Egypt Forecasts LE70B in Revenues from IPO Program By End of Fiscal Year

Egypt is projecting revenues of up to LE 70 billion from the government’s initial public offering (IPO) program, equivalent to 0.6 percent of the gross domestic product (GDP), in the current fiscal year (FY2023/2024).

The government is working on implementing a well-defined IPO program for government offerings, it explained, with plans to have 35 companies go public or stakes sold to strategic investors by the first half of 2024, according to a recent report by the cabinet’s Information and Decision Support Center (IDSC).

To promote investment and alleviate investors’ concerns, the IDSC released a comprehensive report covering updates on the IPO program, the golden license, and measures aimed at strengthening the role of the private sector in Egypt's economy.

The IDSC explained that these follow the successful completion of the first and second phases of the government's IPO program, with Egypt's sovereign fund having received $5 billion from the sale of state shares in 13 companies between March 2022 and July 2023.

The first phase of the IPO program, between March and August 2022, achieved a 100 percent implementation rate, while the second phase, which spanned from August 2022 to July 2023, also saw 100 percent completion.

The Egyptian government is currently planning to offer several projects worth $5 billion between now and June 2024, including the wind power plant in the Zaafarana area in December 2023 and the Siemens power plant in Beni Suef in June 2024.

The report reflects the government's commitment to improving the investment climate in Egypt, explained Head of the IDSC Osama El Gohary, adding that the government aims to attract more domestic and foreign investments by providing crucial information and fostering communication.

In addition to the IPO program, Egypt is keen to launch a series of economic reforms to encourage the private sector’s role in the economy, explained the IDSC, designed to overcome challenges and increase the private sector's contribution to the GDP.

The reforms include macroeconomic and sectoral policies, with a total of around 171 measures aimed at supporting the private sector, the report wrote.

This includes 144 measures already implemented, focusing on enhancing policy flexibility, promoting competition, supporting the industrial sector, improving the business environment, and addressing legal and regulatory frameworks.

The Egyptian government is also committed to the implementation of the state ownership policy document, which outlines the state's approach to ownership and details the package of reform measures adopted by the government to encourage and empower the private sector.

The IDSC stressed the importance of governance, transparency, and market regulation, aiming to foster competitiveness in the Egyptian economy.

Looking ahead, the Egyptian government intends to implement another package of future reform measures to attract private sector investments, enhance governance and transparency, improve the investment environment, and bolster the competitiveness of the Egyptian economy.