Egypt plans to list three or four companies affiliated with the military on the Egyptian Exchange (EGX), Prime Minister Mostafa Madbouly announced at a press conference Wednesday. He said details of the planned listings would be released next week.
This move, Madbouly explained, is part of a broader government strategy to increase private sector participation in the national economy and enhance transparency.
He added that the listings would attract investment and promote economic development. Further details, including specific figures and procedures, will be announced soon.
The government aims to raise between $2bn and $2.5bn from its state-owned enterprise privatization programme during the 2024/25 fiscal year, according to Finance Minister Ahmed Kouchouk’s previous statements.
This programme involves divestment from seven sectors, including pharmaceuticals, chemicals, and construction, as well as reducing government investment in seven other sectors, including power plants, and creating investment opportunities for the private sector in four additional sectors.
Since March 2023, Egypt has already raised $3.1bn from government offerings, following $2.5bn raised through the divestment of state assets in 2022.
This initiative builds upon a partnership between the Egyptian government and the International Finance Corporation (IFC). Last year, the IFC joined forces with the Egyptian government to increase private sector participation in the economy, aiming to enhance competitiveness, create jobs, and improve living standards.
The IFC has been appointed as the strategic advisor for the government’s Asset Monetisation Programme, designed to leverage private capital and expertise in managing state-owned assets. This programme falls under the government’s State Ownership Policy (SOP), a framework launched in December 2022 to empower the private sector and stimulate economic growth.
The agreement with the IFC, the first under the World Bank Group Egypt Country Partnership Framework launched in March 2023, involves providing technical assistance and advisory support to the government. This support includes developing a strategy and implementation plan, preparing assets for sale (including improving corporate governance), and implementing approved transactions. The Transaction Advisory Services Agreement (TASA) was signed in the presence of Prime Minister Madbouly.
