Egypt is preparing to sell shares in companies owned by the army
The Egyptian government has listed a number of fuel companies, including military-linked Watania, primarily companies in which shares are due to be sold to the private sector in the coming months.
In this context, the Sovereign Fund of Egypt has included 5 companies in the Pre-IPO Fund in preparation for the sale of shares in the range of 20 to 30% to strategic investors.
The list of companies included in the fund includes the Egyptian Linear Alkyl Benzene Company (ELAP), the National Oil Sales Company (Watania), National Productive Projects (Safi), Misr Life Insurance and Banque du Caire. according to Bloomberg.
Egypt’s plans to sell stakes in a number of state-owned companies led by fuel companies are part of a program aimed at providing sources of income for the country’s general budget, as well as fulfilling financial obligations and obligations to international organizations led by the International Monetary Fund.
The International Monetary Fund has asked Egypt to reduce the intervention of a large army in the economy in accordance with the rescue plan agreed by the Fund with the Egyptian authorities in light of high inflation rates.
Report from the American newspaper Financial Times, entitled “Egypt undertakes to reduce the role of large army in the economy in accordance with the rescue plan from the International Monetary Fund.”
The newspaper said Egypt has pledged to reduce the army’s role in the economy as part of a $3 billion aid package offered by the International Monetary Fund at a time when the country is struggling to deal with a foreign exchange shortage crisis. weak pound and high inflation.
The foundation said in a statement that the “critical” structural reforms endorsed by Cairo include “settlement of the situation between the public and private sectors” under a public ownership policy endorsed by President Abdel Fattah El-Sisi.
He explained that the policy would apply to all state-owned companies, including “military companies.”