Egypt proud of partnership with IMF across various reform programmes: PM Madbouly - Economy
Madbouly said this on Sunday evening during a press conference with Nigel Clarke, the IMF's deputy managing director.
The prime minister also reaffirmed Egypt's commitment to its $8 billion Extended Fund Facility (EFF) loan programme with the International Monetary Fund (IMF), highlighting the notable progress achieved over the past few months.
Madbouly and Clarke gave press statements following their extended meeting on Sunday at the cabinet headquarters in the New Administrative Capital.
The meeting occurred as part of the IMF delegation's current visit to Egypt to conduct the fifth review of the country's ongoing economic reform programme, implemented by the Egyptian government and the Central Bank of Egypt (CBE) in cooperation with the fund.
CBE Governor Hassan Abdalla, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, Minister of Finance Ahmed Kouchouck, and Executive Director and IMF Board Member Mohamed Maait, who represents the Arab group and the Maldives, attended the meeting.
In his remarks, Madbouly welcomed Clarke and his accompanying IMF delegation in his first official visit to the country since he was appointed in October 2024 as the official in charge of Egypt's IMF portfolio.
Longstanding partnership
PM Madbouly noted that the reform programmes, implemented in partnership with the IMF, came amid significant internal and international challenges that heavily impacted the country's economy.
Since 2016, Egypt has sealed four loan agreements with the IMF, totalling nearly $30 billion. This is in addition to the newly approved $1.3 billion loan programme under the fund's Resilience and Sustainability Facility (RSF).
PM Madbouly noted that the current national economic reform programme, designed by the Egyptian government with IMF support, represents a tangible model of success.
The programme is being implemented steadily, based on a flexible exchange rate regime, increased foreign currency reserves, and ongoing efforts to maintain fiscal discipline and reduce the debt-to-GDP ratio.
Egypt's economic resilience amid challenges
He added that Egypt's economy has demonstrated resilience and a capacity to absorb severe external shocks, like other nations during recent global turmoil. The IMF itself confirmed that Egypt is progressing steadily on its reform path.
Moreover, he highlighted key macroeconomic indicators that reflect this progress, including a real GDP growth rate of approximately 3.9 percent in the first half (H1) of the current FY2024/2025 (July-December 2024), an essential and positive sign.
According to Madbouly, private sector investments also rose by 80 percent, and foreign direct investment (FDI) increased by about 17 percent from July to December 2024.
He further noted that Egypt's non-oil exports grew by around 33 percent during the year's first nine months.
Madbouly clarified that these figures contributed to robust growth in productive sectors such as manufacturing, ICT, and tourism, boosting investor confidence in the Egyptian economy.
He also highlighted the latest drop in the country's unemployment rate, which dropped below seven percent, the lowest level recorded in Egypt's history.
Inflation, debt on track
The prime minister pointed out that the country's inflation rates have declined significantly, dropping to 13.9 percent in April, down from over 37 percent during the same period in 2024.
He also highlighted Egypt's progress in debt reduction, a key component of the current EFF loan programme. In line with the programme, Egypt aims to reduce its debt-to-GDP ratio to 85 percent by June 2025, down from 96 percent in June 2023.
Furthermore, Madbouly noted that the budget deficit decreased to 6.5 percent over the past 10 months, compared to 6.7 percent.
He reaffirmed that the state is fully committed to continuing on the path of economic reform.
He said Egypt had completed four previous programme reviews and is currently engaged in the fifth review, which will continue in collaboration with the IMF in the coming days.
According to the reviews schedule, the fifth review is anticipated to be completed before the end of June. Once completed, Egypt will be eligible to receive a tranche of $1.2 billion.
Praising Egypt's achievement
For his part, Clarke affirmed that Egypt has made tangible progress on its macroeconomic reform programme.
'This is an Egyptian-led programme that has resulted in a sharp decline in inflation and unemployment, while foreign currency reserves have surged, and the availability of foreign exchange has significantly improved," he said.
