Sigma Capital

19-05-2025

Egypt Aims for 4.5% Growth and EGP 3.5 Trillion in Investments in FY 2025/2026

Source: MIST

Business Today-


Egypt’s plan for the fiscal year 2025/2026 aims to achieve an economic growth rate of about 4.5%, a significant increase compared to the modest 2.4% growth recorded in FY 2023/2024. This was announced by Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, during the Senate’s plenary session.



She explained that the three main drivers of economic growth—final consumption, investment, and changes in net exports—are expected to contribute positively and in a balanced manner toward the 4.5% target. Final consumption expenditure is projected to contribute roughly 27%, investment about 37%, and net export changes around 36%.



Regarding investments, Al-Mashat highlighted that total investments are set to reach nearly 3.5 trillion Egyptian pounds for the first time, up from the expected 2.6 trillion pounds in 2024-2025 and the actual 1.8 trillion pounds in 2023-2024.



She also noted that the investment rate is expected to rise further, reaching 17.1% of GDP in 2025-2026, compared to 15% in 2024-2025 and 13% in 2023-2024.



Private investments are forecast to increase to approximately 1.94 trillion pounds, making up about 63% of total investments, while public investments will account for 37%. This shift reflects the government’s focus on accelerating private sector growth while upholding good governance and fair competition.



On the public investment front, the minister reaffirmed a commitment to a ceiling of 1.16 trillion pounds for FY 2025-2026, compared to an anticipated 1 trillion pounds in 2024-2025. This strategy aims to optimize public spending, reduce debt servicing burdens on domestic and foreign loans, and create more space for local private sector involvement in developmentprojects.