Offering gov’t companies on EGX ‘positive step’: IMF

CAIRO - 14 February 2023: The Director of the International Monetary Fund, Kristalina Georgieva, expressed her "strong" welcome to the Egyptian government's decision to proceed "firmly" with the privatization program, considering that the fruits of this step are "more investments and job creation."

Georgieva said on the sidelines of the World Government Summit in Dubai, that Egypt is "one of the innocent countries that were injured by mistake, and that the government did a good job in reforming the country's economy, then it was hit by the Corona pandemic, before it was severely affected by Russia's invasion of Ukraine, which led to lost revenue from tourism and a sharp rise in food prices."

However, she stressed that "if Egypt wants to move on a path that leads it towards a better situation, it must continue to open the way for the private sector and attract foreign investments, in a way that contributes to meeting the need to create one million new jobs that the country needs every year."

Meanwhile, she stressed that "if Egypt wants to move on a path that leads it towards a better situation, it must continue to open the way for the private sector and attract foreign investments, in a way that contributes to meeting the need to create one million new jobs that the country needs every year."

On whether the program to offer 32 government companies to strategic investors or on the stock exchange, which was announced recently, will contribute to improving the fund's outlook on the Egyptian economy, Georgieva replied: “Yes, I expect this to be the result. We will conduct the first review of our program with Egypt in March, and we see very positive signs."

Previously in February, Egypt’s Prime Minister, Mostafa Madbouli, announced that a total of 32 companies will be floated on the Egyptian Exchange (EGX) over a year.

Offering companies on the stock exchange will be through a public offering or by selling a share to strategic investors, the prime minister clarified, noting that the offering of the current 32 companies will extend from the first quarter of this year until the first quarter of 2024.

At least a quarter of the 32 companies (eight companies) will be offered in the first 6 months, Madbouli said.