World Bank’s IFC Joins Egypt’s Efforts to Boost Private Sector Role

World Bank’s IFC Joins Egypt’s Efforts to Boost Private Sector Role

The International Finance Corporation (IFC) was appointed as Egypt’s strategic advisor for its Asset Monetization Program, as announced by the IFC’s Managing Director Makhtar Diop on 19 June 19.

The monetization of state assets refers to the process of generating revenue by selling, leasing, or otherwise commercializing assets owned by the government or state entities.

The IFC’s involvement is part of Egypt’s broader plan to enhance the role of the private sector in its economy. In February 2023, the Egyptian government announced its plan to sell stakes in 32 state-owned companies by 2024. Recently, they successfully sold a stake worth USD 121.6 million (EGP 3.76 billion) in Telecom Egypt, a state-controlled entity.

With its strategic advisory role, the IFC – a member of the World Bank Group – will be instrumental in leveraging private capital and expertise to effectively manage state-owned assets.

Key responsibilities of the IFC include structuring and preparing state assets for sale and ensuring a smooth transition to private ownership.

Highlighting the significance of the agreement, Egypt’s Minister of International Cooperation Rania Al-Mashat described the partnership as a crucial step toward harnessing private capital and know-how to manage state-owned assets efficiently.

According to Al-Mashat, Egypt has been a significant focus for the IFC, with one of its largest programs dedicated to the country. Over the years, the IFC has invested more than USD 7 billion (EGP 216 billion) in Egypt, supporting various sectors such as climate finance, fintech, healthcare, agribusiness, sustainable manufacturing, access to finance, and gender empowerment.

The minister also emphasized the expansion of the partnership, marking it as the first operation under the “2023-2027 Egypt” World Bank Country Partnership Framework’s objective to strengthen competition and support the government’s state-owned enterprise reform agenda.

The Egyptian government introduced a state ownership policy last year, aiming to identify sectors in the economy where the private sector can contribute significantly.

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