Egypt gets IFC on board to help monetise state assets

IFC

The International Finance Corporation (IFC) will strategically advise Egypt on its plans to boost private sector participation in the economy.

IFC said in a statement that it will advise the Egyptian government’s asset monetisation programme, which will focus on harnessing private capital and manage state-owned assets.

It will give the government technical assistance and support to develop a strategy and implementation plan. It will also help structure and prepare assets for sale, including improving corporate governance and implementing selected approved transactions. 

• Egypt asks to join Brics to lessen dependency on dollar
• Egypt plans to divest stake in 250 state firms

In December 2022 Egypt unveiled a state ownership policy aimed at empowering the country’s private sector to drive economic growth.

“The IFC is uniquely placed to play this role given its neutrality, strong reputation, broad global experience in privatisation transactions, IPOs, trade sales and PPP tenders,” said Prime Minister Moustafa Madbouly.

Monetisation of state assets is one of the most critical requirements to Egypt’s economic development, said Hassan Abdalla, governor of the Central Bank of Egypt. 

IFC has invested and mobilised more than $7 billion in investment projects and has an advisory portfolio amounting to $34 million in Egypt.

Last week the Egyptian assistant prime minister Osama El Gohary said that the country intends to divest its stakes in 250 companies under its privatisation programme.

The government has decided that 250 of the 800 companies can be offered now, he said, adding the committee will decide on the timings for the rest.