Cairo - November 13, 2023: The Central Bank of Egypt (CBE) and the Kuwait Investment Authority (KIA) have reportedly agreed to a strategic divestment plan, and are preparing to sell a combined stake of 40% in the Arab African International Bank (AAIB) in 2024, according to Enterprise, citing a source close to the matter.
The central bank and KIA each currently hold a 49.37% stake in AAIB, with the leftover 1.26% distributed to “others,” explains AAIB’s most recent report.
The two will allegedly sell off 20% of their stake in the AAIB to an undisclosed strategic investor, as well as a stake sale on the Egyptian Exchange.
The AAIB is part of the government’s privatization program to sell off state-owned assets alongside the United Bank of Egypt and Banque Misr.
The program, launched under the State Ownership Policy Document, lists 35 state-owned companies being prepared to be sold to strategic investors and/or to go public on the local stock market.
In a recent statement, Planning Minister Hala El-Said explained that the country is looking to bring in revenues of LE 70 billion ($2.27 billion) by the end of the current fiscal year.
Egypt has attracted $5 billion from the privatization program so far, with additional deals worth around $5 billion in the works and are expected to be completed by mid-2024, including the sales of the wind power plant in the Zaafarana area in December 2023 and the Siemens power plant in Beni Suef in June 2024.
Highlighting the program’s success, El-Said revealed that the program’s first phase, between March and August 2022, achieved a 100 percent implementation rate, while the second phase, which spanned from August 2022 to July 2023, also saw 100 percent completion.
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