"This is no longer a major issue as it once was. We've also seen a steady increase in GDP growth, and Egypt's economy is clearly moving toward greater stability,' Clarke added.
He noted that the Egyptian government's bold decisions and actions made these important positive outcomes of the economic reform programme possible.
These reforms include the adoption of a flexible exchange rate regime, a monetary policy focused on achieving economic stability, and ongoing efforts to mobilize domestic revenues to ensure a sustainable and stable fiscal policy.
He further emphasized that progress in Egypt's economic reform programme also encompasses a social dimension, including measures to support the most vulnerable segments of society.
Welcoming Egypt's reforms
'I welcome these reforms that have led to such positive results,' Clarke said, calling for the continued implementation of the economic reform programme.
Clarke also pointed to the increase in private sector financing and its rising share in the GDP.
'All of this is a direct response to the improvements and stability witnessed in the macroeconomic environment,' he stated.
He also stressed that a swift transition to a more sustainable economic model requires the private sector to lead economic growth and activity.
He confirmed that Egypt is already on this path, and the IMF is working with the government to accelerate this transition, reduce the state's role in economic activity, open space for the private sector, and promote fair competition across financial sectors.
'This will enhance the dynamism of the economy, attract both domestic and international investment, and lead to greater progress and prosperity for the Egyptian economy. Most importantly, it will help establish a more sustainable economic model,' Clarke stated.
In addition, he addressed the issue of economic shocks, which he described as a prominent feature of today's global economic system.
He stressed that the critical question for this region in particular is how to build a resilient economy to absorb such shocks. Clarke stated that achieving such resilience strongly depends on economic stability and sustained efforts to shift toward a more stable economic model.
He also expressed the IMF's appreciation for its longstanding partnership with Egypt, describing the country as a key fund member.
He reaffirmed the IMF's ongoing support for Egypt as it implements bold economic reforms that will benefit the Egyptian people.
Ambitious indicators
During his meeting with Clarke, Minister Kouchouk stated that Egypt's economy is improving with strong and ambitious indicators. The robust financial performance over the past ten months reinforces the country's commitment to a comprehensive national reform plan.
Kouchouk added that Egypt has achieved its highest-ever primary surplus, amounting to 3.1 percent of GDP, from July to April.
He also stressed that the government is pursuing an advanced path in fiscal policy management with more effective and stimulating initiatives to boost economic activity.
Furthermore, Kouchouk asserted that private sector empowerment efforts are bearing fruit, accounting for 60 percent of total investment during the fiscal year's first half.
He also anticipated a strong impact from the recent package of tax relief initiatives, which aim to broaden the tax base.
Kouchouk further emphasized that tax reform is grounded in building trust with taxpayers and is underpinned by strong partnerships and support for the business community.
Follow us on:
Short link:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mada
an hour ago
- Mada
Four dead, 4 missing after oil rig sinks off Red Sea Governorate coast
An oil rig sank off the coast of the Egyptian Red Sea on Tuesday night, killing four staff members who were on board. Egyptian officials are yet to comment on what caused the sinking, as of time of writing. The ADMARINE12 oil rig, owned by Offshore Shukheir Oil Company (OSOCO), capsized in the Gabal al-Zeit area in Ras Ghareb, in the Red Sea governorate, according to government statements. The incident injured 22 out of the 30 people who were on board, while four are still missing. A Cabinet statement Tuesday night said that the petroleum and labor ministers visited the site to investigate the situation shortly after emergency services received the distress call from the sinking rig. Red Sea Governor Amr Hefny said that rescue teams were able to retrieve four bodies from the incident area and transfer them to Hurghada General Hospital. The teams are still looking for four more bodies of staff who are missing, according to the governor. Of the surviving 22 who were found, rescuers transferred 18 by ambulance to Gouna Hospital in Hurghada, while the other four who had more critical injuries were transferred by plane, Hefny said. OSOCO is one of the companies owned by the Egyptian General Petroleum Corporation. It was established in 1980 , to oversee oil extraction operations on behalf of EGPC and contractors in the Shukeir Marine Area in the Gulf of Suez. The capsized rig, although owned by OSOCO, was reportedly operated by the Saudi ADES Holding Company, which won a 10-year contract to operate in OSOCO fields in 2023. For his part, head of the Suez Canal Authority Osama Rabie stated today that ship movement in the canal was not affected by last night's incident, which occurred 130 nautical miles away from the canal's southern entrance.
