33 government entities hold shares in 709 companies across 18 sectors, according to the second report monitoring the implementation of the State Ownership Policy by the Information and Decision Support Center (IDSC). Of these companies, 54% are profitable while 42.4% are operating at a loss, the report notes.

Who owns what?

The report showed that 18 ministries, the Central Bank of Egypt, nine governorates, the Financial Regulatory Authority, the Unified Procurement Authority, the Egyptian Radio and Television Union, the Upper Egypt Development Authority, and the Suez Canal Authority all hold stakes in the aforementioned companies.

 The IDSC notes that the state owns more than 75% of shares in 158 companies, while holding less than 25% in 80 companies. Additionally, the state holds a 50-75% share in around 41 companies, and between 25-50% in approximately 42 companies.

Why does this matter?

 In its third review of Egypt’s USD 8 billion loan program back in July, the International Monetary Fund noted that while the cabinet has implemented critical structural reforms that have driven down inflation levels, eliminated FX shortages,  and led to realization of fiscal targets, greater efforts are still needed to implement the state privatization program. 

 Accelerating the government’s divestment program in the companies it owns and creating a “level playing field” that avoids unfair competitive practices by state-owned companies will be critical to keeping Egypt on the right track, the IMF noted.