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New Ministry for State-Owned Enterp

New Ministry for State-Owned Enterprises
Within the last cabinet reshuffle, which entered into effect on 31 March 2016, the Prime Minister issued a decision forming an independent Ministry for State-Owned Enterprises,[1] after the sector had been under the jurisdiction of the Ministry of Investment.
Background
The public sector is subject to Public Sector Companies Law No. 203 of 1991, which currently includes eight holding companies and 125 subsidiaries that have been gradually transferred from the public sector since 1991, in order to be restructured and managerially redeveloped then partially sold to the private sector/privatized. The annexation of the entire sector within the Ministry of Investment took place in 2004, which was a new ministry at that time. The Ministry of Investment’s portfolio also included the General Authority for Investment and Free Zones and the supervisory bodies of the non-banking financial sector. The final decision came within the context of the government's program that was submitted to the Parliament, in which its “vision and economic program” included a presentation of some of the features of "the development of state-owned assets and restructuring of public sector companies" plan through the development of a program to restructure these companies, evaluate their boards of directors and their chairmen in addition to undergo a periodic follow-up in order to maximize its contribution to the Egyptian economy. Moreover, the government’s program also included the establishment of a fund to manage the state-owned assets, as well as two plans for the development of the textile companies and the iron and steel company. However, no details related to the implementation mechanisms of that plan were mentioned.
The Role of the New Ministry
Once again, the Ministry of State-Owned Enterprises has become independent. According to the Prime Minister’s Decision, it will be responsible of the management of state-owned investments by public sector companies, supervision of those companies, and evaluation of their performance. Although the formation of a new ministry is not reflected in significantly different practices, allowing the Ministry of Public Business Sector to be independent again expresses the state's interest in this sector and thus the need for its development.   [1] Prime Minister's Decision No. 873/2016; Official Gazette, Issue No. 13 (cont.), 31 March 2016.
Within the last cabinet reshuffle, which entered into effect on 31 March 2016, the Prime Minister issued a decision forming an independent Ministry for State-Owned Enterprises,[1] after the sector had been under the jurisdiction of the Ministry of Investment.
Background
The public sector is subject to Public Sector Companies Law No. 203 of 1991, which currently includes eight holding companies and 125 subsidiaries that have been gradually transferred from the public sector since 1991, in order to be restructured and managerially redeveloped then partially sold to the private sector/privatized. The annexation of the entire sector within the Ministry of Investment took place in 2004, which was a new ministry at that time. The Ministry of Investment’s portfolio also included the General Authority for Investment and Free Zones and the supervisory bodies of the non-banking financial sector. The final decision came within the context of the government's program that was submitted to the Parliament, in which its “vision and economic program” included a presentation of some of the features of "the development of state-owned assets and restructuring of public sector companies" plan through the development of a program to restructure these companies, evaluate their boards of directors and their chairmen in addition to undergo a periodic follow-up in order to maximize its contribution to the Egyptian economy. Moreover, the government’s program also included the establishment of a fund to manage the state-owned assets, as well as two plans for the development of the textile companies and the iron and steel company. However, no details related to the implementation mechanisms of that plan were mentioned.
The Role of the New Ministry
Once again, the Ministry of State-Owned Enterprises has become independent. According to the Prime Minister’s Decision, it will be responsible of the management of state-owned investments by public sector companies, supervision of those companies, and evaluation of their performance. Although the formation of a new ministry is not reflected in significantly different practices, allowing the Ministry of Public Business Sector to be independent again expresses the state's interest in this sector and thus the need for its development.   [1] Prime Minister's Decision No. 873/2016; Official Gazette, Issue No. 13 (cont.), 31 March 2016.