Cabinet Meeting. (Facebook).
The two companies are among the 32 state-owned companies Egypt announced in March as private opportunities whether through the government's initial public offering (IPO) or by offering them to strategic investors.
Saad stated that major consortiums of Egyptian and foreign entities are among the contenders for Safi and Wataniya.
The Sovereign Fund of Egypt (TSFE) assigned advisers from investment banks in March to prepare two companies in order to be offered as investment opportunities whether under the government IPO programme or through offering them to strategic investors.
The TSFE's CEO Ayman Soliman stated in April that the offering advisers had received offers from investors who are willing to invest in the two companies. Since then, the fund has not released any relevant updates regarding the offering process.
Prime Minister Mostafa Madbouly confirmed that Egypt is serious about the implementation of the government IPOs programme and that some deals are being finalised and will be disclosed soon.
Egypt is embarking on a huge privatisation programme to boost its supply of foreign currency and bridge the financing gap the country is experiencing through the FY 2025/26.
The recent updates were announced during a meeting between Madbouly and several high-ranking officials, including the Governor of the Central Bank of Egypt (CBE) Hassan Abdalla, Minister of Planning Hala El-Said, Minister of Finance Mohamed Maait, Minister of Public Enterprises Sector Mahmoud Esmat, and CEO of the TSFE Ayman Soliman.
The meeting also included a review of the progress made in offering a group of companies and banks, as well as properties and land in new cities, following evaluations by international assessors.
The offering of the Gabal El Zeit wind power plant was discussed during the meeting. Investors have already submitted bids for the acquisition of the plant.
Furthermore, the cabinet meeting is inspecting the situation of a group of offerings, including the Siemens power plant in Beni Suef, the land belonging to the headquarters of the former National Party, the power generation project in Zaafarana in the Red Sea Governorate, and El Nasr for Intermediate Chemicals.
The cabinet spokesperson revealed that the National Party's land deal has reached its final stage.
It is worth noting that Egypt's total foreign liabilities rose by EGP 13.717 billion ($443.26 million) m-o-m to EGP 2.194 trillion ($70.9 billion) in March 2023, including EGP 1.298 trillion ($41.94 billion) owed by the CBE and EGP 896.705 billion ($28.98 million) owed by banks.
The country's debt service is expected to increase to EGP 1.315 trillion ($42.581 billion) in the general budget of the FY 2023/24, compared to EGP 965.488 billion ($31.242 billion) in the FY 2022/23 budget.