Post for Investment (PFI), a subsidiary of the state-run Egypt Post Authority, has unveiled plans to establish a new $5 billion subsidiary dedicated to asset management within the country by 2025, according to a statement released on April 3.
The company has reportedly secured preliminary approvals for licensing, with final approvals anticipated during the second quarter of 2024, according to local media.
The decision to establish a new asset-management arm aligns with the company’s strategy to enhance its activities and broaden its reach in asset management within Egypt, CEO Ahmed Ali has said. It also aims to manage financial portfolios for insurance, pensions, and other financial institutions, offering diversified investment products such as stocks, fixed income, and specialized investment funds, he explained.
This move is part of the company’s strategy to bolster its presence in the Egyptian investment market and create fresh opportunities for investors and financial institutions in the country.
Stock market boost
Established in 2006, PFI serves as the investment arm of Egypt Post Authority, concentrating on direct investment and asset management, boasting a capital of EGP 6 billion.
In 2023, Egypt Post Authority increased its investments in the Egyptian stock market by 20%, as confirmed by the authority’s chairman, Sherif Farouk last year. This decision is a direct outcome of implementing financial inclusion and digital transformation across all procedures and transactions, leading to the enhancement and diversification of services.
Moreover, the authority has focused on improving existing post offices, establishing new ones, and introducing mobile postal vehicles and postal kiosks, significantly improving citizens’ access to services.
Farouk also revealed Egypt Post’s plans to make direct investments worth EGP 6 billion in 2024.
