CAIRO, May 14 (MENA) - Minister of Planning, Economic Development and International Cooperation Rania el-Mashat
said the Egyptian economy has regained growth momentum since the implementation of economic reform measures that began in March 2024, noting that this period was preceded by major economic challenges.

The minister of international cooperation said the growth rate began to rise in the last quarter of the last fiscal year, recording 2.4%, then rose to 3.5% and 4.3%,
respectively in the first and second quarters of the current fiscal year.

During a meeting held by the minister with an International Monetary Fund (IMF) mission headed by Ivana Vladková Hollar,
the two sides reviewed macroeconomic indicators and discussed the forging and implementation of the national structural reform program, together with external financing to bridge the financing gap.

Mashat indicated that the meeting addressed developments in the Egyptian economy across the various sectors, as well as measures taken to enhance economic growth, with a focus on tradable and export-oriented sectors. She also highlighted efforts to empower the private sector to lead development and govern public investments, with the aim of maintaining macroeconomic stability and expanding the role of the private sector.

Economic indicators showed a tangible improvement not only in terms of numbers, but also in the quality of growth, she said.

The minister noted that the non-petroleum manufacturing sector led the growth, along with the communications and information technology, tourism and transportation and storage sectors, despite negative impact of geopolitical tensions on Suez Canal activity, which witnessed a significant decline.

Mashat also reviewed strategic transformation in the structure of the Egyptian economy, mainly meant to strengthen value-added and exportable sectors, in addition to implementing structural reform packages aimed at controlling fiscal policies, reducing public debt and encouraging foreign direct investment.

In a related context, the minister emphasized close cooperation with international development partners to mobilize budget support funding, particularly within the framework of cooperation with the European Union to implement a comprehensive reform package that would help enhance economic stability, improve business and investment environment and advance the transition to a green economy.

Mashat said the second phase of this cooperation aims to provide approximately 4 billion euros as budget support.

She also said financing directed to the private sector accounts for a large proportion of international support, with concessional financing to the private sector exceeding dlrs 14.5 billion over the past five years.

Meantime, the minister reiterated the ministry's continued efforts to strengthen partnerships with international institutions to provide more financing tools.

Mashat also reviewed developments in the implementation of the national platform for
Egypt's Nexus on Water, Food and Energy
program (NWFE), particularly in the energy sector, where concessional financing for the private sector was attracted to hit dlrs 3.9 billion in just two years to implement renewable energy projects with a capacity of 4.2 gigawatts.

The ministry seeks to increase this financing to dlrs 10 billion to implement capacities of up to 10 gigawatts, supporting the achievement of a 42% share of renewable energy by 2030, she said.

At the end of the meeting, Mashat addressed programs implemented by the ministry in cooperation with development partners in the field of debt-for-development swaps, which are an effective mechanism for reducing debt burdens and achieving sustainable economic development.

She pointed out to existing programs with countries like Italy and Germany, in addition to signing a memorandum of understanding with China in this regard. (MENA)

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