Sisi: All obstacles to "Letter of Credits" in Egypt will be resolved within a month or two | Zilla Capital

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28 Sep 2022

Sisi: All obstacles to “Letter of Credits” in Egypt will be resolved within a month or two

Sisi: All obstacles to “Letter of Credits” in Egypt will be resolved within a month or two. The state is looking to address and resolve issues that stand in the way of investors so that administrative procedures are fast and efficient for investors and industrialists who are looking to enter the Egyptian market. We believe that this is a positive matter as it comes at a time after importers lost hope of opening letter of credits, and the possibility of dealing again with foreign companies to import its goods to the Egyptian market. Also, it’s worth noting that these statements come in parallel with the hopes that an agreement with the IMF will be reached soon, and the availability of more hard currency in the market. (Asharq Business)

The EGP felt close to record lows against the greenback last monday, continuing a slide that has seen the currency lose more than 24% of its value against the USD since March.
The currency dipped another two piasters against the USD yesterday, reaching 19.5584. This is marginally higher than the record low of 19.5605 set in December 2016 in the wake of the EGP float. The Central Bank of Egypt has allowed the currency to fall gradually against the USD in recent weeks, weakening almost 2% since Hassan Abdalla was made governor in mid-August. Over the same period, the EGP has performed better against other major currencies, gaining 3.5% against the EUR and 4.8% against the JPY, suggesting that this is more a story of a strengthening USD than a weaker EGP. (Asharq Business)
The highest ever... Egyptian banks offer 642 billion EGP of liquidity to the Central Bank of Egypt (CBE).
The CBE must have the highest amount ever in the weekly bid for open market deposits, by 641.95 billion EGP (about 32.85 billion USD), which indicates the urgency of banks to take advantage of the largest possible return before implementing the latest CBE’s decision to increase the reserve ratio from 14% to 18%. (Asharq Business)
Egypt aims to offer stakes in Wataniya, Safi on EGX before end-2022.
The Egyptian government is targeting the listing of stakes in Wataniya Petroleum and National Co. for producing natural water (Safi) in the Egyptian Exchange (EGX) before the end of 2022. Madbouly stressed that the meeting comes in line with the currently conducted studies to offer stakes in companies affiliated with NASPO in the stock market as per the directives of President Abdel Fattah El-Sisi. Moreover, the meeting tackled the available options in light of the future goals for the companies as well as the submitted bids by investors interested in participation. (Al Mal)
El-Sisi urges government to accelerate establishment of strategic pharmaceutical storage system.
President Abdel Fattah El-Sisi has urged the government to speed up the process of establishing strategic warehouses for medical storage across the country. This move aims at saving sufficient strategic reserves that meet the current and future demand for medical and pharmaceutical supplies. The warehouses shall be established in accordance with international standards, utilizing the latest technologies, while providing the factors for the sustainability of management and operation. (Arab Finance)
Amazon eyes further investments in Egypt.
Amazon Egypt is planning to boost investments in Egypt and is seeking to promote knowledge share and exchange of expertise. The technology company is also seeking to provide exceptional opportunities to customers in Egypt through a unique shopping experience in terms of competitive prices, a wide range of options, and rapid delivery services. (Arab Finance)
Egypt, Japan’s Mitsubishi mull rehabilitation of 58 trains for Cairo Metro.
Egypt is considering the rehabilitation of 58 trains for Cairo Metro Line 1 and Line 2 in cooperation with Japan’s Mitsubishi Corporation. During his visit to Japan, Minister of Transport Kamel El-Wazir discussed with the Executive Vice President at Mitsubishi Koji Ota a cooperation plan in the transport sector, including the underground, maritime transport, dry ports, and others. The plan tackled the rehabilitation of 23 trains for Cairo Metro Line 1 and 35 trains for Line 2, in addition to manufacturing and supplying 23 trains for Line 4. (Arab Finance)
Egypt, Spain considers bolstering bilateral economic ties.
Trade exchange between Egypt and Spain grew by 31.3% to over 2.7 billion EUR in 2021, versus 2.1 billion EUR in 2020. Egyptian exports to Spain recorded 1.192 billion EUR in 2021, surging by 80.5% from 659 million EUR in 2020. Spanish investments into Egypt stood at 826 million EUR in the fields of power generation, renewable energy, building materials, and food industries, along with the huge cooperation in the transport sector. (Arab Finance)
And for today’s startup talks, Mazaya, Egypt’s B2B e-commerce marketplace, raises 5 million USD in a pre-seed round.
Mazaya, an electronics B2B e-commerce marketplace, raised 5 million USD in a pre-seed round led by Raya Trade and Distribution, a subsidiary of Raya Holding for Financial Investments. Mazaya is planning to use the raised capital to develop and improve their technology, expand their local operations by adding new categories and increase their reach and footprint in rural areas. It will also enable them to grow their retailers by providing them with access to various financial services. The startup aims to expand into new markets in Africa as well. (WAYA)
Tabby and Paymob partner to provide tabby’s BNPL payment solutions to Paymob’s network.
Tabby, Middle East’s Buy Now Pay Later (BNPL) payments and shopping app, and Paymob, an omnichannel payments facilitator in MENAP, announce their partnership enabling businesses across Paymob’s network to benefit from Tabby’s split in four, interest and fee-free payment solution via Paymob’s gateway. Through the partnership, the two FinTech players Tabby and Paymob, aim to create a seamless Buy Now Pay Later solution for both in-store and online retailers.” Tabby has recently expanded its operations and services in Egypt working with both local and international brands such as Faces, In Your Shoe, KAI Collections, Ariika, Marcqa, Dresscode, L’azurde, and Floward. (WAYA)
Abu Dhabi Commercial Bank and Sympl partner to offer BNPL solutions to debit card holders.
Abu Dhabi Commercial Bank and Sympl partner to offer buy now and pay later (BNPL) services to the bank’s debit card holders with an exclusive 10% discount on their purchases. Debit card holders can now split their payments on short-term payment plans with no interest and with no registration process. Sympl is a FinTech platform that enables its partner merchants to increase sales by selling their products and services directly to eligible bank card holders on short-term, 0% interest payments with three, four- or five-months plans. (WAYA)
And for our EGX and companies talks, ICID sells 4.4 million EGP land.
International Company for Investment and Development (ICID) announced the sale of a piece of land for 4.395 million EGP to Depocoat for Metal Coating. The land spans 1,255 square meters (sqm) and was priced at 3,500 EGP per sqm. It is worth noting that ICID posted a recorded consolidated net profit attributable to the parent company of 838,037 EGP in the first half (H1) of 2022, down by 35.5% from 1.29 million EGP in H1 2021. (Mubasher)
ADI Capital leads arrangement of 2 billion EGP Islamic syndicated loan for Elsewedy Electric.
UAE’s Abu Dhabi Islamic Capital (ADI Capital), the banking arm of Abu Dhabi Islamic Bank Egypt (ADIB), announced that it successfully arranged a 2 billion EGP Islamic syndicated financing for subsidiaries of Elsewedy Electric (SWDY) at the revolving Mudarabah system. The financing will help the company and its subsidiaries to expand the industrial activities of the group and its subsidiaries. (Al Mal)