How is the IMF’s fifth review of our loan program panning out? The IMF and Egyptian authorities made “good progress on the assessment of economic performance and implementation of policy commitments” during the time the team from the Fund spent in Cairo earlier this month, according to an IMF statement.

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ICYMI- A team from the IMF was in Cairo earlier this month to meet with officials from the central bank, and the finance, investment, and international cooperation ministries for its fifth review of the country’s Extended Fund Facility arrangement. The two sides took part in discussions centered around economic and financial policies “that could underpin the completion of the fifth review.”

The fifth review will unlock a USD 1.3 bn. While no timeline has been confirmed yet, we can expect the next disbursement in June, one of our sources previously told us.

We’re doing something right: The statement highlighted a notable y-o-y increase in the private sector’s investment share, which reached 60% in the first half of the current fiscal year, up from the 38.5% recorded during the comparative period last year. The Fund also noted efforts to modernize and streamline tax and customs reforms, saying they are starting to show results.

But we still have ways to go: The Fund urged further revenue mobilization through widening the tax base and streamlining tax exemptions to support higher social and development spending.

“With the macroeconomic stabilization now underway, it is critical for Egypt to carry out deeper reforms to unlock the country’s growth potential, create high-quality jobs for a growing population, and sustainably reduce its vulnerabilities and increase the economy’s resilience to shocks,” Mission Chief for Egypt Ivanna Hollar said.

More needs to be done on the privatization front: “Decisively reducing the role of the public sector in the economy and leveling the playing field for all economic agents should be key policy priorities. The implementation of the State Ownership Policy and the asset divestment program in sectors where the state has committed to reduce its footprint will play a critical role in strengthening the ability of the private sector to better contribute to economic growth in Egypt,” Hollar said.

REMEMBER- The Madbouly government expects to raise USD 4-5 bn from selling stakes in 11 state-owned companies during the fiscal year 2025-2026 as a part of its privatization program, a government source previously told EnterpriseAM.

2025 has been pretty dry for privatization: While we kicked in 2025 with big privatization aspirations after Prime Minister Moustafa Madbouly announced that the government is planning to offer up stakes in ten state-owned companies throughout the year, we are yet to see any of that materialize.

What’s next? The two sides will continue their discussions regarding policies and reforms virtually, paving the way for the completion of the fifth review.

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