Egypt intends to offer shares in a group of companies affiliated with the armed forces, such as the National Petroleum Company, Shell Out, Silo Foods Food Industries, Safi and the National Road Company, through its sovereign fund.
Cooperation agreements
A statement by the Egyptian Cabinet stated that Prime Minister Mustafa Madbouly witnessed “a ceremony to sign a number of cooperation agreements between the sovereign Egypt Fund for Investment and Development, the National Service Projects Authority for the Armed Forces and a group of local and international specialized consulting offices regarding restructuring and management of the offering of a group of companies affiliated with the agency.”
Egypt began to exit from state -owned assets as part of a program to enhance the role of the private sector stipulated by the International Monetary Fund to grant Egypt an expanded loan of $ 8 billion.
The council stated – in the statement – that the Egypt’s sovereign fund for investment and development, which has a value of 12 billion dollars, will take charge of restructuring and managing companies.
It is noteworthy that the fund was established in 2018 with the aim of strengthening the partnerships of the private sector and helping the flow of foreign investment for state -owned companies, and the government and the armed forces were hesitant in the past to abandon control of some assets.
Dozens of companies affiliated with the army have witnessed a state of prosperity since Abdel Fattah El -Sisi took over the country’s presidency in 2014, and this has raised concerns among local businessmen and foreign investors, according to Reuters.
Speed the program
However, the government is currently seeking to accelerate the program and sell shares in at least 10 companies, including two companies belonging to the armed forces, during 2025.
The Council of Ministers stated that the financial group Hermes Holding (EFG Hermes) and CI Capital will be promoting and coverage the subscription.
The Cabinet announced – today, Wednesday, the completion of the launch of some of these companies during 2025, to be completed in 2026.
The council said – in the statement – that the agreements come within the framework of the measures taken by the state to implement the “government proposals program, by offering many state -owned companies to private sector institutions, to manage and operate them, in implementation of the document of the state’s royal policy adopted by the government.”
