Egypt's Initial Public Offering (IPO) programme, which commenced in February 2023, has attracted $3.5 billion in investments so far, Minister of Finance Mohamed Maait said on Sunday.
Speaking at the International Monetary Fund (IMF) symposium in Cairo, Maait emphasized that the IPO programme is a robust catalyst for empowering the private sector and augmenting its role in the country's economy.
Under the State Ownership Policy Document, Egypt's IPO programme aims to offer 35 state-owned companies to strategic investors by the end of June 2024.
In February 2023, a list of 32 companies was unveiled, with an additional three companies, namely Eastern Company, Al Ezz Dekhila, and Telecom Egypt, being included later in the year.
The government aims to attract $5 billion through this programme.
During his address, Maait also underscored Egypt's commitment to strengthening multilateral cooperation with global entities in order to explore innovative financing solutions that bridge the financing gaps arising from escalating geopolitical tensions.
The IMF has projected a financing gap of $17 billion for Egypt by 2026, with an estimated shortfall of $6 to $8 billion for the current fiscal year, 2023/2024.
Furthermore, Maait emphasized the government's efforts to bolster the private sector, aligning with its strategic plan to increase the sector's contribution to the economy from 60 percent to 90 percent between 2024 and 2030.
He also highlighted the government's measures to expand social protection coverage, particularly for vulnerable groups affected by global crises, in order to alleviate the burden of inflation.
"The government has extended the reach of the Takaful and Karama programme to encompass 5.2 million families, augmenting their monthly grants by 25 percent, in addition to a 15 percent increase in pensions," stated Maait.
Egypt’s headline inflation rates increased significantly throughout the first nine months of 2023, reaching a worrisome peak of 40.3 percent in September.
As of October, the inflationary trend began to slow down, with the annual headline inflation rate dropping to 35.2 percent in December 2023.
Yesterday, Maait said that the government is poised to introduce a social protection package that encompasses various improvements, including wage and pension adjustments and an increase in the tax exemption threshold.
This new package is expected to be implemented within two months before the holy month of Ramadan, said Samir Sabry, Rapporteur of the Investment Committee at the National Dialogue.
Concluding his remarks, Maait emphasized Egypt's commitment to implementing new projects focused on green hydrogen and clean energy.
Egypt possesses the necessary capabilities to emerge as a regional hub for renewable energy production and exportation, he added.
