The private sector contributes 70% to Egypt’s GDP, employs 80% of the workers: Minister

FILE – Minister of Planning Hala al-Said

CAIRO – June 29, 2024: HE Dr. Hala El-Said, Minister of Planning and Economic Development, today delivered a wide-ranging speech at the Egypt-EU Investment Conference, setting the stage for robust discussions on economic reforms and investment opportunities. The conference, with the theme “Unlocking Egypt’s potential in a rapidly changing world” and held under the patronage of President Abd al-Fattah el-Sisi, attracted a prestigious gathering including Ursula von der Leyen, President of the European Commission, Dr. Mostafa Madbouly’ ego, the Prime Minister of Egypt, as well as a number of senior officials from Egypt, EU Member States and global business leaders.

Dr. El-Said’s keynote speech highlighted Egypt’s unwavering commitment to ongoing structural reforms aimed at increasing economic resilience and supporting sustainable growth in all key sectors. Highlighting the continued reform efforts since 2014, Dr. El-Said outlined four strategic pillars driving Egypt’s economic transformation.

The first pillar focuses on strengthening productivity in key sectors such as industry, agriculture, information technology, tourism and logistics. These actions aim to strengthen Egypt’s economy against external shocks and take advantage of emerging opportunities in the global market.

Under the second pillar, Dr. El-Said emphasized the key role of the private sector as a key development partner. She highlighted recent policy reforms and legislative measures aimed at creating an enabling environment for private investment. Initiatives include currency liberalization, financial sector reforms and targeted incentives for green and sustainable investments, with the government covering up to 30% of the upfront costs. Small and medium-sized enterprises (SMEs) benefit from a five-year tax exemption, which further stimulates entrepreneurial activity.

Infrastructure development has become a cornerstone of Egypt’s economic strategy, with significant investment directed towards expanding transportation networks and modernizing ports along the Red Sea and Mediterranean. These initiatives are key to strengthening Egypt’s position as a strategic global trading hub and increasing connectivity in the region.

Addressing the dynamics of the labour market, Dr El-Said highlighted the demographic benefits of young Egyptians, emphasising the need to invest in technical, vocational and technological education to equip the workforce with skills tailored to the changing needs of industry.

Social welfare initiatives also featured prominently in Dr El-Said’s speech, with particular emphasis on the ‘Hayah Karima’ initiative – a landmark development project providing basic services including sanitation, health care and education to rural communities, benefiting over 50% Egypt’s population.

Gender equality and family well-being were highlighted as integral components of Egypt’s development agenda, including initiatives aimed at empowering women economically and socially. Dr. El-Said stressed the importance of these initiatives in supporting inclusive economic growth and social progress.

In terms of the economic impact of recent reforms, Dr El-Said noted significant progress in attracting private sector investment, citing 65 investment opportunities in 14 sectors over the past three years. She emphasized the growing role of the private sector, which, according to data from the Central Agency for Social Mobilization and Statistics, employs 80% of Egypt’s labor force and 70% of national production.

Addressing Egypt’s Sovereign Fund, Dr El-Said described it as a key mechanism for driving public-private partnerships and strategic investments in key sectors such as renewable energy and transport infrastructure. The fund’s initiatives aim to leverage Egypt’s competitive advantages and support innovation-led growth.

Looking to the future, Dr El-Said reaffirmed Egypt’s commitment to supporting innovation and entrepreneurship, and its continued efforts to revitalise untapped resources through collaboration with the private sector.

In conclusion, Dr. El-Said highlighted the achievements of the Sovereign Fund, including 17 transformational projects implemented in collaboration with domestic and international partners. These projects have mobilised significant investments, with domestic contributions totalling EGP 52 billion and foreign inflows amounting to USD 5.1 billion over the past four years.

The Egypt-EU Investment Conference continues to serve as a platform to support dialogue, cooperation and investment partnerships aimed at unlocking Egypt’s enormous economic potential in the face of changing global dynamics.