Egypt adopts five-pillar approach to cope with global economic crisis: PM Madbouly

Prime Minister Mostafa Madbouly said Egypt is working on a five-pillar plan to cope with the current global economic crisis resulting from the coronavirus pandemic and Russian-Ukrainian conflict.

Announcing the government’s plan during a press conference Sunday, Madbouly said the plan focuses on supporting localisation efforts and promoting local products, increasing the participation of the private sector in the country’s assets and decreasing budget deficit and public debt.

The plan also includes developing the Egyptian Exchange (EGX) and maintaining social protection programmes for low-income citizens, the premier added.

Egypt is set to offer 12 companies under the government’s initial offering programme (IPO) on the EGX by end of 2022, including two of Armed Forces-run companies and other firms that are under the umbrella of the public business sector, Madbouly revealed.

Due to the COVID-19 pandemic outbreak in March 2020, Egypt’s IPO programme was postponed. The government resumed the programme in 2021 by listing the state-owned digital services platform e-finance on the EGX.

The country’s seven largest ports will be merged into one company, with the aim of being offered on the bourse, Madbouly noted, adding that the same measure will be applied to governmental hotels.

Madbouly also revealed that the government will announce the State Ownership Policy Document before end of May. The step is meant to empower the private sector and regulate the state’s presence in economic activity, the prime minister said.

Madbouly also said the state seeks to raise the participation of private sector companies in the country’s investment to 65 percent within three years, up from around 30 percent at present.

The state will declare a four-year programme with a total value of EGP 40 billion for the private sector partnership, he noted.

Concerning the budget, Egypt also intends to lower their total debt – currently at 86 percent – to 75 percent of gross domestic product within the coming four years as well as decreasing the budget deficit from 6.2 percent to five percent, said Madbouly.

Furthermore, the country aims to achieve a primary surplus of about 1.5 percent in the current fiscal year, according to the premier.

 

 

 

Source: State Information Service Egypt

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