Egyptian parliamentarians give the private sector a greater role in providing public services

Egypt’s Parliament has approved the government’s economic and social development plan for the 2024/2025 financial year, which envisages a significant increase in private sector participation in health and education.

The proposal, presented on Monday by Minister of Planning and Economic Development Hala Al Said before the assembly, aims to increase private sector involvement in healthcare from the current 30% to 50% by 2030.

The overall plan is to increase the role of the private sector in the overall economy to 50% by 2030, El Said said.

The approval of the development plan comes just weeks after Egypt’s parliament passed a controversial law allowing private companies to run public hospitals.

The move, part of a broader push for privatization across sectors, was met with concern and anger from the public and doctors.

Many Egyptians, especially the disadvantaged, fear that increased privatization of healthcare will make it more difficult for them to access medical services.

The country’s poorest citizens, already struggling with record high inflation and reduced state subsidies for bread and fuel, rely heavily on public hospitals for health care.

Privatization efforts in the health care sector have been linked to conditions set out in Egypt’s recent economic reform program by the International Monetary Fund, after it approved an $8 billion loan in March.

The government is working to restructure its economy under the guidance of the IMF and other international partners following a series of foreign aid deals totaling more than $50 billion that have saved the country from bankruptcy.

Despite concerns raised by citizens and health workers, the government maintains that the economic development plan will help improve the quality and efficiency of health services, El Said said.

The Ministry of Planning and Development expects the Egyptian economy to grow by 4.2 percent in the coming fiscal year, she added, and this growth will be partly driven by increased private sector participation in key sectors such as health care and education.

On education, Ms El Said outlined the government’s intention to “increase the competitiveness of higher education by expanding partnerships with the private sector”.

The minister defended the state’s controversial megaprojects, seen by many as expensive vanity projects that will not benefit society.

She singled out the national road network, which has seen over 7,000 km of roads built or upgraded in Egypt since its establishment in 2014. El Said told Parliament that between 2018 and 2022, the network reduced road deaths by 33%.

In response to concerns among some parliamentarians about the growth of foreign loans, which according to World Bank data increased from $46.1 billion in 2014 to about $165 billion at the end of 2023, Ms El Said said such loans were a viable means of financing state projects.

The minister acknowledged the concerns expressed regarding foreign debt and highlighted the establishment of the Egyptian Foreign Debt Committee by President Abdel Fattah El Sisi in 2018 to establish controls on foreign debt management.

However, the fact that the country’s debt has increased from $92.6 billion at the end of 2018 – according to data from Egypt’s central bank – to an unprecedented level may call into question the effectiveness of the commission.

As Egypt moves forward with its privatization plans, it remains to be seen how the government will address the concerns of its most vulnerable citizens and ensure access to affordable health care for all.

Updated: June 4, 2024, 2:47 p.m