Egypt asset sales clear way for $1.6 billion IMF funding boost

Egypt is set to move one step closer to securing $1.6 billion in IMF funding after making progress on key economic reforms, including the sale of state-owned assets, according to people familiar with the negotiations. 

The development is expected to strengthen confidence in Africa’s second-largest economy, which has been working to stabilize public finances, attract foreign investment and ease pressure on the Egyptian pound following months of regional uncertainty. 

Investors have been closely watching the latest review of Egypt’s $8 billion International Monetary Fund program, viewing it as an important signal of the country’s commitment to economic reform.

A successful review would unlock fresh financing and support Cairo’s efforts to restore investor confidence. 

People familiar with the talks said Egypt has met the main conditions for the IMF’s latest assessment, including maintaining a flexible exchange rate and advancing its state divestment program.

A staff-level agreement is expected soon, although Egyptian officials have not publicly commented on the negotiations.

IMF review enters final stages 

The IMF said discussions with Egyptian authorities are progressing. Speaking during a briefing Thursday, IMF spokeswoman Julie Kozack said the fund aims to complete the review in time for a loan disbursement later this summer. 

The current assessment is the seventh, and second-to-last, review under Egypt’s expanded IMF program, which was increased to $8 billion in 2024 as part of a broader $57 billion international support package assembled to help the country address its economic challenges. 

Asset sales support reform efforts 

The IMF has consistently encouraged Egypt to reduce the state’s role in the economy and create more opportunities for private-sector investment. Recent transactions suggest the government is continuing to move in that direction. 

Earlier this month, Taqa Arabia agreed to acquire a 10 percent stake in a newly established company that will take over about 170 fuel stations currently owned by military-linked Wataniya.

The company will manage the business and has the option to increase its stake after a future stock market listing. 

Private investment gains ground 

In a separate transaction, UAE-based Alcazar Energy agreed to invest $420 million to operate and modernize the Gabal El Zeit wind farm on Egypt’s Red Sea coast. 

The Egyptian government said proceeds from both deals will be transferred to the Finance Ministry and used to reduce public debt.

The sales also support broader efforts to expand private-sector participation, a central goal of Egypt’s reform program and a key requirement of its agreement with the IMF.