No tax deduction or refund except for electronic invoices only as of April 1, 2023
No tax deduction or refund except for electronic invoices only as of April 1, 2023. Dr. Mohamed Maait, Minister of Finance, confirmed that all companies operating in Egypt joined the electronic invoice system in December this year, and that as of April 1, 2023, proof of costs or expenses when submitting tax returns, or deducting or refunding value-added tax will only be considered with electronic bills only and what else will be wasted. Noting that more than 313 million electronic documents have been uploaded to the “electronic invoice” system so far.
- Egypt in final phase of IMF loan talks.
Egypt is in the final stage of its negotiations with the International Monetary Fund (IMF) for a new financing package, Prime Minister Mostafa Madbouly stated during the Logos Coptic Youth Forum. Madbouly reiterated that Egypt had adopted the economic reform program and achieved high growth rates. On August 22nd, reports said that the IMF was calling on Egypt to cancel all low-interest lending initiatives including loans for small- and medium-sized enterprises (SMEs) and businesses operating in the tourism and mortgage sectors. (Asharq Business)
- Remittances from Egyptians abroad have reached 32 billion USD, recoding a record level.
Expatriate remittances increased by 1.6% during the fiscal year ending in June 2022, to 31.9 billion USD, compared to 31.4 billion USD during 2020-2021. We believe the numbers came in line with expectations at 32 billion USD, we expect it to rise in the current fiscal year to 33 billion USD. Specifically, the last quarter witnessed an increase of 3% to 8.3 billion USD, compared to 8.1 billion USD a year ago. The price of the Egyptian pound fell to 19.18 against the dollar, falling by more than 22% since last March, its lowest level in 5 years. Meanwhile, the cash reserve at the Central Bank of Egypt shrank to about 33.1 billion USD, which is also the lowest level since 2017. (Hapi Journal)
- Egyptian government starts receiving applications for smart green projects initiatives.
Minister of Planning and Economic Development Hala El-Said announced that the government will start receiving applications for the National Initiative for Smart Green Projects as of August 21st. The initiative addresses climate change in light of the realization of sustainable development and digital transformation goals. It is worth noting that Prime Minister Mostafa Madbouly issued decree no. 2738 of 2022 launching the National Initiative for Smart Green Projects across governorates in preparation for the UN Climate Change Conference 2022 (COP27). (Al Mal)
- Al-Ahly Bank launches its new version of Al-Ahly Net and Al-Ahly Mobile service.
The National Bank of Egypt launched its new version of the Al-Ahly Net service and the Al-Ahly Mobile application on both the Google Play Store and the Apple Store. This comes in the interest of continuously developing digital banking services in support of its strategy aimed at paying attention to the customer and providing the best services to its individual and corporate customers. (Hapi Journal)
- Summer clothing collection of 2022 absent from Egyptian stores.
Summer 2022 is not evident enough in store collections around Egypt, as retailers struggle to keep their commodities in check. This all goes back to the Russian-Ukrainian war in February, when supply disruptions followed by commodity price hikes and shortages became a major concern to all policymakers. Subsequently, the Central Bank of Egypt (CBE) issued a decree that necessitates importers to pay the total value of their imports in advance to a bank using letters of credit. The decision aimed to regulate the import process and foreign currency due to the lack thereof. (Zilla Capital)
- On the other hand, online shopping has been booming since the covid-19 pandemic.
Chinese online retailer Shein has been the fastest growing fashion company in 2022, with valuation of approximately USD 100 billion, preceding the likes of Zara and H&M. We think this a great opportunity for local Egyptian designers to stand out specially for the ones who don’t depend on imported fabric. The local brands who manufacture their products locally, have a golden chance to stand out and grow faster. There is a room to grow and to supply the market demand. (Zilla Capital & Bloomberg)
- Moving to our EGX and companies, valU acquires 100% of Paynas.
valU, a subsidiary of EFG Hermes Holding (HRHO), has fully acquired Paynas, a digital platform that provides financial services to micro, small, and medium enterprises (MSME). The takeover bolsters valU’s position as a provider of seamless financial solutions, as well as helps in pushing Paynas forward to become the leading financial wellness and benefits platform in the Middle East and North Africa (MENA). The transaction comes in line with valU’s strategy to expand its business, enabling the company to reach a larger base of MSME through Paynas. The deal was announced in a signing ceremony with the presence of Minister of International Cooperation Rania Al-Mashat. (Arab Finance)
- Coronation Africa Frontiers Fund Universal sells 2.48% stake in Lecico Egypt.
Coronation Africa Frontiers Fund Universal has sold a 2.48% stake in Lecico Egypt (LCSW) for 16.76 million EGP. The sale transaction was implemented on 1.984 million shares at an average price of 8.446 EGP per share. Accordingly, Coronation Africa Frontiers Fund Universal’s stake in Lecico Egypt fell to 2.57% from 5.05%. Lecico is an Egypt-based public shareholding company engaged in the manufacture of tiles and sanitary ware products. The company offers its products through three segments: sanitary ware products, ceramic tiles, and brassware. (Arab Finance)
- Sky Abu Dhabi acquires 50 acres in New Cairo at a value of 2.5 billion EGP.
Sky Abu Dhabi, the real estate arm of the UAE Diamond Group, acquired an area of 50 acres in New Cairo, where the company plans to implement an integrated urban project in partnership with the New Urban Communities Authority. The company won the plot of land after a competition with Pyramids Real Estate Development and Urban Lines Real Estate Development, at a meter price of 12,000 EGP, bringing the total value of the land to 2.5 billion EGP. This is the third project for the Emirati company in Egypt after Residence Eight, a residential project in the New Administrative Capital, and Capital Avenue, which is a commercial project, on an area of 21 thousand square meters in the R8 area. (Hapi Journal)
- ADIB Egypt, SimpliFi partner to bolster digital payment system in Egypt.
Abu Dhabi Islamic Bank Egypt (ADIB) has partnered up with SimpliFi, a Cards as a Service (CaaS) platform for banking and fintech industries in MENA and Pakistan, to bolster the digitalization of payment for companies in Egypt. Under this partnership, both ADIB Egypt and SimpliFi will jointly cooperate to help companies issue scheme-enabled prepaid cards by cutting cost to launch and time to market, with SimpliFi bringing its innovative CaaS model to Egypt, along with ADIB-Egypt’s expertise in digital banking. (Arab Finance)
- Raya Holding’s unit, Zain Saudi Arabia ink strategic partnership contract.
RAYA Customer Experience (RAYA CX), a subsidiary of Raya Holding for Financial Investments (RAYA), has signed a strategic partnership contract with Zain Saudi Arabia. Under the signed contract, RAYA CX will offer outsourcing services to the leading telecom operator, which will contribute to the improvement of customers' experience in Saudi Arabia. The partnership will build on RAYA CX’s contributions to the outsourcing industry in supporting major companies across the world and will help it bolster its presence in the Gulf region, particularly after the acquisition of Gulf CX in 2021. It is noteworthy that Gulf CX, which was founded in 2015, operates through three branches in Bahrain, Saudi Arabia, and the UAE. (EGX)
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