Back to the complete issue
Sunday, 8 May 2022

Privatization program back in action this September, says Tawfik

Egypt plans to offer shares in state companies on the EGX starting in September, Public Enterprise Minister Hisham Tawfik told Reuters yesterday. The minister said the move had been delayed until after the summer, without providing further details on the companies to be listed.

Egypt had hoped to sell shares in as many as 10 state-owned companies on the EGX in 2022, before Russia’s invasion of Ukraine upended the global economy. Officials were previously set to resume the revived privatization program in March as part of plans to list “as many state companies as possible” this year. The plans would have seen the government selling stakes in state-owned companies every month or two, according to statements by Planning Minister Hala El Said earlier this year.

Could this also include military-owned firms? The minister’s statements come days after President Abdel Fattah El Sisi directed the government to list military-owned firms on the EGX by the end of this year. Bets are on bottled-water maker Safi and filling station operator Wataniya, which are currently being prepared for public or private offerings before the summer, Sovereign Fund of Egypt chief Ayman Soliman said last month.

Also slated for IPOs / secondary offerings: Heliopolis Housing and Development | Mopco | Banque du Caire | Misr Life.

BACKGROUND: The Madbouly government has been looking for years now to sell state assets under its privatization program, but has run into obstacles including the global emerging-market selloff in 2018, and then covid over the past two years. Since its launch in 2018, the state has successfully taken fintech company e-Finance to market, and has sold secondary stakes in state tobacco monopoly Eastern Company and Abu Qir Fertilizers.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.