Latest news with #SovereignFund
Zawya
10-07-2025
- Business
- Zawya
Egypt: Cabinet assigns TSFE to study use of 15 vacant buildings
Arab Finance: The Egyptian cabinet has mandated the Sovereign Fund of Egypt (TSFE) to study the transfer of ownership of 15 unoccupied buildings, with the goal of preparing them for utilization and future investment offerings, as per a statement. During the weekly meeting chaired by Prime Minister Mostafa Madbouly, the cabinet reviewed the ongoing relocation process of government headquarters following the transition to the New Administrative Capital. The TSFE was instructed to proceed with necessary actions concerning already transferred properties and to study the feasibility of acquiring additional vacant buildings. The cabinet also approved the continuation of work by the committee established under Prime Ministerial decree No. 2684 of 2023, which is tasked with relocating entities lacking available space in the New Administrative Capital. The relocation process will be based on comprehensive feasibility studies and actual needs, including the potential use of buildings vacated by previously relocated entities. Additionally, the cabinet approved issuing a circular requiring all ministries, agencies, and departments to secure vacated premises that have yet to be relocated, pending final decisions on their use. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Yahoo
16-06-2025
- Business
- Yahoo
Mozambique's Budget woes, debt and unrest may weaken the construction industry
The Council of Ministers of the Mozambique Government has approved the draft law for the Economic and Social Plan and State Budget (PESOE) for 2025 in late April 2025. The budget involves a total spending plan of 512.8bn meticais ($8bn) for 2025, marking a decline of around 9% from 567.9bn meticais ($8.8bn) in the 2024 budget. It also estimates a revenue collection of 385.9bn meticais ($5.9bn), marking an 11.9% growth from 344.8bn meticais ($5.3bn) of revenue collected in 2024. This represents a deficit of 126.8bn meticais ($1.9bn); this represents 8.2% of the nominal GDP. Moreover, the budget also includes a projection for the GDP to grow by 2.9% in 2025 with an average inflation of 7%. The budget is yet to be approved by the Assembly of the Republic. The budget is expected to boost growth in the construction sector, with the government announcing a 3bn meticais ($45m) from the Sovereign Fund in the 2025 Budget to finance projects included in the National Development Strategy (ENDE). This covers education, healthcare, water infrastructure, agriculture and transport infrastructure projects. 22% of the total fund will be allocated for the expansion and rehabilitation of the water infrastructure. 14% of the total fund will be allocated for improving health facilities, including vaccination for children under the age of one. 10.4% of the total fund will be allocated for the construction of 12 secondary schools and 7.6% for the construction of 214 primary school classrooms. 9.6% of the total fund will be allocated for equipping five technical and vocational education institutes. The Sovereign fund also outlines the government's target of building ten new dams, along with completing the construction of two feed mills in Niassa and Nampula and the installation works of two new cold storage warehouses in the industrial parks of Topuito and Beluluane. Furthermore, for bolstering the field of entrepreneurship, startup kits for 150 new businesses will be distributed mainly in the field of agricultural, mining, service and industrial sectors. The PESOE also includes the implementation of natural gas projects in the Rovuma Basin that will be undertaken by the French integrated energy and petroleum company TotalEnergies and Italian energy company Eni. This implementation is part of the government's projection of attracting $5.07bn of foreign investments in 2025, marking a growth of around 43% compared to that of 2024. However, this is still below 2021's level of $5.10bn. Notably, the budget got delayed amid a change in government and the post-election disruption. In December 2024, the Constitutional Council (CC) declared Daniel Chapo the winner of Mozambique's presidential election, who secured 65.17% of the vote and succeeded the outgoing President Filipe Nyusi, who received only 24% of the vote. This announcement sparked unrest across the country, mainly among the supporters of the opposing candidate. Demonstrators took to the streets, erected barricades, looted businesses, and clashed with security forces. The police responded with gunfire to disperse the crowds. In light of the political instability, in late December 2024, the Mozambican Government stated its decision to extend the 2024 State Budget on a provisional basis, with the 2025 budget expected to be approved during the first half of the year. The 9% reduction in the expenditure of the budget is attributed to the government's commitment to fiscal restraint following the post-election unrest and uncertainty in late 2024 that adversely dented the overall growth, economic activity and revenue generation. The expenditure plans outlined in the budget prioritised wages, which will constitute 14.6% of the GDP, including limited social transfers and security provisions. Also, the debt interest payments are projected to constitute 4.2% of GDP, which might pose challenges for public investments, as it might crowd out the spending on infrastructure projects. According to the latest projections released by the International Monetary Fund (IMF) in April 2025, the public debt in Mozambique is expected to rise to 101.1% of GDP in 2025 from 96.6% in 2024. The increasing debt-to-GDP ratio is attributed to investments in gas and hydroelectric projects. According to the IMF, the ongoing borrowing for the development of the liquefied natural gas (LNG) projects is projected to be covered by the natural gas revenues, but the country's ability to cover all other debt payments through revenue generation remains uncertain in the medium to long term. Furthermore, Fitch, the global credit ratings agency, downgraded the country's Long-Term Foreign-Currency Issuer Default Rating (IDR) in February 2025 to 'CCC' from 'CCC+', owing to weak public finances and rising debt. At the time of government financing needs, the unresolved political and social issues have hit the country's financial position in December 2024. The interest payment which Mozambique is incurring on its Eurobonds of $900m grew from 5% to 9% per year in 2023, increasing the total interest to be paid in a year from $45m to $81m and from 2028, the country is required to pay $250m till 2031. The increasing debt payments, coupled with political unrest, are expected to slow down the implementation of the ongoing and scheduled construction projects, thereby forming a downside risk for the construction industry. "Mozambique's Budget woes, debt and unrest may weaken the construction industry" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
