In a comprehensive address to the House of Representatives on November 5, 2024, Finance Minister Ahmed Kouchouk unveiled a sweeping four-pillar strategy designed to navigate Egypt through its current economic challenges and pave the way for long-term stability. The strategy, which focuses on economic resilience, debt management, fiscal reform, and enhanced social protections, aims to strengthen the country’s financial infrastructure while addressing the immediate needs of its citizens.
Kouchouk emphasized that this reform agenda is rooted in collaboration, building lasting partnerships with the private sector, financial institutions, and key revenue-generating industries. These partnerships are critical to driving economic growth and attracting investment, two essential components for ensuring Egypt’s continued economic development.
Pillar 1: Economic Resilience Through Strategic Partnerships
The government’s approach is built on fostering strong relationships across multiple sectors. Kouchouk pointed to the government’s commitment to working closely with businesses, financial stakeholders, and international partners to enhance Egypt’s economic resilience. This collaboration is expected to attract much-needed investments and bolster the country’s position as a key player in the regional and global economy.
Pillar 2: Comprehensive Debt Management Strategy
A major focus of Kouchouk’s speech was the need for careful debt management. In light of rising global uncertainties, Egypt has implemented a framework to keep debt levels sustainable. Key to this effort is a new policy that sets binding debt limits, requiring parliamentary approval for any new borrowing beyond these thresholds. This measure is designed to ensure fiscal discipline while maintaining the country’s ability to fund essential projects and services.
Pillar 3: Fiscal Reform and Tax Facilitation
Egypt’s tax system is undergoing a major overhaul with the introduction of a comprehensive tax facilitation package, which includes 20 specific measures to improve efficiency, reduce burdens on businesses, and foster a cooperative relationship between tax departments and the private sector. These measures, set to be fully rolled out by June 2025, are part of Egypt’s effort to simplify tax procedures, enhance compliance, and create a more transparent revenue system.
Kouchouk highlighted that these reforms are already yielding positive results, with tax revenue up by 45 percent compared to previous years. The upcoming fiscal year 2024/2025 budget will also include a three-year fiscal outlook, offering a medium-term framework for more predictable and stable economic planning.
Pillar 4: Strengthened Social Protections for Citizens
Alongside fiscal and economic reforms, the government has prioritized social protections to ensure that the most vulnerable citizens are shielded during this transitional period. Kouchouk confirmed that funding for essential services—such as healthcare, basic goods, and the electricity sector—has been secured to protect the public from the negative impacts of the ongoing reforms.
In his speech, the Finance Minister made it clear that, while the government is committed to fiscal responsibility, it is equally committed to ensuring that essential services remain accessible to all Egyptians, particularly those in need.
A Comprehensive Vision for Stability and Growth
Kouchouk’s announcement sets the stage for a more resilient economy—one that combines fiscal discipline with social responsibility. With the implementation of this four-pillar strategy, Egypt is positioning itself to meet future challenges head-on while building a more inclusive and sustainable economic future.
The government’s commitment to long-term planning, tax reform, and debt management will be crucial in stabilizing Egypt’s economy. At the same time, the attention given to social protections demonstrates the government’s determination to safeguard its citizens’ welfare during this critical reform period.
With the strategy’s full implementation expected to unfold over the next few years, Egypt is setting the stage for a stronger, more inclusive economy, one that benefits all Egyptians while ensuring the country remains on a path toward sustainable growth.
