Egypt Reaffirms Economic Reforms, Boosting Private Sector Role

Egyptian Finance Minister Mohamed Maait meets with Ivanna Vladkova Hollar, the IMF’s Mission Chief for Egypt (Asharq Al-Awsat)
Egyptian Finance Minister Mohamed Maait meets with Ivanna Vladkova Hollar, the IMF’s Mission Chief for Egypt (Asharq Al-Awsat)
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Egypt Reaffirms Economic Reforms, Boosting Private Sector Role

Egyptian Finance Minister Mohamed Maait meets with Ivanna Vladkova Hollar, the IMF’s Mission Chief for Egypt (Asharq Al-Awsat)
Egyptian Finance Minister Mohamed Maait meets with Ivanna Vladkova Hollar, the IMF’s Mission Chief for Egypt (Asharq Al-Awsat)

Egyptian Finance Minister Mohamed Maait has assured the International Monetary Fund (IMF) that Egypt is sticking to reforms to boost the private sector’s role in the economy.

Maait stated on Saturday that Egypt is working to attract more local and foreign investments, with the country's economy showing signs of improvement after recent reform efforts.

The finance minister had met with Ivanna Vladkova Hollar, the IMF’s Mission Chief for Egypt, on the sidelines of the IMF and World Bank Spring Meetings. The discussions focused on strengthening cooperation within the framework of Egypt's IMF-backed economic reform program.

Maait highlighted Egypt's improving economic situation following the implementation of comprehensive reforms.

He pointed to positive indicators over the past nine months, including an initial budget surplus of EGP416 billion (approximately $8.62 billion) – a stark contrast to the EGP50 billion (around $1.04 billion) surplus recorded in the same period last year. This represents an annual growth rate exceeding 8.5 times.

Despite facing challenges from global crises and rising interest rates, Egypt maintained stability in its total budget deficit, keeping it at 5.42% of GDP compared to 5.40% the previous year.

Maait emphasized that the government is focused on implementing fiscal policies to stimulate investment, production, exports, and economic stability.

These efforts aim to restore the national economy while maintaining financial discipline and reducing budget deficits and debt-to-GDP ratios to relieve pressure on public finances and build financial reserves.

Rania Al-Mashat, Egypt’s Minister of International Cooperation and Governor at the World Bank Group, acknowledged the widespread impact of global challenges, including the COVID-19 pandemic, geopolitical tensions, supply chain disruptions, and rising prices.

These factors have disproportionately affected developing and emerging economies, leading to capital flight and declining foreign direct investment.

Al-Mashat highlighted Egypt’s extensive development financing portfolio, currently valued at approximately $26 billion.

Over the past four years (2020-2023), the country secured $37 billion in financing from development partners, with $10.3 billion specifically directed towards the private sector.



Honda, Nissan and Mitsubishi Drop Talks on Business Integration

This combination of pictures created on February 13, 2025 shows the logo of Honda Motor (L) taken on February 6, 2025 at the company's showroom in Tokyo and the logo of Nissan Motor (R) being displayed at the company's showroom in Tokyo on February 13, 2025. (Photo by Kazuhiro NOGI / AFP)
This combination of pictures created on February 13, 2025 shows the logo of Honda Motor (L) taken on February 6, 2025 at the company's showroom in Tokyo and the logo of Nissan Motor (R) being displayed at the company's showroom in Tokyo on February 13, 2025. (Photo by Kazuhiro NOGI / AFP)
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Honda, Nissan and Mitsubishi Drop Talks on Business Integration

This combination of pictures created on February 13, 2025 shows the logo of Honda Motor (L) taken on February 6, 2025 at the company's showroom in Tokyo and the logo of Nissan Motor (R) being displayed at the company's showroom in Tokyo on February 13, 2025. (Photo by Kazuhiro NOGI / AFP)
This combination of pictures created on February 13, 2025 shows the logo of Honda Motor (L) taken on February 6, 2025 at the company's showroom in Tokyo and the logo of Nissan Motor (R) being displayed at the company's showroom in Tokyo on February 13, 2025. (Photo by Kazuhiro NOGI / AFP)

Japanese automakers Honda, Nissan and Mitsubishi said Thursday they are ending talks on business integration.
Nissan Chief Executive Makoto Uchida said the talks had changed focus from setting up a joint holding company to making Nissan into a subsidiary of Honda, The Associated Press reported.
“The intent was to join forces to win in the global competition, but this was not going to realize Nissan's potential, so I could not accept it,” he told reporters. He said that Nissan was going to aim for a turnaround without Honda instead.
Honda Chief Executive Toshihiro Mibe said in a separate news conference that Honda had suggested a stock swap to speed up decision-making.
“I am really disappointed,” Mibe told reporters. “I felt the potential was great, but I also knew actions that would bring pain were necessary to realize that."
The automakers agreed to end their agreement regarding the consideration of the structure for a collaboration, a joint statement said.
Honda Motor Co. and Nissan Motor Corp. announced in December that they were going to hold talks to set up a joint holding company. Mitsubishi Motors Corp. had said it was considering joining that group.
From the start, the effort had analysts puzzled as to the advantages to any of the companies, as their model lineups and strengths overlap in an industry shaken by the arrival of powerful newcomers like Tesla and BYD, as well as the move to electrification.
Honda and Nissan initially said they were trying to finalize an agreement by June and set up the holding company by August.
The three automakers will continue to work together on electric vehicles and smart cars, such as autonomous driving, they said Thursday.
In recent weeks, Japanese media had various reports about the talks breaking down, citing unidentified sources. Some said Nissan balked at becoming a minor player in the partnership with Honda.
Mibe denied he knew or heard anything about the media speculation that Taiwan's Foxconn was considering taking a stake in Nissan.
Honda is in far better financial shape and was to take the lead in the joint executive team. Honda reported Thursday that its April-December 2024 profits declined 7% to 805 billion yen ($5 billion).
Nissan reported a loss for the July-September quarter as its vehicle sales sank, prompting it to slash 9,000 jobs. At that time, Uchida took a 50% pay cut to take responsibility for the results.