(Ecofin Agency) - Egypt’s Financial Regulatory Authority approved the reduction of trading fees on the country’s stock market. Fees to be cut include share transactions, insurance costs, and bond transactions.
The North African nation needs to maintain a number of foreign investors who target either equities or bonds. These contribute to maintaining foreign exchange reserves at a specific level which is important for currency stability. Also, the government is planning to privatize 23 state-owned companies through IPOs, with the aim of raising EGP80 billion ($4.93 billion).
The program has been delayed several times, partly due to the emergence of market turbulence last year. If the government wants to succeed and attract investors, it must be able to offer a more attractive framework for investors.
The Egyptian Stock Exchange is the second most liquid financial market in Africa, the first being the Johannesburg Stock Exchange in South Africa. The Egyptian money market, let’s note, is linked to the Middle East, where the Abu Dhabi, Dubai, Qatar and especially Saudi Arabia stock exchanges are competing.
Idriss Linge