Cairo accelerates state asset sales under an IMF plan, targeting up to four major listings by summer 2027.
This article appears in the July/August issue of Global Finance Magazine.
Egypt, Africa’s second-largest economy after South Africa, plans to list up to four state-owned companies on the Egyptian Exchange (EGX), the continent’s largest stock exchange by the number of listed companies, within the next 12 months.
The June 5 announcement is part of Cairo’s $8 billion International Monetary Fund (IMF) reform program and the government’s State Ownership Policy (SOP).
The planned transactions include the sale of a 20% stake in state-owned Misr Life Insurance, which is expected to raise about 14 billion Egyptian pounds (about $277 million). Investment and Foreign Trade Minister Hassan El Khatib said the government also expects more than seven public offerings — including private-sector companies — to reach the market within the next year.
“Over the next 12 months, the priority will be to make it easier for businesses to operate, raise capital, and complete mergers and acquisitions,” El Khatib told Reuters during a London visit.
In October 2024, the government floated shares in United Bank, marking the first state-owned bank listing in years. Since then, the EGX has approved the temporary listing of six additional state-owned enterprises, including Sinai Manganese Company and El Nasr Housing and Development. Officials are also preparing about 10 state-owned petroleum companies, along with firms in other strategic sectors, for future listings.
The drive toward privatization follows reforms introduced in March 2024, when Egypt adopted a flexible exchange-rate regime and allowed the Egyptian pound to float freely, ending the parallel foreign exchange market. In its February review, the IMF said inflation had fallen from a peak of 38% in September 2023 to the low-double-digit range, while Egypt’s net international reserves had risen to about $53 billion, reflecting stronger external buffers.
The reform program targets one of the most state-dominated economies in the Middle East and Africa. According to the IMF, Egypt’s state-owned enterprises account for assets equivalent to about half of the country’s gross domestic product. The government directly owns or controls more than 300 commercial enterprises across sectors, including banking, energy, manufacturing, transport, and telecommunications. The SOP came about in 2023. Subsequent legislative reforms include Law No. 170 of 2025, which established a central framework for the divestment of state assets.
Charles Wachira is a contributing writer based in Kenya.
