Egypt may offer stakes of as much as 100% in some military-linked firms as the country steps up efforts to attract private investment.
The minister of Planning and Economic Development and chairman of Egypt's Sovereign Wealth Fund, Hala al-Saeed said that the agreement aims to study the restructuring of several National Service Projects Organisation (NSPO) companies in order to maximize the value of these assets and develop them.
The military controls dozens of companies, ranging from agriculture and industry to services and mining, through several entities, including the National Service Projects Organisation (NSPO).
Investing in these assets with the private sector may reach 100%"
Under the plan, investors will be given the chance to secure a majority stake in some companies held by the National Service Projects Organisation (NSPO) which is affiliated with the ministry of defence.
"Investing in these assets with the private sector may reach 100%," Ayman Suleiman, CEO of Egypt's SWF said, noting that "the fund may invest in these assets with potential investors or help the NSPO create partnerships in these assets directly," he added.
"The agreement will see the fund promoting and co-investing with private investors in agreed on, investable assets and companies owned by the NSPO to increase private sector participation in the NSPO's asset base," the fund said in a statement.
The agreement is in line with president Abdel-Fattah al-Sisi's instructions to float military companies on the stock exchange, Planning Minister Hala al-Saeed told reporters. The companies would be open to local and foreign investment.
President El-Sisi previously suggested that military-run firms could be offered to investors as well as the tapping of the country's newly established sovereign fund to steer the programme seeks to give new impetus to the effort.
The NSPO was established in 1979 to achieve the relative self-sufficiency of the armed forces' requirements as well as locally and internationally marketing the surplus. It is the umbrella for 19 companies, varying in fields from food products to intermediate chemicals and mining.