Egypt’s drive for gender equality: A necessity for economic prosperity

Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, outlined Egypt's reform efforts to ensure a more competitive, diversified, and inclusive economy, which have yielded positive impacts. How will the government's reform agenda address the major challenge facing the Egyptian economy, namely the decline in Suez Canal revenue?

Despite the challenges posed by global uncertainties and geopolitical tensions, Egypt's reform-driven approach is creating a more stable and predictable macroeconomic environment. Egypt has made significant progress in economic reform, with the economy becoming more stable and predictable, and ongoing structural reforms are ensuring long-term sustainability.

The Egyptian government continues to strive to promote private sector-led economic growth by implementing structural reforms designed to enhance economic capabilities and provide an attractive environment for both local and international investment. The current economic vision focuses on shifting from non-trade sectors to trade sectors to increase the added value of local products and enhance their competitiveness in global markets.

In 2024, Egypt's Suez Canal revenue did indeed decrease by more than 60% compared to the previous year. This decline was due to regional instability, which disrupted global shipping and forced some shipping companies to change their routes. However, there have recently been early signs of recovery. According to the Suez Canal Authority, 47 ships that had rerouted returned to the canal in February 2025.

The Egyptian government remains committed to structural reforms, an ongoing process designed to keep pace with local and regional changes, improve the business environment, and empower the private sector. In fact, due to the economic and structural reforms initiated by the government since March 2024, economic growth in the first quarter of fiscal year 2024/2025 saw a recovery, reaching a growth rate of 3.5%.

This period of growth showed positive progress not only in terms of growth rate but also in quality. Non-oil manufacturing grew by 7.1% in the first quarter, the highest growth rate since the third quarter of fiscal year 2021/2022. Furthermore, in the same quarter, merchandise non-oil exports saw a recovery, thanks to the government's efforts to facilitate the release of production inputs from customs and strengthen manufacturing in various sectors, including finished and semi-finished products.

Furthermore, private sector-led growth has gained strong momentum, with private investment accounting for 63% of total investment in the first quarter of fiscal year 2024/2025, given the government's efforts to implement sound public investment governance.

Despite persistent global challenges and heightened uncertainty, Egypt remains committed to its economic reform agenda, prioritizing private sector-led growth, fiscal consolidation, and structural transformation. With signs of recovery in the Suez Canal, the establishment of strategic regional partnerships, and a focus on strengthening private investment and productivity, the Egyptian economy is expected to grow steadily to 4% by June 2025, and to 4.5% in the next fiscal year. Continued efforts to create a stable and business-friendly environment will be key to maintaining long-term economic resilience and competitiveness.

How is the Egyptian government engaging the private sector to ensure comprehensive and sustainable growth? A core component of the government's reform agenda is to promote private sector participation, shifting growth reliance from the state to the private sector in key industries. This strategic shift is crucial for driving sustainable and inclusive growth. As part of this effort, the government aims to increase the private sector's contribution to economic activity, targeting a 65% share within the next three years.

To improve the business environment, the government has implemented several measures, including enhancing transparency and accountability by reviewing tax exemptions for state-owned enterprises. In addition, procedures for obtaining licenses and approvals have been streamlined through the launch of the "Golden License" electronic platform. This platform provides investors with comprehensive information on the Golden License system and allows them to submit single approval requests.

Further reforms include providing new incentives and flexible criteria for investment projects, as well as establishing a Supreme Investment Council to address the challenges facing investors in Egypt. Recognizing that bridging the information gap is crucial for fully unlocking the potential of the private sector, the Egyptian government has also launched the Corporate Consulting, Finance and Investment Center (منصـــة حــــافِـــــز).

This one-stop platform connects private sector entities with 75 financial and non-financial services offered by 20 development partners. As a result of these homegrown reforms, 2024 marks the first year in which concessional financing directed to the private sector exceeded funds allocated to the government, marking a significant milestone in Egypt's economic transformation.

What key initiatives and strategies is Egypt implementing to promote gender equality and empower women for sustainable economic growth? Promoting gender equality is not only a moral imperative but also an economic one. The IMF estimates that in countries with high levels of gender inequality, closing the gender gap in labor force participation could increase economic output by an average of 35%. Egypt is firmly investing in empowering women—ensuring they have the opportunities, resources, and support they need to drive the nation's sustainable growth and prosperity.

Guided by the National Strategy for the Empowerment of Egyptian Women (2016-2030), the government is committed to adopting gender-sensitive budgeting and mainstreaming gender perspectives into all development projects. In addition, the Ministry of Planning, Economic Development, and International Cooperation is leading the coordination of 89 gender-focused projects with Egypt's bilateral and multilateral partners.

In 2020, the Ministry, in collaboration with the National Council for Women and the World Economic Forum, launched the "Closing the Gender Gap Accelerator," the first public-private collaboration of its kind in Africa and the Middle East, designed to enhance gender equality in the workforce by promoting economic opportunities, strengthening women's participation, and promoting inclusive policies across sectors. These milestones in women's empowerment are the result of strong political will and a firm commitment to promoting an inclusive and equitable society.

Furthermore, the New Government Action Plan for 2024-2027 outlines seven strategic goals, one of which is specifically dedicated to the political, economic, and social empowerment of women, while also promoting women's health and protecting them from violence. Finally, I would like to leave you with three key messages: First, gender equality is an economic imperative; unlocking the potential of women is essential for driving growth, fostering innovation, and building resilience.

Second, political will and partnerships are crucial; the unwavering commitment of leaders and collaborative efforts across sectors are necessary to create an environment where gender equality can thrive. Finally, empowering women enhances the resilience of economies and communities; when women are empowered, communities thrive, leading to greater stability and prosperity for all.