Egypt aspires for further cooperation with World Bank in managing state-owned companies: PM

Ahram Online , Tuesday 6 Feb 2024

The Egyptian government is keen to further its cooperation with the World Bank in managing state-owned companies and enhancing their efficiency, Prime Minister Mostafa Madbouly said in a meeting with officials from the bank on Monday.

World Bank
The World Bank. AFP


During the meeting, Stephane Guimbert, World Bank country director for Egypt, Yemen, and Djibouti, discussed various proposals and ideas to support the governance of Egypt’s state-owned companies.

Guimbert highlighted that such proposals will ensure further success for the State Ownership Policy Document, said a statement issued by the Egyptian Cabinet on Monday evening.

Meanwhile, Madbouly stated that the government is keen to implement the document, which paves the way for a comprehensive reform of Egypt’s state-owned institutions.

He noted that the document creates further investments for the private sector and ensures more efficient management of public resources.

Attending the meeting, Minister of International Cooperation Rania Al-Mashat highlighted the significance of cooperation with the World Bank to maximize the participation of the private sector in investments.

She shined a spotlight on cooperation between the government and the World Bank in implementing the State Ownership Policy Document through the governance of state-owned companies.

She added that this collaboration aims to enhance the financial situation of these companies and boost their competitiveness.

Al-Mashat also underlined the successful implementation of the document and the government's initial public offering (IPO) programme over the past period.

Going into effect late in 2022, the State Ownership Policy Document identifies the sectors from which the state plans to withdraw, decrease, or increase its presence over the coming three years.

The document aims to expand the participation of the private sector in public investments from 30 percent at present to 65 percent within three years.

As part of the document, the state is implementing its IPO programme, supported by advisory services from the International Financial Corporation (IFC), the financial arm of the World Bank.

Egypt, which is currently facing a foreign currency crunch, managed to secure $5.6 billion from the partial and full sale of stakes in 14 state-owned companies, Madbouly announced last December.

Moreover, the government, in collaboration with the IFC, has conducted preliminary studies on 50 state-owned companies in preparation for offering.

The government plans to offer stakes in 35 state-owned companies to strategic investors by the end of June 2024.

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