CBE Governor: Egypt Sends Clear Message to World about Openness to Investments

The International Finance Corporation (IFC) is cooperating with the Egyptian government to enhance private sector participation in the economy in a way that enhances competitiveness, creates job opportunities, and improves living standards for Egyptians, according to a press release issued by the institution.

“The offering program for state-owned companies is one of the most important requirements for economic development in Egypt,” said Hassan Abdallah, governor of the Central Bank of Egypt (CBE).

The governor stressed that the CBE contributes effectively to the joint efforts made by the various stakeholders, with the aim of sending a clear message to the world that Egypt is open to investments.

Mostafa Madbouly, Prime Minister, said: The selection of the IFC as a strategic advisor to the government for the offering program enhances the benefit from its accumulated experience in empowering the private sector in emerging markets, as the corporation plays a vital role based on its extensive global experience in this field.

He added that the implementation of the advisory services agreement will be in close coordination with the Government Offerings Unit in the cabinet with the aim of activating and accelerating the pace of implementation of the offerings program for the private sector to attract foreign direct investments, by structuring the assets to be offered and preparing them for the offering process, improving governance mechanisms in these companies, and implementing offerings that It will be agreed upon.

The IFC was chosen as a strategic advisor for the government offering program, which will focus on stimulating efforts to attract investments and enhance technical cooperation and knowledge to manage state-owned assets, and the signing of the technical support and advice agreement for the government offering program (TASA) today at the headquarters of the Council of Ministers, in the presence of Dr. Mostafa Madbouly, State Prime Minister.

A press release issued by the Foundation said that the government offerings program is part of the State Ownership Policy (SOP) document, which is a new framework approved in December 2022, to expand the base of private sector participation in development, raise economic growth rates, and provide various opportunities for the presence of the private sector.

According to the agreement signed today (TASA), the International Finance Corporation (IFC) provides support and technical advice to the government offering program, helps in structuring and preparing companies targeted for offering to the private sector, and improves corporate governance, in a way that enhances capital flows and supports the country's vision to achieve economic recovery. 

Mokhtar Diop, Managing Director of the International Finance Corporation, stated, “The IFC has been a key partner to Egypt for several decades. Appointing the Foundation to act as a strategic advisor to support the sale and offering of state-owned assets will unleash the potential of the private sector to build a sustainable and inclusive economy in Egypt.”