Egypt's Minister of Finance, Ahmed Kouchouk, announced that the private sector has become the largest contributor to the country's economic growth, accounting for 63% of total investments over the past year. This significant increase is attributed to a 32% rise in private investments, following a 77% increase in the previous year. Kouchouk emphasized the private sector's capability to contribute to a more productive, competitive, and sustainable national economy.
During an open dialogue with the business community at the American Chamber of Commerce in Cairo, Kouchouk highlighted the positive performance of the Egyptian economy, with an accelerating growth rate supported by the good performance of productive sectors. He also noted that foreign direct investment is achieving strong results, with expectations for better outcomes in the coming years driven by new projects in the energy and manufacturing sectors.
The Minister of Finance reported that markets are reacting positively to these developments, with yields on Egyptian international bonds improving significantly. He also highlighted the impact of recent fiscal policies on the domestic market, particularly the noticeable improvement in the performance of the Egyptian Exchange, which is concurrent with recent tax reforms. Kouchouk stated that the government aims to attract major companies to register on the stock exchange by providing additional incentives.
Kouchouk revealed that the government achieved significant growth in tax revenues during the year without imposing any additional burdens or new taxes. This reflects an expansion of the taxpayer base, which was achieved by adopting a path of tax facilitations, simplifying procedures, and improving services to enhance voluntary compliance. The ministry will continue this approach to support taxpayers.
The Minister of Finance also affirmed strong government support for service activities, noting their potential for robust and rapid growth while creating employment opportunities at high rates. He expressed gratitude for the trust of the local and foreign private sector that works in Egypt, emphasizing their crucial role in driving economic growth.
Kouchouk's statements reflect the government's efforts to promote a favorable business environment and encourage investment. The recent tax reforms and incentives for listing and trading on the stock exchange are part of these efforts. The government's approach focuses on simplification and burden reduction to support taxpayers and stimulate economic growth.
The growth of the Egyptian economy and the increasing contribution of the private sector are expected to have a positive impact on the country's development. The government's support for service activities and its efforts to attract major companies to register on the stock exchange are likely to further drive economic growth and create new opportunities for investment and employment.
Key points
- The private sector accounted for 63% of Egypt's total investments over the past year.
- Egypt's private investments increased by 32% last year, following a 77% increase in the previous year.
- The government achieved significant growth in tax revenues without imposing additional burdens or new taxes.
