EGX’s role will expand after Egypt’s state-owned companies are floated: Top exec

EGX’s role will expand after Egypt’s state-owned companies are floated: Top exec

The Egyptian Stock Exchange’s chairman is hopeful that 2023 will yield positive results for market capitalization in the country as the government proceeds with plans to float dozens of state-owned companies to generate more revenue for the cash-strapped economy.

“[The] EGX has always been a main pillar of the Egyptian economy,” EGX Executive Chairman Rami El-Dokany told Zawya last week. “I think this role is going to expand further, especially with the state announcing their policy to exit a lot of sectors and [shift] a lot of businesses to the private sector.”

The Egypt government has sought ways to reduce the growing financing gap caused by global economic turmoil in the wake of the invasion of Ukraine. The mass floatation aims at meeting the conditions of a recent IMF $3-billion assistance program that requires the state to reduce its footprint in the economy.

Selling stakes in state-run firms

Last week, Prime Minister Mostafa Madbouly finally announced that a total of 32 companies spanning several sectors, including banks, transportation, mining, energy, tourism, pharmaceuticals and chemicals, will be floated by March 2024.

He said that stakes will be either listed on the EGX or sold to strategic investors. He added that some companies may be subject to