The Egyptian government has set a target to collect 40 billion pounds from the sale of assets and stakes in the current fiscal year 2026/2027. This is a substantial increase compared to previous years, with the 2023/2024 fiscal year seeing a collection of 10.486 billion pounds. According to a government source, some details of the plan, including the number of deals and their values, have not been finalized yet.
The target of 40 billion pounds is approximately 3.8 times higher than the actual collection in 2023/2024. In contrast, the 2025/2026 budget did not include any targets for this item. The source clarified that the estimates do not include any amounts from companies in the public business sector and that the target does not represent the proceeds from the privatization program or government offerings.
In the previous fiscal year 2024/2025, the actual proceeds from selling assets and rights amounted to 1.101 billion pounds, significantly lower than the target. This follows 10.486 billion pounds in 2023/2024 and 4.612 billion pounds in 2022/2023. The increased target for the current fiscal year is expected to boost the government's borrowing to 117.897 billion pounds.
The 40 billion pounds target from asset sales represents about 33.9% of the total expected borrowing and accounts for approximately 76.5% of the estimated increase in this item compared to the previous fiscal year. The majority of the remaining proceeds are expected to come from loan installments that the Treasury aims to recover, totaling 77.716 billion pounds.
The loan installments include 31.921 billion pounds from external loans obtained by the General Treasury and then re-lent, 27.963 billion pounds from public business sector companies, 10.970 billion pounds from economic agencies, and 6.863 billion pounds from other entities. The government has separate targets for selling non-productive and productive assets.
The government has set a target to collect 2.857 billion pounds from selling non-productive assets, including land, and 797.517 million pounds from selling productive assets, such as housing and cars. These targets are part of the government's efforts to increase revenue and manage its finances.
The increased focus on asset sales is part of the government's strategy to boost revenue and manage its finances. The government's budget for the current fiscal year reflects a significant increase in borrowing targets, with asset sales playing a crucial role in achieving these goals.
Key points
- Egypt targets 40 billion pounds from asset sales in the current fiscal year.
- The target is approximately 3.8 times higher than the actual collection in 2023/2024.
- Asset sales are expected to account for about 33.9% of the total expected borrowing.
