Comprehensive, well-designed reforms, and investing in the empowerment of women keep country on track for future growth
Egypt’s Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat outlines the country’s reform efforts that have contributed positively to ensuring a more competitive, diverse and inclusive economy.
With the decline in Suez Canal revenues being a major challenge for the Egyptian economy, how is it affecting the government’s reform agenda?
While global uncertainties and geopolitical tensions pose challenges, Egypt’s reform-driven approach is fostering a more stable and predictable macro-economic environment. Significant strides have been made in economic reforms with the economy becoming more stable and predictable, and ongoing structural reforms ensuring long-term sustainability.
The government continues its efforts to ensure economic growth led by the private sector through implementing structural reforms that enhance economic capabilities and provide an attractive environment for both local and international investments. The current economic vision focuses on shifting from non-tradable sectors to tradable sectors to increase the added value of local products and improve their competitiveness in global markets.
In 2024, Egypt’s Suez Canal revenues indeed fell by over 60 percent compared to the previous year. This decline was driven by regional instability, which disrupted global shipping and forced several shipping companies to divert their shipping routes. However, early signs of recovery have emerged recently. According to the Suez Canal Authority, 47 ships rerouted back to the canal in February 2025.
Read: Egypt’s foreign reserves soar to $47.39 billion in February
The government remains committed to structural reform which is an ongoing process to keep up with local and regional changes, improve the business environment, and empower the private sector. Indeed, Economic growth during the first quarter of FY 2024/2025 saw a recovery as a result of the economic and structural reforms initiated by the government since March 2024, reaching a growth rate of 3.5 percent.
The growth during this period showed positive progress not only in terms of the growth rate but also in quality. The non-petroleum manufacturing sector grew by 7.1 percent in the first quarter, marking the highest growth rate since the third quarter of the FY 2021/2022. In addition, merchandise non-petroleum exports have recovered during the same quarter, driven by the government’s efforts to release production inputs from customs and enhance manufacturing in various sectors, both for finished and semi-finished goods.
Additionally, and in light of the government’s efforts to implement a robust governance for public investment, private-sector-led growth has gained momentum, with private investment accounting for 63 percent of total investments in Q1 FY 2024/2025.
Despite the ongoing global challenges and heightened uncertainties, Egypt remains committed to its economic reform agenda, prioritizing, private sector-led growth, fiscal consolidation, and structural transformation. With signs of recovery in Suez Canal, strategic regional partnerships, and a focus on enhancing private investment and productivity, the economy is projected to grow steadily, up to 4 percent by June 2025 and 4.5 percent in the following fiscal year. Continued efforts to create a stable and business-friendly environment will be key to sustaining long-term economic resilience and competitiveness.
How is the government involving the private sector to ensure comprehensive and sustainable growth?
A central component of the government’s reform agenda is fostering private sector involvement, shifting growth reliance from the state to the private sector in key industries. This strategic shift is essential for driving sustainable and inclusive growth. As part of this effort, the government aims to increase the private sector’s contribution to economic activity, targeting a 65 percent share within the next three years.
To improve the business environment, the government has implemented several measures, including enhancing transparency and accountability by reviewing tax exemptions for state-owned companies. Additionally, procedures for obtaining licenses and approvals have been streamlined through digital transformation with the launch of the “Golden License” electronic platform. This platform provides investors with comprehensive information about the Golden License system and allows them to submit single approval requests.
Further reforms include new incentives and flexible criteria for investment projects, along with the establishment of the Supreme Investment Council to address challenges faced by investors in Egypt. Recognizing the importance of closing information gaps to fully unlock the private sector’s potential, the Government of Egypt also launched the Hub for Advisory, Finance, and Investment for Enterprises (منصـــة حــــافِـــــز).
This one-stop platform connects private sector entities to 75 financial and non-financial services provided by 20 development partners. As a result of these homegrown reforms, 2024 marked the first year in which concessional finance directed toward the private sector exceeded that allocated to the government, signaling a significant milestone in Egypt’s economic transformation.
What are the key initiatives and strategies that Egypt is implementing to advance gender equality and empower women for sustainable economic growth?
Advancing gender equality is not only a moral imperative but also an economic necessity. The IMF estimates that closing gender gaps in labor force participation could boost economic output by an average of 35 percent in countries with greater gender inequality. Egypt is steadfastly investing in the empowerment of women — ensuring they have the opportunities, resources, and support needed to drive our nation’s sustainable growth and prosperity.
Guided by the National Strategy for the Empowerment of Egyptian Women (2016-2030), the government is committed to adopting gender-responsive budgets and integrating gender perspectives across all development projects. In addition, the Ministry of Planning, Economic Development and International cooperation is also spearheading coordination efforts for 89 gender-focused projects with Egypt’s bilateral and multilateral partners.
In 2020, together with the National Council for Women and the World Economic Forum, the Ministry launched the “Closing the Gender Gap Accelerator”, which is the first public-private collaboration of its kind in Africa and the Middle East aiming to advance gender parity in the workforce by fostering economic opportunities, enhancing women’s participation, and promoting inclusive policies across sectors. These milestones in women’s empowerment are the result of strong political will and an unwavering commitment to fostering an inclusive and equitable society.
In addition, the New Government Action Program 2024-2027 outlines seven strategic objectives, one of which is dedicated to the political, economic and social empowerment of women, alongside promoting women’s health and safeguarding them from violence. Let me leave you with the three key messages: First, gender equality is an economic imperative; unlocking women’s potential is essential for driving growth, fostering innovation, and enhancing resilience.
Second, political will and partnerships are crucial; strong commitment from leaders and collaborative efforts across sectors are necessary to create an environment where gender equality can thrive. Finally, empowering women builds economic and communal resilience; when women are empowered, communities flourish, leading to greater stability and prosperity for all.
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