(Ecofin Agency) - The Egyptian economy has been hard hit by global inflationary pressures. To bring in liquidity and stimulate growth, the government decided to sell some of its public companies’ shares. It has chosen the IFC as its strategic advisor in that bid. 

The International Finance Corporation (IFC) has been appointed as a strategic advisor to Egypt as part of the government's asset monetization program. The information was disclosed by the institution on Sunday, June 18.

According to the institution, the program aims to harness private capital and know-how to manage Egypt's state-owned assets. It is part of the State Ownership Policy (SOP) approved by Egypt in December 2022. It aims to strengthen the private sector in all areas of activity to stimulate economic growth.

Following the Transaction Advisory Services Agreement (TASA), IFC's role will be to provide the Egyptian government with technical assistance and advisory support to develop a strategy and implementation plan. It will also help structure and prepare assets, sell, and conclude approved and selected transactions.

“Our appointment as a strategic advisor to support the sale and monetization of state assets will further unlock the potential of the private sector to build a sustainable, resilient, and inclusive economy for Egypt,” said Makhtar Diop, IFC Managing Director. 

This appointment comes at a time when the country of the Pharaohs is grappling with the impacts of global economic shocks, which resulted in a shortage of foreign currency,  difficulties in attracting new investment, and in containing its debt. For Hassan Abdalla, Governor of the Central Bank of Egypt, the monetization of state assets is one of the essential conditions for the country's economic development in such a context.  Moreover, "the Central Bank of Egypt is proud to contribute to this multi-stakeholder effort that signals to the world – clearly – that Egypt is open for business."

Charlène N’dimon (intern)