another devaluation?

Egypt: Privatisation trudging as Gulf reluctant over unstable currency

in depth

This article is part of the dossier:

Cash-strapped Africa…

By Mourad R. Kamel

Premium badge Reserved for subscribers

Posted on March 16, 2023 15:45

© Egypt’s Central Bank headquarters are seen in downtown Cairo, Egypt, March 22, 2022. REUTERS
Egypt’s Central Bank headquarters are seen in downtown Cairo, Egypt, March 22, 2022. REUTERS

Egypt is struggling to get its privatisation programme off the ground, which may leave the North African nation with no options but to once again attract hot money, a route that Finance Minister Mohamed Maait renounced last year.

Apart from political tensions with Saudi Arabia, which has been a key financial backer to cash-strapped Egypt over the past decade, an unstable Egyptian pound fuels reluctance among buyers in the oil-rich Gulf to snap up stakes put up for sale. Such acquisitions would be cheaper should the currency further depreciate, which prompts the wait.

There's more to this story

Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.

Subscribe Now

cancel anytime

Also in this in Depth:

missing links

Tanzania’s Standard Gauge Railway: Most advanced, but victim of minor private sector investment Tanzania’s standard gauge railway project – that seeks to open up quicker transport corridors towards the vast hinterland of Burundi, DRC, Rwanda, and Uganda – is the most advanced on the continent, but also a victim of a lack of private sector financing.

leverage accelerator

AfDB tackles climate change at annual meeting in Sharm al-Sheikh More than 4,000 people have travelled to Egypt to attend the 58th Annual Meeting of the Board of Governors of the African Development Bank (AfDB) and the 49th Meeting of the Board of Governors of the African Development Fund, both of which are currently underway. On the agenda: climate change.

Electric shock

South Africa prepares for the worst in load shedding It only took one statement to bring South Africa’s Eskom shares into the red. On Thursday, 18 May, Calib Cassim, acting CEO of the publicly-run national power company, warned the public that a “very difficult” winter was to be expected, with load shedding reaching stage 8.

money matters

African Debt: Three proposals to reform the SDR system Hanan Morsy, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa (ECA), shares insights on new proposals to reform the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) allocation system.