Private investment in Egypt rises to 5-year high, public share declines

Daily News Egypt
2 Min Read
Rania Al-Mashat

Egypt has seen a major shift in its investment structure, with the share of private investment rising to 47.5% of the total in the last fiscal year (FY), its highest level in five years, while the share of public investment declined, the planning and international cooperation ministry has announced.

The data, released as part of the GDP growth figures for FY 2024/25, reflects the state’s direction toward rationalising public investments and enhancing the private sector’s role in leading sustainable growth, the ministry said.

“The decline in public investments reflects the state’s direction toward creating space for the private sector and the effectiveness of implemented reform policies,” said Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat.

Private investment increased to EGP 590.7bn in FY 2024/25 from EGP 474.7bn in the previous fiscal year. In contrast, public investment decreased to EGP 526.6bn from about EGP 627.5bn.

This development coincides with a recovery in the real growth rate of domestic credit directed to the private business sector. The growth rate saw a sharp leap in February 2025, reaching 19.9%, before slowing to about 7.03% in June. Credit directed to the private sector is expected to accelerate during 2025, supported by the ongoing monetary easing cycle, the ministry said.

In February 2025, 43.22% of the credit facilities provided to the private sector were directed to the industrial sector, reflecting the government’s orientation toward supporting export-oriented sectors.

Al-Mashat added that the government’s “Egypt’s Narrative for Economic Development” aims to increase the private investment share of total investments to 66% by 2030, compared to 60% in the current fiscal year’s plan.

“The private sector is the state’s strategic partner in implementing Egypt’s narrative, as it translates policies and plans into projects, investments, and job opportunities, thus ensuring the achievement of comprehensive growth, sustainable development, and an improved standard of living for citizens,” the minister reaffirmed.

 

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