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Privatization has always been on the state’s agenda

President Sisi says privatization has always been on the state’s agenda. “The state has long thought of the privatization of public sector companies at some point in time, and this is very good, and there was an idea that there would be a form of balance between the public and private sector.” The privatization drive may be spurred on by a draft law drawn up by the minister of public enterprise, Hisham Tawfik, allowing the private sector for the first time to own shares in public sector holding companies. [Business News Europe/bneIntellinews, 8 August 2018].

Source: peopleoverprof.it

The government has announced its intention to privatize 23 state companies through a share offering

The government has announced its intention to privatize 23 state companies through a share offering. “They included Banque Du Caire, one of the country’s largest banks, major oil companies Middle East Oil Refining (MIDOR) and Engineering for Petroleum and Process Industries (ENPPI), as well as Misr Insurance Company. The government had said that it intended to sell shares in dozens of state companies to boost public finances and draw more investors to the Cairo exchange, but had previously only identified a handful of companies as candidates.”

Source: U.S.

Whether privatization in Egypt provides economic stimulus or is just a form of crony enrichment?

Knowledge Resources researcher Mukai Jaison asks whether privatization in Egypt provides economic stimulus or is just a form of crony enrichment. “Privatization can lead to natural monopoly, in which a company or a few companies dominate. Regulating such companies and ensuring that the public interest and not making profit is the objective can be difficult in a liberal economy. The government by selling its companies forfeits any future revenue from said company in the long term, since any profits generated go to shareholders. In this context, the government of Egypt should ensure that privatization is accompanied by policies that enable smaller firms to compete in the market and thus create employment.”

Source: www.humancapitalreview.org

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