The Egyptian government reportedly suspended a recently announced plan to sell a stake in state-controlled operator Telecom Egypt due to economic conditions and volatility in the market.

Reuters reported Egypt put the brakes on a plan it had put forward at start of March to sell a stake in the company, of which it owns 80 per cent.

At the time, the news agency reported Egypt was seeking to sell as much as 10 per cent. The move would have been the first time it sold off a part of Telecom Egypt since 2005, when it offloaded a 20 per cent stake as part of an IPO.

The stake sale had formed part of a wider strategic aim to sell off stakes in public enterprises and boost public sector investment, due to increasing economic pressures.

Local investment banks CI Capital and Al Ahly Pharos were managing the process. It is now unclear if the country will revisit the sale once the market improves, or if the plan has been put on hold indefinitely.

Egypt has been hit hard by the Russia-Ukraine war, with various reports of international investors pulling out capital worth around $20 billion. The nation is therefore seeking to sell stakes in state-owned assets to raise cash.

Telecom Egypt also has a history of attracting international investors.

In May 2018, Telecom Egypt secured international financing to the tune of $400 million from Chinese financial institutions and the Africa Export-Import Bank, to aid its infrastructure rollout.

At the time, the company revealed it was in talks with banks about securing loans of around $735 million.