Egypt’s FY 2023/24 Development Plan Achieves 98.5% Implementation Rate

Egypt’s FY 2023/24 development plan achieved a 98.5% implementation rate, with total investments of EGP 1,626 billion, driven by private-sector growth and targeted investments in human development and local development sectors. The Minister projects a 4% economic growth despite prevailing challenges.

Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, recently reviewed the fiscal year (FY) 2023/24 economic and social development plan’s progress. In a meeting with the Economic Committee of the House of Representatives, chaired by MP Mohamed Suleiman, Al-Mashat reported an impressive implementation rate of approximately 98.5% for the targeted plan, which is estimated at EGP 1,650 billion.

The meeting included deputy chairs Mohamed Abdel Hamid, Kamal El-Din El-Shafei, Tarek Hassan Ammar, committee members, and the secretary, focusing on achievements and future targets that align with Egypt’s Vision 2030 and the government’s work program. Al-Mashat noted that total investments implemented under the 2023/24 plan reached around EGP 1,626 billion, reflecting a 5.8% growth rate from the previous fiscal year.

Al-Mashat acknowledged the significant challenges facing the Egyptian economy but highlighted improvements in various sectors, especially during the first quarter of the current fiscal year. Non-oil manufacturing, tourism, transport, and storage sectors contributed to this growth, and the Minister anticipates a 4% growth rate for the overall economy in the current fiscal year.

Additionally, Al-Mashat discussed the government’s initiatives aimed at regulating public investments to improve macroeconomic stability, enforce fiscal discipline, manage public debt sustainably, and combat inflation. These initiatives have fostered an increase in private-sector investments during the first quarter of the fiscal year. She stated, “Intensive meetings with ministries [are being held] to discuss the targets of FY 2025/26 development plan…”

On public investments, Al-Mashat reported approximately EGP 926 billion was implemented, translating to a growth rate of 6.3%, with an implementation rate of 88% against a target of EGP 1,050 billion. Despite a decrease in the public investments’ share of total investments to about 57% from a targeted 64%, this aligns with the government’s strategy to enhance private-sector economic engagement.

Private-sector investments surged to EGP 700 billion in FY 2023/24, a growth of 5.3%, significantly surpassing the target of EGP 600 billion by 116%. Consequently, their share of total investments rose to nearly 43%, compared to the planned 36%, reflecting a strategic pivot toward private-sector growth in line with the State Ownership Policy Document.

The transportation of investments into infrastructure sectors accounted for about EGP 180.6 billion, or 57.9% of total public investments, below the targeted 66.3%. Al-Mashat stated that allocations for human development sectors increased to 42.4% of total public investments, demonstrating the state’s commitment to human development in accordance with constitutional directives.

Moreover, investments in local development reached approximately EGP 23.2 billion, constituting 7.5% of total public investments and exceeding the target of 7.2%. Notably, Upper Egypt governorates received approximately 35% of local development investments this year, an increase from the 21.4% allocated the previous year.

The FY 2023/24 economic and social development plan in Egypt has exhibited a commendable implementation rate of 98.5%, facilitated by significant investments and a substantial growth in the private sector, thus mitigating challenges faced by the economy. Enhanced focus on human development and local investment strategies underscores the government’s commitment to sustaining economic progress aligned with Egypt’s Vision 2030. Overall, the initiatives support macroeconomic stability and foster sustainable development going forward.

Original Source: www.dailynewsegypt.com