Planning and Economic Development Minister Hala El-Said (Photo: Al-Ahram)
Egypt's sovereign fund will sign on Monday a deal in cooperation with the Ministry of Defence's National Service Products Organisation (NSPO) for the restructuring and development of several affiliated companies.
Planning and Economic Development Minister Hala El-Said, who chairs the fund, said the framework agreement involves studying the restructuring of some of the NSPO companies to utilise them to generate more investment through the fund.
Established in 1979, the NSPO is an armed forces owned entity operating in various crucial developmental sectors to meet the needs of the military and the local market.
Its portfolio includes companies in the sectors of agriculture & food industry field, industrial field, engineering field, services field, and mining.
The aim is to maximise the value of the organisation's assets and develop it in partnership with the private sector, she added.
In recent months, Egypt has attempted to lure investors to its untapped assets, with the fund's CEO Ayman Soliman revealing that the fund plans to control some of the potentially valuable assets in industries such as power and real estate in order to attract private investors.
Last month, the SWF agreed to team up with UK private equity firm Actis to help attract and bring private investment into Egypt and to cooperate in energy and infrastructure projects.
The SWF has a paid-in capital of EGP 1 billion ($63.2 million), yet it could rise to several trillion pounds, according to statements made by President Abdel-Fattah El-Sisi in October 2019.
The plan is kicking off with selling a 25-year concession owned by the Egyptian Electricity Holding Co to operate three 4.8GW power plants built by Siemens under a $6.65 billion deal signed in 2015.