Prime Minister Witnesses Appointment of IFC as Strategic Advisor to the Government Offerings Program

Dr. Mostafa Madbouly, the Prime Minister, witnessed the signing of an agreement with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, appointing it as a strategic advisor to the government for the implementation of the government offerings program.

This reflects the Egyptian state's direction and the decisions of the Supreme Investment Council to push efforts to attract investments, empower the private sector, stimulate the competitiveness of the Egyptian economy, and contribute to job creation and improving citizens' living standards.

The agreement was signed by Dr. Rania Al-Mashat, the Minister of International Cooperation and Egypt's Governor to the World Bank Group, and Makhtar Diop, Managing Director of the International Finance Corporation (IFC).

To oversee the implementation of the agreement, Mahmoud El Sakka, the Prime Minister's Advisor for Offerings, and Dr. Linda Rudolph, the Financial Transactions Consultant at the International Finance Corporation, also signed the agreement.

The agreement is the first to be signed following the approval of the Strategic Partnership Framework between Egypt and the World Bank Group for 2023-2027 (CPF) in May of last year. One of its main pillars is enabling the private sector and creating a supportive environment for private sector-led investments and job opportunities.

The agreement reflects the Egyptian state's commitment to implementing its plan to empower the private sector based on the State Ownership Policy Document, which was approved in December 2022, to expand the private sector's participation in development, increase economic growth rates, and provide diverse opportunities for the private sector's presence in economic activities.

According to the agreement, IFC provides support and technical advice to the government offerings program, assists in structuring and preparing targeted companies for private sector offerings, and improves corporate governance to enhance capital flows and support the state's vision for achieving economic recovery.

This agreement is expected to achieve several objectives, including expanding private sector participation in the economy, leading to more job opportunities and increased competitiveness.

It also aims to improve governance in targeted companies for private sector offerings, support Egypt's economic recovery led by the private sector through effective program implementation, and encourage growth and investment in various sectors such as infrastructure, tourism, healthcare, education, agricultural, and manufacturing industries.

Prime Minister Mustafa Madbouli stated, "The selection of the International Finance Corporation as a strategic advisor to the government for the offerings program enhances the utilization of its accumulated expertise in empowering the private sector in emerging markets. The International Finance Corporation plays a vital role based on its extensive global experience in this field, implementing offerings and enhancing the partnership between the government and private sectors, with its diverse expertise across various sectors."

He explained that the implementation of the consultancy services agreement will be closely coordinated with the Government Offerings Unit in the Cabinet, aiming to activate and accelerate the pace of implementing the private sector offerings program to attract foreign direct investments.

This is achieved through structuring and preparing the targeted assets for the offering process, improving governance mechanisms in these companies, and executing the agreed-upon offering operations.

In the same context, Mahktar Diop, stated, "The Egyptian government has clearly declared its objectives to mobilize the private sector."

He added, "The appointment of the International Finance Corporation as a strategic advisor to the government to support its vision for private sector offerings will unleash the potential for increased private sector participation in building a sustainable, resilient, and inclusive Egyptian economy."

Furthermore, Rania Al-Mashat, clarified that IFC, as a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets, and it implements some of its largest programs in Egypt.

She emphasized that the consultancy agreement for the offerings program is the first to be signed under the strategic partnership framework with the World Bank Group 2023-2027, which was recently launched to support the government's agenda for empowering the private sector, reforming and restructuring state-owned companies, and attracting investments.

She added that under the agreement, IFC provides consultancy services and technical support to determine mechanisms and models for government offerings of state-owned companies, identify target investors, and outline the offering process for each company within the program.