Egyptian state supports private sector to increase its economic share: PM

CAIRO - 11 February 2023: Egypt's Prime Minister Mostafa Madbouli said on Saturday that the state is doing everything it can to help the private sector contribute more to the Egyptian economy.

“My office is ready to take any ideas or complaints about challenges the private sector is experiencing to help to overcome all obstacles hampering business activities,” he added at a news conference following his inspection tour of projects in the 6th of October City.

Through infrastructure projects, road networks, services, and new lands, the state has paved the path for stimulating private investment to play its role in the following stage, the premier said.

He mentioned President Abdel Fattah El Sisi's address on the readiness of state firms and organs, including the Armed Forces, to collaborate with the private sector.

He reaffirmed the state's intention to list 32 companies on the stock exchange or sell shares to strategic investors before listing all projects later.

The tour led the prime minister to three major industrial projects; two of which are in the food industry, while the third is a pioneering project in the automotive industry.

He expressed his delight with the work of young Egyptians who were able to convert traditional autos, like minibuses, to electric vehicles.

He applauded the high level of thinking shown by these young people, emphasizing the state's full willingness to help them in every manner possible to increase their output.

Those young people are discussing a production capacity of 5,000 vehicles per year. All of the state's capabilities will be used to extend this initiative to a capacity of 100,000 vehicles per year, Madbouli said.

The food industry sectors' output is sufficient for meeting the demands of the local market as well as for sale overseas, he added.

The Egyptian state has emphasized keenness to empower private sector in different economic fields.

In December, President Abdel Fattah El-Sisi approved the State Ownership Policy Document, which focuses on maximizing the role of the private sector and determines sectors in which the government will reduce its participation.

As per the document, the government will also shift from the management of state institutions to the management of state capital by defining the mechanisms for the state’s withdrawal from the assets owned by the state, Madbouli said last year.

The implementation of the document aims at achieving financial savings that enable support for the general budget, achieving financial discipline, and ensure financial sustainability, Madbouli noted.

The document also aims to enhance the state's financial capacity to support social protection networks and protect the vulnerable groups in order to increase the levels of resilience of the Egyptian economy in the face of the crises, he stressed.

MENA contributed to the reporting.