The government is weighing the transfer of seven state-owned companies to the Sovereign Fund of Egypt, a government official tells EnterpriseAM. The plans to transfer Egypt Aluminum, Misr Fertilizers Production Company (Mopco), Abu Qir Fertilizers, CID Pharma, Zahraa Maadi for Investment and Development, and Heliopolis Housing are part of a broader 40-company move following reviews of their financial statements.

This follows the committee overseeing public business sector companies suspending its review of acquisition offers for seven firms submitted by Gulf investment funds, as well as Chinese and US investors.

Why it matters: By consolidating companies under the fund, the government expects to secure higher-value partnerships than it would if it were to sell individual stakes in each firm, according to our source. The mechanism also ensures that the state treasury receives 50% of the companies’ annual revenues. This is projected to generate up to EGP 20 bn annually starting from the upcoming budget, creating an exceptional revenue stream to help reduce public debt and ease interest payment burdens.

Even as the restructuring gathers pace, development plans are set to continue. Public business sector companies have been instructed to press ahead with ongoing projects after the Public Enterprises Ministry’s dissolution in the latest cabinet shuffle, the official added. These include the Delta Fertilizers development project, Sinai Manganese, and the stewardship of historic retail brands such as Omar Effendi and Sednaoui.

What’s next? The committee is expected to issue its first report by the end of the current fiscal year, outlining plans for shifting profitable companies between the stock exchange and the sovereign fund, transferring loss-making or low-income firms to relevant line ministries, merging selected firms, and creating new holding companies as part of the comprehensive overhaul of the public business sector.

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