The value of SMEs loan portfolio skyrocketed 250% since 2015

Newsletter

16 Mar 2022

For our top talks today, the value of the small and medium-sized enterprises (SMEs) loan portfolio skyrocketed 250% since 2015, Assistance Manager of Banking Reform Sector at the Central Bank of Egypt (CBE). SMEs account for 98% of the private sector in Egypt and contribute 43% of the country’s Gross Domestic Product (GDP). Total financing disbursed to SMEs amounted to around 57 billion EGP at the end of September 2021, from 6.4 billion EGP in 2016. The top official noted that the number of micro enterprises in Egypt reached 3.4 million, while medium and small projects hit 2,200 and 217,000, respectively. (Al Borsa News)

Egypt’s new government budget will include a full package of incentives to support green economy, reported, citing Vice Minister of Finance for Fiscal Policies and Institutional Reform Ahmed Kouchouk.
The government is drafting these incentives in order to develop an integrated framework for green economy in the new budget. The Unified Financial Law will better organize the budget and revenues. Moreover, Kouchouk revealed that Egypt is set to issue international Yen-dominated bonds known as Samurai bond at the end of the fiscal year (FY) 2021/2022. (Hapi Journal)
The construction industry in the Middle East and North Africa (MENA) continues to maintain momentum in 2021, hitting a solid finish at the end of 2021.
A sum of 156 billion USD worth of projects were awarded in the region in 2021, as digitalization drove the construction sector in MENA. The sector will grow further supported by planned government spendings in Egypt, KSA, and the UAE in 2022. The headline seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI), an indicator of the performance of the non-oil private sector, hit 48.1 points in February, slightly up from 47.9 points in January, which is still below the 50-point neutral mark for the 15th month in a row. Moreover, the headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) went up to 56.2 in February from 53.2 in January. KSA saw highest value of awarded projects in 2021 which amounted to 41.3 billion USD. (Arab Finance)
Egyptian trade ministry is considering some exception from the ban on exports of some commodities for some exporters with contractual obligations, according to Egypt’s Minister of Trade Nevine Gamea.
Gamea revealed that there are communications with the Food Export Council (FEC) regarding exempting some companies from the three-month ban on oils. Early in March, the Egyptian Ministry of Trade and Industry banned the exportation of a number of commodities for three months, including cooking oils, freekeh, corn, fava beans, lentils, pasta, wheat, and flour. Gamea previously announced 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. (Al Borsa News)
The Egyptian government denied resorting to the International Monetary Fund (IMF) for an assistance package, according to the Egyptian planning minister Hala El-Said.
El-Said stressed that Egypt is not yet in discussions with the IMF over any loan. The IMF is a great support to Egypt and should something happen, we will announce it, the minister stated. Early in March, analysts at JPMorgan speculated that the Egyptian government might apply for another assistance package from the IMF if the economic situation deteriorated. (Reuters)
The Suez Canal Authority (SCA) has cancelled the rebate granted to liquified natural gas (LNG) carriers.
Accordingly, LNG carriers transiting Suez Canal will pay full rate effective March 15th. The decision came amid rising on demand for natural gas on the heels of the conflict between Russia and Ukraine and the ensuing US sanctions against Russian gas exports. In 2015, the SCA issued a circulation reducing the 35% discount in transition fees for LNG carriers to be 25%. (Arab Finance)
And for our EGX and companies talks, Swvl is expecting to receive final approvals on its initial public offering (IPO) on the New York-based Nasdaq Stock Market from the US’ Securities and Exchange Commission (SEC) today, according to Swvl’s CFO Youssef Salem.
The Dubai-based ridesharing company is set to go public by the end of March through merger with US’ capital market company Queen's Gambit Growth Capital pending approval of the company’s general assembly. 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. In July 2021, Swvl announced it signed the final deal to merge with Queen’s Gambit Growth Capital in a deal estimated at a value of 1.5 billion USD. (Arab Finance)
Contact Financial Holding (CNFN) has signed a partnership agreement with Shatablee, the first digital interior design platform in Egypt.
Under the agreement, Contact will support Shatablee’s expansion plan in the Egyptian real estate sector through offering innovative financing programs to the latter’s customers. This partnership comes in line with the directives of the Egyptian government regarding digital transformation. On March 8th, Contact Financial announced the signing of a financing program agreement, through its subsidiary Contact Factoring, with Capiter, an Egypt-based B2B marketplace. It is worth noting that Shatablee recently secured a sum of $1.2 million in financing to support its expansion plans. (Arab Finance)
Talabat Egypt opens a new 10,000 square meters (sqm) headquarters in Cairo’s district of Maadi.
The company is seeking to increase its business volume by up to 15% by the end of 2022, according to the Managing Director Hadeer Shalaby. Shalaby stressed the strategic importance of the Egyptian market to talabat, highlighting the company’s plans to create jobs and support local companies. The volume of e-commerce in Egypt rose to around 4.9 billion USD in 2021, from 3.6 billion USD before the Covid pandemic, the head of the Internal Trade Development Authority (ITDA) Ibrahim Ashmawy commented on the sidelines of the Talabat’s ceremony. (Amwal Al Ghad)
Abu Qir Fertilizers and Chemicals Industries Company (ABUK) is planning to build a new fertilizers plant on a land plot owned by General Company for Paper Industry (Rakta) (RAKT),according to the Chairman of Abu Qir Fertilizers Saad Abu El-Maaty.
The new plant will be established at an estimated initial investment of 1.2 billion USD. The Egyptian General Petroleum Corporation (EGPC) is likely to contribute to financing the value of the land plot where the project is set to be built, he added, pointing out that the company is mulling over the optimum option regarding this matter. The available options to implement the new project include the establishment of a new subsidiary in partnership with the EGPC to own the plant or setting up the plant through Abu Qir Fertilizers with the EGPC acquiring an in-kind stake worth the value of the land. (Al Mal)
Abu Qir Fertilizers and Chemicals Industries Company (ABUK) is planning to build a new fertilizers plant on a land plot owned by General Company for Paper Industry (Rakta) (RAKT).
The new plant will be established at an estimated initial investment of 1.2 billion USD. The Egyptian General Petroleum Corporation (EGPC) is likely to contribute to financing the value of the land plot where the project is set to be built, pointing out that the company is mulling over the optimum option regarding this matter. The available options to implement the new project include the establishment of a new subsidiary in partnership with the EGPC to own the plant or setting up the plant through Abu Qir Fertilizers with the EGPC acquiring an in-kind stake worth the value of the land. (Al Mal)
And finally, for our investments talks, Schneider Electric Egypt is seeking to increase its business volume to 400 million EUR by 2025, according to the company’s Managing Director Khaled Kamel.
The value of the company’s business volume in some sectors, on top of which oil, gas, and renewable energy, has reached 250 million EUR. The Schneider Electric Egypt is exporting 30% of its output including medium voltage switchgear, low voltage switchgear, and other electric components. The company’s production lines comprise various low voltage and medium voltage switches, along with ecofriendly switchgears. Schneider Electric is mulling over the participation in a petrochemical project set to be launched in the Red Sea governorate. (Amwal Al Ghad)