The CBE issues important controls for the use of foreign exchange in import and export

Newsletter

21 Sep 2022

The Central Bank issues important controls for the use of foreign exchange in import and export. Gamal Najm, Deputy Governor of the Central Bank, for banking stability, in which it was emphasized that the proceeds of cash deposits of companies in foreign currencies resulting from export operations with neighboring countries (Libya, Syria, Sudan, Palestine, Iraq, Yemen) be accepted and used in carrying out operations. The Central Bank must be referred to in case of export and cash deposit with any country other than the mentioned countries. The set limit in accordance with the Minister of Trade and Industry Decision No. 126 of 2022 that imports are released for private use up to 25 thousand USD once every 6 months, while those exceeding 25 thousand USD are released using Form 4 taking into account the commitment with the Central Bank’s instructions issued No. 49 dated February 13, 2022 and subsequent amendments. (Al Mal)

Egypt postpones ACI piloting to January 1st 2023.
The Egyptian government decided to postpone the pilot application of the advance cargo information (ACI) system at airports until December 31st. The obligatory application of the ACI system will start on January 1st 2023 instead of October 1st 2022 to give importers, customs brokers, airfreight agents, and exporters in Egypt more time to adjust their legal situation and register in the new system. It is worth noting that the new system aims to update and automate customs through simplification and digitalization of procedures, as well as reducing customs clearance time and the cost of both imports and exports. (Al Mal)
CBE receives 100 billion EGP liquidity from local banks.
The Central Bank of Egypt (CBE) received 519.75 billion EGP worth of open market fixed deposit offers from local banks. The CBE accepted 100 billion EGP of offered bids with a fixed rate of 11.75%. By 1:48 PM Cairo time, the USD grew against the Egyptian pound, recording 19.44 EGP. (Al Mal)
Tawasol-LimeVest consortium ups bid to acquire Alex Medical.
The Tawasol-LimeVest consortium has increased its bid to acquire 100% of Alexandria Medical Services a day after Yas Holding reentered the bidding war for the healthcare provider. The company has upped the per-share price of the offer by some 2.8% to 49 EGP per share, the Financial Regulatory Authority said in a statement. The offer values Alex Medical at some 763.2 million EGP and comes in some 2% higher than Yas’ offer. (Al Mal)
Elsewedy Electric’s unit, EIPICO to build 418 million EGP factories.
Rowad Modern Engineering, a subsidiary of Elsewedy Electric (SWDY), has signed a new contract with Egyptian International Pharmaceutical Industries Company (EIPICO) (PHAR) for the construction of three factories at a value of 418 million EGP. The three factories will be built in the 10th of Ramadan City for the production of biosimilar and biological products. The project will be carried out within a 13-month period starting from the date of signing the contract on a turnkey basis. (Arab Finance)
Sha7en, a subsidiary of M.B Engineering (MBEN), obtains EVs charging station license.
The company received the license in accordance with a letter issued on September 19th as per the circular letter no.5 of 2022. In March, M.B Engineering announced it was seeking to obtain a license to operate electric vehicles (EV) charging stations through its subsidiary Sha7en. (Arab Finance)
Maersk to build 15 billion USD clean ship fuel project in Egypt to produce clean fuel for ships.
The project is expected to create more than 100,000 job opportunities in different specialties. It is worth noting that El-Sisi gave his directives for initiating cooperation with Maersk to construct a national integrated network in Egypt to produce and distribute green energy and clean ship fuel. (Economy Plus)
Nile Pharma’s profits jump 39.2% YoY in FY 2021/2022.
El Nile Company for Pharmaceuticals and Chemical Industries (Nile Pharma) (NIPH) reported a 39.19% year-on-year (YoY) increase in net profits for fiscal year (FY) 2021/2022. Net profits amounted to 89.67 million EGP in FY 2021/2022, compared to 64.42 million EGP in the FY before. The company also achieved operating revenues of EGP 876.77 million in the FY ended Jue 30th 2022, compared to 755.51 million EGP in FY 2020/2021. Nile Pharma manufactures and markets pharmaceuticals, various types of medical materials, chemical products, and cosmetics, as well as surgical threads and medical solutions. (Mubasher)
Alexandria Flour Mills posts 104.4% YoY surge in FY 2021/2022 profits.
Alexandria Flour Mills (AFMC) posted a 104.37% year-on-year (YoY) growth in net profit during fiscal year (FY) 2021/2022. Net profit after tax grew to 37.026 million EGP in the 12-month period ended June 30th from 18.117 million EGP in FY 2020/2021. The company generated revenues of 220.459 million EGP in FY 2021/2022, up from 185.477 million EGP in the FY before. (EGX)
Cmar’s OGM nods to dividends distribution to shareholders.
The ordinary general meeting (OGM) of Egyptian Arabian Securities Brokerage (Cmar) (EASB) approved the cash dividend payment of 4 piasters per share to shareholders. Cmar, formerly known as Egyptian American Company for Securities Brokerage, is an Egypt-based public shareholding company engaged in the provision of investment services. (EGX)
Sustainable Capital Africa Alpha Fund raises stake in Orascom Construction.
Sustainable Capital Africa Alpha Fund has raised its stake in Orascom Construction Plc (ORAS) to 16.16% from 15.13%. The company purchased nearly 35,000 shares in Orascom Construction on September 18th at a price of 64.336 EGP per share. (EGX)