Egypt Daily News – Ahmed Kajoak, Egypt’s Minister of Finance, recently asserted that the country’s economic situation is “reassuring,” based on positive fiscal performance indicators from the last budget year, which concluded in June.
His comments were made during a series of meetings aimed at fostering economic dialogue with over 100 representatives from major financial institutions and investment banks in London.
During these discussions, Kajoak highlighted efforts to cultivate a “business-friendly” environment for investors, emphasizing the importance of trust, clarity, and tax certainty in developing investment plans for new projects.
Key financial metrics he shared included a primary surplus of 6.1%, a budget deficit rate that decreased to 3.6% of GDP, a reduction in internal budget debt by 4.7%, and a decrease in external debt by over 4%, with an average maturity extending to 12.7 years.
The minister expressed a goal of achieving annual primary surpluses to lower the debt-to-GDP ratio to below 85% by the end of the next fiscal year.
Kajoak noted that a more stable Egyptian economy would rely on the growth of the private sector and its increased role in investment and developmental activities.
The government is making concerted efforts to facilitate private investments by setting limits on public investments and implementing a government offerings program under the “State Ownership Policy Document.”
He mentioned initiatives aimed at establishing competitive neutrality by removing preferential tax treatments for state-owned entities and enhancing infrastructure alongside offering attractive incentives for local production, export opportunities, and simplifying processes related to the “golden license.”
Furthermore, the minister discussed plans for developing the government securities market to attract new investors and reduce financing costs by diversifying investment sources and instruments.
He reaffirmed collaboration with the International Monetary Fund to enhance Egypt’s economic performance while managing macroeconomic risks and leveraging global expertise to address challenges.
Kajoak participated in several roundtable discussions with institutional investors organized by HSBC, Morgan Stanley, and Jefferies, where he spoke on Egypt’s economic developments and structural reforms.
He also took part in a session hosted by the Bank of New York Mellon, collaborating with various financial authorities to draw more investments to Egypt’s financial market.
Additionally, he met with the European Bank for Reconstruction and Development to explore deeper cooperation and empower the private sector’s crucial role in the economy.
