During H.E.’s participation in the Annual Meetings of the International Monetary Fund and the World Bank Group for 2024 in Washington, Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, met with leaders of Jefferies Group, one of the largest investment and asset management firms in the world, in the presence of 75 global companies. H.E. Dr. Al-Mashat also held a meeting with representatives from J.P. Morgan and a number of investors to showcase the key results of the economic and structural reform program in Egypt, as part of the country's efforts to encourage investment and attract capital, with the attendance of Mr. Ahmed Kouchouk, Minister of Finance.
During the meeting, H.E. Dr. Rania Al-Mashat presented the achievements made in economic and structural reforms in recent times, as well as the government's efforts to enhance macroeconomic stability, improve the business environment, and build a competitive economy attractive to investments, despite the surrounding regional and global crises that impact developing countries in general.
H.E. Minister Al-Mashat noted that the GDP growth rate reached 2.4% in the last fiscal year, due to geopolitical tensions affecting the Suez Canal's activity and the challenges faced by the Egyptian economy prior to the commencement of the economic reform program in March. However, she added that the economic outlook for Egypt remains positive, supported by international financial institutions and development partners.
Regarding economic and structural reforms in Egypt, H.E. Dr. Rania Al-Mashat stated that Egypt has worked over the past years on implementing economic reforms aimed at promoting strong, inclusive, and sustainable growth. H.E. highlighted the results of the national structural reform program, implemented by the government in coordination with international partners, based on three main pillars: enhancing macroeconomic resilience, improving economic competitiveness and the business environment, and competitiveness and the green transition. These efforts aim to establish macroeconomic stability and promote the private sector's role as a key partner in driving economic development and supporting the green transition, opening future prospects for achieving inclusive and sustainable development.
The Minister noted that several reforms have been implemented to enhance the competitiveness of the Egyptian economy, including the cancellation of tax exemptions and fees for governmental entities in economic and investment activities, and the issuance of a presidential decree for bond trading, which includes rules and incentives to improve competition, transparency, and increase trading in the secondary market. Additionally, amendments were made to the unified public finance law to improve financial reporting and to set an annual ceiling for public government debt, including 59 economic authorities. General guidelines for budgeting were issued from top to bottom, establishing ceilings related to the medium-term financial framework (MTBF) to be distributed among various ministries, and a guiding document was prepared to set new criteria for evaluating public investment projects.
H.E. Dr. Al-Mashat emphasized the importance of structural reforms in stimulating local and foreign investments in priority sectors, referring to reforms undertaken in renewable energy and electricity sectors, which contributed to an increase in foreign investments in this vital area.
H.E. Minister Al-Mashat also mentioned the State Ownership Policy Document, which outlines the criteria for determining the state's participation or withdrawal from various economic sectors and activities, thereby enhancing competitive neutrality and improving the efficiency of state-owned enterprises. H.E. noted collaboration with the World Bank Group to provide technical support for issuing specialized legislation to regulate state ownership in companies owned or partially owned by the state, governing the state's involvement in economic activities, and focusing its intervention on injecting investments into vital sectors and public utilities.
H.E. Dr. Al-Mashat highlighted reports from credit rating agencies, which have revised their outlook on the Egyptian economy to positive following the economic reform decisions issued in March, asserting the government's commitment to continuing economic and structural reform efforts to maintain the positive developments of the Egyptian economy in the face of external challenges, reduce state involvement in economic activities, create space for the private sector, and achieve further improvements in Egypt's external and financial positions.
H.E. Minister Al-Mashat discussed the government's efforts to govern investment spending and adhere to a defined ceiling for the size of investments to curb inflation rates and create space for the private sector, referencing the two programs being implemented with the International Monetary Fund to assess public investment management and to evaluate public investment from a climate perspective, aimed at increasing the effectiveness and efficiency of investment and adopting an evidence-based approach to bridge sectoral development gaps.
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