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Egypt state is looking to divest in 250 companies

The move is part of the privatization program which is one of the requirements of the IMF under the loan agreement.
© Unsplash

Egypt is considering divesting its stakes in 250 state-owned companies as part of its privatization program.

The Assistant Prime Minister, Osama El-Gohary, revealed this during a meeting with a delegation from the US Treasury Department, which is in Cairo to discuss Egypt's privatization progress.

The committee overseeing the program has identified 800 companies with government stakes, with 250 being deemed suitable for offering now. The rest will be considered for future offerings. The privatization program aims to collect $2.5 billion by the end of the fiscal year, fulfilling commitments under an IMF loan program.

However, Egypt till now only announced plans to sell stakes in Paint and Chemicals Industries (PACHIN) and Telecom Egypt. While the IMF review, necessary for the release of the second loan tranche of $347 million, has been postponed and is expected to take place by the end of June. Deputy Managing Director of the IMF, Antoinette M. Sayeh, will visit Egypt to discuss the economy and necessary reforms.

The divestment of state-owned companies in Egypt is a strategic move aimed at addressing the country's shortage of hard currency, particularly the US dollar.

By privatizing these companies, Egypt aims to attract foreign investment, increase efficiency, and stimulate economic growth. The government's commitment to fulfilling its obligations under the IMF loan program highlights its determination to implement necessary reforms and stabilize the Egyptian economy. Through these privatization efforts, Egypt seeks to create a more business-friendly environment, promote competitiveness, and diversify its economy to extend to new sectors.