Egypt’s Minister of Finance, Ahmed Kouchouk held talks on Friday with representatives of the world’s leading financial institutions and investment banks on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington.
A number of top officials from Citibank, Morgan Stanley, Moody’s, Jefferies, JP Morgan, and UAE-based Ajman Bank took part in the talks. Minister Kouchouk elaborated on Egypt’s key economic developments and the country’s priorities of financial and economic policies, in light of the government’s work program.
He stressed the government’s priority to enhance the confidence of local and international investors in Egypt’s diverse economic capabilities, within the framework of the state’s endeavor to maximize investment through a balanced, attractive, and more competitive business environment.
Stronger private sector
The state has been bolstering the role and contribution of the private sector in economic and investment activities. To this end, Kouchouk saidthe government has scrapped preferential treatments for state-owned companies to boost competitiveness in the Egyptian market.
The minister said the government has set upa LE1 trillion cap on public investments, citing a state ownership policy document to increase private investments.
Kouchouk unveiled new initiatives to support Egypt’s export, technological, tourism, green economy, and automotive sectors to stimulate economic growth.
He has made it clear that corrective and structural measures reflect a more comprehensive and consistent economic vision in the face of internal and external challenges.
Financial stability
Minister Kouchouk has underlined Egypt’s keennessto expand the scope of fiscal policy to have a stronger impact on enhancing financial stability and advancing growth and development efforts.
“We aim to maintain primary surpluses and reduce the debt-to-GDP ratio, in a way that contributes to providing greater space to support production, exports, health, and education,” he said.
He describedEgypt’s recent tax facilitations as“one of the tributaries of financial and economic reform” to build a partnership relationship with the local and foreign business community.
“There are no further tax increases on investors, but rather we strive to simplify procedures and reduce burdens and costs. We aim to expand the tax base,” he said, noting that the government seeks to attractall e-commerce activities in light of the transformation to the digital economy.
“For the first time, there will be a simplified and integrated tax system to encourage startups, small businesses, and entrepreneurial activities,” Kouchouk said.
Good economic performance
Kouchouk said Egypt’s economy registered “very good financial performance”in the first quarter (Q1) of fiscal year 2024/25, which began on July 1.
According to him, the good results reflect the beginning of a phase of stability amid expectations of improved growth rates.
“We aim to achieve a balance between financing paths, by reducing external debt and increasing the volume and percentage of concessional financing, and to slash reliance on short-term financing.
“We are keen on diversifying financing sources. We are studying continued work on sustainable and green financing tools and sukuks, along with upgrading the government securities market to attract new investors and reduce the cost of financing,” he added.
