Egypt’s Prime Minister, Mostafa Madbouly, stated that Egypt is looking for expanded cooperation with the World Bank. During a recent meeting with World Bank officials, Madbouly stressed Egypt’s commitment to cooperate with the global financial institution in managing state-owned companies.
The discussions centered around various proposals and ideas put forward by Stephane Guimbert, the World Bank’s country director for Egypt, Yemen, and Djibouti. Guimbert highlighted that these proposals would significantly contribute to the success of Egypt’s State Ownership Policy Document, a comprehensive reform initiative aimed at revamping the country’s state-owned institutions.
Madbouly underscored the government’s determination to implement the document, being a crucial foundation for comprehensive reforms within Egypt’s state-owned sector. He emphasized that the document not only facilitates increased private-sector investments but also ensures more efficient management of public resources.
In attendance at the meeting was Minister of International Cooperation, Rania Al-Mashat, who emphasized the vital role of collaboration with the World Bank in maximizing private sector involvement in investments. Al-Mashat highlighted the ongoing partnership between the government and the World Bank in implementing the State Ownership Policy Document, a collaborative effort aimed at improving the governance and financial status of state-owned companies, ultimately boosting their competitiveness.
The State Ownership Policy Document, which came into effect in late 2022, outlines the sectors in which the Egyptian government plans to withdraw, decrease, or increase its presence over the next three years. Its primary objective is to increase private sector participation in public investments from the current 30% to an ambitious 65% within the designated timeframe.
As part of the document’s implementation, Egypt has successfully raised $5.6 billion through the partial and full sale of stakes in 14 state-owned companies, a move that has helped alleviate the country’s foreign currency challenges. Furthermore, in collaboration with the International Financial Corporation (IFC), the financial arm of the World Bank, the government has conducted preliminary studies on 50 state-owned companies in preparation for offering stakes.
The Egyptian government plans to offer stakes in 35 state-owned companies to strategic investors by the end of June 2024, further demonstrating its commitment to driving comprehensive reforms and attracting private sector investments.
