Back to the complete issue
Sunday, 25 September 2022

Gov’t finalizes state ownership policy document

The gov’t has dotted the i’s and crossed the t’s on its state ownership policy: The Madbouly government has finalized its state ownership policy ahead of the economic conference that’s being planned for the end of this month, Prime Minister Moustafa Madbouly said Thursday. The document is the product of three months of consultations with the both state and private-sector stakeholders and is expected to lay out a roadmap for large-scale privatization of the economy.

Refresher: The policy document was first launched by Madbouly in May as part of a wider plan to restructure the economy in favor of the private sector. The strategy envisions more than doubling the private sector’s role in the economy to 65% over the next three years, and attracting USD 40 bn in investment by 2026. The new privatization drive came following the economic crisis triggered by the war in Ukraine and during talks with the IMF for a new loan program.

A focus on competitive neutrality: The government’s privatization strategy will look to put in place a legal framework to safeguard market competition and prevent monopolistic practices by state-owned enterprises, Mahmoud Momtaz, head of the Egyptian Competition Authority, said. A competitive neutrality authority chaired by the PM has been set up to review legislation and draft competition rules. “You can't open the market for the private sector without first instituting clear-cut rules necessary for fair and transparent competition on the market,” Momtaz said.

What’s next? The draft document will head to the cabinet to be reviewed for approval, before it is brought to the National Dialogue for debate.

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.