Gov’t keen on boosting private sector’s role

More tax facilitations to scale up investor confidence

Egypt’s Minister of Finance, Ahmed Kouchouk, reiterated on Friday the state’s keenness to stimulate the private sector in a bid to increase its contributions to economic growth as part of the financial and economic reforms.

The minister’s remarks were made during a forum organised by the British Egyptian Business Association (BEBA), where he made it clear that the government is building bridges of trust and certainty between the Egyptian Tax Authority and investors.

In this regard, Minister Kouchouk saidthe state had laid the foundations of a clear,simple and fair tax system.

“We have already begun implementing the first package of tax facilitiesto provide better and easier tax services to the business community.We seek to increase the private sector’s contributions to growth,” Kouchouk told the gathering.

Egypt’s gross domestic product (GDP) hit 2.4 per cent in the fiscal year 2023/24, which ended on June 30, according to data from the Ministry of Planning and International Co-operation.

Lower debt ratios

Minister Kouchouk said the government is seeking to reduce debt, especially external debt, and debt service to create greater financial space in the state budget for spending on human development and social protection. He has noted that setting a cap on public investmentsand government debt contributes to achieving financial discipline, giving more space to the private sector in economic activity.

PPPs for higher growth

Minister Kouchouk stressed the need to boost public-private partnerships (PPPs)to increase the private sector’s role in Egypt’s economy. 

“We seek to expand PPPs across various sectors of national priority, within the framework of the state’s supportive and stimulating efforts to maximize private investments,” he said, pointing out that merging 59 economic bodies with the state budget agencies would boost comprehensiveness of the budget, improve financial risk management, thus maintaining financial stability.

“We are looking forward to a more flexible and comprehensive view from global rating agencies concerning the financial and economic performance of all emerging countries, taking into account the pressures its economies are exposed to in light of geopolitical tensions as well as external and internal challenges,” Kouchouk said.