Egyptian Prime Minister Dr. Mostafa Madbouly has revealed that the government is taking steps to restructure state-owned companies as part of its policy to manage state assets. In a CNN Economic interview, Madbouly stated that some state-owned enterprises suffer from structural and foundational imbalances that have accumulated over decades. He emphasized that reform and restructuring are essential before these companies can be offered to investors or listed on the stock exchange.
According to Madbouly, the government has successfully implemented several initial public offerings in the past. The administration aims to accelerate the privatization program in the coming phase. The government plans to float a portion of a public bank and a state-owned insurance company before the end of this year. This move is part of a broader effort to increase private sector participation in the economy.
Madbouly reported that the government has already successfully completed the initial listing of 24 to 25 state-owned companies on the stock exchange. The target is to list up to 30 companies. The initial listing means that these companies have fulfilled the necessary institutional requirements to offer their shares on the stock exchange. This development is a crucial step towards achieving the government's privatization goals.
The Egyptian government aims to offer stakes in at least six companies before the end of 2026. Madbouly stressed that the privatization program is a key pathway to increasing private sector involvement in the economy. By divesting stakes in state-owned enterprises, the government hopes to attract investment and promote economic growth.
Madbouly highlighted that the restructuring process involves addressing the accumulated structural and foundational issues in state-owned companies. This process is essential to make these companies more attractive to investors and to ensure their long-term sustainability. The government's efforts to restructure and privatize state-owned enterprises are part of a broader strategy to promote economic reform and growth.
The government's privatization program has been underway for some time, with several companies already listed on the stock exchange. The program aims to increase transparency and accountability in state-owned enterprises, while also promoting competition and efficiency. By involving the private sector in the economy, the government hopes to drive growth and development.
The acceleration of the privatization program is expected to have a positive impact on Egypt's economy. The government's efforts to attract investment and promote economic growth are crucial to addressing the country's economic challenges. With the privatization program, the government aims to create a more favorable business environment and to promote sustainable economic development.
Key points
- The Egyptian government plans to offer stakes in at least six state-owned companies before the end of 2026.
- The government has successfully completed the initial listing of 24 to 25 state-owned companies on the stock exchange.
- The privatization program aims to increase private sector participation in the economy and promote economic growth.
