The Madbouly government is looking to net at least USD 6 bn from its divestment program as it lays the groundwork for our final two reviews under an extended fund facility (EFF) with the International Monetary Fund, three senior government officials tell EnterpriseAM. The program is due to wrap by the end of this year.

Why this matters: The emphasis of the divestment program is to bring in capital that moves the needle for the economy, the officials say, emphasizing high-impact investment inflows over traditional debt financing to close our funding gap.

“A new large-scale transaction similar to Ras El Hekma and Alam El Roum ensures continuous investment flows, generates new jobs for Egyptian companies, and maintains demand for construction materials for years to come,” one of the sources said. By prioritizing investment and not just debt, the government aims to boost tax revenues and export capacity, which ultimately accelerates growth rates and lowers the overall debt-to-GDP burden.

The details: The IMF did not specify the mechanism for exit or stake sales, but its primary metric for success in the EFF is our ability to build FX reserves of USD 55-56 bn before the program ends. The goal is to see us build a hedge against future economic or geopolitical shocks and pivot out of the “perpetual borrower” trap. While the reserve target is mandated, there’s no agreement on the timing and or choice of assets that may be in the disposal program, our sources say.

How they’ll do it: The government plans to secure between USD 3-4 bn through the privatization of key state-owned assets by October 2026. These include stakes in Banque du Caire, bottled water maker Safi and filling station operator Wataniya (both military-owned companies) and the Gabal El Zeit wind power plant. The government’s minority stake in Alexbank is also on offer. The list also includes stakes in 13 public sector enterprises that will be ready for offering at percentages ranging between 10-40% under partnership with the private sector.

Cabinet will also fast-track the tenders for 12 buildings in Ministries Square — former ministry headquarters in Downtown Cairo — slated for 1Q 2026. It hopes to net proceeds of between USD 2-3 bn. Officials are also in the final stages of a master plan for the sale of land at Ras Banas on the Red Sea Coast.

REMEMBER- Just last week, Egypt received the USD 3.5 bn cashbased portion of the Alam El Roum development agreement from Qatari Diar. This influx of funds was the catalyst that helped Egypt reach the recent staff-level agreement with the Fund on the fifth and sixth reviews after meeting its requirements regarding foreign currency buffers and the closure of financing gaps. Egypt is set to receive some USD 2.7 bn next month once the Fund’s Executive Board approves the reviews.

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