Egypt to reduce number of state-owned enterprises through mergers

The government is planning to reduce the number of state-owned enterprises (SOEs) to 90 from 119 in FY2020-2021 through mergers or liquidations as it looks to streamline the sector.

At least four SOEs have already been merged and procedures are ongoing for more, the sources say.

Textiles, construction sectors are at the forefront, Cotton and Textile Industries Holding Company has a total number of 32 companies that are planned to be reduced to just 10.

A handful operating in the real estate and construction sectors will also be assimilated into others.

The government is currently working on new amendments to the Public Enterprises Act which are expected to put in place regulations to streamline financial performance in SOEs, many of whom make bns of losses every year.