Egypt has appointed the International Finance Corporation (IFC) as the strategic advisor for Egypt’s plans to boost the role of the private sector in the economy.
IFC said it is joining forces with the Egyptian government to boost private sector participation in the economy to increase competitiveness, create jobs and improve living standards.
The asset monetisation programme is part of Egypt’s state ownership policy – a new framework that was rolled out last December to empower the North African country’s private sector to accelerate growth.
Egypt sold a 9.5% stake in Telecom Egypt for $121 million in May 2023 as the government’s strategy plans to offload stakes in 32 state-owned companies including United Bank, Banque du Caire and Arab African International Bank.
“We will have a five-year partnership with the World Bank’s IFC to guarantee the governorship of the program in the long term,” Prime Minister Moustafa Madbouly said in a televised conference with IFC Managing Director Makhtar Diop.
Under the Transaction Advisory Services Agreement (TASA), the IFC will provide Egypt with technical assistance and advisory support to develop a strategy and implementation plan, help structure and prepare assets for sale.
The agreement is the first within the World Bank Group Egypt Country Partnership Framework, jointly developed with the government and launched in March 2023.
“Monetisation of state assets is one of the most critical requirements to Egypt’s economic development,” said Hassan Abdalla, the Governor of the Central Bank of Egypt.
Since beginning its operations in Egypt, IFC has invested and mobilised more than $7 billion in investment projects and has an advisory portfolio amounting to $34 million in the country.
