PM: 32 state-owned companies to be sold in one year

CAIRO – As many as 32 Egyptian state companies will either be listed on the Egyptian Exchange (EGX) or sold to strategic investors within a year, Prime Minister Mostafa Madbouli said Wednesday.

During a news briefing following the weekly Cabinet meeting earlier today, Madbouly added that the companies are operating in 18 different fields, noting that the government will list 25 per cent of these companies within 6 months.

The list includes two-military owned companies, namely: water company ‘Safy’ and petrol stations operator ‘Wataniya’ along with three banks, including Banque Du Caire, the United Bank and the Arab African Bank, revealed Madbouli during the press conference.

This step reaffirms the State’s serious intention to deliver on its promise under the State Ownership Policy Document, the prime minister said, noting that the industrial and agriculture sectors, the backbone of national economy, are the government’s top priority for now and the period ahead.

The government has adopted more than 32 reform measures over the past period to boost competitiveness and support manufacturers in the industrial sector, Madbouli said during the press conference.

The Cabinet decided to avoid imposing any new fees, under any name whatsoever, which could drive costs up in this sector, the premier pointed out, noting that up to 19 industrial sectors had been exempted from real estate tax.

In addition, the government has also approved a decision whereby land plots are allocated to investors either through sale or under the usufruct system, allowing them to pay the purchase price in installments over time, Madbouli.

He added that all land plots allocated for industrial purposes nationwide had been given a fixed price, including only utility networks, even with the exception of sovereign utilities.

Madbouli concluded by asserting the government’s commitment to iron out any difficulties facing investors in the agriculture and industrial sectors, and close the current dollar gap by working for entrenching local manufacturing to promote exports and cut imports.

He also revealed that an integrated export promotion system will be announced in the near future.