Prime Minister Mostafa Madbouly witnesses the signing of an agreement with the International Financial Corporation (IFC) to provide advisory services for Egypt's privatization programme on Sunday. Photo courtesy of Egyptian Cabinet
According to Prime Minister Mostafa Madbouly, speaking at a press conference with IFC Managing Director Makhtar Diop and a group of ministers on Sunday, the IFC will collaborate with the Egyptian cabinet asset evaluation committee to implement the government's initial public offering (IPO) programme under a technical services and advisory agreement.
Madbouly revealed that the agreement aims to assist in preparing companies for IPOs and enhancing governance.
The Prime Minister also noted that the agreement aims to promote the use of private capital and increase investments.
On Sunday, Diop began his visit to Egypt by meeting with President Abdel Fattah El-Sisi to discuss ways of enhancing bilateral cooperation and the IFC's support for Egypt's development priorities.
El-Sisi praised the productive partnership and cooperation between the government and the IFC, particularly in infrastructure, renewable energy, transformative industries, and healthcare. He also emphasized Egypt's commitment to advancing structural reforms that enhance the role of the private sector and create a favourable environment for all investors and international capital markets.
Diop praised the excellent relations between the two sides and stated that the IFC is eager to sign an agreement to support Egypt's offering programme and provide advice on the implementation of the State Ownership Policy Document in accordance with the government's priorities and needs.
He emphasized Egypt's commitment to promoting a business-friendly environment and urged the IFC to expand joint programmes with the private sector to encourage its involvement in supporting sustainable and comprehensive development efforts, particularly during this critical global stage.
In addition, as part of a $3 billion Extended Fund Facility (EFF) programme with the IMF, Egypt plans to offer 32 state-owned companies in 18 sectors to strategic investors within a year as part of a broad privatization initiative.
NI Capital CEO Mohamed Metwally announced last week that Egypt intends to offer two state-owned companies as investments before the end of the current fiscal year.
By May 2023, the IFC's investment projects in Egypt had reached a portfolio of nearly $1.5 billion, with $32 million in advisory programmes. This portfolio has been vital in supporting the private sector in areas such as access to finance, fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, and gender-related initiatives.