Private sector participation on the rise, contributed 37% of total investment in FY2023: IDSC

Cairo – August 18, 2024: Egypt’s private sector is increasingly contributing to the national economy, with its share of total investments rising to 37 percent in the previous fiscal year (FY2023/2024), thanks to governmental initiatives.

The government anticipates that this contribution will reach 48 percent by the end of the current fiscal year.

A recent report from the Information and Decision Support Center (IDSC) highlights that between May 2022 and June 2024, Egypt introduced 293 reforms aimed at enhancing the private sector’s role in the economy.

The reforms are part of the country’s strategy to empower the private sector, and is in line with the country’s ongoing implementation of its State Ownership Policy.

The report highlights that 64 percent of the implemented measures have been concentrated on boosting investments, improving the business landscape, and promoting the industrial sector.

A total of 108 procedures have been implemented to enhance the business environment, accounting for 37 percent of the overall reform measures.

Some of the most significant measures include the introduction of the Golden License – with the cabinet issuing 31 golden licenses to investors by June 30, concessional loans worth EGP 120 billion for agriculture and industry, and addressing address customs release issues for goods valued over $72.4 billion in 2023.

The IDSC noted that 15 measures were implemented to bolster competition and competitive neutrality, representing around 5 percent of total reform measures. This included the government’s decision to cut off state-owned companies’ tax exemptions and promoting tax neutrality across the board.

The government took 78 measures to strengthen local industry, around 27 percent of total reform measures, including investment and tax incentives for priority sectors, such as green hydrogen projects.

The report noted that these complement reforms related to legal, regulatory, and institutional frameworks, including the implementation of the State Ownership Policy Document.