In a video conference hosted by EFG Hermes, Egypt’s Finance Minister Ahmed Kouchouk outlined the nation’s steadfast commitment to three critical priorities: financial stability, economic growth, and the empowerment of the private sector. Addressing over 60 foreign investors, Kouchouk presented a comprehensive strategy designed to solidify Egypt’s fiscal health and foster a conducive environment for investment.
Central to this strategy is a robust debt management plan aimed at reducing public debt and improving external debt indicators. Kouchouk emphasized the ministry’s efforts in placing debt and its servicing on a downward trajectory, a move crucial for economic resilience. He highlighted the recent achievement of a primary budget surplus of EGP 90 billion in the first quarter of the fiscal year—an impressive feat that outstrips previous surpluses by over fourfold.
The minister elaborated on Egypt’s near-term focus on fostering trust between the Tax Authority and business communities, both local and international. By deploying diverse fiscal policy tools, the government aims to boost private sector participation and implement strategies to lower the debt-to-GDP ratio, which impressively dropped to 89.6% in June 2024, down from 96% the previous year. This decline was further supported by a $4 billion reduction in external debt for budgetary entities.
Kouchouk also addressed the investors’ keen interest in the Ministry of Finance’s financing strategy for the current fiscal year, including planned debt issuances. He underscored the positive economic impacts of increased remittances from Egyptians abroad, booming tourism revenues, and a surge in foreign direct investment inflows, all of which are driving economic activity and improving the country’s economic landscape.
This dialogue underscores Egypt’s commitment to its ambitious national reform program, dedicated to achieving financial and economic targets that will ensure sustainable development. With the groundwork laid for stability and growth, Egypt continues to position itself as a favorable destination for international investment, reflecting the government’s proactive and transparent approach to economic management.
