Summary of "مصر تطلق السردية الوطنية للتنمية الاقتصادية : السياسات الداعمة للنمو والتشغيل"

Summary of “مصر تطلق السردية الوطنية للتنمية الاقتصادية : السياسات الداعمة للنمو والتشغيل”

This video presents the launch of Egypt’s National Narrative for Economic Development, focusing on policies that support growth and employment. The event features speeches and presentations from key government ministers, including:

Dr. Rania Al-Mashat (Minister of Planning, Economic Development and International Cooperation)
Dr. Ahmed Kojak (Minister of Finance)
Engineer Hassan Al-Khatib (Minister of Investment and Foreign Trade)
Lieutenant General Kamel El-Wazir (Minister of Industry and Transport)
Prime Minister Dr. Mostafa Madbouly

Key Frameworks, Strategies, and Processes

National Narrative for Economic Development

A comprehensive framework integrating Egypt’s Vision 2030 with the government’s work program.
Aligns medium-term plans (2026-2030) with fiscal and financial laws (Planning Law No. 18/2008 and Unified Finance Law No. 6/2022).
Structured around macroeconomic stability, competitiveness, business environment improvement, and green economy transition.
Translates strategies into quantitative targets with timelines for monitoring.
Incorporates outputs from national dialogue and advisory committees for policy recommendations.

Economic Model Focus

Emphasis on tradable sectors with high productivity and export potential: manufacturing, tourism, agriculture, energy, mineral resources, and ICT.
Structural reforms to support these sectors and transition to a green economy.
Prioritizes private sector empowerment and foreign direct investment (FDI).
Supports regional integration and localization of economic development.

Medium-Term Planning and Budgeting

Binding medium-term plan (2026-2030) aligned with budget and performance frameworks.
Coordination between Ministry of Planning and Ministry of Finance for resource allocation and policy implementation.
Monitoring via dashboards and sustainable development indicators.

Fiscal and Monetary Policy

Fiscal policy goals: restoring confidence, balanced financial discipline, integrated debt reduction, and price stability (inflation reduction).
Tax reforms: expanding tax base, simplifying procedures, encouraging voluntary compliance, and reducing tax burdens (e.g., cancellation of retroactive training fund tax).
Debt-to-GDP ratio reduced from above 95% to approximately 85% in two years, with plans for further reduction.
Inflation reduced from 25.7% to 13.9%.
Increased tax revenues by 35% without raising tax rates, reflecting improved compliance.

Investment Strategy

Focus on increasing local and foreign investment rates beyond current $6-10 billion annual FDI inflows.
Clear, transparent, and stable policies to attract investment, including competitive fiscal policy and monetary stability.
Sector prioritization based on World Bank-supported study:
- Stage 1 (ready sectors): outsourcing, communications, renewable energy, chemicals, agriculture, tourism, textiles, logistics.
- Stage 2 (ambitious sectors): hydrogen, green pharmaceuticals, medical supplies, data centers, automotive, industrial industries.
Digital transformation of licensing and fee payment platforms to reduce bureaucracy and costs.
Business climate reform through the Business Ready report with 209 reform measures, 60% achievable within nine months, focusing on legislative, regulatory, and digital service improvements.

Industrial Development Strategy

National Industrial Strategy 2025-2030 aiming to position Egypt as a regional hub for sustainable manufacturing and trade.
Seven strategic axes: industrial facilities, infrastructure, education/training, technological development, SME support, business climate, green industry, and export market access.
Emphasis on deepening local manufacturing and increasing added value.
Urgent industrial plan includes:
- Establishing new factories to meet local and export needs.
- Reviving and restructuring troubled factories (over 1,200 factories helped).
- Issuing over 6,000 new operating licenses, creating 230,000+ jobs.
- Digital industrial land allocation platform with 2,579 plots offered recently.
Addressing EU carbon border adjustment mechanism impact on exports (~20% of exports affected), with ministerial and technical committees working on mitigation and compliance.
Development of logistics corridors and transport infrastructure to enhance Egypt’s role as a regional trade and transit hub.

Trade and Export Policies

Focus on reducing trade deficit, targeting $145 billion exports by 2030.
Doubling export burden reimbursement program and removing non-customs trade barriers.
Digital transformation of customs and trade procedures to reduce clearance times from 5.8 days to target 2 days.
Implementation of protectionist trade tools (safeguards) aligned with WTO rules to protect local industry.

Human Capital and Labor Market

Integrated national employment strategy focusing on skills development aligned with sectoral needs (industry, ICT, tourism).
Expansion of technical education and vocational training to support labor market demands.
Leveraging Egypt’s demographic dividend with a young workforce.

Sustainability and Green Economy

Transition to green economy embedded in structural reforms and sectoral strategies.
Public investments to allocate 70-75% toward climate risk management by 2030.
Crowdfunding platforms and international cooperation mobilizing over $4 billion for renewable energy projects.

Governance and Monitoring

Institutional frameworks for policy coordination and implementation across ministries.
Use of dashboards and quantitative indicators for tracking progress.
Community dialogue and expert consultations to refine the narrative and strategies.

Key Metrics and Targets

GDP growth rate target: sustain 5-7% growth annually over medium term.
Current GDP growth improved from 2.4% to 4.2% (first 9 months).
Inflation reduced to 13.9% from 25.7%.
Tax revenue increased by 35% to over 600 billion EGP without raising rates.
Debt-to-GDP ratio reduced to 85%, aiming for further reduction.
Export growth target: 20% annual increase, aiming for $145 billion by 2030.
Industrial sector employment: from 3.5 million (2024) to 7-8 million (2030).
Number of factories: increase from 68,000 (2024) to 100,000 (2030).
Green industry contribution to GDP: 5% by 2030 (starting from near zero).
Reduction of trade deficit to lowest level in 15 years.

Actionable Recommendations and Examples

Fiscal reforms: Expand tax base, simplify tax procedures, and encourage voluntary compliance to increase revenues without raising tax rates.
Investment climate: Digitize licensing and fee payments; reduce bureaucratic procedures from 33 to 9 for key sectors; establish a unified digital platform for all investor interactions.
Industrial revival: Prioritize restructuring distressed factories via public-private partnerships and financial initiatives; allocate industrial land through digital platforms to speed up factory establishment.
Trade facilitation: Implement digital customs clearance to reduce clearance time; double export reimbursement programs; remove non-tariff barriers.
Green transition: Invest heavily in renewable energy; align industrial exports with EU carbon border regulations through technical and policy measures.
Human capital: Expand technical education and skill councils to meet labor market needs in prioritized sectors.

Presenters and Sources

Dr. Rania Al-Mashat – Minister of Planning, Economic Development and International Cooperation
Dr. Ahmed Kojak – Minister of Finance
Engineer Hassan Al-Khatib – Minister of Investment and Foreign Trade
Lieutenant General Kamel El-Wazir – Minister of Industry and Transport, Deputy Prime Minister for Development
Dr. Mostafa Madbouly – Prime Minister of Egypt

Overall, the National Narrative for Economic Development is a strategic, integrated roadmap combining fiscal discipline, structural reforms, sectoral strategies, and investment facilitation aimed at sustainable growth, employment generation, and enhancing Egypt’s competitiveness in global markets by 2030.