CAIRO: Egypt’s Prime Minister said on Friday that the government may restructure its investment ministry after the investment minister leaves next month and the non-banking financial regulator could be made into a separate agency.
The Egyptian Financial Supervisory Authority (EFSA), which currently falls under the ministry, oversees the insurance industry as well as capital markets, derivative markets, mortgage finance and financial leasing.
"That entity (EFSA) with time may become autonomous. It is possible that it will be separated from the ministry of investment, to become an independent entity, like the central bank and can fall under the jurisdiction of the cabinet or the presidency," Prime Minister Ahmed Nazif said in an interview with state-run newspaper Al-Ahram.
Investment Minister Mahmoud Mohieldin, who has been a driver of economic liberalization, has resigned to take up a senior post at the World Bank. Minister of Trade and Industry Rachid Mohamed Rachid will act as minister of investment.
"Currently, we need an investment minister, will this come with some structural changes in the ministry and the agencies attached to it? Of course, that is a possibility," Nazif said in the interview, prior to Rachid’s appointment.
"I am listening to Dr Mohieldin’s suggestions. The goal, at the end of the day is to evolve and therefore I will not eliminate the chance of structural changes."
Mohieldin joined the cabinet in 2004 and was one of the key drivers of economic liberalization that drew praise from investors. The ministry was created on his appointment to oversee investment, financial supervision and asset management.
In an interview with Reuters last week, Mohieldin would not comment on who could succeed him or on whether the ministry would stay in charge of the same files.
EFSA is responsible for 28 insurance companies in Egypt, while a 29th, Export Credit Guarantee Company of Egypt, was set up under a special law and is not under EFSA’s supervision.
The authority was established in 2009.
