Government Founds Joint-Stock Radio Company

Prime Minister Ibrahim Mehleb issued a decree on Sunday establishing an Egyptian joint-stock company under the name of ‘Nile Radio Company’.

The public company will be affiliated with the Egyptian Radio and Television Union (ERTU).

Under the new decision, the company will follow the provisions of the Public Authorities Law, issued in 1983, a Cabinet statement said.

The aim of the company is to “commercially” manage radio stations and frequencies that transmit through FM frequencies owned by ERTU. The joint stock company can take decisions “it sees fit” to boost the revenues.

The statement said the company shall work to obtain licences, agreements or entering tenders. “The company is allowed to have interests or to participate by any mean with similar entities that can help it inside or outside Egypt,” the Cabinet detailed.

The company’s lifetime is estimated at 25 years, according to the statement.

Following the decision, independent online radio station Gramafoon announced their willingness to shift their stream to FM.

In 2003, radio production in Egypt witnessed a boom following the establishment of the privately-owned Nile Radio Production Company, which manages Nogoom FM and Nile FM.

Egyptian government-owned authorities, such as ERTU, the National Organization for Social Insurance (NOSI), the General Authority for Investment (GAFI), the Egyptian General Petrol Corporation (EGPC), the Postal Authority, the New and Renewable Energy Authority (NREA) and Egyptian National Railways (ENR), are suffering losses. In FY 2012/2013, these authorities had registered EGP 10bn in losses.

Source: Daily News Egypt