The Egyptian government is making strides toward executing its ambitious 2025 National Development Plan, which includes vast infrastructure projects aimed at fostering private sector investment. Prime Minister Mostafa Madbouly addressed investors this week, emphasizing the necessity of government involvement to facilitate these initiatives. The scale of the projects, he explained, is far too great for the private sector to undertake alone.
During the meeting, which brought together key players from various industries, Madbouly pointed out the considerable costs entailed. For example, he noted, “The private sector could not have undertaken the implementation of national projects alone due to their magnitude,” underscoring the heavy financial burden the state has borne.
By investing approximately 200,000 Egyptian pounds (around $6,700) per feddan to develop land and provide necessary utilities, the government is preparing the groundwork for potential investors. Madbouly highlighted the need for state-led initiatives to create favorable conditions for business. He stated, “If the government had opted not to execute projects itself and had just put land up for sale to investors, it would have been impossible to execute them due to the lack of infrastructure.”
This government's approach also touches on sectors with immediate potential for economic growth. During the engaging discussions, Khaled Abu Al-Makarim, chairman of the Export Council for Chemical Industries, raised pertinent issues relevant to the export rebate program and the plans for supplying gas to the fertilizer sector. He mentioned, “There is significant opportunity to increase Egyptian exports this year compared to last year.”
Responding to Abu Al-Makarim’s points, Madbouly stated the government had settled outstanding export rebate claims up to January 2023 and planned to initiate the new export rebate program by July 2024. Preliminary figures suggested around 60 billion pounds would be allocated. He assured investors, “The current year is exceptionally challenging due to surrounding circumstances,” indicating the extraordinary economic conditions Egypt is facing.
One of the significant challenges Madbouly discussed was the high cost of natural gas, which is utilized extensively across the manufacturing sector. He confirmed the government’s strategy to prioritize providing gas for local industries even if it means selling it below international market rates. The prime minister remarked, “The state prioritizes local gas sales to support Egyptian industry, even at lower prices than the exporting market.”
Tourism is another area where the government sees substantial potential for driving growth. With forecasts to welcome around 15.5 million tourists this year, Madbouly aims higher, stating, “We are planning to reach 18 million tourists next year.” This optimistic outlook coincides with proposed improvements to Egypt's aviation infrastructure, which will be increasingly strengthened through private sector management.
The prime minister noted, “We also aim to tap the private sector for the management and operation of several Egyptian airports,” which reflects the government’s broader strategy to boost investment and growth.
The discussions didn’t end there; they also addressed other economic challenges. Hassan Haikal, a business figure, highlighted the growing domestic and foreign debt, which imposes considerable interest on the national budget. Nevertheless, Madbouly assured attendees of the government's focus on managing debt sustainably, stating, “Egypt is committed to maintaining the downward trend of debt.”
The opportunity for collaborative efforts between the public and private sectors was another key theme of the meeting, particularly the proposed tourism project to increase hotel capacity around the Great Pyramids and the Grand Egyptian Museum. This project especially aims to double the number of available hotel rooms, thereby facilitating increased tourist numbers and foreign income.
By collaborating with private investors, the government aims to redefine its tourism sector, with potential developments underway to optimize operational efficiencies. “We are working on finalizing big projects to potentially increase tourism revenue,” Madbouly added.
The meetings showcased the Egyptian government’s proactive stance amid numerous economic hurdles. By engaging directly with investors, Madbouly aims to unify efforts toward mutual growth, setting the stage for substantial advancements as the nation moves closer to its development goals.
