Egypt’s privatization program aims to generate $1B in stake sales by end of 2024: El Said

Cairo – April 21, 2024: Egypt's privatization program is now aiming to generate $1 billion from stake sales of state-owned companies by the year's end, with projected proceeds of approximately $1.5 billion in 2025, explained Minister of Planning and Economic Development, Hala El Said.

This revised target is significantly lower when compared to the program's previous achievements, which amassed around $5.6 billion between April 2022 and the conclusion of last year.

Previously, the program, focused on selling the government's stakes in state-owned enterprises through strategic investors or IPOs on the stock exchange, had set its sights on approximately $6.5 billion by the end of 2024, according to Finance Minister Mohamed Maait in February.

In February, the International Monetary Fund seemed to moderate its position on the urgency for Egypt to expedite the sale of its state-owned assets before announcing its decision to increase its $3 billion loan to Egypt to $8 billion.

IMF Managing Director Kristalina Georgieva highlighted that "the situation in Gaza has placed pressure on Egypt, including its state asset sales program," advising against hasty selling of shares in state-owned enterprises given the prevailing circumstances.

El Said clarified that the government would retain ownership of the buildings while granting certain parties permission to utilize the properties for an agreed period.

The Minister of Planning also mentioned that Egypt has attracted interest from seven international companies to repurpose the former headquarters of various ministries in the Downtown area.

Earlier this year, the government transferred ownership of several ministerial headquarters to the Sovereign Fund of Egypt, including those of the Ministry of Foreign Affairs, Trade, Tourism, Transport, Justice, Education, Housing, Health, Supply, Social Solidarity, and Military Production.

El Said also confirmed the state's intention to finalize the stake sale of the Gabal El Zeit and Zafarana wind farms within the next 3 to 4 months.