Egypt to float up to four army-owned companies: PM

CAIRO

Egypt plans to float up to four military-owned companies on the stock market as part of a broader privatization plan to attract investment and boost the economy, Prime Minister Mostafa Madbouly has said. 

The government has been under pressure to sell stakes in state-owned companies under a bailout package secured from the International Monetary Fund (IMF) in December 2022.

"As part of this plan, there will be an announcement about the offering of three or four military-affiliated companies which will be listed on the Egyptian stock exchange," Madbouly told a news conference in Cairo on Dec. 4.

"No details will be disclosed until the announcement is made next week," he added.

Early this year, the IMF expanded its loan package from $3 billion to $8 billion to help Egypt manage its economic challenges amid regional instability.

Madbouly said that the initial public offerings that will be announced next week will also include state companies in the banking, industrial, pharmaceutical and investment sectors.

Last month, the IMF carried out a delayed review of the 46-month loan programme which ended without unlocking $1.2 billion in expected financing.

The Arab world's most populous country is facing one of its worst economic crises in decades.

Foreign debt has surged fourfold since 2015 to stand at $160.6 billion in the first quarter of 2024, driven in part by large-scale projects, including a new capital east of Cairo.

The war in Gaza has also worsened the country's economic situation.

Repeated attacks on Red Sea shipping by Yemen's Huthi rebels in support of Palestinians in Gaza have resulted in Egypt's revenues from the Suez Canal - a key foreign currency earner — falling by more than 70 percent this year.