Egypt has launched a comprehensive national economic narrative aiming to achieve a 7% annual GDP growth rate by 2030, up from the current fiscal year’s target of 4.5%. This strategic framework, announced by Minister of Planning and International Cooperation Rania Al-Mashat, emphasizes expanding total investments to 18% of GDP—up from 15.2%—and increasing private sector participation in overall investment to 66%, compared to the present 60%. The government also aims to raise private sector contribution to GDP to 82% within the next five years, signaling a stronger role for non-state actors in driving economic activity.
As part of this vision, green public investment is projected to account for between 70% and 75% of total public spending by 2030, a significant rise from the current 50%. Additionally, the economy is expected to generate 1.5 million jobs annually, up from 900,000 at present. Prime Minister Mostafa Madbouly highlighted during a national dialogue session that global leaders have described the current period as the most economically uncertain in a century. Despite these challenges, Egypt is preparing for worst-case scenarios while pursuing ambitious growth targets.
Finance Minister Ahmed Kojok outlined medium-term fiscal pillars, including tax and customs system reforms to restore confidence in revenue agencies. He noted a 35% increase in tax revenues during the 2024/2025 fiscal year without introducing new taxes. The government also aims to reduce public debt below 80% of GDP over the medium term, with an official ceiling of EGP 16.4 trillion, and gradually lower external debt by USD 1–2 billion annually. Efforts will focus on diversifying foreign financing sources to reduce costs and extend maturities.
In support of industrial revitalization, a new fund backed by the Central Bank of Egypt and local banks will be launched to restructure approximately 6,000 struggling factories. Deputy Prime Minister Kamel El-Wazir revealed that banks may take up to 25% equity stakes in these factories to facilitate restructuring, aiming to restore production capacity and inject new momentum into the manufacturing sector.
Meanwhile, foreign exchange reserves rose to USD 49.25 billion by the end of August 2025, up from USD 49.04 billion in July, driven by tourism revenues, remittances, Suez Canal income, and foreign direct and portfolio investments. Gold reserves increased to USD 14.09 billion, while foreign currency holdings slightly declined to USD 35.12 billion.
Other developments include a USD 3 billion aluminum refinery project planned by Bahrain Aluminum in partnership with Egypt’s Aluminum Company. The Arab African International Bank has established a real estate asset management firm with an initial portfolio valued at EGP 5 billion. Additionally, Emaar Misr announced expected investments of EGP 900 billion in its Red Sea project, spanning 2,426 feddans. Rayah for Systems secured a EGP 1.13 billion credit facility from the Industrial Development Bank to expand digital transformation initiatives in Egypt’s banking sector.
— news from EconomyPlusME
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Egypt launches its economic vision targeting 7% growth by 2030.. government establishes fund with banks to restructure 6,000 struggling factories
Egypt seeks to raise its economic growth rate to 7% by 2030, compared to a target of 4.5% in the current 2025/2026 fiscal year plan, as part of recently launched national development narrative: supportive policies for growth and employment. Planning and International Cooperation Minister Rania Al-Mashat said the narrative aims to increase total investments as a share of GDP to 18% by 2030, up from 15.2% in the current fiscal year plan. It also targets raising private investment share of total investment to 66% from 60% currently, and increasing its contribution to GDP to 11.9% from 9.1% this year. The minister added that private sector contribution to GDP is expected to rise to 82% by 2030, reflecting the state’s push to expand private sector involvement in economic activity. The national narrative includes increasing green public investment share of total public investment to between 70–75% by 2030, up from 50% in the 2025/2026 plan. It also aims to increase annual job creation to 1.5 million, up from 900,000. Prime Minister Mostafa Madbouly said, during his speech at the first session of the national dialogue on the economic narrative, that he represented President Abdel Fattah El-Sisi at two summits, noting world leaders agreed the current phase is one of crisis management marked by ambiguity and unclear vision—the most difficult economic period globally in 100 years. He added Egypt aims to bring debt to the lowest level in its history, affirming the government has prepared for worst-case economic scenarios to meet growth targets. Finance Minister Ahmed Kojok revealed medium-term strategic financial pillars, including tax and customs system development and restoring confidence in revenue agencies. He said the second pillar is maintaining fiscal discipline and enabling fiscal policies to support private-sector-led, export-driven growth. He disclosed tax revenues rose by about 35% in the 2024/2025 fiscal year without imposing new taxes. The state aims to reduce public debt to below 80% of GDP in the medium term, with an official ceiling of EGP 16.4 trillion, and reduce external debt by USD 1–2 billion annually, while diversifying external financing sources to lower costs and extend maturity.
Deputy Prime Minister and Transport Minister Kamel El-Wazir revealed the government is preparing to launch a new initiative to support and restructure struggling factories through a fund involving the Central Bank of Egypt and local banks, to be officially announced next Tuesday. He explained the fund will finance troubled factories by allowing banks to take up to 25% ownership stakes, targeting the restructuring of around 6,000 struggling factories across sectors to restore production capacity and revitalize the industrial sector. The Central Bank of Egypt reported foreign reserves rose to USD 49.25 billion by end-August, up from USD 49.04 billion in July 2025, an increase of USD 215 million. Data showed gold holdings in foreign reserves reached USD 14.09 billion, up from USD 13.64 billion in the comparison months, while foreign currencies in reserves totaled USD 35.12 billion, down from USD 35.22 billion. This latest rise continues an upward trend in foreign reserves, supported by tourism revenues, Egyptian expatriate remittances, Suez Canal revenues, and foreign direct and portfolio investment inflows.