Egypt has announced plans to offer stakes in several state-owned companies through the Sovereign Fund of Egypt (TSFE) as part of a broader privatization push, according to a statement released by the Prime Minister’s Office on April 9.
New offerings under the IPO program
This step marks significant progress in the implementation of the government’s Initial Public Offering (IPO) program, which is central to ongoing efforts to expand private sector involvement and restore macroeconomic balance.
TSFE, the Armed Forces National Service Projects Organization, and a group of specialized local and international consulting firms have signed several cooperation agreements concerning the restructuring and management of stake sale in several companies affiliated with the army.
These companies include the National Petroleum Services Co., ChillOut, Silo Foods Industries, Safi, Wataneya Company for Roads. Some of these companies’ offerings are scheduled to be completed in 2025 and the remaining in 2026.
According to the statement, the agreements are part of measures to implement the government’s offering program, which involves selling several state-owned companies to private sector institutions for management and operation.
Leading advisory firms join forces
A consortium of specialized consultancy firms will support the offering process. These include PricewaterhouseCoopers (PwC), Matouk Bassiouny & Hennawy Law Firm, CI Capital, EFG Hermes, Boston Consulting Group (BCG), and Grant Thornton (Saleh, Barsoum & Abdel Aziz).
Reinforcing Egypt’s economic reform strategy
The government’s IPO program, launched in February 2023, is a core component of its strategy to reduce the public sector’s dominance in economic activity and empower private sector growth.
According to the State Information Service, the program is designed to create a more competitive investment climate and increase the private sector’s role in driving economic development.
A report by the Information and Decision Support Center (IDSC) in August 2023 emphasized the government’s goal of raising the private sector’s share of total investments to 65% in the coming years. The report also noted that Egypt currently owns 705 companies across nine sectors. In 2023 and 2024, the government offered 35 companies through the IPO program; these included prominent names such as Eastern Company S.A.E, Telecom Egypt, Banque du Caire, and Misr Insurance Company. Of these, 13 companies were launched by the Sovereign Fund of Egypt (TSFE), attracting a total investment value of $5 billion.
Backing from the IMF
Egypt has been moving forward with efforts to strengthen its private sector by divesting assets in state-owned enterprises—part of its commitments under an expanded $8 billion loan agreement with the International Monetary Fund (IMF).
In March 2023, the IMF completed the first and second reviews of Egypt’s Extended Fund Facility (EFF) program and approved a $5 billion increase to the original agreement, unlocking an immediate disbursement of $820 million. Another $820 million followed in July after the third review.
Most recently, in March 2025, the IMF disbursed $1.2 billion after concluding the program’s fourth review. Later that month, the IMF confirmed that Egypt remains committed to phasing out fuel subsidies by the end of 2025. The IMF noted that the country’s fuel pricing mechanism, which is linked to international market prices, is currently working in Egypt’s favor.
In 2023, the IMF voiced strong support for Egypt’s privatization drive. Julie Kozack, Director of the IMF’s Communication Department, commended the initiative during a press briefing, saying: “We welcome the Egyptian authorities’ announcement that they have signed contracts to sell equity stakes in state-owned entities worth $1.9 billion. Divestment is a critical component of the EFF-supported program, supporting the gradual withdrawal of the state from economic activity and providing resources for external financing and debt reduction.”
Kozack added that the announcement marked “important progress in implementing a key element of the comprehensive policy package aimed at restoring macroeconomic stability.”
