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Following a period of macro turbulence in the wake of the Russia-Ukraine war and the global inflation wave, the Egyptian government acted to set the economy on a sustainable path. In March 2024, Egypt embarked on a series of transformative economic reforms that have significantly bolstered its economic performance and investor confidence, measures that were complemented by a significant financing package from bilateral and multilateral partners. These measures have addressed critical areas such as foreign exchange policy, inflation control, interest rates, foreign direct investment (FDI), and international credit ratings, collectively contributing to an extraordinary economic boom.

In March 2024, the Central Bank of Egypt (CBE) implemented a flexible exchange rate policy, allowing the Egyptian pound to be determined by market forces. This shift aimed to eliminate foreign exchange backlogs and unify exchange rates, thereby restoring confidence in the domestic FX market. Egypt’s net reserves stood at approximately USD 47.7 Bio, reflecting a significant rise from January 2024 when the reserves were hardly reaching USD 35.5 Bios. This boost was referred to foreign investors injected close to USD 19 Bios in the local debt market, remittances from Egyptian Expats saw a strong rebound reaching USD 30 Bios, tourism sustained a strong performance reaching an all time high of USD 14.4 Bios in the fiscal year ending 2024.

Stabilizing the FX market and tighter monetary policy managed to bring inflation on a downward path. Headline inflation eased from its high of 35.7% in February 2024 to 24.1% in January 2025 and is set to ease further toward low double-digits by the end of 2025. The decelerating path of inflation is likely to set the stage for CBE to ease policy rates over the course of the year, in a boost to investment and general sentiment.

Tight monetary policy has been also complemented with similar fiscal tightening, with 8% hike in early 2024 only 6% was in March. A nominal investment cap has been set on all public investments. Moreover, the government has instated, for the first time, a ceiling for public debt and is targeting a record-high primary surplus of 3.5% of GDP in the current fiscal year (and set to rise to 4% of GDP in FY25/26).

The government is planning to replace its broader investment drive with more room for private sector to lead growth. This is to be attained through policies that encourage exports and FDIs, including a restructuring of the export rebate program and targeting of green policies, in addition to a push for asset sales and implementation of the State Ownership Policy.

Reflecting these positive developments, credit rating agencies upgraded Egypt’s ratings. In November 2024, Fitch Ratings elevated Egypt’s long-term foreign-currency Issuer Default Rating from B- to B, citing improved external finances and effective policy adjustments. Similarly, Standard & Poor’s revised its outlook on Egypt to positive, affirming the country’s improved economic stability.

Egypt is positioning itself as a regional hub for car manufacturing in the Middle East and Africa, the Government has been implementing policies and incentives, customs exemptions, local content requirements to encourage foreign car manufacturers to set up production facilities focusing on electric vehicles production by Chinese, European and Japanese automakers such as BYD, Stellantis Group, and Nissan, together with the existing BMW and Mercedes-Benz.

The comprehensive reforms and improved macroeconomic indicators have culminated in robust economic growth. Projections indicate that Egypt’s economy will grow by 4.0% in FY24/25, with expectations of accelerating growth in subsequent years to reach the 5% area.

In summary, the period surrounding March 2024 marked a turning point for Egypt’s economy. Through strategic reforms in foreign exchange policy, inflation management, interest rates, and by attracting substantial foreign investment, Egypt has achieved remarkable economic performance. The endorsements from international financial institutions and improved credit ratings reflect renewed global confidence, positioning Egypt as an attractive destination for investors and setting the stage for sustained economic prosperity.

Omar Khattab

��ݮtv Egypt President

��ݮtv Slovenia: There from the beginning

��ݮtv Slovenia traces its roots back to 1992, the year when Slovenia gained monetary independence, and just one year after Slovenia declared its independence. The association’s growth from a national forex community into a vibrant network was greatly boosted by its inclusion in the international ��ݮtv network in 1997, a milestone that helped shape Slovenia's financial markets.

Over the past three decades, ��ݮtv Slovenia has organized numerous assemblies, roundtables, webinars, and seminars, fostering professional development and facilitating valuable exchanges among financial experts. ��ݮtv Slovenia's General Assemblies (GA) especially stand out for their professional programs, which cover current topics thanks to renowned domestic and international speakers, as well as a Saturday team-building activity. The latter is what we take most pride in, as it helps build not only professional, but also personal relations and camaraderie between participants in our progressively digitalising world. We strive to change the location of the GA every year, showcasing the beauty of our country in the process.

The success of our association is reflected in the trend of growing membership. Today, our ��ݮtv family consists of 155 members, with an increase of 55 members in just the past three years, despite the ongoing consolidation of the banking sector in Slovenia. We have expanded our family to include professionals from other financial institutions, such as insurance companies and asset managers as well as a growing number of finance professionals from the non-financial sector. The association’s credibility is further strengthened by the support of the national central bank, whose employees have been active members of the executive board since the beginning.

That same internationalisation that was key to our growth in the 90’s came back in full force during the Covid pandemic. During that time, our association organized webinars, inviting fellow ��ݮtv associations from the entire region with the support of the ��ݮtv FMA European president Branko Petrović and Director of the Educational Board Rui Correia. Our collaboration was further strengthened through the organization of the highly successful first regional ��ݮtv FMA Adria conference, held jointly with ��ݮtv Serbia and ��ݮtv Croatia last May in one of Slovenia's most iconic locations, Lake Bled.

The most important factor in our success, however, is the dedication and passion of all the past and present members of the ��ݮtv Slovenia executive board. With their personal approach and enthusiasm, they have been successfully attracting new members and top speakers for the past 33 years.

Alenka Gedrih

��ݮtv Slovenia President