Egypt’s cash-strapped government shelfs anticipated sale of state Telecom giant
March 23rd 2023
Egypt has suspended the sale of a stake in state-controlled Telecom Egypt due to “market conditions”, Reuters reported on Wednesday.
Egypt’s cash-strapped government had planned to offer 10 percent stake in the state-controlled Telecom giant that employs about 53,000 people.
Egypt is facing a foreign currency crunch that has led to a shortage of basic goods and record inflation. Cairo was forced to turn to the IMF last year for its fourth loan from the lender in six years.
As part of its $3bn bailout, the government is supposed to open up the books of state-owned enterprises (SOEs), move forward with privatisation, and allow its currency to float freely.
Last month, Egypt announced a plan to sell stakes in at least 32 state-owned companies by the end of March 2024. Telecom Egypt was not listed among them, but the decision, reported by Bloomberg and other outlets earlier this month, reflected a need for Cairo to raise hard currency. The company is 80 percent government-owned.
The company has a long history. Built by the British Eastern Telegraph Company in 1854, it was responsible for the first telegraph line in Egypt, running between Cairo and Alexandria. The Egyptian government purchased the company in the late 19th century.
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