gypt’s Minister of Planning and Economic Development Hala El-Said has revealed that estimated total investments of EGP 1.2trn will be made in the fiscal year (FY) 2021/22 plan.
El-Said also said that these investments are expected to increase during the year at a rate of more than 50%, reflecting an unprecedented growth rate.
The minister’s remarks came during her attendance at the Senate plenary session, on Monday, headed by Senate President, Counsellor Abdel Wahab Abdel Razek, and in the presence of the Senate members.
El-Said pointed out that government investments are estimated at EGP 358.1bn in the FY 2021/22, taking 5% of Egypt’s gross domestic product (GDP).
The minister noted that social services will soak up the most investments with a rate of 58%, whilst transport and sanitation services come in second place, at a rate of 18.6%.
She added that the telecommunications and agricultural sectors occupy third and fourth places, respectively, while the electricity, water, construction, construction, real estate activities, and information sectors will take 1.1% and 2.4% of investments.
Private investments will take up no more than EGP 317bn, or 25% of the total investments expected for the FY 2021/22 plan, the minister said. This compares to 23% in the previous year with the beginning of the novel coronavirus (COVID-19) pandemic’s decline.
El-Said asserted that in light of the state’s drive to move the wheel of private investment, presidential initiatives are expected to be extended to cover their timeframe in FY 2021/22.
The focus here is especially on: the initiative to improve the quality of life for citizens and achieve comprehensive rural development; the initiative to support local production; the initiative to offer products manufactured in Egypt at low prices; and the initiatives set up by the Central Bank of Egypt (CBE).
She also clarified that net foreign direct investment (FDI) is expected to reach $7bn in FY 2021/22, with these investments set to return to their pre-COVID-19 standing.
The International Monetary Fund (IMF) estimates that net FDI will rise to $8.3bn in FY 2021/22, then to $11.4bn in FY 2022/23, before continuing to rise to $14.6bn and $16.3bn in the following two years, respectively.
El-Said pointed out that international reports have praised the improvement in Egypt’s private investment climate, despite the pandemic, as a result of the successes of the country’s economic reforms programme.
This has been aided by: the state’s continued settlement of legal disputes for the business sector; the speedy issuance of licences; the simplifying of procedures; in addition to the supportive position of the national industry.