Egypt Signed Contracts to Sell State Assets Stakes worth $1.9 Billion

Egypt sold minority shares in 7 state-run companies at a value of $1.9 billion to local, Arab and foreign investors, while the government intends to sell the Gabal al-Zayt station for more than $300 million, and Wataneya company, in addition to offering 21 desalination plants with a total capacity of 3.3 million cubic meters per day, with investments exceeding $3 billion in the first phase, which ends in 2025.

This came in a press conference held by the Prime Minister, Mostafa Madbouly, at the government headquarters in the New Administrative Capital, with the participation of ministers from the economic group, during which he reviewed the plan to implement the government's offering program, and increase the participation of the private sector in the Egyptian economy.

The Egyptian Prime Minister Mostafa Madbouly said that Egypt aims to offer 32 companies within the government offering program.

The Prime Minister added that the government have signed contracts with the private sector worth $1.9 billion, including $1.650 billion in dollar proceeds, and the rest in Egyptian pounds - and will soon announce other contracts worth $1 billion.

The Egyptian government is in full swing seeking to exit from economic activities in accordance with its agreement with the International Monetary Fund (IMF), and according to sources, the state is finalizing a number of deals to sell shares in subsidiaries within the government’s offering program, despite the great challenges facing the state in exiting 32 companies.

Standard & Poor's believes that Egypt's progress in asset sales has been below the level since it was announced last February, stressing that the real activation began in May after executing the exit from the Pachin Paints Company deal and selling 10% of Telecom Egypt, and seeking the government to improve the investment climate, adopt investor-friendly policies, facilitate the establishment of their companies in Egypt, and improve the participation of the private sector.

Egypt has a number of promising deals despite all the obstacles. This is why the Qatar Sovereign Fund is negotiating to own a 25-30% stake in Vodafone Egypt, which is part of the stake owned by Telecom Egypt through the Ooredoo company.

There are also negotiations with Emirati investors to acquire 49 % of the Egyptian Drilling Company before the end of the third quarter of 2023. The Arab Energy company is expected to offer its shares temporarily in preparation for its listing within 6 months, in addition to reviving the negotiations of Actis and Edra Holding to acquire 3 power stations built by Siemens in a deal, which may raise alone $2 billion.