On the 20th of September, Daily News Egypt and other news outlets reported that Egypt's government plans to launch a series of projects worth $5 billion between October 2023 and June 2024. This initiative aims to support the private sector and boost economic growth. These initiatives are spread across three key areas.
THREE KEY AREAS FOR INVESTMENTS
The government's strategy involves 27 reform measures grouped into three main categories.
1. Asset Sales and IPOs
The government will sell state assets and offer shares in IPOs. This will let citizens own more and offer opportunities for major investors.
2. Attracting Private Sector Investments
The government will make investing easier for the private sector. They will do this by being more transparent and regulating the market. This includes publishing regular reports on tenders and auctions, promoting fair competition, preventing monopolies, and ensuring coordination among relevant authorities.
3. Governance and Transparency
The Egyptian government strives to improve governance and transparency. This includes measures to activate the intellectual property strategy.
STRATEGIC TIMING OF PLANS
The Egyptian government's recent announcement follows a report by Knight Frank, stating that Middle Eastern Sovereign Wealth Funds intend to invest $120 billion in Egypt's real estate market. It seems like these reforms are taking advantage of this growing interest. This makes sense too given the strong investment opportunities available.
BOOSTING PRIVATE SECTOR-LED GROWTH
The government aims to boost the private sector's role in growing the economy. It wants to overcome challenges, increase private sector GDP contribution, create jobs, and boost exports. These efforts match the "State Ownership Policy Document". They also aid the government's goal of focusing more on the private sector for economic growth.
SIGNIFICANT REFORMS ALREADY IN PLACE
To date, the government has implemented 144 out of approximately 171 planned reform measures, according to the recent news reports.
These reforms span seven key areas:
- Policy Flexibility
- Exchange Rate Reforms
- Competition Enhancement
- Support for the Industrial Sector
- Improving the Investment and Business Environment
- Legal and Regulatory Reforms
- State Ownership Policy Implementation
FOCUS ON INDUSTRIAL SECTOR & BUSINESS ENVIRONMENT
The country has implemented 86 measures to boost the industrial sector and improve the business environment. Of these, 46 are for the industrial sector, and 40 support investment. These areas make up 60% of all reform measures.
So, Egypt is actively improving the environment for both local and foreign investors. The major focus is on developing the private sector and growing the economy.
In summary, Egypt's government is starting a big economic plan to promote growth led by the private sector. They are making changes like selling assets, attracting investments, and improving governance. The goal is to make business easier and strengthen the economy.
