Half of Egypt’s Privatisation Programme Proceeds Allocated to Cut Public Debt

Egypt’s Minister of Finance Mohamed Maait revealed in a ministerial meeting on 12 March that 50 percent of the revenues generated through the government’s privatisation programme will be used to reduce public debt in the upcoming fiscal year.

The statement, later shared in a Cabinet Facebook post, added that the government will also utilise any primary surplus from the government’s budget to further cut public debt.

“[This will keep Egypt] in line with the targets of reducing the debt-to-GDP ratio gradually to less than 80 percent over the next three years,” the statement explained.

Egypt is required to pay USD 29.23 billion (EGP 1.42 trillion) in external debt service in 2024, followed by another USD 19.43 billion (EGP 945.24 billion) in 2025, and USD 22.94 billion (EGP 1.11 trillion) in 2026.

WHAT HAS BEEN SOLD SO FAR?

Maait’s comments arrive a few months after Egyptian Prime Minister Mostafa Madbouly revealed that the government secured around USD 5.6 billion (EGP 173 billion) in 2023 from selling state-owned stakes in 14 companies.

While Madbouly did not disclose what the 14 companies were, media outlets reported stakes being sold in the Telecom Egypt, E-Finance, Eastern Company, Al Ezz Dekheila Steel Company, Paint and Chemicals Industries, Commercial International Bank, Abu Qir Fertilisers, Misr Fertilisers Production Company, Alexandria Containers and Cargo, Fawry, Egyptian Ethylene and Derivatives Company, Egyptian Drilling Company, and Egyptian Linear Alkyl Benzene Company.

Currently, 35 entities and assets are on the government’s privatisation list. An unconfirmed report from Al-Borsa, citing an anonymous official, also suggests that an additional 61 companies will be included. Stakes in Wataniya, Safi, Gabal El-Zeit, Banque Du Caire, ChillOut, United Bank, and more – initially targeted to finalise in 2023 – are expected to wrap up this year.

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