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Madbouly government slashes 2024 privatization program targets to USD 1 bn

Finance Minister Mohamed Maait said that the government was looking to raise some USD 6.5 bn as recently as February.
22.04.24 | Source: Enterprise

Gov’t slashes 2024 privatization program targets: The government aims to raise around USD 1 bn through the privatization of state-owned companies and assets via stake sales to strategic investors or EGX listings this year, Planning Minister Hala El Said told Asharq Business.

This is significantly lower than previous estimates: Finance Minister Mohamed Maait in February said that the government is looking to raise some USD 6.5 bn through the privatization of state-owned companies and assets by the end of the year.

And considerably below the amount we’ve been raising recently: The government secured about USD 5.6 bn between April 2022 and December 2023 from selling state-owned stakes in 14 companies.

Targets for 2025 are also pretty conservative: The government is looking to raise some USD 1.5 bn from the privatization program in 2025, El Said added.

No rush to sell? The International Monetary Fund in February seemed to calm its tone on the urgency of Egypt’s need to progress its sales of state-owned assets prior to its announcement of our expanded USD 8 bn loan program, representing a shift from the IMF's earlier position on Egypt's need to pick up the pace of privatizing state-owned companies. “The situation in Gaza has put pressure on Egypt, including its state assets sales program, and [the IMF wants] Egypt to sell at the appropriate time,” and to not “rush to sell shares in government companies under the current circumstances,” IMF Managing Director Kristalina Georgieva said at the time.


Gov’t to wrap up Gabal El Zeit and Zafarana sale in months: The state is looking to finalize the stake sale of the Gabal El Zeit and Zafarana wind farms within the coming 3-4 months, El Said continued.

A little delayed: El Said had previously said that we can expect the government to finalize thesale of the wind farms before the end of March.

ICYMI: Danish shipping giant Maersk reportedly began due diligence for the 545-MW Zafarana wind farm late February and was set to submit a final offer to acquire half of the asset. Meanwhile, UK-based private equity giant Actis reportedly wrapped up due diligence on the state-owned 580-MW Gabal El Zeit wind farm. A number of local and foreign investors have reportedly also shown interest in the two farms, including Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy, and our friends at renewables firm Infinity.