12-06-2025
- Business
- Zawya
Egypt's PM chairs meeting on state IPO programme
Egyptian Prime Minister Mostafa Madbouly chaired a meeting of the government offerings committee on Tuesday evening to review the implementation of the state's privatisation programme. At the start of the meeting, the prime minister noted that it was part of a series of regular meetings to follow up on the programme's progress. He affirmed the government's commitment to taking the necessary steps to enhance the private sector's role in various economic activities and increase its participation in numerous sectors, in line with the State Ownership Policy Document. Government spokesman Mohamed El-Homsany stated that the meeting addressed the implementation status of the offerings programme. He added that discussions included a review of the various timelines for the offering of a number of targeted companies in the next phase. In this context, the spokesman noted that the meeting reviewed the executive measures and steps taken by the relevant ministries and authorities to offer the targeted companies, alongside the efforts being made to prepare those firms in various sectors for public offering. The meeting also reviewed the latest developments regarding the cooperation between the Sovereign Fund of Egypt for Investment and Development, the Armed Forces' National Service Projects Organization, and a group of specialised local and international advisory firms to restructure and manage the offering of a number of companies owned by the Armed Forces. The meeting was attended by Hassan Abdalla, Governor of the Central Bank of Egypt; Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation; Mahmoud Esmat, Minister of Electricity and Renewable Energy; Mohamed Shimy, Minister of Public Business Sector; Hassan El-Khatib, Minister of Investment and Foreign Trade; and Karim Badawy, Minister of Petroleum and Mineral Resources. Yasser Sobhy, Deputy Minister of Finance for Fiscal Policies; Ramy Aboul Naga, Deputy Governor of the Central Bank; and officials from relevant ministries and the central bank also attended. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Egypt: Finance Ministry plans to offer stakes in 11 state-owned companies in FY2025/26
Arab Finance: The Ministry of Finance announced the government's intention to offer stakes in 11 state-owned companies during the upcoming fiscal year (FY) 2025/2026 as part of its ongoing privatization program, according to the May 2025 financial report. Among these companies are five affiliated with the Armed Forces' National Service Projects Organization (NSPO). The Sovereign Fund of Egypt (TSFE) is currently working on restructuring these companies to prepare them for listing on the Egyptian Exchange (EGX) between 2025 and 2026. Other companies included in the plan are the National Company for the Sale and Distribution of Petroleum Products (Wataniya), the National Company for Bottling Natural Water (Safi), Silo Foods, the as station operator Chillout, and the National Company for Roads Building and Development. The report also highlighted a 35.4% year-on-year (YoY) increase in private investments during the second quarter (Q2) of FY 2024/2025, representing 53.3% of total investments in Egypt. Meanwhile, public investments declined by 25.7% YoY in the same period, reflecting the government's strategy to shift economic leadership to the private sector. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Egypt's President reviews unified investment strategy to boost FDI, industrial growth
Egypt's President Abdel Fattah Al-Sisi convened a high-level meeting on Sunday to review progress on Egypt's unified national investment strategy, which aims to enhance the country's economic competitiveness and attract increased foreign direct investment (FDI). According to a presidential statement, the meeting was attended by Prime Minister Mostafa Madbouly, Deputy Prime Minister and Minister of Industry and Transport Kamel Al-Wazir, Minister of Planning and Economic Development Rania Al-Mashat, Finance Minister Ahmed Kouchouk, and Minister of Investment and Foreign Trade Hassan El-Khatib. The president was briefed on ongoing measures to streamline investment procedures, including the development of a one-stop digital platform for licensing, the reduction of non-tax burdens on investors, and broader structural reforms. The strategy emphasizes transparent and stable policy frameworks, investor-friendly fiscal incentives, open trade policies, and reliable energy access for industrial operations. President Al-Sisi emphasized the need to sustain momentum in enhancing the investment climate and reaffirmed Egypt's ambition to become a regional hub for FDI in line with national development goals. The meeting also included an update on the activities of The Sovereign Fund of Egypt, particularly efforts to unlock value from state-owned assets and strengthen public-private partnerships. The president instructed officials to pursue innovative strategies for maximizing returns on national assets. Officials reviewed trends in Egypt's non-oil exports from 2003 to 2024 and discussed strategies to diversify export markets and improve the global competitiveness of Egyptian products. Infrastructure projects supporting export growth were also examined. Further discussions addressed Egypt's strategic goal of becoming a global logistics and transit trade hub. Updates were provided on a planned dry bulk terminal at Abu Qir Port and a proposed logistics station for iron and billet handling in the Adabiya area—initiatives aimed at supporting the growth of Egypt's iron and steel sector. The meeting also reviewed progress in reforming and enhancing the performance of key economic authorities, as well as the broader national structural reform agenda. Officials briefed the president on ongoing cooperation with the European Union under the macro-financial assistance agreement, designed to support Egypt's public finances. Finally, the president reviewed a draft of the country's forthcoming 'National Economic Development Narrative'—a strategic framework centered on enabling private sector-led growth, strengthening industry and exports, and implementing reforms to stabilize Egypt's macroeconomic and fiscal outlook. Al-Sisi called for the swift finalization of the strategy, highlighting its importance in charting Egypt's future development path and attracting global investment.
