A new and more pro-private sector state ownership policy document will be released next month, a senior government official tells EnterpriseAM. The committee overseeing the revision of the policy is finalizing its amendments to reflect recent developments and to align with the recently released second edition of the National Narrative for Comprehensive Development, we’re told.

The state’s position in previously untargeted sectors will now be under the spotlight, with the new document looking to expand private-sector participation in certain areas of the economy which the current document gives the state a larger share of the market than private players.

The committee also thinks bigger is better when it comes to attracting higher prices for its assets. Companies earmarked for divestment will be merged with others in the same sector to create a more attractive asset base and financial standing. The depreciation of the EGP against the greenback has also led to the reassessment of what the government is hoping to raise from each company before transferring to the Sovereign Fund of Egypt.

An otherwise difficult economic situation across the region could work to attract investors and capital inflows, committee advisor Rania Yacoub tells EnterpriseAM. “Investors typically gravitate toward assets trading below their intrinsic value,” she explained, adding that “the state currently owns a number of assets that remain undervalued.”

Divestment via the EGX during this period would also help bring in liquidity to the market, she said. She pointed to the clear increase in investor appetite after reports emerged that the planned Banque du Caire offering was in its final stages of being put together, with the exact timing of the IPO to be determined by Banque Misr.

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