Egypt plans to privatize 20 state-run companies this year

The Egyptian Prime Minister, Mostafa Madbouly, indicated that the Arab country hopes to list at least 20 state-owned companies in 2023 as part of a larger strategy aimed at generating more revenues, Zawya reports.

Not all companies will be listed on the EGX (the Egyptian stock market). Some will see major shares sold to strategic investors. Those investors are expected to restructure state-owned companies, raise more capital and generate more job opportunities, the Premier said in a press conference after a cabinet meeting Wednesday.

“The objective is to invite more citizens and the private sector to take part in the development process, and to have them manage and hold shares in government-owned entities. This is our strategic goal,” he told reporters.

The Arab country suffering lack of cash has turned to the International Monetary Fund (IMF) for a $3 billion loan. As part of conditions, the Washington-based institution requested that the government dwindles its presence in some industries and gives more room to the private sector.

Mabdouly said his cabinet was working around the clock to finalize the list of companies that are expected to be floated and a detailed plan will be revealed next week.

The EGX annual report released last month had named a number of government-owned companies that are expected to go public, Zawya recalls.

The names include Alex Bank, Misr Insurance, ENPPI, Assiut Oil Refining Company, Middle East Oil Refinery Company, The Egyptian Ethylene & Derivatives Company, Banque du Caire, Misr Life Insurance, Egyptian Drilling Company and ELAB.
Alexandria Mineral Oils, Housing and Development Bank, eFinance, Madinat Nasr for Housing and Development, Heliopolis Company for Housing and Development, Egyptalum, Sidi Kerir Petrochemicals Company, Abu Qir Fertilizers and Chemicals Industries Company and Alexandria Container and Cargo Handling Company are also expected to be listed on the Cairo’s stock exchange.