Egypt’s cabinet to set up a unit dedicated to state-owned companies
Ministers had a busy Wednesday: The Madbouly cabinet greenlit a raft of decisions during its weekly meeting yesterday, including one that would see the cabinet set up a unit whose sole focus is state-owned companies, according to statements here and here. Among the most decisions notable are:
#1- Follow-up unit for state-owned companies: Cabinet greenlit a draft law to set up a central unit dedicated to state-owned companies — dubbed the State-Owned Companies Inventory and Follow-Up Unit — with the aim of regulating state ownership in companies that the government wholly owns or holds stakes in. The unit will be tasked with a broad range of responsibilities, including:
- Implementing the state ownership policy with clear timelines and targets.
- Identifying companies that the government should exit or partially divest from.
- Determining exit strategies.
- Proposing strategies to encourage private sector participation in specific sectors.
- Developing legal frameworks to enhance the performance of state-owned companies.
At the helm: The unit will be led by a CEO with expertise in investment, project management, and other areas, supported by a team of specialists.
The cabinet is moving quickly: It was earlier this week that Planning Minister Hala El Said said that the government is looking into a World Bank recommendation for the creation of a new entity to which the ownership of all state-owned companies would be gradually transferred in an effort to streamline the implementation of state asset sales.
#2- Reduced building reconciliation fees: Ministers also approved a draft decision introducing a 25% reduction on building reconciliation fees for building owners who pay the full fees upfront. The decision seeks to incentivize the swift resolution of building violations and restore a more aesthetically pleasing cityscape.
ICYMI: The cabinet approved the executive regulations for the new Building Reconciliation Act last month after the law was ratified in December. The long-awaited law is set to make it easier for owners of unauthorized buildings built until 15 October 2023 to legalize their properties in return for paying a reconciliation fee, and to set a clear procedure for the process.
#3- A grace period for informal businesses: Cabinet approved a draft decision giving informal businesses a three-year period to submit requests to legalize their projects. This extension aims to encourage informal project owners to integrate their businesses into the formal economy.