Egypt is setting an ambitious target of $30 billion in foreign direct investment (FDI) for the 2024/25 fiscal year, commencing on July 1. This strategic move is part of a broader economic and social development plan, recently approved by the House of Representatives. The plan not only aims to attract substantial foreign capital but also to stabilise the economy by reducing inflation and significantly boosting GDP growth.
Minister of Planning Hala Elsaid announced that under the new economic framework, Egypt’s gross domestic product (GDP) at current prices is projected to grow to EGP 17.3 trillion. This marks a substantial increase from the expected EGP 13.9 trillion in the current fiscal year. The plan highlights the government’s commitment to driving economic expansion and improving overall economic health.
In addition to targeting higher FDI inflows, the Egyptian government is aiming to reduce the inflation rate to a range between 19% and 25% during the 2024/25 fiscal year. This is a critical component of the economic plan, as controlling inflation is essential for maintaining purchasing power and economic stability.
The economic and social development plan for 2024/25 also sets a goal for a real economic growth rate of 4.2%, compared to the anticipated growth rate of 2.9% for the current fiscal year. Achieving this growth rate will require significant efforts in enhancing the business environment, infrastructure development, and fostering innovation and competitiveness across various sectors.
Minister Elsaid emphasised that the government’s strategy involves comprehensive measures to attract foreign investors, including regulatory reforms, incentives for investment in key sectors, and efforts to improve the overall ease of doing business in Egypt. The focus areas for investment include infrastructure, energy, technology, and manufacturing, which are expected to drive long-term economic growth and job creation.
The House of Representatives’ final approval of the economic and social development plan highlights a collaborative effort between the government and legislative bodies to ensure that the targets are not only ambitious but also achievable. The government’s proactive approach is designed to build investor confidence and position Egypt as a favourable destination for foreign investments.
Egypt’s quest for $30 billion in FDI is a testament to its robust economic vision and strategic planning. By focusing on reducing inflation, enhancing GDP growth, and fostering a favourable investment climate, Egypt aims to achieve sustainable economic development that benefits all sectors of society. This plan signifies a crucial step towards economic resilience and prosperity in the coming years.
