Egyptian government’s move to boost the economy (photo)

Egyptian Prime Minister Mostafa Madbouli said on Sunday that his country would seek help from the International Finance Corporation (IFC) as an adviser on the government subscription program.

The Government Offering Program at the Egyptian Stock Exchange aims to expand the corporate ownership base and attract private sector investment in order to maximize the contribution of the National Services Agency with its various companies in support of the national economy.

This decision is taken in light of the great capacity and capability that its companies have to effectively contribute to the all-round development process that the state is currently seeking in various sectors, noting that Egypt intends to sell state-owned stakes in 32 companies until until the end of the first quarter of 2024.

Madbouli said that the implementation of the advisory services agreement will be carried out in close coordination with the State Proposals Department in the Council of Ministers to activate and accelerate the implementation of the private sector proposals program to attract foreign direct investment through asset structuring. that will be offered, preparing them for the placement process and improving the management mechanisms in these companies, as well as the implementation of placement operations to be agreed.

The same source added that this agreement “will lead to a number of goals, the most important of which is to increase the participation of the private sector in the economy, which leads to more jobs and competitiveness, as well as better management in companies.” is designed to offer to the private sector and support Egypt’s private sector-led economic recovery through effective program delivery, encouraging growth and investment in various sectors such as infrastructure, tourism, health, education, agriculture and manufacturing. industries.

The agreement is the first to be signed since the adoption of the Strategic Partnership Framework between Egypt and the World Bank Group 2023-2027 (CPF) last May. The Egyptian state is committed to implementing its plan to empower the private sector through the state. ownership policy document, approved in December 2022, with the aim of broadening the base for private sector participation in development, boosting economic growth and providing various opportunities for the private sector to participate in economic activities.

Prime Minister Mostafa Madbouli today held a meeting at the Government Headquarters in the New Administrative Capital with Mokhtar Dayub, Managing Director of the International Finance Corporation, and his accompanying delegation to review a plan for cooperation between Egypt and the Corporation in the implementation of the government. program of proposals, as well as ways to increase the participation of the private sector in economic sectors.

Mokhtar Diop, President of the International Finance Corporation, said cooperation with Egypt aims to build a resilient economy resilient to global challenges by empowering the private sector.

Diop added in a speech during a joint conference with the Prime Minister that the global economy is undergoing many changes and after the Corona pandemic there are shocks and collisions that have affected the macro economy and the global economy and created energy, food, debt and inflationary crises as expected that global economic growth will reach 2.1% in 2023, according to what was highlighted in the latest report on future economic aspirations and economic growth, much lower than what was achieved before the pandemic years, confirming the need for private participation sectors in development processes.

Diop also pointed out that significant progress had been made before the coronacrisis, while now there are many urgent issues that need to be addressed, such as climate change, infrastructure development and job creation, and the challenges facing the global economy require the provision of Funding from a variety of sources to combat global economic shocks, as well as securing the funding needed for human development, is more urgent than ever.

It is worth noting that the International Finance Corporation provides technical support and advice to the government proposal program, as well as helping to structure and prepare companies for placement in the private sector and improve corporate governance in such a way as to increase capital flows and support the country’s vision for economic recovery.

As part of the agreement, the International Financial Corporation provides advisory services and technical support to determine the mechanisms and models of public offerings for state-owned companies, as well as identify target investors and the course of the placement process for each of the companies.

Source: “Sada El Balad”