D. Rania Al-Mashat: We are moving on the path of enhancing the private sector’s contribution to economic activity through the governance of public investments
We have begun procedures for activating the governance of investment spending in coordination with all ministries and agencies, and priority is given to projects whose implementation rate has exceeded 70%
Developing the financing equation to enhance economic and social equality and fair distribution of investments at the governorate level
The integrated national financing strategy enhances the mobilization of domestic and external financing to bridge development gaps
reviewed Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, highlighted the ministry’s efforts in governing investment spending and the integrated national strategy for financing development, during the first press conference held by the ministry following the merger of the Ministries of Planning, Economic Development and International Cooperation.
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Dr. Rania Al-Mashat referred to the structure of public investments in the economic and social development plan for the fiscal year 2024/2025, which includes human and social development projects and investments at a rate of 42%, industrial and infrastructure development projects and investments at a rate of 37%, in addition to projects and investments. Local development by 21%, pointing to the development of investments in the human and social development sector over 10 years, as it rose from 29.3 billion pounds during the year 2015/2016 to 161.9 billion pounds during the year 2024/2025, and there was a growth in investments directed to the governorates over 10 years by a percentage 315%, as it increased from 6.8 billion pounds in 2014/2015 to 28 billion pounds during the year 2024/2025.
Public Investment Governance
With regard to the system of public investment governance, monitoring and evaluation, Al-Mashat explained that it is based on three axes: investment planning, where standards have been updated. Evaluating projects, obliging entities to submit feasibility studies, developing methodologies for calculating investments, enhancing the integration of geographical information, and activating local development programs using modern planning tools, and the second axis is allocating investments through developing a financing formula to cover development gaps between governorates, and linking investments to incentives, with an emphasis on Integration between investment and current spending, in addition to monitoring the implementation of investments through automating the office and field follow-up process and inventorying investment assets.
She explained. The Ministry of Planning, Economic Development and International Cooperation, starting from the fiscal year 2021-2022, implemented the financing equation in preparing the proposal for the investment plan for the governorates, and the importance of the financing equation is evident in the fair distribution of government investments among the Egyptian governorates, in promoting economic and social equality between different regions, and advancing Sustainable development at the country level, and this distribution depends on a set of multiple criteria, including poverty indicators, the human development index at the governorate level, population size, and the average previous investments. A financing formula has also been adopted to distribute investments between centers and neighborhoods within each governorate from the beginning of 2023. -2024, and this equation depends so far on the population index only to distribute investments.
Regarding investment governance procedures and re-prioritizing the year plan 2025/24, the Minister of Planning, Economic Development and International Cooperation indicated , that the Ministry of Planning, Economic Development and International Cooperation has coordinated with the ministries and concerned authorities to develop executive steps for the governance of investment spending, in light of the decisions of the Prime Minister to give priority to projects whose implementation rates exceeded 70% and projects expected to be completed, emphasizing not to approve any additional amounts. To the authorities supporting the fiscal year plan 25/2024, in addition to coordinating with all ministries and governorates regarding identifying all financial arrears, in addition to postponing work on new projects and not signing any new protocols or contracts except after coordination with the ministry.
Integrated National Strategy for Financing
Dr. Rania Al-Mashat highlighted the integrated national strategy for financing development, as the Ministry of Planning, Economic Development and International Cooperation launched the strategy during the Future Summit held. Within the meetings of the 79th session of the United Nations General Assembly in New York in September 2024, she explained that the strategy was developed in line with the main national strategies and policies, the national structural reform programme, the state ownership policy, and the sustainable sovereign financing framework. It is also in line with the economic and social development plan and the reform program supported by the International Monetary Fund.
The integrated strategy for financing development in Egypt will also support the efforts The Egyptian government can contribute to achieving sustainable development goals, and its mechanisms and procedures for cooperation, decision-making, and involvement of relevant parties in Egypt can contribute by bridging the financing gap and reducing future financial risks. The strategy included focusing on priority sectors, and the scope of application can be expanded to include other sectors. , explaining that the approach followed is based on the stimulating role of public capital to mobilize private financing sources and integrate it into the financial tools used to bridge the financing gap, increase resource flows to key sectors, and enhance innovative financing mechanisms.
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