Egypt is set to receive a USD 1.2 billion (EGP 60.8 billion) disbursement from the International Monetary Fund (IMF) in January 2025 as part of its USD 8 billion (EGP 405.2 billion) Extended Fund Facility (EFF) programme, Minister of Finance Ahmed Kouchouk announced during an interview on ON TV.
Kouchouk confirmed that the IMF’s executive board is scheduled to meet in January.
The EFF loan, initially approved in December 2022 as a USD 3 billion (EGP 151.9 billion) programme, was extended to USD 8 billion (EGP 405.2 billion) in March 2024 to address Egypt’s economic challenges, including high inflation and foreign currency shortage. The 46-month programme will conclude in September 2026.
So far, Egypt has received USD 2 billion (EGP 101.3 billion) of the loan, divided into three installments: USD 347 million (EGP 17.6 billion) in December 2022, USD 1.1 billion (EGP 55.7 billion) in April 2024, and USD 547 million (EGP 27.7 billion) in August 2024 following postponed reviews.
Kouchouk also addressed concerns about Egypt’s energy sector, confirming that there will be no power outages in 2025. He noted plans to add 7,000 megawatts of new energy capacity by next summer, reducing reliance on natural gas imports.
The government plans to launch initiatives promoting less costly energy alternatives, including a programme to transition vehicles to natural gas, with the state covering 70 percent of conversion costs.
Electricity and fuel prices will remain unchanged for the next six months, aligning with previous statements by Prime Minister Mostafa Madbouly, who assured that fuel prices would not increase further until the end of 2025 if global oil prices remain stable at USD 73 (EGP 3.6) per barrel.
Kouchouk revealed plans to launch three to four Initial Public Offerings (IPOs) in the first half of 2025, comprising two stock market offerings and two for strategic investors.
Since the IPO programme’s launch in February 2023, Egypt has generated USD 3.1 billion (EGP 157.015 billion) in revenues. It aims to secure an additional USD 2 billion (EGP 101.3 billion) to USD 2.5 billion (EGP 126.627 billion) during FY2024/2025.
This privatization programme, a key commitment under the IMF agreement, seeks to bolster the economy and attract foreign investments.
The EFF programme, which includes privatization commitments, is part of Egypt’s broader economic reform strategy aimed at improving financial stability and attracting foreign investment.
Egypt has faced significant challenges, including prolonged power cuts during the summer of 2023, leading to public discontent.
In 2024, the government allocated USD 1.18 billion (EGP 59.768 billion) for natural gas imports to address electricity shortages while implementing three fuel price hikes in March, July, and October.
These efforts reflect Egypt’s strategy to balance domestic needs with international obligations under the IMF programme.
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