|
CAIRO, March 5 (Reuters): Egypt's investment minister said Friday the country's privatisation drive is expected to help more than double foreign direct investment (FDI) into Egypt for the financial year 2004/5 after weak inflows last year.
Mahmoud Mohieldin told Reuters his ministry would launch an initial public offering (IPO) in a petrochemical firm in the next few weeks and was also working on selling a fertiliser company, real estate and paper businesses.
The minister also said in a telephone interview he would advertise for an adviser in the first week of April to help sell an insurance firm and restructure three others.
Egypt's privatisation drive is part of a package of economic reforms launched by the cabinet appointed in July to boost investment and lift economic growth. The programme involves selling state firms or state-owned stakes in firms.
In 2003/4, central bank figures showed Egypt attracted FDI of $407 million, a figure economists say is paltry for a country of 70 million people and needs to rise if Egypt is to raise living standards and reduce the unemployment.
"It seems that this year is going to see a significant increase in the privatisation proceeds and very positive results on the FDI," Mohieldin said, saying FDI would "more than double" in 2004/5 from the "humble" level of the previous year.
On the latest privatisation moves, Mohieldin said the state planned to launch an IPO for a 20-25 per cent stake in Sidi Krir Petrochemicals Company (SIDPEC) in March or early April, followed about 10 days later by a similar IPO in Alexandria Mineral Oils Company (AMOC).
He said anchor investors would be sought for both firms, first in SIDPEC, adding that investors from the United States, Europe, the Gulf and India had shown an interest in both firms
"With the promising companies, ... my preference today is to have a combination of an anchor and IPO," he said, adding this would take advantage of Egypt's buoyant stock market and broaden the shareholder base to allow Egyptians and others to invest.
|