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Arab Finance: The Egyptian government plans to transfer the ownership of a number of state-owned companies to the Sovereign Fund of Egypt (TSFE) to maximize economic returns, Deputy Prime Minister for Economic Affairs Hussein Eissa said during an AmCham Egypt panel discussion.
Eissa highlighted the state’s efforts to stimulate economic activity by separating ownership from management while reinforcing governance, oversight, and operational efficiency standards to ensure optimal returns from state-owned assets.
He added that the State Ownership Policy (SOP) document is currently being updated and is expected to be issued in the near future.
As part of ongoing reforms, the government has already taken steps to restructure state-owned companies, with 16 entities listed on the Egyptian Exchange (EGX) so far, paving the way for public offerings aimed at increasing private sector participation and revitalizing capital market activity.
During the meeting, Eissa addressed the introduction of a new framework for choosing boards of directors and general assembly members of public companies. The system is based on nomination, interviews, and selection according to clear professional criteria, designed to ensure the appointment of qualified leaders capable of driving institutional reform and development.
Touching upon economic authorities’ restructuring, he said the government has reviewed 59 economic authorities, recommending the retention of 43 after restructuring, the merger of seven entities with similar activities, the conversion of seven others into service-oriented bodies, and the elimination of two authorities.
This is intended to streamline operations, reduce inefficiencies, and improve institutional performance.
Regarding the financial position, the deputy prime minister affirmed that the government is working with the Ministry of Finance to develop the tax system and introduce a performance-based budget by the fiscal year (FY) 2027/2028. This will allow for measuring the efficiency of government spending and linking financial allocations to the actual results of projects and services.
Earlier this month, Prime Minister Mostafa Madbouly followed up on the progress of offering a number of state-owned firms on the EGX, including Armed Forces-affiliated companies.
These companies include the National Company for Petroleum Products Sales and Distribution (Wataniya), Silo Foods, ChillOut, and the National Company for Road Construction, Development, and Management.
The government is currently preparing for the initial public offerings (IPOs) of eight state-owned companies on EGX in addition to listing 10 petroleum-sector companies.
