- Egypt’s privatisation program has generated $5.6 billion so far through the sale of stakes in 14 state-owned companies.
- The International Finance Corporation is advising on the privatisation process and studying 50 additional potential candidates.
- The sales are part of broader economic reforms in Egypt aimed at attracting investment, spurring private sector growth, and making state-owned firms more efficient.
The Egyptian government’s privatization programme has raised $5.6 billion so far through the sale of full or partial stakes in 14 state-owned companies, according to Prime Minister Mostafa Madbouly.
The sales are part of a broader effort to reform Egypt’s state-owned sector by bringing in private investment and expertise. The International Finance Corporation (IFC), part of the World Bank Group, is providing advisory services to help guide the privatization process.
The IFC has conducted preliminary studies on an additional 50 state-owned firms that could potentially be part of the privatization programme in the future. The next phase is expected to focus on four key sectors: airports, telecommunications, banking, and insurance.
Some recent examples of completed sales include:
- In June, a subsidiary of Egyptian conglomerate Talaat Mostafa Group acquired seven historic hotels in Cairo, Alexandria and Aswan.
- In August, the government announced plans to raise $5 billion through further sales to strategic investors between October 2023 and June 2024. The additional sales are expected to include stakes in companies across sectors like petrochemicals, mining and agriculture.
According to experts, bringing in private ownership and management can help make state-owned companies more efficient, innovative and profitable. However, the government says it will maintain decisive influence in certain strategic sectors.
The privatization programme is part of Egypt’s broader economic reform efforts aimed at boosting foreign investment and spurring private sector growth. The country has made progress in recent years in reducing deficits and stabilizing its currency.
Follow us on Instagram, LinkedIn, and Twitter for startup & business news and inspiring stories of MENA businesses, entrepreneurs, startups, innovators, investors, and change-makers.
To report any issue or error in the story, please email us editor [at] rasmal [dot] com.
Last Updated on December 25, 2023 by Safiya K
