Egypt aims to raise $6 billion by June from share sale of state firms
Egypt seeks to raise up to $6 billion before the middle of next year by selling stakes in state-owned firms, the country’s Planning Minister Hala al-Saeed said on Sunday.
The North African country aims to shore up an economy hit by the Russian war in Ukraine.
The programme may include share offerings to the public or block sales to strategic investors, and will be supported by the country’s sovereign wealth fund, Minister al-Saeed said in an interview in New York, with disclosing more details about which companies might be sold.
Egypt wants to allure more foreign direct investment — while also is in talks for a new loan with the International Monetary Fund (IMF) — after taking a hit from soaring food and fuel import bills in the wake of the war in Ukraine. Since March, the country saw $22 billion in outflows from the local debt market.
The North African country is promising a wider overhaul, with the state playing a smaller role in the economy, in line with IMF policy advice.
Abu Dhabi wealth fund ADQ and a unit of Saudi Arabia’s Public Investment Fund (PIF) have already injected around $3 billion into Egypt, snapping up government-held stakes in prominent companies under deals that were facilitated by the Egyptian sovereign fund.
More such agreements are expected, possibly including the landmark sale of stakes in some firms held by the Egyptian army.
Additional sovereign wealth funds in the Gulf and elsewhere will be approached, and there is a plan for a roadshow in Europe and Asia at the end of October to “showcase the investment opportunities in Egypt,” said Minister al-Saeed, who is also chairwoman of Egypt’s sovereign fund.
“Sovereign wealth funds are usually long-term investors, they add value in terms of expertise, finance and technology,” she explained.
Earlier this month, Egypt has set up a “pre-IPO” fund, which aims to restructure some state-owned assets and prepare them for stake sales.
The target is to transfer assets worth up to $3 billion to that fund within three to six weeks, among them a power plant co-built by Siemens AG, the minister concluded.