Dr. Hala Al-Saeed, Minister of Planning and Economic Development, said Mrs. Beata Javorcic, Head of the Economic Department of the European Bank for Reconstruction and Development, and her accompanying delegation, received to discuss ways to improve aspects of bilateral cooperation. meeting was attended by: Dr. Ahmed Kamali, Deputy Minister, Ambassador Hazem Khairat, Director of International Relations at the Ministry, Ayman Soliman, Executive Director of the Sovereign Fund of Egypt, Heike Harmgart, Managing Director of the Southern and Eastern Mediterranean Region at the European Bank, Alexa Teman, Regional Economist, Rafik Selim, Economist.
Dr. During the meeting, Hala Al-Saeed reviewed a number of the ministry’s work files, and the work areas of the entities affiliated with the Ministry of Planning, such as the Central Agency for Public Mobilization and Statistics, the National Planning Institute and the National Institute for Management and Sustainable Development, as well as the internal units in the ministry and the role of each of them, which is the Sustainable Development Unit, the Sustainable Development Unit Macroeconomics, National Accounts Unit, Labor Market Unit, Unused Assets Management Unit, and the Rowad 2030- project.
Al-Saeed referred to the current economic situation in Egypt, as Egypt achieved an economic growth rate of 3.3% in 2021, 9% in the first half of the fiscal year 2021/202, and 8.3% in the second quarter of 2021/22, and unemployment remains low at 7.4%. This indicates a strong recovery after the first wave of the epidemic, but the Egyptian economy is expected to be affected by a number of external factors, notably the Russian-Ukrainian crisis and the subsequent rises in food commodity prices, petroleum and raw materials needed for industry, as well as the disruption of global supply chains, in addition to high rates. Global inflation due to rising global interest rates, especially in the United States and the European Union.
Al-Saeed stressed that the Egyptian state was eager to increase public investment in the information and communication technology sector, and the volume of public investment in the field of digital transformation over the past seven years amounted to 72.4 billion Egyptian pounds, equivalent to to 4.3 billion. US dollars, an increase of 400% between the financial year 2020 2019 and 2022/21, in light of recent global developments, especially the Corona pandemic, and the government has invested heavily in providing services in the villages of the first phase of the Decent Life Initiative with large investments. The updated version of Egypt’s Vision 2030 also included policies to help transform the Digital by developing digital infrastructure in all geographical areas, especially remote areas and encouraging investment in this field, with a focus on capacity building as well.
Al-Saeed indicated the Egyptian state’s interest in promoting private sector participation in development efforts through infrastructure development in order to encourage private investment. The National Structural Reform Program aims to address the root causes of real – sector imbalances , by creating decent jobs, diversifying and developing production patterns, improving the business climate, locating manufacturing and improving the competitiveness of Egyptian exports, which already reached a record US $ 45.2 billion in 2021. The program aims to expand the relative weight of three sectors. in the Egyptian economy: industry, agriculture and information and communication technology. It also aims to improve the efficiency of the labor market and the technical and vocational education and training system, increase the level of governance and efficiency of public institutions, and improve inclusion financially.
Al-Saeed has addressed the activation of the role of the business climate reform initiative “Irada”, which aims to reform the legislative and regulatory framework to ensure business stimulation, in addition to launching a program of offers in Egypt to a number of state – companies owned by the stock exchange. With the aim of reviving the capital markets by offering interests in state-owned companies to citizens and to local and international investors and diversifying the ownership base, citing the role of Egypt’s Sovereign Wealth Fund in strengthening partnerships with local and foreign private sector, the Fund has participated in many projects, including the establishment of the Egyptian National Company for Railway Industries Al-Hadidiya, the expansion of investment in the education sector and the establishment of schools in partnership with the private sector, as well as renewable energy, green hydrogen and green infrastructure projects The total number of activities within three years, and the continued presence of the state with the stabilization or reduction of state investment in some sectors, with the aim of increasing local and foreign investment, and to increase efficiency and effectiveness. of public investment.Without competition from public business bodies and companies and public sector companies Or, to strengthen the state’s primary role as a regulator of economic activity in line with market mechanisms and in a way that creates a fruitful and stimulating environment for investment and development offers.
Regarding the transition to a green economy and green incentives, El-Said reaffirmed the Egyptian state’s orientation towards a green economy, in particular with its presentation of the Conference of the Parties to the forthcoming United Nations Convention on Climate Change COP27 , where the state accepts the environment. sustainability standards aimed at green projects representing 30% of the state’s investment plan for the fiscal year 2021/2022, and 50% of the 2024/2025 plan, with Egypt being the first country in the Middle East and North Africa launched green bonds ($ 750 million), and the government also announced a tax incentive package to boost private investment in the green economy.
In turn, Beata Gavorcik, Head of the Economic Department at the European Bank for Reconstruction and Development, reviewed her duties at the Bank and noted that she works within the framework of a research team to issue reports on the economies of a number of countries each year, including forecasts of economic performance and data analysis in the countries in which the Bank invests. , and this year’s issue was on digital transformation, and it was agreed at the meeting to set up a mechanism for the exchange of data and information and to work to take advantage of the technical reports issued by the two sides. .
Minister of Planning and officials of the European Bank for Reconstruction
side of the meeting