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Government trims 2024 privatization target to USD 1B

Sharp reduction from initial USD 6.5 billion goal, with strategic stake sales and listings planned

What:

The Egyptian government has significantly lowered its financial expectations for privatizing state assets in 2024. Planning Minister Hala El Said announced the revised target of just USD 1 billion, down from Finance Minister Mohamed Maait’s previous forecast of USD 6.5 billion made in February.

So What:

This new target marks a major decrease compared to the USD 5.6 billion raised from April 2022 to December 2023, through the sale of stakes in 14 state-owned companies. The government’s future privatization goals remain modest, aiming for USD 1.5 billion in 2025.

Now What:

Amidst global economic pressures and regional instability, including the situation in Gaza, the International Monetary Fund (IMF) has advised Egypt to pace its privatization efforts. IMF Managing Director Kristalina Georgieva emphasized the importance of timing in asset sales to avoid undervaluing state properties under current market conditions.

Next on the Privatization Agenda:

The Gabal El Zeit and Zafarana wind farms, expected to conclude sales in the next three to four months. This comes slightly behind schedule, as sales were initially projected to close by March. Interest from significant global players like Maersk, Actis, ACWA Power, Alcazar Energy, and Infinity underscores the strategic importance of these assets.