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| | | | | | Since the beginning of the reform program in 1991/I992, the private sector has played an increasingly important role in economic growth: | 
| The privatization process has been accelerated since 1991. By July 2000, the government privatized 98 out of 314 companies (only 10 were sold to anchor investors). | | As of June 30,2002,through various methods,190 public enterprises of the 314 Law 203 portfolio of companies have been privatized. Below is the transaction summary: | | | Majority Privatization (>51%sold) | Anchor Investor | 28 | Majority IPOs | 38 | ESA | 34 | Liquidation | 32 | Total | 132 | Partial Privatization/Leases | Minority IPOs | 16 | Asset Sales | 21 | Leases | 20 | Total | 57 |
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| To facilitate the privatization process taking place in Egypt, the Egyptian government established 16 holding companies in 1994 to replace public sector organizations (authorities). |
| Private sector activities contributed well above 70% of total GDP in 1998/99. |
| The private sector has the lead in agriculture and irrigation, construction, transportation, trade, hotels, restaurants and housing. |
| During 1991-98 the annual growth of public sector output averaged 2.4%, compared with 4.9% for private sector output. |
| The privatization process in the past two years expanded to include joint-venture banks, public banks and public insurance companies. |
| Women make up 12% of the total work force for the 16 holding companies. 62% of women workers in the 16 holding companies are in the six agriculture and agribusiness holding companies. |
| 42% of women workers in the 16 holding companies are in the three holding companies: spinning and weaving, cotton and international trade, and textile manufacturing. |
| Women’s share of employment in the public enterprise sector decreased from 13% to 8.3%, while it remained unchanged in the private sector at the level of 19.7%. |
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| | | | The government has used early retirement packages as an incentive to reduce over crowding in public sector firms and deal with redundant labor. The Implementation of the early retirement program starts in privatized public enterprises affiliated with the holding companies according to the priorities and regulations set by every holding company. | | | | | | |
| Early retirement is optional for employees, who wish to end their service before the legal retirement age (60 years). It is done with the full cooperation of the holding companies and their affiliates, the Egyptian labor syndicate union, and the employee. |
| The age groups targeted by this program are 50-58 years for males and 45 to 58 for females. The employee must have spent no less than 20 years on duty in the company or any other entity that insured him. |
| The compensation value is to be specified, while leaving for early retirement, with a maximum amount of L.E 35000, including the insurance compensation of the 10 months bonus for the end of the service at the age of 60, and a minimum of L.E. 12000 to L.E. 15000. The exact compensation value is to be decided according to the service period, degree, job, or the difference between the specified pension and the last salary given. The bonus is to be issued in accordance with the matrix of the financial levels built on the basis of service period or the employment level. |
| Younger or older age groups, than the previously specified age, wanting to leave the service, may be considered by the syndicate organization, the holding companies and its affiliated companies. |
| The holding company determines the period, during which applications for early retirement rights are submitted. However, the right to exercise that benefit drops after a certain specified period. |
| | | Actual and expected early retirement of the labor force in selected holding companies (as of Dec. 31, 1998) | Name of Company | Employment (June 30, 1999) | Expected early retirement (Dec. 31, 1999) | Male | % | Female | % | Total | Above 50 | % | Under 50 | % | Total | Holding Company for Weaving Textiles and Ready-Made Garments | 66,055 | 83 | 13,543 | 17 | 79,598 | 3265 | 9 | 337 | 9 | 3062 | Holding Company for Textiles and Trade | 68,067 | 85 | 11,810 | 15 | 79,877 | 10,104 | 22 | 2850 | 22 | 12,954 | Holding Company for Cotton and Foreign Trade | 32,273 | 85 | 5,671 | 15 | 37,944 | 6174 | 40 | 4069 | 40 | 10,243 | Holding Company for Food Industries | 56,537 | 89 | 6679 | 11 | 63,216 | 1409 | 57 | 1893 | 57 | 3302 | Holding Company for Mills and Grinding | 38,663 | 85 | 6561 | 15 | 45,224 | 2048 | 5 | 119 | 5 | 2167 | Holding Company for Agricultural Development | 10,720 | 84 | 2002 | 16 | 12,722 | 136 | 68 | 293 | 68 | 429 |
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| | | | | Since the privatization of public sector companies began, women employees seem to have been more eager to take advantage of early retirement incentives than men due to the following reasons: |
| The fact that the eligibility age for women is lower than men, 45 instead of 50 years, encourages women to retire early. |
| Given the prevailing social climate and attitudes towards women, this is an easy way to push women out of the labor market. |
| Working women in Egypt face numerous hardships. Sometimes, women take the retirement incentive because the family needs the money for a major expense such as a son’s or daughter’s marriage. |
| Retired employees from privatized public companies often do not know what option are available to them during this transition in their careers. |
| Out of the 606158 employees currently working in the 16 holding company affiliates, 53385 (almost 9%) were expected to benefit from the early retirement program through December 31, 1998. Of these 53385 employees, 26795 employees (50%) are in the textile industry, where women are dominant. |
| With the application of the early retirement scheme, women concentrated in clerical jobs which suffer surplus labor will leave work. | Early Retirement Data by Gender from Beginning of ERS Program until 30 June 2001
(Values in Million Egyptian Pounds) | Data of Labor who left on ERS from Beginning of Program until 30 June 2001 | Name of Company | Male | Expected early retirement (Dec. 31, 1999) | Male | % | Female | % | Total | Above 50 | % | Under 50 | % | Total | Holding Company for Weaving Textiles and Ready-Made Garments | 66,055 | 83 | 13,543 | 17 | 79,598 | 3265 | 9 | 337 | 9 | 3062 | Holding Company for Textiles and Trade | 68,067 | 85 | 11,810 | 15 | 79,877 | 10,104 | 22 | 2850 | 22 | 12,954 | Holding Company for Cotton and Foreign Trade | 32,273 | 85 | 5,671 | 15 | 37,944 | 6174 | 40 | 4069 | 40 | 10,243 | Holding Company for Food Industries | 56,537 | 89 | 6679 | 11 | 63,216 | 1409 | 57 | 1893 | 57 | 3302 | Holding Company for Mills and Grinding | 38,663 | 85 | 6561 | 15 | 45,224 | 2048 | 5 | 119 | 5 | 2167 | Holding Company for Agricultural Development | 10,720 | 84 | 2002 | 16 | 12,722 | 136 | 68 | 293 | 68 | 429 |
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| Deprivation of women workers of free medical treatment. |
| Deprivation of women workers of the value of the meal provided by some enterprises. |
| Deprivation of women workers of a share in profits and incentives which otherwise would have been paid to them. |
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| The Results and Impacts of Egypt’s Privatization Program. Special Study. August 2002. Provided to the United States Agency for International Development by CARANA Corporation under the USAID Coordinating and Monitoring Services Project. | | |
| Privatization in Egypt .Quarterly Review .April -June 2002. Provided to the United States Agency for International Development by CARANA Corporation under the USAID Monitoring Services Project. | | | |
| The Business Environment In Egypt: Constraints to Private Sector. World Bank. ( ,2543KB) | |
| | More on Labor Market in Egypt: | | |
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