Private Sector Investments Hit EGP133.1B In Q1 FY24/25

January 12, 2025

 

Private sector investments in Egypt totaled EGP 133.1 billion in the first quarter of FY 2024/25, accounting for 63.5% of total investments, according to the Ministry of Planning, Economic Development, and International Cooperation’s 2024 Annual Report, which highlights the country’s economic progress across various sectors.

This marks a 30% increase compared to FY 2023/2024.

Minister Rania Al-Mashat noted that “this update comes in line with the government’s objectives to increase the share of private investment to reach 50% of total investments by FY 2024/2025.” 

Conversely, the ministry’s data revealed a 60% slowdown in public investment, dropping to EGP 57 billion from EGP 144.4 billion in the first quarter of the previous fiscal year.

Egypt’s investment plan for FY 2024/2025 aims to mobilize EGP 2 trillion, with public investments accounting for EGP 1 trillion (50.3%) and private investments contributing EGP 987 billion (49.7%). Al-Mashat emphasized that a significant portion of public investments will be directed to human development sectors (42.4%), followed by the water and sanitation sector, which receives 25.4% of total government investments.

In Egypt, the fiscal year is July 1 to June 30.

Bolstering financing

Notably, the financing directed toward the private sector surged to reach $4.2 billion in 2024 compared to $2.9 billion in 2023, the report noted.

The finances encompass contributions from entities such as the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB).

On the other hand, concessional financing for the public sector decreased from $3.8 billion in 2023 to $3.1 billion in 2024.

Green financing 

Of public investments in FY2024/2025, the government has dedicated a share of 50% to support green projects, up from 15% in FY2020/2021, the report highlighted.

During a parliamentary session with the Budget and Planning Committee in December, Al-Mashat showed that Green initiatives for FY2023/2024 included an allocation of EGP 115 billion towards green transportation projects, including metro expansions and electric-powered transport systems, to reduce emissions and combat climate change.

In addition, the minister highlighted the crucial role of the NWFE program, a strategic framework designed to drive climate adaptation and transition to a green economy. Notably, the NWFE program succeeded in mobilizing $3.9 billion for private companies in concessional financing to support clean energy projects, as well as enabling the private sector to implement renewable energy projects with a capacity of 4.2 GW.