The Government of Mongolia plans to privatize 20 state-owned companies by 2028, aiming to raise ₮3.7 trillion through the sale of 10%–66% stakes via initial public offerings (IPOs) on domestic and international stock exchanges.

• ☝️ Key enterprises earmarked for the program include Erdenet Mining Corporation, Erdenes Tavan Tolgoi JSC, Monroscement, MIAT JSC, Agricultural Exchange, Mongolian Reinsurance JSC, and multiple energy sector firms.

🛣️ Roadmap to Market

• 2024–2027: Share sales and conversion of selected enterprises into publicly traded joint stock companies.
• Amendments to the Law on State and Local Property and the Law on Companies to streamline IPOs.
• Strategic decisions on listing venues, investor targeting, and governance safeguards.

The Cabinet has set an August 20 deadline for a full plan, with success hinging on turning years of stalled privatization promises into tangible results through transparency, strong regulation, and real investor appeal.

⛔ State-Owned Enterprises: From Assets to Liabilities

State-owned companies in Mongolia have increasingly been seen as a financial and operational burden, with inefficiency, political interference, and weak governance undermining performance. Currently, 109 state-participated companies operate across 11 sectors, including energy, transport, mining, and banking. If the privatization program is fully implemented, the number would be reduced to 87.

• 🌡️ Financial Performance: In 2024, the total revenue of these companies rose 10.1% year-on-year to ₮26 trillion, while net profit increased 14.9% to ₮5.7 trillion. Erdenes Tavan Tolgoi JSC led in profitability with ₮4.5 trillion in net profit, whereas Tavan Tolgoi Fuel LLC posted the largest loss at ₮227.7 billion.

🤔 Skepticism Rooted in Past Performance

This is not Mongolia’s first attempt at large-scale privatization. In 2022, the government announced that 35 state-owned enterprises would be converted to JSCs. However, only a handful of them proceeded to public listing, highlighting a pattern where ambitious privatization targets are set but actual execution falls short. Given this history, the new plan raises questions about whether it will translate into concrete results or remain largely aspirational.