Egypt directs total investments of LE 77 billion to transport sector during 2018/2019 as a part of 2018/2022 medium-term plan of sustainable development, according to Minister of Planning Hala el-Saeed.
The minister clarified that the total investments to the transport sector in 2017/2018 recorded LE 65.7 billion.
Saeed emphasized the importance of the sector in the progress of the social and economic situation in the country.
Regarding the sector’s projects, she said that the cost of the essential programs to develop the sector and its affiliated sections reaches LE 40.7 billion in 2018/2019.
“The investments will be directed to implement projects of development of the railway network, expansion of the underground network, the national road network, and development of the maritime, land and river transport sector,” she added.
The project of development of the railway network allocates 33 percent of the investments, and 21 percent goes for the expansion of the underground network, according to the minister.
The plan aims to increase the growth rate of the transport sector to 4.1 percent in 2018/2019, targeting to reach 7.5 percent in 2021/2022, compared to 3.2 percent in 2017/2018.
According to the plan, the transport sector will contribute to the economic growth by 3.6 percent in 2018/2019 and 4.4 percent in 2021/2022.
Previously, the minister announced that LE 133.1 billion were directed to investments in electricity sector during 2018/2019.
The investments of electricity sector capture 14.1 percent of total investments of the current year plan.
The minister announced earlier in several events allocating investments in the current year's budget to agriculture, developing Upper Egypt and increasing net foreign direct investment (FDI).
She said that the medium-term plan of sustainable development aims to increase FDI to $11 billion in 2018/2019 and to gradually escalate to about $20 billion in 2021/2022 from $7.9 billion in 2017/2018.
The minister stated that the plan targets achieving a high growth rate of real gross domestic product (GDP), reaching 5.8 percent in the first year of the plan 2018/2019, to gradually rise to 8 percent in the plan’s last year 2021/2022, with an increase per capita of real GDP at an average of more than 3 percent in the first year of the plan, to record 6 percent in the last year of the plan.
Egypt's growth rate for 2017/2018 fiscal year hit its highest level in 10 years as it recorded 5.3 percent against 4.2 percent in the year before.
Saeed added that the plan aims to provide about 750,000 job opportunities in 2018/2019 by developing the absorptive capacity of the labor market to gradually increase and provide 870,000 opportunities in 2021/2022.
The objectives of the medium-term sustainable development plan also include raising the savings rate to about 11 percent in 2018/2019, gradually increasing to about 23 percent by the end of the plan and increasing the investment rate from about 16.9 percent of GDP in 2017/2018 to 18 percent in the first year of the plan, and 25.6 percent in the last year, Saeed pointed out.