Mada
an hour ago
- Mada
Six Egyptians arrested from homes as prosecution investigates support for Global March to Gaza
In the latest show of force against popular displays of solidarity with Gaza, the Supreme State Security Prosecution has ordered for six Egyptians to be detained for 15 days after they were questioned over their support for the Global March to Gaza. The decision was made despite the lack of evidence that the accused committed any crime, according to a Wednesday statement from the Egyptian Initiative for Personal Rights (EIPR), which is providing legal defense to some of the detainees. The six people were arrested in mid June, at the same time as authorities cracked down on foreign nationals who were entering Egypt to join the Global March to Gaza, a popular initiative for international volunteers to come to Egypt and travel en masse to the border with the Gaza Strip to break Israel's siege on Palestinians there. Authorities arrested the six people from their homes, EIPR lawyer Lobna Darwish told Mada Masr. EIPR said the six accused were forcibly disappeared before appearing a few days later at the State Prosecution, which accused them of the standard charges leveled at those arrested for political expression: joining a terrorist organization and publishing false news. During interrogations, the six were questioned about joining a private group on a social media platform which included discussions about joining the Sumud convoy, a separate but parallel initiative to the Gaza march that aimed for 1,000 people to travel by land across North Africa toward Egypt also aiming to break the Israeli siege. Authorities interrogated them about the convoy itself, its aims and who was behind it. In response, the six defendants stressed that they did not join the convoy since it did not receive the required security approvals from the Egyptian authorities, stressing that they have acted in compliance with Egyptian law, committing no crime. The Sumud Convoy suspended its operations in mid-July following days of intimidation, including the arrests of several participants by eastern Libyan authorities. Egyptian authorities did not grant approval for the convoy to cross the border. Organizers of the Global March to Gaza also called off the procession, after clashes with authorities who conducted arrests targeting participants. During the detention renewal session this week, the prosecution dismissed a complaint appealing the ongoing imprisonment of one of the defendants, who is 67 years old and suffering from several health conditions including hypertension and diabetes, said EIPR. It also turned a blind eye to the lawyers' arguments regarding the lack of evidence proving the accusations against the six. In its statement, EIPR, which appointed lawyers for several of the accused Egyptians, called for the immediate release of all those arbitrarily detained for displaying solidarity with Gazans, adding that any display of solidarity or condemnation of Israeli crimes 'should be in line with Egypt's officially stated position on Palestine.'
Al-Ahram Weekly
3 hours ago
- Al-Ahram Weekly
El-Sisi, Zelensky stress diplomatic end to Ukraine war - Foreign Affairs
President Abdel-Fattah El-Sisi stressed in a phone call on Wednesday with his Ukrainian counterpart, Volodymyr Zelensky, the crucial importance of reaching a diplomatic settlement for the war with Russia, according to a statement by the Egyptian presidency. During the call, the Egyptian president emphasised the imperative to prioritise dialogue as a means of resolving the current crisis, reaffirming Cairo's full support for all efforts aimed at reaching a peaceful settlement at the earliest possible time. According to the Egyptian presidency, the call also focused on developments in the Middle East and ways to restore regional stability. Both leaders underscored the necessity of upholding the ceasefire agreement between Israel and Iran, affirming the urgent need to resume negotiations as a pathway to a peaceful resolution of the crisis. El-Sisi, the presidency continued, also reviewed Egypt's ongoing efforts to secure a ceasefire in the Gaza Strip and ensure the delivery of desperately-needed humanitarian aid to the Palestinians in Gaza. The two sides also tackled ways to strengthen bilateral relations and explored prospects for economic and trade cooperation. Follow us on: Facebook Instagram Whatsapp Short link:
