The government is working on implementing a well-defined IPO program for government offerings, it explained, with plans to have 35 companies go public or stakes sold to strategic investors by the first half of 2024
Egypt is gearing up for a substantial boost in revenue as it expects up to EGP 70 billion, equivalent to 0.6% of the gross domestic product (GDP), through its initial public offering (IPO) program in FY2023/2024, according to a recent report the cabinet’s Information and Decision Support Center (IDSC).
The government is working on implementing a well-defined IPO program for government offerings, it explained, with plans to have 35 companies go public or stakes sold to strategic investors by the first half of 2024.
In a bid to address investors' questions, the IDSC released a comprehensive report on Wednesday, covering updates on the IPO program, the golden license, measures aimed at strengthening the role of the private sector in Egypt's economy, and other topics of interest to both local and international investors.
These follow the successful completion of the first and second phases of the government's IPO program, with Egypt's sovereign fund having received $5 billion from the sale of state shares in 13 companies between March 2022 and July 2023.
Regarding the IPO program’s success, the report noted that the first phase, between March and August 2022, achieved a 100% implementation rate, while the second phase, which spanned from August 2022 to July 2023, also saw 100% completion.
The government is also looking into offering various projects worth $5 billion between now and June 2024, including the wind power plant in the Zaafarana area in December 2023 and the Siemens power plant in Beni Suef in June 2024.
Osama El Gohary, Head of the Information and Decision Support Center, emphasized that this report reflects the government's commitment to improving the investment climate in Egypt, and aims to attract more domestic and foreign investments to the country by providing crucial information and fostering communication.
As part of its efforts to enhance the role of the private sector in Egypt's economy, the government, in addition to the IPO program, is eager to launch a series of economic reforms, explained the IDSC, designed to overcome challenges and increase the private sector's contribution to the GDP.
The reforms include macroeconomic and sectoral policies, with a total of around 171 measures aimed at supporting the private sector, the report wrote. This includes 144 measures already implemented, focusing on enhancing policy flexibility, promoting competition, supporting the industrial sector, improving the business environment, and addressing legal and regulatory frameworks.
The Egyptian government is also committed to the implementation of the state ownership policy document, which outlines the state's approach to ownership and details the package of reform measures adopted by the government to encourage and empower the private sector.
The IDSC stressed the importance of governance, transparency, and market regulation, aiming to foster competitiveness in the Egyptian economy.
Looking ahead, the Egyptian government intends to implement another package of future reform measures to attract private sector investments, enhance governance and transparency, improve the investment environment, and bolster the competitiveness of the Egyptian economy.
