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Egypt’s Prime Minister Moustafa Madbouly said that his government was aiming at offering stakes in at least 20 state companies over the coming year. The country’s proposal to sell stakes of the public sector companies was mooted some five years ago. But it was on the backburner
Egypt’s Prime Minister Moustafa Madbouly said that his government was aiming at offering stakes in at least 20 state companies over the coming year. The country’s proposal to sell stakes of the public sector companies was mooted some five years ago. But it was on the back burner till date. This idea resurfaced as the country was facing numerous hurdles since the Russian invasion of Ukraine, which led to heavy foreign investment outflows from Egyptian financial markets and threw the economy into crisis.
Egypt in December agreed to a US$3 billion rescue plan with the International Monetary Fund. The IMF has extracted an assurance from the north African country that it would withdraw from some non-strategic sectors of the economy to allow space for the private sector to grow. A detailed plan would be put in place after the next cabinet meeting, the prime minister said.
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The prime minister revealed that the company’s offerings will be made over a year, with some being sold on the stock exchange and others to strategic investors. He also said that large investors would be involved in the restructuring exercise with a view to enlisting their participation.
