CAIRO - 19 March 2024: The Egyptian government is collaborating with credit rating agencies to regain Egypt's highest credit rating in the upcoming period, according to the Finance Minister, Mohamed Maait.
He added that the government’s aim is to restore confidence in the Egyptian economy by explaining the dimensions of the new economic trajectory of the Egyptian state, which is a catalyst for promising horizons.
He clarified that the announcement by the S&P global rating agency changing its outlook for Egypt's economy from "stable" to "positive," while maintaining the sovereign credit rating at "B-" reflects the importance of Egypt's advanced, integrated, and sustainable economic policies in enhancing the recovery and sustainable growth process.
Maait, in a press release following the release of the global rating agency's report, added that "S&P" positively recognized the Egyptian government's movement with bold reform measures, targeting an ambitious plan that optimally utilizes state resources, comprehensive capacities, and economic potentials to attract more domestic and foreign private investments.
“This recognition comes amidst serious efforts to create a favorable business environment that ensures equal opportunities between the private sector and all state-owned companies and entities, whether in terms of tax, customs, or investment treatment.” he added.
The Minister further stated that reducing public investment expenditure for all state entities in the budget of the next fiscal year confirms the seriousness of the state in stimulating the private sector to work, compete vigorously, and play a more profound role in developmental activities. This will enable it to lead economic growth in the future, given the availability of all economic development components, including advanced infrastructure and investment, tax, and customs incentives that drive productive, industrial, and export sectors.
Meanwhile, Ahmed Kajok, the Deputy Minister for Financial Policies, mentioned that the Egyptian government's announcement of setting a ceiling not exceeding LE 1 trillion for total public investments during the budget of the next fiscal year creates greater opportunities to increase private sector contributions to economic activity. This is because the private sector acts as the engine of development capable of driving the economy forward and providing more job opportunities.
He added that the "State Ownership Policy Document" has provided more attractive mechanisms for the "Government Offerings Program" to the private sector, allowing promising opportunities in sectors with global competitiveness and stimulating factors for investment, local production, and export.
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