Egypt to Invest $1.2 Billion in Development of Public Sector Companies

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Researched by Industrial Info Resources (Sugar Land, Texas)--Egypt believes companies in the public sector are playing an important role in sustainable development of the country, mainly through increasing Egyptian exports and attracting capital from international and local investments. The public sector has 150 affiliated companies in different industries, such as pharmaceuticals, food, construction and metallurgical.

The public sector invested $2.6 billion through companies in the last five years. By improving the performance of loss-making companies through management, restructuring and privatization, the sector went from a loss of $241 million in 2002-03 to a net profit of $963 million in 2007-08.

At the Economist Conference in Cairo, Dr. Mahmoud Mohi Eddin, Egypt's Minister of Investment, discussed the country's investment climate and the most important developments in recent years. He also described the ministry's interest in providing more investment incentives.

The minister said that the net profit of the private sector was $716 million in 2008-09, and he added that $864 million to $1.2 billion would be invested to develop public-sector companies through the fiscal year 2009-10, in sectors such as fertilizers, cement, metallurgical and pharmaceuticals.

Under the same plan, the ministry of investment will develop subsidiaries in regard to environmental commitments and achieving cleaner production. Four contracts worth a total of $30 million were signed to develop sewage treatment plants. Other companies include El Nasr Spinning and Weaving, which signed a contract worth $22.2 million. Alexandria Oils and Soap and Tanta Oil & Soap have signed contracts worth $7.8 million.

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