CAIRO: Public sector companies in Egypt have made significant strides in profitability, recording EGP 68 billion in profits over the last eight years. This achievement marks a substantial turnaround from previous years of losses, as highlighted by Mohamed Attia El-Fayoumi, Treasurer of the General Federation of Chambers of Commerce and Head of the Qalubeya Chamber.

According to State Information Service Egypt, El-Fayoumi pointed out that the pathway to this transformation began with Law No. 203 of 1991, which initiated steps toward privatization in the public business sector. The shift led to temporary halts in development plans, resulting in calculated losses due to the anticipation of company sales. However, since 2014, strategic government interventions have reversed this trend, leading to impressive profitability.

El-Fayoumi noted that from 2015 to 2023, public sector companies achieved average annual profits of EGP 8.5 billion, a stark contrast to the annual losses of EGP 800 million recorded before 20
14. The year 2023 alone saw profits of approximately EGP 15.5 billion, representing a 100% increase compared to the previous year. Despite these gains, El-Fayoumi emphasized that public sector companies continue to face challenges, particularly with outdated technology impacting product quality and market competitiveness.

He urged for urgent measures to improve product quality and modernize production methods, which are essential for maintaining a competitive edge. He also highlighted the importance of partnerships with local and international private companies, which provide public sector companies with technological and financial expertise crucial for development and growth.

El-Fayoumi concluded by asserting that the development of public sector companies is vital for economic progress. Enhancing their economic performance can boost productivity, reduce operational costs, and contribute significantly to the country’s overall economic growth.