Egypt’s government has identified activities it will withdraw from or reduce its presence in over the next three years as part of a plan to expand the private sector, according to a draft document circulated in local media.
Egypt’s economy has been jolted by the impact of the war in Ukraine, and it is in talks over a new loan program with the International Monetary Fund.
For the latest headlines, follow our Google News channel online or via the app.
The government says it aims to offer assets to private investors to attract $40 billion over the next four years, and to boost private investment.
Previous privatization plans have been repeatedly postponed, partly due to market turbulence and legal and bureaucratic hurdles.
According to the document, areas the government intends to exit within three years include the grains sector with the exception of wheat, port construction, manufacture of fertilizers, and water desalination plants.
Areas where it may reduce its presence include power generation, pre-school education, textile manufacturing, the management, maintenance and operation of metro lines, and mining and quarrying.
Areas where the state may increase its presence include the construction of railways and metro lines, operation of the Suez Canal and financial brokerage and insurance activities. The government may enlist the private sector to participate.
Some economic sectors appear in more than one category.
The document said the government planned to reduce its holdings in the textile industry by 90 percent, the mining industry by 40 percent, the chemical industry by 75 percent, and the food processing industry by 73 percent.
Central Bank Governor Tarek Amer said no agreement had been reached about the size of the IMF deal.
“It will not be a big amount as Egypt has so far taken a big allocation,” Amer told reporters on Wednesday. “We tap the IMF to benefit in terms of structural reforms.”
Read more:
Egypt requests IMF support as economy buffeted by Ukraine spillover
Egypt economy grew 8.3 pct in Q2, full fiscal year GDP seen above 6 pct: PM Madbouly
Also Read
-
IMF working with Egypt, Tunisia to offset effects of Russia-Ukraine war
The International Monetary Fund (IMF) is working with Egypt and Tunisia to establish a new program in both countries to offset the negative growth ... Middle East -
Egypt requests IMF support as economy buffeted by Ukraine spillover
Egypt has requested the International Monetary Fund’s support to implement a comprehensive economic program, the IMF said on Wednesday, adding that ... Economy -
About 300,000 tons of wheat bought by Egypt stranded in Ukraine
About 300,000 tons of Ukrainian wheat booked by Egypt’s state grains buyer for delivery in February and March is yet to be shipped, with one cargo ... World News -
US holding up energy deal between Egypt and Lebanon: Ambassador
A State Department official told Al Arabiya English that the US was waiting for the final contracts and financing terms. Middle East
