Egypt ramps up privatization efforts ahead of key IMF review

Egypt is accelerating its privatization program as it prepares for a crucial review by the International Monetary Fund (IMF).

The government has already generated $12.2 billion from asset sales since March 2022, reaching 48% of its initial target, according to a government document obtained by the specialized website Enterprise.

The plan involves selling public shares in ten companies, including Safi (mineral water), Wataniya (gas stations), Silo Foods (military food products), Chill Out (fuel), The Midor refinery, the Gabal El Zeit wind farm, Alamal Alsharif Plastics, and three subsidiaries of the state-owned pharmaceutical group HoldiPharma

Three of these companies are military entities that were recently transferred to Egypt’s sovereign wealth fund for public sale.

While the initial phase of the program was successful, raising $3.1 billion from the sale of six companies, subsequent phases saw a significant drop in revenue. The government document notes that revenues declined steadily, with the last phase generating just $142 million. This underperformance is attributed to an unfavorable economic climate and other factors, causing the target achievement rate to fall to as low as 7.5%.

To regain momentum, the government is now planning an Initial Public Offering (IPO) program for early 2026, which will include ten companies, four of which are affiliated with the Armed Forces. This is part of a broader strategy that has already raised around $30 billion between March 2022 and June 2024, according to official figures.

The push for privatization comes amid mounting international pressure. During a recent press conference, the IMF urged Egypt to “strengthen its structural reforms and unleash its growth potential.” In response, Prime Minister Mostafa Madbouly has stated that the government will not be forced into a sale if the valuation is not satisfactory.

While the government’s recent Ras El Hekma agreement—a massive real estate and tourism project—exceeded all forecasts and brought the program’s completion rate to 245%, it remains to be seen if this exceptional performance will be enough to reassure international partners. The Egyptian economy continues to face significant challenges, including high inflation, growing debt, and pressure on its foreign currency reserves.