Egypt appears finally to be gearing up to relinquish the state’s iron grip on the private sector though the timing of the renewed push has raised questions. The signals are positive but is it all another façade to help convince the IMF that Egypt is implementing reforms as part of its ongoing $8bn loan agreement with the fund? As ever with Egypt, time will tell, though recent leaked local media reports suggest that Cairo is serious about its stalled privatization program (MEES, 26 April 2024).
The timing of the leaks does raise questions given the imminent forthcoming visit by the IMF to Cairo in October to carry out the delayed fifth and sixth reviews of Egypt’s economy as part of the loan agreement. The IMF withheld a $1.3bn tranche in July saying it was dissatisfied with progress on the privatization reforms (MEES, 18 July). Egypt has now appointed investment banks and consultants for ten mainly state-owned companies as it attempts to “fast-track its privatization program,” according to a document seen by Egyptian business portal Enterprise. (CONTINUED - 691 WORDS)
