Egypt: Public Sector Companies Achieve Egp 68bn in Profits Over 8 Years

Treasurer of the General Federation of Chambers of Commerce and Head of the Qalubeya Chamber, Mohamed Attia El-Fayoumi, stated that the roadmap for the public business sector began with Law No. 203 of 1991, marking the sector’s first steps toward full privatization.

This shift led to a halt in development plans for companies under the pretext of awaiting their sale, resulting in deliberate losses for these companies.

El-Fayoumi added that, since 2014, the companies entered a new era as successive governments implemented ambitious plans. These efforts have resulted in public sector companies achieving profits of around EGP 68bn over eight years (2015-2023), averaging EGP 8.5bn in annual profits, compared to losses of EGP 1.6bn before 2014, which averaged an annual loss of EGP 800m.

In 2023, the affiliated companies achieved profits of approximately EGP 15.5bn, marking a 100% increase compared to 2022.

He disclosed that, despite development opportunities, public sector companies face numerous challenges, primarily relying on outdated and deteriorating technology, which weakens product quality and limits their competitiveness in local and international markets.

El-Fayoumi called for urgent improvements in quality and the adoption of modern production methods to maintain these companies’ competitive edge.

He noted that partnerships with the private sector play a crucial role in supporting public sector companies.

Through collaboration with local and international private companies, public sector companies can benefit from the technological and financial expertise offered by these partnerships, enhancing their ability to develop production and achieve higher growth rates.

He concluded that the development of these companies is a key factor in economic development, as improving their economic performance can lead to increased productivity and reduced operational costs, thereby contributing to the country’s economic growth rate.