PM emphasizes government’s commitment to support private sector

CAIRO – 12 May 2024: Prime Minister Mostafa Madbouly engaged in a fireside chat highlighting the crucial role played by Egyptian private sector representatives as the main growth pillar of the country during IFC day in Egypt 2024. The Egyptian government is committed to paving the road for more contributions from the private sector, the prime minister stated.

 

He acknowledged the economic challenges faced by Egypt, given its unique situation within a turbulent region, but expressed confidence in the government's ability to address them.

Madbouly talked about the successful finalization of the first and second revisions with the International Monetary Fund (IMF) under its Extended Fund Facility (EEF). This step vital as it endorsed the structural reforms implemented by the Egyptian government. These reforms revolve around establishing a full-fledged flexible exchange rate, tightening monetary and fiscal policies, reducing public expenditure in infrastructure and national programs, and encouraging private sector-led economic growth.

 

Madbouly further highlighted efforts to decrease the overdraft of the Ministry of Finance within the Central Bank of Egypt, with the objective of controlling the overall government debt. The target is to bring it below 80 percent of the GDP within the next 2 to 3 years. To achieve this, the government has implemented public expenditure procedures and aims to achieve a primary surplus annually over the next 3 years, with a target exceeding 5 percent.

 

Madbouly also highlighted Egypt’s work with the World Bank and the European Union focuses on enhancing the resilience of the Egyptian economy against external shocks, increasing private sector contributions, and transitioning to a green economy. During his chat, the prime minister said that Egypt’s reforms are not limited to governmental bodies but also encompass economic authorities and state-owned enterprises.

 

The Prime Minister also highlighted the decree that set a ceiling of EGP 1 trillion on public expenditures, with the remainder to be allocated for private sector spending.

 

Egypt and the IFC also signed 2 agreements across key sectors: finance and healthcare. Egypt and IFC sign a Universal Health Insurance Authority (UHIA) agreement to support and develop Egypt’s healthcare sector. IFC and Banque Du Caire also signed a $100 million financing agreement to finance private-owned Micro, Small and Medium enterprises, including women-owned MSMEs and finance trade.