Egypt targets economic growth of 7-8% by 2027: Planning Minister

CAIRO – 21 April 2024: Minister of Planning and Economic Development and Chairperson of The Sovereign Fund of Egypt (TSFE) Hala El-Said stated that Egypt eyed growth rates of 7-8% by 2027, with the share of the sectors of agriculture, manufacturing, communications and information technology being 35%.

The minister's statements came during a roundtable hosted by the U.S. Chamber of Commerce on Wednesday in Washington where she was attending the IMF-WB Spring Meetings. She noted that in spite of the anticipated economic growth deceleration in 2024 due to Middle East conflicts, the rate is projected to surpass regional average.

Despite facing global challenges such as the COVID-19 pandemic, the Russia-Ukraine war, European energy crises, global supply chain disruptions, shipping cost increases, goods shortages, inflation, and climate change, Egypt’s economy has demonstrated resilience. Growth rates stood at 5.6% in 2018/2019, 3.6% in 2019/2020, 3.3% in 2020/2021, 6.6% in 2021/2022, and 3.8% in 2022/2023.

Further, El-Said highlighted Egypt’s achievements in global indicators, notably ranking first in Africa for liner shipping connectivity in Q3 of 2023 and attaining high ranks in logistics, renewable energy attractiveness, and digital government readiness.

Regarding foreign trade, the planning minister highlighted Egypt’s free trade agreements with markets having around two billion consumers. That is in addition to the countries' promising domestic market of 105.3 million people.

El-Said displayed Egypt’s non-petroleum export performance in 2023. Construction materials recorded 24.8%, followed by chemicals and fertilizers at 18.2%, food industries at 14%, electronics and engineering products at 12.2%, and agricultural products at 10.5%. As for the main non-petroleum imports, they include electronics and engineering products at 29%, construction materials at 16.6%, chemicals and fertilizers at 13.1%, and agricultural products at 13%.

Shedding light on Egypt’s investment environment, the minister presented incentives offered to foreign direct investments, citing a significant 123.5%-increase in FDI inflows to Egypt in 2022, reaching $11.4 billion up from $5.1 billion in 2021.

In that context, El-Said detailed Egypt’s investment opportunities, emphasizing the ministry’s role in long-term, medium-term, and short-term planning. She also underscored the National Structural Reform Program launched in 2021. That is a program aimed at bolstering Egypt’s economic resilience, creating job opportunities, enhancing productivity, maximizing competitive advantages, and addressing economic imbalances through comprehensive reforms.

The program’s key pillars include improving the business environment, boosting the private sector’s role, enhancing labor market efficiency and flexibility, developing human capital, and increasing the relative importance of agriculture, industry, and communications sectors.

The minister concluded by reaffirming the Egyptian Sovereign Fund’s role as an ideal partner for the private sector, as its mission is encouraging investment in untapped assets. She also emphasized the strategic significance of the Suez Canal Economic Zone and provided insights into the incentives it offers to the private sector.