Egypt to announce strategy for enhancing private sector's role in economy: PM Madbouly

Ahram Online , Wednesday 20 Apr 2022

Egypt will announce a national strategy for expanding partnership with the private sector dubbed the ‘State Ownership Policy Document’ next month, Prime Minister Mostafa Madbouly said during a cabinet meeting on Wednesday.

Madbouly
Prime Minister Mostafa Madbouly during a cabinet meeting on Wednesday 20 April 2022 (photo: Egyptian Cabinet)

The document will be discussed in detail at a press conference set to be held after the Eid Al-Fitr holiday, which ends on 5 May, Madbouly said in a statement.

The cabinet is currently receiving comments from various ministries regarding the strategy, which is a “fundamental” step in the country's efforts to boost private sector participation in the economy, Madbouly said.

The strategy is meant to "empower the private sector and regulate the state's presence in economic activity to complement the governmental reforms adopted by the Egyptian state," the prime minister said.

The document, Madbouly assured, represents an assurance for local and foreign investors, and should contribute to promoting confidence from international institutions.

Egyptian President Abdel-Fattah El-Sisi has repeatedly invited the private sector to participate in new projects with the public sector, noting that the latter "had proven incompetent in management in the last 40 years."

In December 2021, El-Sisi said some 4,475 private companies participated in national development projects nationwide with investments ranging from EGP 1 billion to EGP 75 billion.

The state is implementing – in partnership with private sector – development projects worth EGP 1.1 trillion, creating jobs for more than 3 million families, he added.

Maximising the role of the private sector is one of the main pillars of the second phase of the country's economic reform programme, which focuses on structural reforms. The structural reforms started in April 2021 after concluding the first phase of the International Monetary Fund-backed economic reform programme that began in 2016.

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