A consortium of Banque du Caire, National Bank of Egypt, Banque Misr, Export Development Bank of Egypt, and Arab African International Bank is launching a company

Newsletter

14 Mar 2022

For our top talks today, a consortium of Banque du Caire (BDC) (BQDC), National Bank of Egypt (NBE), Banque Misr, Export Development Bank of Egypt (EBE) (EXPA), and Arab African International Bank (AAIB) is launching a company to support Egyptian exports and promote local manufacturing. The establishment of the new company is a part of Egypt’s strategy to increase the value of the country’s exports to 100 billion USD. The new company will have a positive impact on different sectors, especially the small and medium-sized enterprises (SMEs). SMEs’ financings account for 12% of the credit portfolio of the Egyptian banking sector. (Al Borsa News)

Egypt’s strategic reserve of wheat is enough to satisfy the needs of citizens until the end of 2022, especially with the local harvest season starting in April.
The Egyptian government is keen on dealing with the impacts of the global inflationary wave resulting from the Russia-Ukraine war. Moreover, he added that the country would continue its efforts to attract tourists from different destinations amid the slowdown trend witnessed by global tourism activities due to the ongoing Covid-19 pandemic. (Arab Finance)
The Egyptian Ministry of Trade and Industry has banned the exportation of a number of commodities for three months.
These commodities include cooking oils, freekeh, corn, fava beans, lentils, pasta, wheat, and flour. This decision comes in line with the Ministry of Supply and Internal Trade’s plan to meet the citizens’ demand for commodities ahead of the holy month of Ramadan. It is worthy to mention that Egyptian exports recorded a growth rate of more than 15% during the first two months of 2022, pointing out that the current geopolitical tensions could affect the volume of Egyptian exports this year. (Arab Finance)
The financing portfolio of CDC Group, the UK's development finance institution, in Egypt has been estimated at 440 million USD allocated for nearly 39 companies.
The group contributed to offering over 30,000 jobs across several sectors, including new and renewable energy and healthcare, along with other sectors. In 2021, the institution had provided investments worth 320 million USD for Ein El Sokhna Port and 100 million USD for a company operating in the pharmaceuticals and medical sectors. (Arab Finance)
Moreover, Egypt’s current international cooperation portfolio amounts to 26.5 billion USD, contributing to 372 projects.
In 2021, Egypt has been successful in signing financing agreements worth 10.2 billion USD for both public and private sectors, of which $2.47 million were directed in human capital across various sectors, including healthcare, education, and small- and medium-sized enterprises (SMEs). The number of projects currently being implemented within the framework of the third goal related to healthcare, under the sustainable development agenda, reached 33 at a value of 1.5 billion USD. The projects being carried out to achieve the fourth goal related to education amounted to 35 projects at a value of 2 billion USD. (Arab Finance)
Egyptian ready-made clothing exports grew by 54% year-on-year (YoY) in January 2022.
The exports recorded 204 million USD last January, versus 132 million USD in the same month of 2021. The US was ranked first among the top importer of Egyptian ready-made clothing in January, with 123 million USD. The European markets came in second place, importing Egyptian ready-made clothing last January at a value of 37 million USD. Meanwhile, Egypt’s ready-made clothing exports to the Arab World recorded 25 million USD in January 2022, up 83% YoY from 14 million USD. (Al Borsa News)
And for our EGX and companies talks, Swvl Inc is planning to expand in six South American countries during the second quarter (Q2) of 2022, according to the company’s Chief Financial Officer (CFO) Youssef Salem.
These countries are Chile, Peru, Colombia, Mexico, Argentina, and Brazil. This comes as part of Swvl’s expansion plan that aims at boosting its business volume and attracting new customers, he pointed out. Moreover, he expected that the company would obtain the US Securities and Exchange Commission’s (SEC) final approval regarding floating 35% of its shares on Nasdaq on Tuesday. On February 1st, Swvl’s CFO revealed that the company is getting ready to list 35% of its shares on the Nasdaq Stock Market after merging with Queen's Gambit Growth Capital in February or March. (Al Mal)
