Egypt commences 2nd phase of economic reforms: PM

CAIRO – 7 February 2024: Egypt has embarked on the second phase of its economic reforms from 2021 to 2024, with the goal of establishing a diverse, competitive, and sustainable economy. Prime Minister Mostafa Madbouly made this announcement during his speech at the 33rd Summit of the APR Forum of Heads of State and Government.

He emphasized the government's aim to achieve balanced, green, and comprehensive growth. To attract more domestic and foreign private sector investments, Egypt has issued a State Ownership Policy document in 2022. This document outlines the sectors and industries that the government plans to withdraw from, with the intention of increasing the private sector's contribution to the economy.

In recent years, the government has provided support amounting to approximately EGP 15.3 billion to small, medium, and micro enterprises, demonstrating its commitment to fostering their growth.

Prime Minister Madbouly also expressed Egypt's willingness to enhance trade and investment exchange with African countries, which is further strengthened by Egypt's membership in the COMESA. These proposed structural reforms complement the ongoing reform process initiated by the Egyptian government in 2016 in collaboration with the International Monetary Fund (IMF), particularly in the financial and monetary sectors.

As part of the state ownership policy document, the government plans to exit from 62 sectors, reduce its involvement in 56 sectors, and increase its role in 76 others, according to the cabinet's statement. The initial draft plan in early 2022 aimed to withdraw from 79 sectors and decrease participation in 45 sectors.