From the sale to the stock exchange .. Does Egypt change the tools of exit from companies? | economy

From the sale to the stock exchange .. Does Egypt change the tools of exit from companies? | economy

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19/7/2025–|Last update: 11:37 (Mecca time)

Cairo- The issue of the Egyptian state’s exit from the economy, including the sovereign authorities, is due to the front of the scene again, but this time in a different framework, and after a clear dispute with International Monetary Fund One of the most prominent supporters of this trend within the economic reform program.

In light of the escalation of pressure on the side of the fund, the government began changing the tools of implementing the extermination program, with the increasing tendency to offer quotas from government companies on the stock exchange instead of direct sale of strategic investors, according to informed government sources.

The Egyptian government is not fulfilled

The International Monetary Fund had decided to integrate the fifth and sixth reviews of the lending program EgyptWhich is valued at 8 billion dollars, and postponing them to the next fall, due to the failure of the government to implement the state exit program from the economic sectors, according to what was previously agreed and announced by the government itself.

In a clear dialect statement, the fund stressed that the implementation of the state’s ownership policy and the government investment exit program from the economic sectors, in which the state has pledged to reduce its existence, will be pivotal to enhance the role of the private sector, and enable it to contribute effectively to paying a wheel Economic growth In Egypt.

Repeated advertisement

Last May, the Ministry of Finance revealed the government’s plan to offer quotas in 11 state -owned companies during the fiscal year 2025/2026, as part of the government offering program, according to the financial report issued by the Ministry.

Through this step, the government seeks to collect between 4 and 5 billion dollars, with the aim of strengthening state resources and supporting economic reform efforts.

The list of companies includes 5 entities belonging to the armed forces, namely:

  • National Company for the sale and distribution of petroleum products (national).
  • The National Natural Water Packing Company (Safi).
  • Silo Foods Food Industries.
  • “Chili Out” to run fuel stations.
  • National Roads Company.

Armed Forces companies grow strongly

Dozens of companies affiliated with the armed forces have witnessed since 2014, which raised concerns among a number of local businessmen and foreign investors regarding competition and equal opportunities, according to Reuters.

There are 60 subsidiaries of the armed forces operating in 19 industries, out of a total of 24 listed on the industry classification schedule, according to estimates World Bank.

In February 2023, the Council of Ministers announced the state’s tendency to offer shares of about 32 companies, over a full year until the end of the first quarter of 2024, whether the offering is general through the stock exchange, a strategic investor, or both, which happened only by offering a much fewer.

The cause of the dispute

In the first official comment after the International Monetary Fund’s decision, Prime Minister Mustafa Madbouly revealed that “the prices of selling assets were not fair” and this was attributed to “the geopolitical conditions that negatively affected the investment climate.”

He explained that Egypt achieved all the agreed targets with the exception of the item of the proposals, and the required size was not implemented, stressing that the postponement of the proposals came to protect the state’s assets and ensure their sale at its fair value, and not just to fulfill the formal goals.

Offering or selling?

According to official sources, the government intends to offer stakes from Cairo Bank and “National” and “Safi” companies through the stock exchange, in order to accelerate the steps of the program before the date of the fifth and sixth reviews of the International Monetary Fund.

But this shift raises questions, including: Did the government choose the stock market to expand the ownership base and attract a broader segment of small and local investors? Or is the difficulty of reaching direct agreements with strategic investors pushed towards the less political sensitive path?

The government proposals program is based on various mechanisms to exit from assets, including:

  • General offering via the stock exchange.
  • Selling a strategic investor.
  • The combination of the two methods.

Why put on the stock exchange?

Sherif Othman, head of the “Boys Investment” company for investment consultations in Washington That if the government turns to launch companies via the stock exchange instead of direct sale, this may not reflect the conviction of the money market, but rather a tactical step to calm international pressure.

The financial analyst – in a statement to Al -Jazeera Net – ruled out that the trend towards offering companies on the stock exchange is the result of a conviction of the preference of this option, suggesting that the reason is due to the difficulty of concluding direct deals with strategic investors due to pricing, sovereignty and political pressures.

He said that the offering enhances transparency and accountability, and gives positive signals to the IMF Wat aald Ali The government is open to structural reform, stimulating local investment, and encourages local investment and small investors.

What is achieved?

Egypt pledged at the beginning of this year to accelerate the steps in the procedures of the government proposals program, with the aim of attracting more investment flows, maximizing the role of the private sector in economic activity, and raising its participation in public investments during the coming years.

Since the start of the committee concerned with the government offering program until now, the state has succeeded in implementing 21 deals within 11 different economic sectors, with a total value of about 6 billion dollars, according to what has been officially announced.

Protection of assets

Regarding the mechanisms of the state’s exit from companies, Dr. Alia Al Mahdi, the former dean of the Faculty of Economics and Political Science at Cairo University, expressed their support for the offering of these companies in the money market instead of selling them directly to strategic investors.

In a comment to Al -Jazeera Net, Dr. Alia said, “The offering on the stock exchange allows the expansion of the ownership base in front of citizens and young investors, and the state avoids placing its entire strategic assets under the control of foreign investors,” noting the precedents that witnessed “the purchase of Egyptian foreigners and then closing it later.”

Dr. Alia stressed that in the event of resorting to direct sale, the contracts should include clear items that ensure the continued activity, development and expansion of companies with the operation of local workers, in order to preserve public assets and achieve sustainable economic benefit.

The economic expert emphasized that any proposal process must be managed as a step in favor of the national economy in the long term, not just a rapid means of obtaining the dollar to fill the budget deficit or serve the debt.

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