Capiter, an Egypt-based B2B marketplace, is planning to raise new investments worth 75 million USD within the coming few months, according to the Co-Founder Mahmoud Noah.
This step comes after the platform has closed a funding round of 33 million USD. The startup’s business volume is nearing 500 million USD, expecting the company to grow by 3x in 2022. Moreover, he noted that the company aims at achieving this growth through expansion and offering new products. Capiter offers 18,000 products over its platform, targeting raising this number to around 200,000 before the end of this year. (Al Borsa News)
DisrupTech, a leading fintech venture capital firm based in Egypt, has raised 20 million USD for its first close, according to the Co-founder Mohamed Okasha.
This amount is expected to reach 25 million USD at its final close, which will take place next week. The venture capital has no intention to boost the volume of its fund in the meantime as it is enough for implementing the investment plan, with the possibility of increasing the volume if it is needed. Moreover, DisrupTech is targeting investments accounting for 30% of the fund’s volume in 2022. The fund aims at investing in eight new entities, upon which it would reach a total of 15 startups in the Egyptian market. The fund is already investing Brimore, Khazna, Fatura, Cassbana, Halan, Mozare3, Gahez, and Mumerz. (Al Mal)
Bosta, an Egypt-based leading logistics company, has opened its first office in Riyadh, marking its first venture in the Arab World.
This expansion comes as part of Bosta’s strategy to extend its footprint in the Middle East region, particularly the GCC countries, following the successful launch in Egypt. This move came in line with Egypt Vision 2030 initiatives to bolster the local economy through a number of strategic programs aimed at business owners and entrepreneurs. It is worth noting that Bosta has succeeded in securing the Pre-Series B through regional and international investors led by Khwarizmi Ventures, along with Hassan Allam Holding and other investors. (Arab Finance)
The National Authority for Tunnels (NAT) has acquired a 51% stake of the Egyptian Company for Metro Management and Operation (ECM), affiliated with the Egyptian National Railways (ENR), at a value of 264 million EGP.
The acquisition transaction has been implemented last week as per the amendment to the NAT law, stipulating turning the authority into an economic entity that is able to establish firms and contribute to managing current or future electric traction projects. The NAT will have the right of operating Cairo Metro once it acquires a majority stake in the ECM. (Al Mal)
International Company for Medical Industries (ICMI) has signed a non-binding letter of intent (LOI) to acquire a major company specialized in the production of medical clothes.
The transaction will be pending the ICMI’s approval of the results of legal, financial, technical, and tax-related studies. Method and value of the acquisition is set to be disclosed in a month in case the results of the mentioned studies are satisfactory to the company. (EGX)
e-finance for Digital and Financial Investments (EFIH) is intending at pumping new investments into infrastructure of cloud computing services to offer more services and boost its client base.
Supported by up to 2.88 billion EGP in cash, the company is planning to accelerate investments in its technology infrastructure. Al Ahly Pharos revealed that e-finance is developing a digital financial network that will be the backbone of Egypt’s digitalization strategy. The company is about to sign an agreement in the field of transportation for the digitalization of another mean of transportation other than railways. e-finance is expected to achieve solid revenue in the future. Moreover, Al Ahly Pharos maintained its “Overweight” recommendation of e-finance’s stock, with a fair value (FV) of 23.67 EGP per share. (Al Borsa News)
And finally, for our investments talks, Saudi Egyptian Developers Company (Secon) is in talks with the National Bank of Egypt (NBE) over the possibility of developing a 700-acre land plot owned by the bank in Dream Land, according to the CEO of Secon Mohamed El Taher.
The company is seeking to boost the volume of its land bank through entering partnerships with the New Urban Communities Authority (NUCA) or other investors, El Taher pointed out. Moreover, he added that Secon owns undeveloped lands spanning 500 acres. The company is also planning to increase its recurring revenue by EGP 70 to 80 million by the end of this year, in line with commencing the operations of Hilton Hotel over the Corniche, he highlighted. (Al Mal)