The Clap:
Prime Minister Mostafa Madbouly laid out to the House of Representatives his new government’s plan for the next three years, spotlighting multiple pillars of focus for the new cabinet: creating a competitive economy to draw in investments, protecting national security and foreign relations, and improving the livelihoods of Egyptians. According to the Egyptian constitution, the parliament will review the government program proposed by Madbouly to determine if they will support the new team.
Economic targets:
In the initial year of the new administration, there is a goal to raise GDP growth to 4.2%, in accordance with the budget for the fiscal year, and is targeting expansion at a 5% clip for the entire three-year period. Remember, the World Bank Group is similarly forecasting a 4.2% growth for FY 2024-2025, but projects a 4.6% rise for the following year. Also confirming an earlier announcement, the cabinet wants the private sector to account for 60-65% of total investments by 2030, and wants to boost FDI inflow by 14% annually.
Targeting specific sectors:
The cabinet will pay a particular focus to the communications, information technology, and agricultural industries, targeting that they account for 38% of GDP by 2027.
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Madbouly also set a goal to increase annual export growth to over 15%.
How to get it done?
The new government is planning on setting up seven interconnected logistics corridors to link manufacturing, farming, mining, and service hubs to seaports efficiently and securely via dry ports and integrated logistics zones. Egypt will build additional docks in seaports to expand the total berth length to 100 kilometers, and will enhance the Egyptian navy to carry 20 million tons of merchandise each year.
Other targets:
The government aims to raise public revenues by an average of 16% annually until the fiscal year ending in 2027.
Then, energy:
Securing and diversifying both traditional and renewable energy resources will be key to the new cabinet as it looks to safeguard its energy security, as well as enhancing the nation’s role as a regional energy hub. Remember, Egypt wants renewables to account for 42% of the national energy mix by 2030, and is targeting a 58% share by 2040 as it looks to slash its carbon footprint and alleviate the impact of dwindling gas reserves after it became a net importer of LNG in recent months.
Finally, education:
The new government is prioritizing the creation of more schools in densely populated and remote areas, and is targeting construction of more than 60 vocational schools with help from the private sector, among other targets.
