Africa: Egyptian Government Halts Sale of Telecom Egypt Stake

Plans by the Egyptian government to sell a portion of the state-owned Telecom Egypt have been put on hold. According to Reuters, which cites people familiar with the situation, market factors are to blame for the suspension. It happened only a few weeks after rumors claimed that the Egyptian government wanted to sell a 10% interest in mobile provider Telecom Egypt. Presently, the Egyptian government owns 80% of the telecom. There is little further information on the programs stalled by the Egyptian government. 

A prospective sale was reportedly being handled by local investment banks CI Capital and Ahly Pharos earlier this month, with little interest from outside buyers. Due to the Russian war in Ukraine, investors withdrew $20 billion in foreign cash from Egypt at the beginning of the conflict. It indicated that the nation is trying to sell some of its state-owned assets after reaching a deal with the International Monetary Fund in December and getting a $3 billion loan. In 2005, the nation sold a 20% interest in Telecom Egypt as part of an initial public offering (IPO).