Creating new perspectives since 2009

Egypt poised to announce detailed plan for state stake sales

February 1, 2023 at 3:47 pm

Egyptian flags in Sharm El Sheikh, Egypt. [Dan Kitwood/Getty Images]

Egypt’s government aims to announce a detailed plan next week to offer stakes in at least 20 state companies over the coming year, Prime Minister Moustafa Madbouly said after a cabinet meeting on Wednesday, Reuters reports.

An Egyptian plan to sell stakes in public companies – first announced more than five years ago – has gained new urgency since the Russian invasion of Ukraine triggered heavy foreign investment outflows from Egyptian financial markets and threw the economy into crisis.

READ: Egypt’s new IMF deal leaves economic rights of millions unprotected

Egypt, in December, agreed a $3 billion rescue plan with the International Monetary Fund (IMF) in expectation that the state withdraw from some non-strategic sectors of the economy to allow space for the private sector to grow.

“The whole goal is to increase the participation of citizens and the private sector in the development process and their management and participation in public institutions that have been owned by the state,” Madbouly said, adding that a detailed plan should be in place after the next cabinet meeting.

The company offerings will be made over the course of a year, with some being sold on the stock exchange and others to strategic investors, Madbouly said.

“Large investors will also participate in restructuring and expanding production lines of the companies while also increasing their capital,” he added.

READ: 12 years after the revolution, Egypt is no better than Syria and Iraq