Gov’t tallies up state-owned companies amid privatization push

Good afternoon, friends, and congratulations on making it to the weekend. It’s been a busy week both on the homefront and globally, and we’ve got one last packed issue to end the workweek.

THE BIG STORY TODAY-

The government completed a census of state-owned companies, which market watchers consider to be one of the most important steps yet in the state’s privatization program, and a move that will shape the pipeline of IPOs that is said to hit the EGX in the coming weeks or so.

A government document seen by EnterpriseAM Egypt shows that as of the end of August, the state owned 561 companies across 45 government entities. The census, which has not yet been made public, will anchor the updated State Ownership Policy Document and guide decisions on which companies will be offered to investors as minority stake sales and IPOs.

What the census shows:

• The state holds 75% or more in 257 companies, 50-75% in 41 firms, and about 25% in 69 companies;
• Some 364 companies are profitable, compared with 78 loss-makers and 14 that broke even;
• Another 105 companies are still completing financials. Profitable firms are concentrated in those with authorized capital of EGP 500 mn or more;
• Manufacturing dominates with 175 companies (31.2%), followed by administrative and support services (77), transport and storage (50), financial services and ins. (49), real estate (48), and wholesale and retail (42);
• Who holds what: The Public Enterprises Ministry tops the list with 146 companies (110 profitable). The Planning Ministry’s National Investment Bank controls 85, while Housing and Supply each have 44. Transport has 41, Civil Aviation 39, Petroleum 37, Finance 31, and Electricity 25. ICT holds just seven.

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THE BIG STORY ABROAD-

It’s another busy day in the global press with the death of pro-Trump conservative influencer Charlie Kirk still leading the news. The assailant remains at large, with the FBI and the Utah Department of Public Safety leading the investigation. Two suspects brought into custody have since been released, with the manhunt underway. (CNN | BBC | Guardian)

ACROSS THE POND- UK Prime Minister Keir Starmer has fired British Ambassador to the US Peter Mandelson over ties with deceased financier and convicted sex offender Jeffrey Epstein. Mandelson’s ties with Epstein were revealed when US lawmakers released a “ birthday book ” earlier this week, containing a handwritten note from the former ambassador referring to Epstein as his “best pal.” The UK’s Foreign Office spokesperson revealed that “In light of the additional information in emails written by Peter Mandelson, the prime minister has asked the foreign secretary to withdraw him as ambassador.” (Bloomberg | CNN | BBC | Guardian | Reuters)

ICYMI- Mandelson isn’t the only politician under scrutiny after the documents surfaced, with US President Donald Trump’s letter writing of a “wonderful secret” shared between him and Epstein. Trump has since called the letter a “dead issue,” declining to comment on the matter.

☀️ TOMORROW’S WEATHER- We’re in for a slightly warm start to the weekend, with the mercury set to peak at 34°C before cooling down to 21°C, according to our favorite weather app.