Global Arab Network | Egypt stops privatizations pumps billions into public enterprise

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Egypt stops privatizations pumps billions into public enterprise

Global Arab Network - - Gamal Ragay

Thursday, 06 May 2010 13:43

Egypt Minister of Investment Mahmoud Mohieddin said state-owned companies will no longer be put up for sale to anchor investors, adding minority shares in some companies will be offered exclusively to Egyptians through public subscription.

“Fresh investments will be pumped into the public enterprise sector companies with the aim of enhancing their efficiency and maximizing their profits as LE6.5 billion will be injected into those companies during the new fiscal year,” said Mohieddin in statements during the inauguration of the 4th Investment Conference of West Delta in Kafr el-Sheikh governorate, 134 kilometers North of Cairo.

He added that a sum of LE14 billion has seen pumped into those companies during the past five years.

“The public enterprise sector has seen improvement and attained a net profit of LE3.9 billion last year, expected to go up to LE4.9 billion during the current fiscal year,” said the minister.

He explained that while profit-making companies will be developed, those less successful will receive investments aimed at modernizing and restructuring them.

Speaking of the conditions of public business sector workers, the minister said those workers are to appointed after one year, not three years as before.

New Phase of Development
Egypt is witnessing a new phase of development at all levels, said Trade and Industry Minister Rasheed Mohamed Rasheed.

Egypt has taken a range of measures to promote and facilitate investment by luring foreign investors to the country, Rasheed added.

Rasheed made the remarks during his inaugural speech before the 8th Middle East and North Africa International Franchise Exhibition (MIFE) 2010, which was opened at Cairo International Fair Ground Social Fund for Development Hall on Wednesday 5/5/2010.

MIFE 2010, to last until Saturday, aims at offering a broad range of franchising and licensing opportunities and seeking new local franchisees, with the purpose of assisting in the development of the national economy through achieving worthwhile investments, said the Franchise Development Association (EFDA).

EFDA is a NGO and a non-profit organization representing and serving the franchise industry in Egypt. It was formed in 2001 with the aim of encouraging and promoting entrepreneurship through franchising.

Global Arab Network

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