Telecom Egypt sale foreshadows Cairo's uncertain privatization path
The sale came as authorities in Cairo move to reduce the state’s footprint on the economy, give more space to the private sector, and secure liquidity to improve the state’s precarious financial position.
To:
Al-Monitor Pro Members
From:
Marc Español
Journalist covering Egypt and Sudan
Date:
June 1, 2023
Bottom Line:
Egypt’s government sold a 9.5% stake in state-controlled telecommunications giant Telecom Egypt (TE) on May 14 for 3.75 billion Egyptian pounds (about $121.6 million). The sale, albeit to mostly local investors, came as authorities in Cairo move to reduce the state’s footprint on the economy, give more space to the private sector, and secure liquidity to improve the state’s precarious financial position. At the heart of these efforts lies an ambitious state asset privatization program, closely watched by the IMF and the Gulf countries, which is essential for Egypt to close its wide financial gap but whose scope is still uncertain.