{"id":545025,"date":"2022-03-31T04:00:49","date_gmt":"2022-03-31T04:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/31\/cabinet-is-working-on-a-roadmap-for-reducing-the-states-involvement-in-the-economy\/"},"modified":"2022-03-31T04:00:49","modified_gmt":"2022-03-31T04:00:49","slug":"cabinet-is-working-on-a-roadmap-for-reducing-the-states-involvement-in-the-economy","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/31\/cabinet-is-working-on-a-roadmap-for-reducing-the-states-involvement-in-the-economy\/","title":{"rendered":"Cabinet is working on a roadmap for reducing the state\u2019s involvement in the economy"},"content":{"rendered":"

<\/a> The government has an outline of its long-term strategy to encourage private s<\/strong>ector involvement in the economy: <\/strong>The Madbouly Cabinet reviewed the broad strokes of its strategy to encourage private sector involvement in the economy at its weekly meeting yesterday, according to a statement<\/a>. The framework will provide a roadmap for reducing the state\u2019s economic activities, charting which industries it will withdraw from and when, as well as ring fencing strategic sectors where it wants to retain a presence.<\/p>\n

There aren\u2019t many details as yet, but here\u2019s what we know so far: <\/strong>The government is working on putting together a \u201ccomprehensive view\u201d of which sectors the state will be involved in for the next three years, the statement says, without providing further details. It will outline a \u201cgradual exit\u201d plan for the state from certain activities, which would be implemented in phases. Once the strategy is announced, the government will run an assessment of all state-held assets in the sectors it plans to exit and put in place a mechanism for these exits. The statement did not provide a timeline for when the strategy would be finalized.<\/p>\n

Planning Minister Hala El Said had earlier likened the system to a traffic light: <\/strong>Green means \u201cGo\u201d for private investors, red would mean \u201chands off,\u201d while amber would be \u201cwe can work together on this.\u201d<\/p>\n

Background:<\/strong> The Madbouly cabinet first announced the strategy late last year<\/a>. The announcement came as the PPP Act cleared the House<\/a>, with the act having been designed to make it easier for private companies to bid for public infrastructure projects in a range of industries. The law is expected to both help Egypt close its infrastructure funding gap<\/a> while also helping to address concerns that the state\u2019s growing involvement in the economy, especially through mega-projects, is crowding out parts of the private sector.<\/p>\n

Also approved during <\/strong>yesterday\u2019s meeting<\/a><\/strong>: <\/strong><\/p>\n