CAIRO - 19 March 2024: The Egyptian government, led by Finance Minister Mohamed Maait, is collaborating closely with credit rating agencies to regain Egypt's top credit rating in the near future.
Maait emphasized the government's commitment to rebuilding trust in the Egyptian economy by outlining the trajectory of its new economic policies, which promise significant opportunities for growth.
He clarified that the recent announcement by S&P Global Ratings, shifting Egypt's economic outlook from "stable" to "positive" while maintaining the sovereign credit rating at "B-," underscores the importance of Egypt's advanced, integrated, and sustainable economic strategies in fostering recovery and sustainable growth.
Maait further highlighted S&P's acknowledgment of the government's bold reform efforts aimed at implementing an ambitious plan that optimizes state resources and attracts both domestic and foreign private investments.
He stressed the government's dedication to fostering a conducive business environment that ensures fairness and equal opportunities for both the private sector and state-owned entities in terms of taxation, customs, and investment regulations.
Additionally, Maait emphasized the government's commitment to stimulating private sector participation by reducing public investment expenditure in the upcoming fiscal year. This strategy aims to encourage vigorous competition and deeper involvement of the private sector in developmental activities, ultimately positioning it to lead future economic growth.
He underscored the importance of comprehensive economic development components, including advanced infrastructure, investment incentives, and favorable tax and customs policies, in driving productivity, industrialization, and exports.
Meanwhile, Ahmed Kajok, Deputy Minister for Financial Policies, highlighted the government's decision to cap total public investments at not exceeding EGP 1 trillion in the next fiscal year. This move is expected to create significant opportunities for increased private sector engagement in economic activities, as the private sector plays a crucial role in driving economic progress and job creation.
Kajok also noted that initiatives like the "State Ownership Policy Document" are providing more appealing avenues for private sector involvement, particularly through the "Government Offerings Program," thereby opening up promising opportunities in globally competitive sectors and stimulating investment, local production, and exports.
