IMF Focuses on Egypt’s Long-Term Strategy, Not Surface-Level Goals, Says Chief

The International Monetary Fund (IMF) is open to Egypt potentially postponing its long-planned sale of state-owned companies to 2026, according to Managing Director Kristalina Georgieva, who emphasized the importance of a credible economic vision over rigid deadlines.

In an interview with Bloomberg on the sidelines of a regional economic summit in Kuwait, Georgieva expressed optimism about reaching a staff-level agreement with Egypt in the near future, amid ongoing reviews of the country’s IMF-supported economic reform program.

“As long as we have a credible vision, that will be taken into account in our discussions,” Georgieva said. “We are not focused on surface-level goals, our commitment is to the overall direction: more entrepreneurship, better jobs, and higher living standards.”

In parallel with the interview, Egyptian Prime Minister Mostafa Madbouly affirmed during a press conference in Cairo that the privatization of state-owned enterprises (SOEs) is a “sovereign decision”, stating that the government may delay listings when market conditions are unfavorable.

“The reform program is 100% Egyptian,” said Madbouly, reiterating that Egypt retains full ownership of its economic path despite IMF collaboration.

Although Egypt had originally planned to float at least 10 companies in 2025 progress has stalled. So far, only a minority stake in United Bank was sold by the end of 2024. Market volatility, both local and global, has raised concerns about the timing and feasibility of further public offerings.

Earlier this year, the Sovereign Fund of Egypt and NSPO signed agreements with EFG Hermes and CI Capital to prepare five state-owned firms for IPOs over 2025 and 2026.

Georgieva acknowledged recent improvements in Egypt’s economic indicators, citing the decline of inflation to 12%, the lowest in over three years, and a projected GDP growth rate of 4.4%.

Targeted social support programs being “well-designed and strongly implemented”. “The economic dynamics show that the country is, overall, moving forward,” she said, adding that the IMF continues discussions with Egyptian authorities on expanding the role of the private sector in the economy.

The IMF is currently conducting the fifth and sixth reviews of its Extended Fund Facility (EFF) program with Egypt. Georgieva confirmed that the Fund intends to use the October 13–18 IMF/World Bank Annual Meetings in Washington as a platform to intensify negotiations.

“Engagement with Egyptian authorities is strong,” Georgieva noted. “We aim to make good use of the upcoming meetings to finalize a staff-level agreement soon.”