CBE, Kuwait Investment Authority allegedly selling combing 40% of AAIB next year

The Central Bank of Egypt (CBE) and the Kuwait Investment Authority (KIA) have reportedly agreed to a strategic divestment plan, and are preparing to sell a combined stake of 40% in the Arab African International Bank (AAIB) in 2024, according to Enterprise, citing a source close to the matter.

The central bank and KIA each currently hold a 49.37% stake in AAIB, with the leftover 1.26% distributed to “others,” explains AAIB’s most recent report.

The two will allegedly sell off 20% of their stake in the AAIB to an undisclosed strategic investor, as well as a stake sale on the Egyptian Exchange.

The AAIB is part of the government’s privatization program to sell off state-owned assets alongside the United Bank of Egypt and Banque Misr.

The program, launched under the State Ownership Policy Document, lists 35 state-owned companies being prepared to be sold to strategic investors and/or to go public on the local stock market.

In a recent statement, Planning Minister Hala El-Said explained that the country is looking to bring in revenues of LE 70 billion ($2.27 billion) by the end of the current fiscal year.

Egypt has attracted $5 billion from the privatization program so far, with additional deals worth around $5 billion in the works and are expected to be completed by mid-2024, including the sales of the wind power plant in the Zaafarana area in December 2023 and the Siemens power plant in Beni Suef in June 2024.