CAIRO – 19 January 2023: Egyptian Prime Minister Mostafa Madbouli chaired on Thursday the first meeting of the higher committee on implementing the State Ownership Policy Document approved by the president late last month.
Minister of Electricity Mohamed Shaker, Finance Minister Mohammed Maait, Housing Minister Assem El Gazar, Minister of Agriculture El Sayyed El Quseir, Minister of Local Development Hisham Amna along with other state officials attended the meeting.
During the meeting, Madbouli underlined the importance of the committee which was formulated upon the directives of President Abel Fattah El Sisi, based on the recommendations issues by the economic conference held in October.
The document emphasizes the state’s priorities of increasing the participation of the private sector to stimulate economic growth, increase exports, and provide employment opportunities and investments, he added.
Madbouli reiterated that this document does not mean that the State would sell its assets or withdraw from some sectors. The document identifies the sectors from which the state plans to withdraw, decrease, or increase its presence over the coming three years, he added.
Assistant Prime Minister Osama El Gohary, Head of the Information and Decision Support Center (IDSC), reviewed the committee's agenda which will include the steps for implementing the State Ownership Policy Document according to a specific timeframe.
El Gohary said a database will be soon be implemented to cover all state-owned companies along with the allowed capital, the number of employees, the financial status, the enrollment in the bourse as well as the geographical distribution.
State Ownership Policy Document
The State Ownership Policy Document regulates the state’s presence in economic activities in a number of sectors and manufacturing industries.
In December, Madbouli said the state will withdraw from 62 activities, maintain or reduce investments in 56 activities, and maintain or increase investments in 76 sectors.
Madbouli said the document basically aims at boosting economic growth rates by increasing investments by 15-30 percent. This will help the country achieve economic growth ranging from 7 to 9 percent and secure job opportunities, he added.
According to the document, the state will focus on driving more investments and owning assets in main sectors that include the sectors that the private sectors avoid, Madbouli said.
He noted that developing these sectors will be directly reflected on improving the work environment for the private sector.
The document also aims at achieving governance of the state’s presence in economic activities, Madbouli said, stressing that the government is keen to participate in some economic sectors based on specific standards.
As per the document, the government will also shift from the management of state institutions to the management of state capital by defining the mechanisms for the state’s withdrawal from the assets owned by the state, the prime minister added.
The implementation of the document aims at achieving financial savings that enable support for the general budget, achieving financial discipline, and ensure financial sustainability, Madbouli said.
The document also aims to enhance the state's financial capacity to support social protection networks and protect the vulnerable groups in order to increase the levels of resilience of the Egyptian economy in the face of the crises, Madbouli said.
MENA contributed to the reporting.
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