Egypt is launching a new “pre-IPO” fund to support companies in their journey to getting listed on the Egyptian stock exchange
Egypt is launching a new “pre-IPO” fund to support companies in their journey to getting listed on the Egyptian stock exchange. The pre-IPO fund aims to acquire public stakes in a number of public institutions to attract more investment, it will also work with strategic investors including sovereign wealth funds ahead of public offerings. The IPO program aims to foster foreign direct investments in the stock market and accelerate the implementation of the government’s plan to exit certain sectors as per the State Ownership Policy Document. Saudi Arabia’s Public Investment Fund launched Saudi Egyptian Investment Company to boost investments in Egypt earlier in August this year. (Al Mal News)
- President Abdel Fattah El Sisi and The United Nations Deputy Secretary participates today in the Egypt Forum for International Cooperation in the New Administrative Capital.
The United Nations Deputy Secretary-General, Amina Mohammed, will attend the second edition of the Egypt International Cooperation Forum, which is scheduled to be held on September 6 at the New Administrative Capital. She will also meet with senior government officials involved in the COP27 process, the UN country team, as well as youth and civil society organizations, the UN spokesman’s office said. According to the Ministry of International Cooperation, the event will be held under the patronage of President Abdel Fattah al-Sisi. It is organized in cooperation with the ministries of foreign affairs and environment, as well as the UN Economic Commission for Africa. The Ministry said in a statement on Saturday that the Forum’s objectives are in line with the upcoming climate summit’s main goal to implement commitments and the pledges in all sectors of the climate change agenda, whether it’s in adaptation, mitigation or finance, loss and damage. The forum sets three main objectives, namely mobilizing resources and facilitating access to finance, financing the mitigation and adaptation agenda to climate change, and discussing national efforts and measures for Africa’s transformation into a Green Economy. (Al Ahram)
- The UK's development finance institution (DFI) and impact investor, British International Investment (BII), announced its plan to invest $100 million in Egyptian startups over its current strategy period.
The DFI, previously known as CDC Group, stressed its commitment to strengthen its partnership with Egypt and raise climate finance to support the country’s green growth, according to a press release on Wednesday. The announcement was made at a business reception, taking place at the British Embassy in Cairo’s Garden City, during which BII launched its new name. Meanwhile, BII highlighted its ‘Innovation for Impact’ Venture Capital (VC) summit taking place this week in Cairo, the first major event dedicated to VC in emerging markets. British Ambassador to Egypt, Gareth Bayley, said: "Egypt is one of BII’s priority markets, given the growth potential this country has to offer. BII’s investment deals, whether in financial services, health or clean energy, illustrate the strength of the UK-Egypt trade and green partnership.” The DFI revealed new commitments to Algebra Ventures and Endure Capital, two leading local VC firms that support and collaborate with the most promising early-stage businesses to build transformative companies across different sectors. (Mubasher)
- Egypt’s government now favors a more flexible currency to support an economy that’s come under pressure from Russia’s invasion of Ukraine.
Egypt is racing to buttress the economy after the war in Ukraine sent Egypt’s food and fuel import bills soaring and helped spur an exodus of foreign portfolio investors from the local debt market. It’s a reversal of fortune for the one-time darling of emerging markets. Drawn to Egypt’s high interest rates, a stable pound and its track record of market-friendly moves, foreigners had pumped billions of dollars into its debt market. A leadership shakeup at the central bank last month only served to spur speculation about the currency outlook after the replacement of Tarek Amer, who’d been governor for about seven years and was seen as supportive of a stable pound. “We as a government do agree that a flexible exchange rate is definitely good for the economy,” Hala Elsaid, Chairwoman of Egypt’s sovereign wealth fund, told Bloomberg Television in an interview. “A large and ambitious IMF program is needed,” Bank of America Corp. economist Jean-Michel Saliba said in a report published on Tuesday. “We assume Egypt shifts to a flexible FX regime within an IMF program.” BofA estimates Egypt’s gross external funding needs for the full year of 2023 at $58 billion, or about 14 percent of gross domestic product, and said it assumes the government can secure a $15 billion extended fund facility program from the IMF for three years. “Large external funding needs call for flexible dollar/pound,” Saliba said. “A flexible dollar/pound is key to help the current-account deficit compress over the coming period.” Finance Minister Mohamed Maait has previously said that Egypt is asking for “definitely less than $15 billion.” Elsaid said “the government is working very hard to increase our foreign exchange receipts by means of an effort to boost exports, foreign direct investment and remittances from abroad.” (Al Arabia)
- Egypt's Decent Life Foundation (FLD) has signed a cooperation protocol with the British University in Egypt (BUE) to implement joint projects that can achieve sustainable development goals.
