In the first quarter of the fiscal year 2023/2024, private investment amounted to approximately EGP 154 billion, an increase from the previous estimate of EGP 114 billion
The Ministry of Planning and Economic Development has announced the development of a new investment accounting methodology for the national accounts system. This move reflects the ministry's commitment to the continuous enhancement of the country's national accounts system.
Planning Minister, Hala El Said noted that the application of this new methodology led to the reevaluation and estimation of private sector investments in Egypt.
Under this methodology, private investment for the year 2022/2023 was estimated at EGP 499.2 billion, compared to the previous estimate of 298.5 billion pounds. Consequently, the percentage of private investment as a share of the total investment rose to 36.4% from 25.5%.
In the first quarter of the fiscal year 2023/2024, private investment amounted to approximately EGP 154 billion, an increase from the previous estimate of EGP 114 billion. It is expected that total private investments by the end of the fiscal year 2023/2024 will reach around EGP 600 billion.
The key focus of this development has been the review of Egypt's gross domestic product (GDP) based on the results of the economic census conducted between 2017 and 2018. Additionally, the ministry has worked on completing the time series of output from 1981 to 2023, incorporating sectorial details and expenditure components, in accordance with the latest international standards in national accounts.
El Said stated that the ministry collaborated with leading international experts and various entities, including GAFI, the Commercial Registry, the Capital Market Authority, and financial and business associations, to develop the methodology for the private investment account. These efforts spanned over two years and involved a series of workshops and expert meetings.
It is worth mentioning that one of the goals outlined in the economic and social plan for the next fiscal year is to increase the percentage of private investment to 50% of the total investments for the year 2024/2025. This shift towards enhancing the private sector's contribution to the national economy aligns with the state ownership document, as well as the objectives of the structural economic reform program and Egypt's Vision 2030.
