Egypt govt to found new company for establishing wholesale markets
The Egyptian Cabinet is considering a request from the Supply Ministry to establish a company specializing in the establishment and management of wholesale markets with total initial issued capital of LE100 million. The request is part of a plan prepared by the Internal Trade Development Authority (ITDA) of the Supply Ministry.
The memorandum, which was presented by Supply Minister Ali al-Meselhi to the Cabinet, stated that a decision to approve the establishment of the company should stipulate that ITDA be the organizer and supervisor of the company’s activities.
According to the memorandum, the proposal allocates 40% of shares to government agencies distributed equally to each by 5% with the remaining 60% distributed to the private sector provided that any share does not exceed 10%.
The minister explained in the memo that the company’s capital can be increased later through a public offering for expanding the establishment of central markets in the rest of the governorates.
The Chairman of the Board of Directors of ITDA Ibrahim Ashmawy said that the aim of establishing the company is to contribute to the establishment, operation and development of four central markets for wholesale trade, covering four governorates.
In statements to Al-Masry Al-Youm, Ashmawy added that the company will establish and develop wholesale markets for vegetables, fruits and other products at an estimated average area of 20 feddans for the single central market as a nucleus for experimental wholesale markets.
“The construction cost of the market is about LE500 million, not including the value of land and operating and management expenses. The duration of the establishment of the market will be from 12 to 18 months,” he added.
Source: Al-Masry Al-Youm