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.
