Finance Minister says Egypt's economic situation
"reassuring"
Saturday، 21 September 2024 - 11:26 AM
Finance Minister Ahmed Kouchouk affirmed Friday 20/9/2024 that Egypt's
economic situation is "reassuring" as reflected in positive budget performance
indicators during the past fiscal year.
"We are striving to contribute effectively to establishing a "business-friendly"
environment that relies on a sufficient degree of trust, clarity, and tax certainty,
essential for building investment plans for new projects within a long-term
framework of trust and positive partnership between the Egyptian Tax Authority
(ETA) and the local and foreign business community," the minister said during a
series of meetings with over 100 representatives of major financial institutions and
investment and development banks in London.
"We achieved a 6.1% primary surplus, including returns from Ras Al-Hikma, and
reduced the budget deficit to 3.6% of GDP. The domestic debt of the budget
decreased by 4.7%, and external debt fell by more than 4%, with an average maturity
of 12.7 years," Kouchouk said.
He explained that the goal is to maintain annual primary surpluses to bring the debt-
to-GDP ratio below 85% by the end of the next fiscal year.
The minister added that the Egyptian economy will become more stable with the
growth of the private sector and the expansion of its role in investment and
development activities, given the government's tangible efforts to create more space
for private investments. This includes capping public investments and continuing the
government's privatization program under the State Ownership Policy Document.
He also highlighted the promotion of competitive neutrality by eliminating
preferential tax treatments for state-owned companies and entities, improving
infrastructure, and offering attractive incentives for local production and exports.
Additionally, he pointed out the competitive opportunities in globally and regionally
prioritized sectors, the simplification of procedures, and access to the "golden
license."
The minister emphasized the ongoing work to develop the government securities
market to attract new investors and reduce financing costs by diversifying sources,
tools, markets, currencies, and investor segments.
Egypt is cooperating with the International Monetary Fund (IMF) in a comprehensive
program aimed at enhancing the performance of the Egyptian economy, he added.
He stressed the importance of managing macroeconomic risks with a more cautious
outlook, while benefiting from global expertise in addressing international and
regional challenges. He expressed his anticipation of a larger role by multilateral
banks in supporting the growth and development of emerging economies.
The finance minister participated in several roundtable discussions with institutional
investors interested in government securities markets worldwide, organized by
HSBC, Morgan Stanley, and Jeffries Bank.
He also met with representatives of the European Bank for Reconstruction and
Development (EBRD) to discuss ways to enhance mutual cooperation, empower the
private sector, and the critical role it will play in Egypt’s economy in the coming
period.
During his rst meeting with U.S. Ambassador to Cairo, Minister
of Finance:
September 9, 2024 9:50 AM
Financial policies stimulate economic activity, production and export to
enhance growth and development.
Stimulating the growth of the private sector in the Egyptian Economy with
competitive sectors such as renewable energy, information technology and
export activities.
- Reinforcing relations with investors through an integrated program of reform
measures to regain trust with the business community.
- Comprehensive development of the tax system, the gains of which will be
felt by the business community on the ground.
- Launching of a full package of reforms and tax facilities to contribute to
stimulating investment in the near future.
- An integrated and exible vision in dealing with tax challenges of the
informal economy to contribute in its merging and support.
- We are working to create scal spaces oriented to human development and
social protection sectors.
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