Reshaping the Egyptian Economy… From Crisis Management to Maximizing Returns

By: Eng. Emad Awni – Financial and Business Markets Expert

For several years, Egypt has been pursuing a serious reform path to restructure its national economy—a path closely linked to Egypt Vision 2030, which aims to build a balanced, sustainable economy capable of withstanding internal and external shocks. As we enter a new planning phase up to 2030, reshaping economic management tools becomes a necessity rather than an option.

One of the most critical areas requiring reconsideration is public debt. Debt itself is not inherently dangerous if it is directed toward projects with clear economic returns that generate cash flows to service the debt and maximize added value to the national economy. The problem lies not in the size of borrowing, but in how it is used and linked to clear performance indicators and measurable returns.

Hence, there is a growing need to reassess public expenditure over the next four years until 2030, directing spending toward sectors capable of generating direct or indirect economic returns, while ensuring tight coordination among state institutions to avoid overlaps or duplication that could waste resources or squander investment opportunities.

Framework 1: Maximizing the Efficiency of the General Budget

Maximizing the internal efficiency of Egypt’s general budget does not mean increasing burdens, but rather enhancing the effectiveness of public spending and linking every expenditure item to a specific economic objective. Merging overlapping economic authorities within the same activities is a necessary step to reduce administrative waste, achieve economies of scale, and improve decision-making efficiency—especially in major productive and service sectors.

Framework 2: Developing the Tax System Without Burdening Citizens

Increasing tax revenues should not be achieved by raising taxes on citizens or pressuring productive classes, but by broadening the tax base and including groups that have long been outside the system.

This highlights the importance of launching a new investment-oriented tax system targeting an estimated 10 million citizens currently outside the tax and social insurance framework. The system should use simple, digital, and incentive-based tools to integrate the informal economy without friction, while fairly and sustainably compensating for past tax losses.

Tourism: From Traditional Revenue Source to Development Engine

Tourism remains one of the most important avenues for maximizing Egypt’s foreign currency earnings. However, boosting this revenue requires a comprehensive restructuring of tourism routes and programs, linking them to economic and commercial development across all governorates rather than focusing solely on traditional destinations.

Creating new mechanisms to accommodate tourists, developing transportation, and expanding lodging infrastructure can open new tourism markets and multiply capacity, which directly reflects on the balance of foreign exchange.

Industry: Gateway to Economic Independence

One of the biggest challenges in industry is the absence of a unified industrial map. A solution starts with creating a national electronic platform connecting all industrial zones, with a dedicated page for each governorate detailing existing industries and available opportunities. This allows investors to plan effectively and promotes integration rather than duplication.

Implementing a focused industrial plan to increase local manufacturing in a limited number of strategic sectors—such as home appliances, automobiles, and building materials—is far more effective than dispersing efforts. Loans and financial incentives should be directed to complete value chains and gradually increase local content in a structured manner.

Conclusion

Reshaping Egypt’s economy is not merely a matter of financial measures or administrative decisions. It is a comprehensive vision based on maximizing returns, ensuring coordination, and directing resources where added value is highest. With political will and institutional capacity, Egypt can enter 2030 with a stronger, more independent economy capable of sustainable growth.