The Egyptian state is eager to create a clear document to regulate its relationship with the private sector and guarantee competitive neutrality, explained the PM
The state’s plan to exit from certain economic sectors does not necessarily mean it will sell its assets, says Prime Minister Mostafa Madbouly, stating that the State Ownership Policy Document aims to set a framework regulating the relationship between the government and the private sector.
Egypt is looking to attract around $40 billion in investment by 2026 through the document.
The product of months of ongoing consultations with both state and private-sector stakeholders, the document aims to identify the economic sectors from which the state will either withdraw, decrease or increase its presence in.
The Egyptian state is eager to create a clear document to regulate its relationship with the private sector and guarantee competitive neutrality, explained the PM.
The Egyptian state does seek to exit from certain sectors in the medium term, Madbouly clarified.
There are several mechanisms that apply to the document, including publicly listing on the Egyptian Exchange, or allowing local or foreign investors to expand and boost their capital and be in charge of the management. In these cases, the state will maintain its ownership of the assets while granting the rights of full management and operation to the private sector, he added.
"If we eventually find it necessary to sell an asset, it will be sold under one of seven or eight mechanisms," he pointed out.
The State Ownership Policy Document complements the state’s reform program. The state is currently looking to implement the second phase of the 2021 structural reform program.
The state wants to empower the private sector, the PM stressed.
Madbouly stated that the country is in need of new investments to boost growth rates in order to overcome the challenge of population growth. Egypt’s population increases by over two million annually, he said.
