Egypt: Private Investment surges by 24% in Q3

CAIRO -30 June 2025: Private investment in Egypt surged by 24.2% year-on-year at constant prices during the third quarter of the 2024/2025 fiscal year, reaching EGP 142.8 billion, according to latest figures from the Ministry of Planning, Economic Development, and International Cooperation.

This marks the third consecutive quarter in which private investment exceeded public investment, accounting for approximately 62.8% of total executed investments, excluding inventory.

Meanwhile, public investment continued to decline, falling to 37.2% of total investment—or EGP 84.5 billion—compared to EGP 155.3 billion during the same quarter of the previous fiscal year.

Despite the strong momentum in private sector spending, it was not enough to counterbalance the steep decline in public investment, which contracted by 45.6% year-on-year at constant prices.

As a result, the overall contribution of investment to GDP growth in the third quarter was negative, reducing the total growth rate by approximately 2.44% points.

The increase in private investment coincided with steady growth in real domestic credit extended to the private sector.

During the third quarter, credit growth averaged 11.7% and stood at 8% year-on-year by the end of April 2025.

The industrial sector received the largest portion of this credit, accounting for 43% of total loans to private businesses.

The ministry noted that private sector credit is expected to accelerate further, driven by the Central Bank of Egypt’s transition toward a monetary easing cycle.

This policy shift is intended to enhance access to finance for private enterprises, enabling greater expansion and investment.

Supporting this outlook, Egypt’s Purchasing Managers’ Index (PMI) reflected continued recovery in non-oil private sector activity during the third quarter.

At the start of 2025, the PMI reached 50.7—its highest reading in over four years. It remained above the neutral mark at 50.1 in February, indicating ongoing improvement.

Although the index declined slightly to 49.2 in March, it stayed near the neutral threshold, suggesting relative stability and sustained recovery.

In parallel, the House of Representatives approved the Economic and Social Development Plan for the 2025/2026 fiscal year in June 2025, following its initial presentation on April 15. The plan targets an annual GDP growth rate of 4.5%.

The government also reaffirmed its commitment to maintaining the public investment ceiling at EGP 1.154 trillion for FY2025/2026.

This measure is part of broader national efforts to improve public spending efficiency, ensure macroeconomic stability, and attract greater foreign direct investment to finance development projects.

The plan places particular emphasis on strengthening human capital, allocating approximately 47 percent of treasury-funded public investment to the education, health, and social services sectors—underscoring the government’s focus on inclusive and sustainable development.