Egypt's Sovereign Fund convenes in new formation

Ahram Online , Wednesday 1 Nov 2023

Egypt's Minister of Planning and Economic Development Hala El-Said chaired the first meeting of the new formation of the Sovereign Fund of Egypt (TSFE) on Wednesday, according to a statement by the planning ministry.

A photo showing Egypt s Minister of Planning and Economic Development, Hala Al-Said, heading the TSF
A photo showing Egypt s Minister of Planning and Economic Development, Hala Al-Said, heading the TSFE s meeting. Cabinet

 

The TSFE meeting centred on reviewing the fund's investments, projects, businesses, and sub-funds.

The planning ministry had held an event earlier this summer to honour several high-ranking executives at the TSFE left their positions in July.

The meeting comes amid slow progress in the government's IPO programme that offers 32 state-owned companies for investors to tap.

El-Said emphasized the TSFE's commitment to creating opportunities for national and foreign investors while safeguarding the rights of future generations.

The fund prioritizes initiatives that drive economic diversification, focusing on sectors such as renewable energy, including the emerging field of green hydrogen.

Since its establishment in 2018, the TSFE has garnered significant attention as a trailblazer and model for strategic funds in Africa and beyond, attracting around 43 percent of total foreign direct investment (FDI) in the country, amounting to EGP 37 billion as of January.

The fund has a capital of EGP 200 billion.

To fulfill its commitments under the International Monetary Fund's (IMF) loan deal, Egypt aims to bridge a $17 billion financing gap through securing loans from international financial institutions, and selling stakes in state-owned assets or offering them to strategic investors.

Egypt collected around $5 billion from offering stakes in 13 companies between March 2022 and July 2023, with plans to offer stakes in 35 state-owned companies to strategic investors by the end of June 2024.

The most prominent of these projects are state-owned petrochemical companies and Wataniya fuel stations, which were scheduled to go public in October but were postponed for two months.

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