Thu, 29 Dec 2022 - 10:34 GMT
Thu, 29 Dec 2022 - 10:34 GMT
CAIRO – 30 December 2022: Egypt’s President Abdel Fattah El-Sisi has approved the State Ownership Policy Document that aims at regulating the state’s presence in economic activities.
Prime Minister Mostafa Madbouly said on Thursday that the document regulates the state’s presence in economic activities in a number of sectors and manufacturing industries, said the Cabinet in a statement.
According to Madbouly, the state will withdraw from 62 activities, maintain or reduce investments in 56 activities, and maintain or increase investments in 76 sectors.
Madbouly said the document basically aims at boosting economic growth rates by increasing investments by 15-30 percent. This will help the country achieve economic growth ranging from 7 to 9 percent and secure job opportunities, he added.
This economic growth will be achieved through further empowerment to the Egyptian private sector and by providing diverse opportunities for the presence of the private sector in all economic sectors, Madbouly stressed.
The document, therefore, will help boost the economic contribution of the private sector to the Gross Domestic Product (GDP) and increase investments, exports, and government’s revenues, he added.
The document comes in continuation of the reforms that the Egyptian state has adopted within the framework of enhancing the role of the private sector in the economic activity, the prime minister said.
The document also sheds light on partnerships between the public and private sectors as a mechanism to achieve further enhancement of the private sector’s role.
According to the document, the state will focus on driving more investments and owning assets in main sectors that include the sectors that the private sectors avoid, Madbouly said.
He noted that developing these sectors will be directly reflected on improving the work environment for the private sector.
The document also aims at achieving governance of the state’s presence in economic activities, Madbouly said, stressing that the government is keen to participate in some economic sectors based on specific standards.
As per the document, the government will also shift from the management of state institutions to the management of state capital by defining the mechanisms for the state’s withdrawal from the assets owned by the state, the prime minister added.
The implementation of the document aims at achieving financial savings that enable support for the general budget, achieving financial discipline, and ensure financial sustainability, Madbouly said.
The document also aims to enhance the state's financial capacity to support social protection networks and protect the vulnerable groups in order to increase the levels of resilience of the Egyptian economy in the face of the crises, Madbouly said.
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