Egypt’s new strategy prioritizes structural reforms that empower the private sector and attract investment, and it is beginning to fruit. 

According to Finance Minister Mohamed Maait, the country’s financial indicators have surpassed budget estimates for the past nine months of the 2023-2024 fiscal year. This positive performance comes despite the challenging global and regional economic climate.

Last month, Egypt secured an additional $5 billion loan from the International Monetary Fund (IMF) following the central bank’s decision to raise interest rates and devalue the Egyptian pound by nearly 40%.

This move aligns with IMF recommendations, linking future loan payments to allowing market forces to determine the currency’s value and ensure foreign exchange accessibility for businesses and individuals.

The reform strategy has yielded significant improvements in revenue streams. Non-tax revenues soared by 122.9%, while tax revenues surpassed $20.6 billion, reflecting a 41.2% annual increase.

Maait notes that these gains were achieved without imposing additional burdens on citizens or investors, with expanded tax base initiatives and efforts to integrate the informal economy playing a key role in this success.

The Ministry of Finance is actively fostering investor confidence through ongoing annual dialogues with over 2,000 investment institutions. The Investor Relations Unit plays a crucial role by maintaining open communication and issuing monthly performance reports.

Recent data shows a positive trend, with Egypt’s urban consumer price inflation rate slowing down to 33.1% in March compared to 36% in February. The central bank’s interest rate hike and shift towards an inflation-targeting regime appear to mitigate inflation concerns.