The Egyptian government has allocated 36 billion EGP for 6 million tons of local wheat supplies this season

Newsletter

21 Mar 2022

For our top talks today, first, the Egyptian government has allocated 36 billion EGP for 6 million tons of local wheat supplies this season. Two thirds of wheat produced in Egypt will be supplied to the government during this season. The government has a record of all agricultural holdings to impose penalties on any violation of the Wheat Supply Decree. Penalties may include confiscation, fines, and barring from receiving subsidized fertilizers. The price of local wheat supplies has reached 6,000 EGP per ton. (Hapi Journal)

Second, the Egyptian government increased prices of subsidized butane cylinders.
The price of 12.5-kilogram (kg) butane gas cylinders increased by 5 EGP to 75 EGP, while the price of 25-kg cylinders was raised by 10 EGP to 150 EGP. The increase in butane prices is attributed to the hike in global gas and oil prices caused by the Russian-Ukrainian war. Egypt increased gas and fuel prices several times over the past three years. (Egyptian Gazette)
The Egyptian General Petroleum Corporation (EGPC) is planning to drill 16 wells with 79 million USD worth of investments during the fiscal year (FY) 2022/2023.
Total output is expected to reach 6,000 barrels per day (bpd). The 6 wells are operating currently, producing an average of 4,300 bpd. Egyptian oil minster Tarek El-Molla stressed that global oil and gas markets are facing great challenges, noting that [the government] has not the luxury of waiting and acceleration of output increasing rates is a must. On a similar note, the Egyptian government increased prices of subsidized butane cylinders. (Arab Finance)
And for our EGX and companies talks, a group of five entities announced investing in Nclude Fintech Fund pending the approval of the Central Bank of Egypt (CBE).
Investors include Banque Misr, Banque Du Caire - (BQDC), and National Bank of Egypt (NBE) which pumped around 85 million USD in the fund. Nclude also received investments from Global Ventures and Egyptian Banks Company. The fund’s first investments will be in four projects including online financial solutions app Khazna and e-payment app Lucky. Earlier in March, e-finance for Digital and Financial Investments (EFIH) announced that its board of directors approved to invest 10 million USD in Nclude Fintech Fund. (Amwal Al Ghad)
OPay Egypt, a subsidiary of global e-payment company OPay, has signed a cooperation protocol with Egyptian financial services company Sky Finance.
Under the agreement, OPay Egypt will provide Sky Finance’s clients with OPay Checkout e-payment digital solutions. OPay services will enable Sky Finance’s clients to pay all their installments and loans online. Clients of the financial services company will also be able to use payment options offered by OPay Checkout through the app or the online portal. (Al Mal)
Egyptian extruded aluminum producer Delemar Aluminum is set to hold a general assembly meeting before the end of 2022 to discuss a potential initial public offering (IPO) on the Egyptian Exchange (EGX) in 2023.
The company has acquired a plot of land in the glass complex in Sadat City to build a new factory on a total area of 60,000 square meters (sqm) with 750 million EGP worth of investments. The project will be executed in two phases, the first of which will start before the end of the year with up to 600 million EGP in costs. (Hapi Journal)
Palm Hills Development Company (PHDC) has raised its stake in International Company for Leasing (Incolease) (ICLE) to 15.36% from 9.60%.
As per the acquisition transaction, Plam Hills has purchased around 1.149 million shares in Incolease at a total value of EGP 47.138 million, equivalent to an average price of 41 EGP per share. Palm Hills is an Egypt-based company that focuses on real estate investment in the new cities and urban communities, land reclamation and cultivation, and other activities associated with the Company’s operations. (EGX)
Brmaja Innovation, a subsidiary of Saudi tech firm Brmaja, has signed an agreement with founders of Wellness plus to launch and manage Wellnessplus.live platform for online mental health services.
live is an advanced online wellness hub that connects consultants and therapists with patients to provide high quality wellness services and mental health solutions for people around the globe. The platform is a part of Egypt’s 100 Million Mental Health Initiative. Brmaja is considered to be one of the latest advanced technology companies in Saudi Arabia. It operates in 16 countries including Egypt, Kenya, Nigeria, and the UAE. (Amwal Al Ghad)
Sha7en, a subsidiary of M.B Engineering (MBEN), has signed a contract to manage and operate the charging stations owned by Revolta Egypt.
Revolta Egypt has 30 charging stations across a number of governorates, including Cairo, Giza, Alexandria, Faiyoum, Qalyubia, Port Said, El Sharqia, and the Red Sea. The operating capacity of Revolta’s network amounts to nearly 1,034 kilowatts per hour (kWh) for the alternating current (AC) charging and 200 (kWh) for the direct current (DC) charging. The network is projected to generate annual revenue of around EGP 18 million when the operation rate reaches 80% as per the applied tariff in Egypt. (EGX)
e-finance for Digital and Financial Investments (EFIH) announced that its board of directors has approved to invest 10 million USD in Nclude Fintech Fund.
The board also agreed on purchasing a land plot in partnership with a sister company in the New Administrative Capital, e-finance added, pointing out that the sister company will co-fund the construction at this land plot. In 2021, e-finance recorded a consolidated net profit attributable to the parent company of 519.73 million EGP, up from 353.88 million EGP in 2020. (EGX)
Turning to our investments talks, Growth investment firm Catalyst Partners is set to launch the first impact investment fund in the Middle East and North Africa (MENA) with targeted capita of 1 billion EGP over five years.
Catalyst Capital Egypt Fund will invest in closed small and medium-sized enterprises (SMEs) based on Central Bank of Egypt’s (CBE) guidelines. The fund was founded by Insurance Holding Company, Misr Insurance, Misr Life Insurance, Misr Finance and Investment Fund, Banque Du Caire - (BQDC), Post for Investments, and Attijariwafa Bank. Moreover, the new fund is established according to rules and regulations set by the Financial Regulatory Authority (FRA). (Arab Finance)
Italian multinational oil and gas company Eni is expecting increase contractual liquified natural gas (LNG) volumes to over 15 million tons per annum (MTPA) from projects in Egypt, Angola, Congo, Indonesia, and Mozambique by 2025.
Eni noted that it relied on its alliance with producing countries to fill the gap in gas supplies to Europe caused by the Russian-Ukrainian war. Eni’s reserves and resources have reached 50 trillion of standard cubic feet (TSCF) of gas. The company has added over 14 trillion TSCF of gas resources available for the short and medium term. Moreover, the company is set to reduce its carbon footprint by 65% by 2025 and not net-zero by 2030. Eni is also seeking to increase its renewable energy production by more than 6 gigawatts (GW) by 2025. (Arab Finance)
Integrated Diagnostics Holdings (IDH) (IDHC) is planning to set up 15 new branches of Al Borg Labs and Al Borg Scan before the end of 2022.
This will bring the total number of the labs to 220 across the country. Since the beginning of this year, the company has opened five branches so far. The company is set to open four new branches in Upper Egypt to bring the total number of branches there to 40 by the end of 2022 from 36 branches. Moreover, Yacoub mentioned that the company has conducted about 120 million tests in 30 years since the launch of Al Borg Labs. (Hapi Journal)