Egypt to privatise key state companies as inflation surges

Egyptian Prime Minister Mostafa Madbouli announced Sunday a string of planned privatisations of state-owned companies, as Cairo grapples with an economic crisis and inflation at almost 15 percent.

Following years of accusations of state companies crowding out private investments, the government announced a roadmap on Sunday to more than double the private sector’s share in the economy.

Madbouli laid out plans for 10 state-owned companies and two army-owned companies to be listed on the stock market later this year.

Two new holding companies, to incorporate “the seven largest ports” and “Egypt’s top hotels” will also be formed, percentages of which “will be listed on the stock exchange”, he told reporters.

By 2025, the government hopes to see “private sector contribution in investment grow to 65 percent,” up from 30 percent today.

President Abdel Fattah al-Sisi last month announced plans to “double its support to the private sector” in a programme aimed to attract $10 billion annually over the next four years.

Earlier this month, American firm S&P Global released their latest Egypt Purchasing Manager’s Index, which showed the state’s non-oil private sector economy contracting for the 17th straight month.

Inflation hit a three-year high of 14.9 percent in April, a month after the Egyptian pound lost 17 percent of its value overnight.