According to Prime Minister Mostafa Madbouly, Egypt has inked contracts to sell shares in state assets for a total of $1.9 billion as part of a drive to strengthen the private sector and raise limited hard currency.
The sales of shares are expected to ease long-time pressure on the Egyptian pound, to gain dollars Egypt is desperate for, and to launch economic reforms under a $3 billion IMF loan programme. The Prime Minister also said that $1.65 billion out of $1.9 billion would be given in foreign cash.
The government was planning to make $2 billion from these sales by the end of June. However, recurrent delays recently, pulled down the value of the pound in the market. Since the start of 2022 pound’s value came down to half against the value of dollar and inflation rose at record highs.
According to Planning Minister Hala el-Said, the new contracts include a deal to sell the Abu Dhabi sovereign wealth fund ADQ minority stakes in three companies in the oil and petrochemical sector for $800 million, a deal to raise $700 million by offering capital in a portfolio of hotels, and a deal for a 31% stake in the Ezz Dekheila steel company worth $241 million.
In a press conference with senior members in attendance, el-Said said, “These are all done and binding.” She also said that the hotels’, including properties in Cairo, Alexandria and Luxor, wager was given to ICON which is the hospitality branch of real estate group Talaat Mostafa in Egypt.
The Egyptian government has sold stakes in about 32 state companies, one-quarter of the total companies it planned to sell its stakes in and is making all arrangements to sale stakes in more companies for future, the PM said.
He noted that Egypt anticipates a rise in its annual inflow of hard cash of $70 billion per year to $191 billion by 2026.
According to Said, sales of military-owned Wataniya Petroleum, a Siemens power plant, and a contract for more than $300 million for the Gabal El Zeit wind farm are among the deals the administration anticipates concluding in the coming months.
