To restore Egypt’s economy to pre-pandemic levels, the government has revamped its Cabinet, introducing 20 new members and merging several portfolios. The new administration faces the tough challenge of achieving 4.2% real gross domestic product growth (GDP) amid ongoing global and regional uncertainties.
As Egypt approaches the fiscal year 2024/2025, ending June 30, 2025, the key question is which sectors will spearhead this growth in such a turbulent economic climate.
Marwa Abbas, General Manager of IBM Egypt, highlighted the transformative potential of the information and communication technology (ICT) sector in driving Egypt’s economic growth. In an interview with Business Monthly, Abbas emphasized that the ICT sector has consistently delivered double-digit growth, with an annual increase of over 16% over the past five years. This growth has been fueled by public-private partnerships, supportive regulations, and initiatives aimed at digitizing government services.
Fastest-growing sector
The ICT sector is Egypt’s fastest-growing industry, contributing 5.8% to the GDP in FY2023/2024 and aiming to reach 8% by 2030, according to the Ministry of Communication and Information Technology. In FY2022/2023, the sector achieved a growth rate of 16.3%, marking five consecutive years of leading growth. For FY2023/2024, ICT revenues soared to EGP 315 billion, reflecting a remarkable 75% increase.
Abbas praised the Egyptian government for its proactive measures to boost the information technology sector, noting significant strides made under the Ministry of Communications and Information Technology. She highlighted how these efforts have strengthened digital infrastructure and spurred local demand for IT applications.
Abbas emphasized IBM’s commitment to Egypt’s Vision 2030, with the company leveraging transformative technologies like hybrid cloud and generative AI to help Egypt advance technologically and build future-ready skills. She noted that IBM’s long-standing partnership with the Egyptian government and private sector has been crucial in driving digital transformation, innovation, and enhancing customer experiences.
Looking ahead, Abbas pointed out that substantial efforts are underway to increase the ICT sector’s contribution to 8% of Egypt’s GDP by 2030. These efforts include training hundreds of thousands of young professionals, to train 1 million by 2030, and expanding digital innovation centers to 32 by 2026 to foster innovation and research. The government remains focused on enhancing the country’s digital infrastructure to support these goals.
“We find that the political leadership and government programs have given it a high priority. There are very clear executive steps in this regard to develop systems, automate processes, and disseminate culture,” she said.
“Adding to that, expanding our services globally is part of our commitment to contribute to achieving Egypt’s strategic targets for the digital transformation of the outsourcing industry in 2022–2026. This includes doubling digital exports and creating extensive job opportunities in the services export sector while building capabilities in high-value services,” Abbas added.
Growth drivers
Meanwhile, Abir Leheta, Chairman and CEO of EGYTRANS, shared with Business Monthly that Egypt’s transportation and logistics sector holds significant potential to drive short-term economic growth. She noted substantial government investment in this sector, which could be leveraged to further boost economic performance.
The recent devaluation of the Egyptian pound against the US dollar has also created a favorable environment for the industry and exports, presenting a prime opportunity for growth and increased government support, she noted.
However, Leheta cautioned that challenges remain. High interest rates, bureaucratic hurdles, and a significant share of public investment in the economy pose obstacles that need addressing.
Economic challenges
Since the onset of the Russia-Ukraine war in March 2022, and as part of an ongoing $8 billion loan deal with the International Monetary Fund (IMF), the Central Bank of Egypt has raised key interest rates by 19% (1900 basis points). The expectation is that these rates will remain steady until the end of 2024, amid a recent downward trend in inflation.
Under the IMF program, Egypt is committed to increasing the private sector’s role in economic activity and investment while reducing government involvement. This strategy aims to enhance economic growth and create more job opportunities for Egyptians.
