Frequently Asked Questions on Egypt and the IMF

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What measures in the program support development of the private sector?

The authorities' policies to strengthen the private sector under the program are anchored by the State Ownership Policy (SOP). The SOP is an integrated package of objectives and policies to guide state ownership of assets and strengthen the role of the private sector in the economy. Decisive implementation of the SOP adopted in 2022 would help to establish the legal, regulatory, and competitive conditions that allow the private sector to become the primary driver of economic growth by significantly reducing the state presence, including military entities, in the economy, leveling the economic playing field between private and state economic agents, and creating a business and governance environment supportive of competitive markets.

Some reforms, such as removing special tax exemptions for SOEs have been initiated and need to be fully implemented, but the significant and largely opaque presence of SOEs, including in competitive sectors of the economy, creates uncertainty for potential private investors underlining the need to advance more forcefully with plans to divestment of SOEs from these sectors and further improve overall transparency of SOE operations. Complementing this, efforts to strengthen the independence of the Egyptian Competition Authority, streamline procedures companies face when investing in Egypt including those related to land acquisition, facilitate trade, and to further improve governance and anticorruption measures will be important in creating an attractive business environment that supports growth.