IFC Day is a high-level forum showcasing the Egyptian economy's opportunities and challenges and how the International Finance Corporation (IFC) can help.

The event was attended by Egypt’s Prime Minister, Mostafa Madbouly, Minister of International Cooperation (MOIC) and Governor of Egypt at the World Bank Group, Rania Al-Mashat, Minister of Planning and Economic Development, Hala El Said, and Minister of Finance, Mohamed Maait and the Central Bank of Egypt Governor, Hassan Abdalla, among private sector representatives.

This comes as part of IFC’s Vice President for Africa Sérgio Pimenta’s visit to Egypt to highlight IFC’s support for Egypt’s development goals by strengthening private sector participation in the economy. The IFC has invested $900 million in Egypt from July 2023 to May 2024, according to MOIC data.

PM emphasizes commitment to supporting private sector

During the event, Prime Minister Mostafa Madbouly engaged in a fireside chat highlighting the crucial role played by Egyptian private sector representatives as the main growth pillar of the country. Madbouly acknowledged the economic challenges faced by Egypt, given its unique situation within a turbulent region, but expressed confidence in the government's ability to address them.

One significant milestone mentioned by Madbouly was the successful finalization of the first and second revisions with the International Monetary Fund (IMF) under its Extended Fund Facility (EEF). This step was deemed important as it endorsed the structural reforms implemented by the Egyptian government.

These reforms revolve around establishing a full-fledged flexible exchange rate, tightening monetary and fiscal policies, reducing public expenditure in infrastructure and national programs, and encouraging private sector-led economic growth.

Madbouly further highlighted efforts to decrease the overdraft of the Ministry of Finance within the Central Bank of Egypt, to control the overall government debt. The target is to bring it below 80% of the GDP within 2 to 3 years. To achieve this, the government has implemented public expenditure procedures and aims to achieve a primary surplus annually over the next 3 years, with a target exceeding 5%.

Madbouly also highlighted Egypt’s work with the World Bank and the European Union focusing on enhancing the resilience of the Egyptian economy against external shocks, increasing private sector contributions, and transitioning to a green economy. During his chat, the prime minister said that Egypt’s reforms are not limited to governmental bodies but also encompass economic authorities and state-owned enterprises.

The Prime Minister also highlighted the decree that set a ceiling of EGP 1 trillion on public expenditures, with the remainder to be allocated for private sector spending.

Unlocking sustainable investment

MOIC, Finance, and Planning Ministers participated in a panel discussion on unlocking sustainable investment in Egypt. During the panel discussion, Maait pointed out the challenges faced by the business community in the last two years: the flexibility of exchange rates and the availability of foreign currency.

He also announced that Egypt will soon release the first draft of the new income tax law for discussion and all of this will be adopted after a 6-month dialogue with the private sector & business community.

The planning minister stated that the private sector is key to Egypt’s sustainable development and social cohesion. She highlighted that since 2014, the private sector's share in the GDP has increased from 64% to 71%, and El-Said also stated that the private sector's role in employment reached 80% coming up from almost 65% in 2013/2014.

Agreements across healthcare & finance

Egypt and the IFC also signed 2 agreements across key sectors: finance and healthcare. Egypt and the IFC signed a Universal Health Insurance Authority (UHIA) agreement to support and develop Egypt’s healthcare sector.