Minister of Planning and Economic Development, Hala El-Said, declares a substantial investment of EGP 99.6 billion in the petroleum and mineral wealth sector for extraction development in the fiscal year 2023-2024. This investment highlights the sector’s crucial role in energy generation, bolstering various productive sectors, and fortifying Egypt’s foreign currency reserves through exports.
In a report by the Ministry of Planning and Economic Development, El-Said highlighted that Egypt Vision 2030 identifies the petroleum sector as one of seven key areas driving economic growth. The sector’s output is essential for meeting the fuel and petroleum product needs of Egypt’s growing population and for maintaining the competitiveness of other economic sectors.
For the fiscal year 2023-2024, the investment plan includes EGP 22.4bn for crude oil extraction, EGP 65.4bn for gas extraction, and EGP 11.8bn for other extractions.
The mid-term production goals for 2023/2024 aim to increase the sector’s output from EGP 939bn in 2022/2023 to EGP 1.09trn in 2023/2024, marking a 16% growth.
By the end of the plan in 2025/2026, production is expected to reach approximately EGP 1.288 trillion, with an average annual growth rate of 18.5%. At constant prices, production is estimated at EGP 664bn in 2023/2024, a slight increase from the expected EGP 655bn in 2022/2023. The plan targets a production value of EGP 692.5bn by 2025/2026, with an average annual growth rate of about 1.5%.
The aim for the sector’s Gross Domestic Product (GDP) is to elevate it to EGP 960 billion in 2023/2024, surpassing the expected EGP 826 billion in 2022/2023, marking a growth of 16.2%. By the conclusion of the planning period, the GDP is forecast to reach EGP 1.14 trillion, with an average annual growth rate of 20%. At constant prices, the GDP is projected to be EGP 573 billion in 2023/2024 and EGP 598 billion in 2025/2026, with an annual growth rate of 1.2% and an average annual growth rate of 1.25% until 2025/2026.
