The International Monetary Fund (IMF) published yesterday, Friday, the expert report on the first two reviews of Egypt’s financing program. The following are the highlights from the economic and financial policy memorandum attached to the report dated March 19, which included Egypt’s commitments to the fund and the main items of economic policy for the upcoming period.
The completion of the third review of the financing program is expected on June 15, 2024, or thereafter, and the fourth review on September 15, 2024, or thereafter. Egypt has committed to providing the IMF with accurate and timely data necessary for program monitoring reviews, as well as any information that has a material impact on economic conditions and program objectives.
The review reported that government IPOs generated net revenues of $2.4 billion, in addition to $2.2 billion in dollar inflows in the fiscal year 2023/2024 up to the time of the report. It is expected that many other deals, which have made significant progress, will be closed during the remainder of the fiscal year, bringing in at least another $600 million in foreign inflows.
The IMF noted that Egypt is close to completing the Jabal al-Zeit and Zafarana transactions, expected to be concluded within the fiscal year. The Jabal al-Zeit deal could potentially reach $339 million, while the Zafarana transaction might reach $300 million.
The Fund anticipates that the government will attract cash flows worth approximately $3.3 billion from foreign deals.
For the fiscal year 2024/2025, Egypt aims to sell at least four assets in the energy and manufacturing sectors, which are expected to generate $3.6 billion in foreign inflows.
The World Bank’s engagement with Egypt has been comprehensive, with a focus on overcoming economic challenges while supporting sustainable development. Recently, the World Bank Group’s Board of Executive Directors approved a new Country Partnership Framework (CPF) for Egypt, covering the period FY2023-2027. This strategic framework aims to enhance private sector jobs, boost human capital outcomes, and improve resilience to economic shocks. It aligns with Egypt’s Sustainable Development Strategy and National Climate Change Strategy, reflecting a commitment to supporting Egypt’s long-term economic and environmental goals.