The protocol aims at enhancing the exchange of experience between the two bodies in development projects and increasing the BUE's involvement in community service to achieve sustainable development goals (SDGs) as part of Egypt's 2030 Vision, according to a statement released by the FLD on Sunday. The protocol includes joint planning and implementing of development initiatives, such as the deployment of medical convoys for dentistry, mental health and public health, the statement added. The protocol was signed by BUE President Mohamed Lotfy and Chair of the Board of Trustees of DLF Aya El-Qamari. (Arab Finance)
- Egypt Aluminum Company (Egyptalum) (EGAL) will offer 65% or $200 million of the cost of rehabilitation valued at $300 million for one of the Arab sovereign funds, according to a statement filed to the Egyptian Exchange (EGX).
The amount will be offered through a capital increase to finance the company's development and maintain its current production capacity rate at 32,000 tons per annum. This came as a response to the comments made on September 6th by the Chairman of Metallurgical Industries Holding Co (MIH) on a TV channel regarding Egypt Aluminum’s plan to offer 65% in its capital increase for one of the Arab sovereign funds. (Mubasher)
- The board of directors of GB Capital for Financial Investments, a subsidiary of GB Auto (AUTO), agreed to sign an agreement with Chimera Abu Dhabi to indirectly sell a 45% stake in GB Lease.
The transaction could be sealed upon the fulfillment of the necessary approvals from the Financial Regulatory Authority (FRA), relevant bodies, and GB Auto’s board of directors. GB Auto is an Egypt-based automotive that operates in trading, distributing, and marketing all transportation means, including heavy trucks, semi-trucks, passenger cars, buses, agriculture tractors, and pick-ups.. (Arab Finance)
- The Egyptian Exchange’s (EGX) Listing Committee has approved the listing of increase in Commercial International Bank Egypt’s (CIB) (COMI) issued and paid-up capital.
The CIB’s issued and paid-up capital shall increase to EGP 29.825 billion from EGP 19.825 billion by EGP 10 billion distributed over 1 billion shares at a nominal value of EGP 10 per share. Accordingly, 0.5044102199-for-1 bonus shares will be distributed, with the eligibility for shareholders on a record date of September 21st. The bank’s shares following the capital increase will be registered on the EGX’s database as of Thursday, September 22nd. (Arab Finance)
- Suez Customs has collected EGP 5.68 billion in total taxes, customs duties, and other charges during August 2022.
The total value of taxes and customs duties collected for imported goods at Suez Customs reached EGP 1.72 billion in August 2022, Akhbar El-Youm recently reported. The value-added tax (VAT) imposed on such goods amounted to EGP 3.46 billion last August, while other charges totalled EGP 426.74 million. In the meantime, Suez Customs exported goods at a total value of EGP 6.52 billion last month. Other charges imposed on such goods came in at EGP 1.93 million. (Mubasher)
- Investment firm Endure Capital announced the closure of a $50 million fund, Endure Capital 21, for investments in early-stage startups in pan-Africa.
The new fund is Endure Capital’s second early-stage venture capital fund. It will focus its investments on impact-driven startups in Africa. “Endure is committed to adding value to the region’s flourishing startup founders, and ecosystem, and we love to partner with founders that relentlessly pursue entrepreneurship as a means for value creation to society and who are building lasting businesses,” Endure Capital’s founder Tarek Fahim commented. Established in 2015, Endure Capital is an early-stage investment firm that participated in the launch of a group of successful funds. (Arab Finance)
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