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Egypt’s Initial Public Offering (IPO) programme, which commenced in February 2023, has attracted USD 3.5 billion in investments so far, stated Minister of Finance Mohamed Maait said on Sunday. Maait emphasized that the IPO programme is a robust catalyst for empowering the private sector and augmenting its role in the country’s economy.
Under the State Ownership Policy Document, Egypt’s IPO programme aims to offer 35 state-owned companies to strategic investors by the end of June 2024. In February 2023, a list of 32 companies was unveiled, with an additional three companies, namely Eastern Company, Al Ezz Dekhila, and Telecom Egypt, being included later in the year. The government aims to attract USD 5 billion through this programme. The Minister underscored Egypt’s commitment to strengthening multilateral cooperation with global entities to explore innovative financing solutions that bridge the financing gaps arising from escalating geopolitical tensions. The IMF has projected a financing gap of USD17 billion for Egypt by 2026, with an estimated shortfall of USD 6 to USD 8 billion for the current fiscal year, 2023/2024.
The Egyptian government aims to bolster the private sector by aligning with its strategic plan to increase the sector’s contribution to the economy from 60 per cent to 90 per cent between 2024 and 2030. The Minister also highlighted the government’s measures to expand social protection coverage, particularly for vulnerable groups affected by global crises, to alleviate the burden of inflation.
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The Minister further emphasized Egypt’s commitment to implementing new projects focused on green hydrogen and clean energy. Egypt possesses the necessary capabilities to emerge as a regional hub for renewable energy production and exportation, he added.
