The government is doubling down on its privatization drive — with a wider scope and new approach, as the Madbouly government plans to expand its privatization program to include 50 state-owned companies spanning 14 economic sectors, up from 35 currently in focus, two government sources told EnterpriseAM. The new methodology aims to broaden private-sector capital participation, rather than rely solely on strategic asset sales.

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REMEMBER- The Sovereign Fund of Egypt embarked on a comprehensive review of the privatization program earlier this year; a government source told us at the time the program could be expanded to include as many as 60 companies. The move followed a plan by the government to transfer the administration of all state-owned companies to the fund as part of a strategy to maximize their returns.

The new additions to the list will target key sectors like energy, telecoms, ins., and airports through a mix of EGX listings and competitive tenders. These will be followed by offerings in fertilizers, sugar, and petrochemicals. The updated plan also introduces a digital promotion platform for marketing future offerings once the framework is finalized.

The revised approach — hinted at by government officials in August — will favor selling smaller minority stakes on the EGX over one-off strategic sales. Going forward under the soon-to-be-revised state ownership policy, only a handful of strategic sales will continue under a phased rollout.

Sales via the EGX should be helped by a “major package” of stock market incentives expected to be released next month, including measures for the Finance Ministry to shoulder part of investors’ costs, one source told EnterpriseAM. The move follows ongoing efforts to exempt IPO proceeds from taxes and expand breaks for investment funds to improve EGX liquidity.

The privatization program will start picking up pace again next month with the sale of a stake in the Gabal El Zeit wind power plant — one of the flagship projects under the program — we were told. Procedures are already underway to list 30–40% of the farm by year-end, in a transaction expected to raise up to USD 400 mn, two government sources told us earlier this month.

Policymakers hope the fresh push could pave the way for the IMF’s long-awaited fifth and sixth program reviews. The timing of the renewed drive and ongoing talks with the Fund suggest the government is positioning the updated State Ownership Policy as a key anchor for structural reform commitments.

IN CONTEXT- The government brought to light the state ownership policy over three years ago, and while some sales have gone through, progress on the privatization front has been less than ideal and remains a constant sticking point during discussions with the IMF over our loan program. The state raised 48% of its USD 12.2 bn privatization target for March 2022-July 2025. During the period, the state sold stakes in 19 companies through direct stake sales and IPOs, raising some USD 5.9 bn.

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