Egypt implements $2.5B deals to exit state within “IPO” program

CAIRO - 22 October 2023: Finance Minister Mohamed Maait said that deals worth $2.5 billion were implemented by the state to exit from its owned companies within the initial public offering (IPO) program during the first quarter of the current fiscal year (2023/2024).

 

Mohamed Maait explained, in a statement, Saturday that this step comes with the aim of helping to increase foreign exchange flows, and providing a portion of the foreign financing required to cover the needs of the Egyptian economy, in addition to continuing to achieve a primary surplus and growth in tax revenues.

 

Maait’s statements came to confirm the work to achieve more structural reforms and measures during the coming period to deal with the internal and external economic challenges, especially those mentioned in the Standard & Poor’s report. The report revealed a downgrade of Egypt’s sovereign credit rating in local and foreign currencies from “B” to “B-” with a stable outlook in the long term, and to maintain the sovereign credit rating in the short term at 'B'.

 

The minister stated that Standard & Poor's expected the government to continue implementing more reform measures during the coming period within the economic reform program.

 

The minister added that Standard & Poor's explained in the context of its report that it may raise Egypt's sovereign rating if the ability to attract more foreign currency flows to the Egyptian economy is increased as additional resources, which can be achieved by accelerating the "offerings" program during the coming period. 

 

This will enhance the Egyptian state’s ability to cover its financing and external needs during the next two years, and also contribute to reducing the need for external financing, and then reduce the debt service bill, in a way that helps increase the confidence of investors and institutions in the ability of the Egyptian economy to deal with external challenges.

 

He explained that the continued financial discipline and ability to pay tax revenue growth rates were praised by Standard & Poor's experts.