Egypt has ranked as Africa’s largest recipient of private foreign investment for a fifth consecutive year, its finance minister said on Tuesday, pointing to a sharp rebound in private-sector activity and improving macroeconomic indicators as the government presses ahead with economic and fiscal reforms.
Finance Minister Ahmed Kouchouk said private investment surged 73 percent in the 2024/2025 fiscal year, underlining renewed investor confidence after a period marked by currency pressures, high inflation and regional instability. He said the broader economy was gaining traction, with stronger growth, rising exports and easing inflation.
Speaking at a conference organised by the Egyptian–African Businessmen’s Association in cooperation with e-Tax, Kouchouk said Egypt’s foreign exchange reserves had exceeded US$50 billion, while foreign direct investment inflows had strengthened, reinforcing the country’s position as a leading destination for private capital on the continent.
“The Egyptian economy has begun to gain strong momentum,” Kouchouk said, adding that the turnaround reflected a combination of fiscal discipline, structural reforms and growing private-sector participation.
He said the past fiscal year recorded a primary budget surplus of 3.5 percent of gross domestic product, a key indicator watched by international lenders and investors. Such performance, he said, would not have been possible without “the confidence and strong response of both domestic and foreign private investors”.
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Egypt has been implementing a wide-ranging reform programme aimed at restoring macroeconomic stability, widening the role of the private sector and reducing the state’s footprint in the economy. The programme has been backed by international partners, including the International Monetary Fund, as Cairo seeks to stabilise its finances and unlock growth.
Kouchouk cautioned that there was no single model for economic reform, noting that international experiences varied widely. “Each country adopts approaches suited to its own circumstances, needs and priorities,” he said, stressing that reforms must be grounded in a clear understanding of domestic and external challenges, as well as citizens’ priorities.
He said Egypt was ready to share its experience with other African countries to help improve competitiveness across the continent. Stronger African economies, he added, would benefit both states and citizens by boosting trade, investment and resilience to external shocks.
The minister underscored the central role of the private sector in driving sustainable development, saying resource development could not be achieved without “strong and sustained private sector-led economic activity”. Expanding the economic, productive, export and tax bases, he said, was essential to creating the fiscal space needed to support development goals and reduce public debt.
Kouchouk also highlighted the importance of investing in human capital, describing it as more critical than any other form of investment. “People are the ones who shape the present and the future,” he said. While digitalisation was important, he added, it must translate into better services for businesses and citizens to deliver tangible economic gains.
He stressed the need for effective communication and dialogue with taxpayers, investors and service users, particularly as the government pushes ahead with tax and customs reforms designed to improve compliance and efficiency.
The Egyptian Tax Authority is continuing to modernise its operations and simplify procedures, Kouchouk said, emphasising a framework based on trust, partnership and support for the business community. Facilitation packages introduced by the authority aim to address taxpayer concerns, improve services and enhance predictability.
According to the finance minister, the initiative has contributed to a roughly 35 percent increase in tax revenues without imposing additional burdens on businesses, an outcome the government views as critical to maintaining support for reform.
Kouchouk said the government remained committed to its current economic and fiscal path, noting that indicators from the first half of the current fiscal year were encouraging. Economic growth reached 5.3 percent in the first quarter, while private investment rose 40 percent, alongside gains in industrial output and exports.
He added that Egypt’s economic image had improved in international markets, helping to attract capital and support financing needs. The government is working with the Ministry of Investment to cut customs clearance times and reduce trade costs, while expanding support for local manufacturing to boost exports and job creation.
Despite the improved outlook, analysts say Egypt still faces challenges, including managing public debt, sustaining foreign inflows and shielding the economy from global volatility. For now, the government is betting that a stronger private sector and continued reforms will keep investment flowing and growth on track.
