CAIRO – 3 April 2024: The latest figures from Egypt's Ministry of Planning and Economic Development reveal a remarkable surge in private investment during the first quarter of the fiscal year 2023/2024. Under this methodology, private investment for the year 2022/2023 was estimated at LE 499.2 billion, compared to the previous estimate of LE 298.5 billion. Consequently, the percentage of private investment as a share of the total investment rose to 36.4 percent from 25.5 percent.
The implementation of an enhanced accounting methodology has yielded valuable insights into the volume and sectorial distribution of private investment, aligning with the government's objective of creating a realistic investment map. This comprehensive approach provides a clearer perspective on the private investments made across diverse economic sectors.
The significant increase in private investment reflects a robust and growing economy, demonstrating a positive response from both domestic and international investors. This surge indicates a rising confidence in Egypt's business environment and economic prospects.
Minister of Planning and Economic Development, Hala El Said, expressed satisfaction with the results, highlighting the ministry's commitment to continuously improving the accuracy of investment data. The adoption of the new methodology has allowed for a more precise assessment of private investment, enabling policymakers and stakeholders to make informed decisions that drive economic growth and development.
The surge in private investment is expected to have a profound impact on the Egyptian economy. It will pave the way for the realization of the government's economic and social plan, which aims to increase the percentage of private investment to 50 percent of the total investments for the year 2024/2025.
This strategic goal aligns with the state ownership document and supports the objectives of the structural economic reform program and Egypt's Vision 2030.
The Ministry of Planning and Economic Development, in collaboration with international experts and various entities such as GAFI, the Commercial Registry, the Capital Market Authority, and financial and business associations, has diligently worked to develop this new methodology over the past two years.
Through workshops and expert meetings, they have refined the estimation of private sector investment and incorporated crucial data on research and development, media, electronic chips, software, technological infrastructure development, as well as household expenditure on residential buildings, maintenance, and repair.
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