finalized, and in a way that supports the efforts made by the government to implement the “State Ownership Policy Document,” And make room for the private sector.
She explained that this methodology reflects our basic orientation in the next stage, in order to reach an efficient and effective planning system, and advance comprehensive and sustainable development in the country, using all available tools, most notably procedures for raising the efficiency of investment spending, governance and follow-up of public investments and development financing, and enhancing follow-up efforts. Evaluation and coordination with ministries to improve the quality of development plans through the “Preparing the Economic and Social Development Plan” guide, and providing spatial information that supports the planning process through the “Spatial Information Infrastructure System.”
*Investment spending ceiling*
She added that, in parallel with the new methodology in the plan for the next fiscal year, the Ministry is following up on the implementation of the economic and social development plan for the current fiscal year 2024/2025, taking into account the commitment to the public investment ceiling that was set by the Council of Ministers for the first time, and which is set at a value of one trillion pounds, and therefore the volume of investments The total amount this year amounts to approximately 2 trillion pounds, of which 1 trillion pounds are public investments and 987 billion pounds are private investments, at a rate of 49.7%, noting that the investment spending ceiling, in addition to its role in empowering the private sector, reduces the deficit. The state’s general budget.
*Empowering the private sector*
She stressed that empowering the private sector and restoring its role in leading development efforts is a major goal of the government, so we aim to build on the process of comprehensive economic and structural reforms that have been implemented over the past years, through the implementation of the National Program for Structural Reforms, which aims primarily to stimulate the private sector’s participation in Development efforts, making room for local and foreign investments.
She continued, saying: “Therefore, the Ministry of Planning, Economic Development and International Cooperation implemented the Development Policy Financing Programme, with a number of international partners, within the framework of which funds are provided to support the budget, in order to support the implementation of structural reforms in cooperation with various national bodies.”
She pointed to the integrated national financing strategy, which the Ministry launched during the Future Summit in New York, which is a comprehensive strategy that works to enhance local and international financing for development, adding that the soft financing obtained by the private sector from international financial institutions in 4 and a half years amounted to about 12 billion. dollars, which reflects the strong partnership between Egypt and development partners.
*Public Investment Governance*
She indicated that public investment governance, monitoring and evaluation procedures are being applied through three axes: investment planning, where project evaluation standards have been updated, entities are obligated to submit feasibility studies, and develop methodologies for calculating investments, and the second axis is allocating investments through developing a financing formula to cover the development gaps between… Governorates, linking investments to incentives, in addition to the axis of following up on the implementation of investments through automating the office and field follow-up process, and inventorying investment assets.
*Ministerial Group for Entrepreneurship*
She added that, in recognition of the state’s awareness of the importance of entrepreneurship in creating an economic climate based on innovation and unconventional development solutions, the Ministerial Group for Entrepreneurship was established, as this sector can represent a driving force for economic growth, and therefore the regulatory framework of the Ministerial Group for Entrepreneurship includes all parties. Concerned government and startup community, through a technical committee and working groups that are flexible and open to all stakeholders, in order to discuss challenges and identify proposals to advance this vital sector.
She noted that in the current period, working group meetings are being held in succession in order to prepare the “Startup Charter,” which is a document that will include all the recommendations and visions that the government will follow in this field, to serve as a road map for the future, defining the priorities of the government and the private sector in supporting entrepreneurship, and procedures will also be issued. Supportive of the startup community in the first quarter of next year, pointing to the “Middle Income Trap” report, issued by the World Bank, which stressed the importance of innovation and digital transformation for middle-income countries to enhance growth.
Dr. Rania Al-Mashat concluded her speech by emphasizing the continued harmony and coordination between the economic ministerial group, and the government’s keenness, under the leadership of the Prime Minister, and under the directives of President Abdel Fattah El-Sisi, President of the Republic, to move forward on the path of economic reform to support macroeconomic stability, taking into account the necessity of expanding… Social spending, especially on the health, education, and social protection sectors, in order to alleviate the income of the lowest classes and enhance investment in human capital and human building.
