"We're trying to select the right companies that can attract good institutional and good private sector (investors), and at the same time help in deepening the capital market in Egypt," El Said noted
The Egyptian Exchange looks to have an exciting year, with Minister of Planning and Economic development, Dr. Hala El Said announcing that the country is looking to put up state-owned companies every month or two.
The decision will open up several sectors of the economy to private investment.
"We're trying to select the right companies that can attract good institutional and good private sector (investors), and at the same time help in deepening the capital market in Egypt," she said, declining to name any company.
"We're almost targeting a company every month, or every two months," she added.
Highlighting last year’s successful initial public offering (IPO) of payments company e-Finance, the minster noted it as displaying the strong appetite from institutional investors returning to the market after a long absence.
Egypt had previously slated 23 state-owned companies for IPOs in 2018, however almost all of their sales have been delayed, partly due to market turbulence linked to the COVID-19 pandemic.
Last year saw the sale of state-owned National Investment Bank (NIB) to EFG Hermes, Egypt's first bank privatization in more than a decade.
El Said, also NIB’s chairperson, noted that the bank’s restructuring is around 45-50% complete and is expected to finish by 2026.
The minister noted that Egypt has begun classifying of different sectors of the economy and their potential for private investment as part of a three-year structural reform program.
They will produce a document that "will say this is a green light where this is totally private sector, this is a red zone where this is totally for the government to invest, and this is a yellow zone where we can work together with guidelines and a level playing field.
When discussing about military-controlled company privatization, the planning minister expected two delayed sales of military companies, Wataniya Petroleum and bottled water maker Safi, to happen this year.
