Cairo

Egypt’s IPO Pipeline Grows as Cairo Courts Private Capital

Cairo accelerates state asset sales under an IMF plan, targeting up to four major listings by summer 2027.

This article appears in the July/August issue of Global Finance Magazine.

Egypt, Africa’s second-largest economy after South Africa, plans to list up to four state-owned companies on the Egyptian Exchange (EGX), the continent’s largest stock exchange by the number of listed companies, within the next 12 months.

The June 5 announcement is part of Cairo’s $8 billion International Monetary Fund (IMF) reform program and the government’s State Ownership Policy (SOP).

The planned transactions include the sale of a 20% stake in state-owned Misr Life Insurance, which is expected to raise about 14 billion Egyptian pounds (about $277 million). Investment and Foreign Trade Minister Hassan El Khatib said the government also expects more than seven public offerings — including private-sector companies — to reach the market within the next year.

“Over the next 12 months, the priority will be to make it easier for businesses to operate, raise capital, and complete mergers and acquisitions,” El Khatib told Reuters during a London visit.

In October 2024, the government floated shares in United Bank, marking the first state-owned bank listing in years. Since then, the EGX has approved the temporary listing of six additional state-owned enterprises, including Sinai Manganese Company and El Nasr Housing and Development. Officials are also preparing about 10 state-owned petroleum companies, along with firms in other strategic sectors, for future listings.

The drive toward privatization follows reforms introduced in March 2024, when Egypt adopted a flexible exchange-rate regime and allowed the Egyptian pound to float freely, ending the parallel foreign exchange market. In its February review, the IMF said inflation had fallen from a peak of 38% in September 2023 to the low-double-digit range, while Egypt’s net international reserves had risen to about $53 billion, reflecting stronger external buffers.

The reform program targets one of the most state-dominated economies in the Middle East and Africa. According to the IMF, Egypt’s state-owned enterprises account for assets equivalent to about half of the country’s gross domestic product. The government directly owns or controls more than 300 commercial enterprises across sectors, including banking, energy, manufacturing, transport, and telecommunications. The SOP came about in 2023. Subsequent legislative reforms include Law No. 170 of 2025, which established a central framework for the divestment of state assets.

Charles Wachira is a contributing writer based in Kenya.

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Cairo Doubles Down on Sudan’s Army – but Backs a Fading Bet

Egypt’s foreign ministry used carefully calibrated language on Monday to restate a familiar position: unwavering support for Sudan’s “unity, sovereignty and territorial integrity” and for its “national institutions, particularly the Sudanese Armed Forces (SAF).” Framed as a rejection of “parallel entities” seeking to form an alternative government in exile, the statement is another sign that Cairo is tying its Sudan policy ever more tightly to General Abdel Fattah al‑Burhan and the SAF as the country’s civil war grinds into yet another year.

Behind the diplomatic phrasing lies a blunt political choice. Since the outbreak of fighting between the SAF and the Rapid Support Forces (RSF) in April 2023, Egypt has emerged as one of the army’s main regional backers, both politically and—according to multiple reports—quietly in security terms. Egyptian officials insist they are defending Sudanese state institutions against militia fragmentation and external meddling, a message they repeat in multilateral forums and joint communiqués with Burhan’s Transitional Sovereignty Council.

From Cairo, the stakes in Sudan are seen as existential rather than abstract. Egyptian analysts routinely describe the stability of their southern neighbour as a vital national security concern, citing fears of refugee flows, arms smuggling and jihadist safe havens along the porous border. Control of the Nile is an even deeper driver: since the 2019 fall of Omar al‑Bashir, Egypt has intensified security and military coordination with Khartoum to counter Ethiopia’s upstream Grand Ethiopian Renaissance Dam (GERD) and preserve its historic water share.

There is also a clear regime‑security affinity, however misguided that affinity might be. Burhan, a career officer who trained in Cairo and maintains close ties with Egyptian generals, represents a familiar authoritarian model for President Abdel Fattah el‑Sisi, himself a former general who came to power after a coup in 2013. Supporting the SAF fits Egypt’s long‑standing pattern of siding with Sudan’s army “whoever is in charge of it,” and buttresses Cairo’s broader preference for strong central militaries over messy civilian transitions across the region.

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Officially, Egypt insists it is not a party to Sudan’s war. Sisi has repeatedly pledged “non‑interference,” and Cairo frames its role as limited to mediation, humanitarian aid, and hosting millions of Sudanese fleeing the conflict. Egyptian troops captured by the RSF at Merowe airbase in April 2023 were described as participants in pre‑scheduled joint exercises, not combat operations, a spin that few international observers bought.

The line between deterrent presence and de facto involvement has become increasingly blurred. Analysts note years of intensifying joint drills, intelligence cooperation and arms ties between the two militaries since 2019. Think‑tanks and regional media have reported unconfirmed Egyptian airstrikes on RSF positions and possible targeting of gold‑mining camps in northern Sudan, amid allegations by RSF leaders that Cairo is providing drones and tactical support to the SAF—claims Egypt denies. The pattern points towards at the very least a protective security umbrella for Burhan’s forces, far beyond the strict neutrality Cairo proclaims.

Yet in Burhan Egypt is backing a very risky partner. By hinging its Sudan strategy almost entirely on the SAF and Burhan’s sovereignty council, Egypt is betting on a man and an institution that look increasingly incapable of reunifying the country. The war has left tens of thousands dead, displaced over 14 million people, and pushed parts of Sudan towards famine, with the army losing and regaining territory in a grinding stalemate against the RSF. Burhan’s own legitimacy is deeply contested: he led the 2021 coup that derailed a fragile civilian‑military power‑sharing agreement, and his government is widely seen by pro‑democracy groups as a continuation of military dominance rather than a path to elections.

Cairo’s categorical rejection of “parallel governments” sounds like a defence of state unity, but in practice it risks delegitimising genuine civilian coalitions seeking to organise outside the SAF‑RSF binary. By equating Sudan’s “national institutions” with the existing military leadership, Egypt narrows the political horizon and sidelines the broad civilian forces that led the 2018–2019 uprising—precisely the actors most likely to provide a sustainable, inclusive settlement. If the SAF continues to fragment on the battlefield or loses further territorial control, Cairo may find that its red lines have locked it into defending a shrinking power centre with dwindling popular backing.

There is also a long‑term reputational cost. Egypt positions itself as a mediator through formats such as the “Quad”, and hosts conferences of Sudanese civil and political actors in Cairo. But as long as its public diplomacy is tethered to explicit promises that it “will not be lax or late in supporting the legitimate Sudanese government” under Burhan, that positioning is scarcely credible. On the contrary, Egypt has decisively and actively allied itself to Sudan’s military junta.

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