Let’s begin with our green investments talks, the World Bank grants Egypt 400 million USD financing to build low-emission freight train

Newsletter

04 Oct 2022

Let’s begin with our green investments talks, the World Bank grants Egypt 400 million USD financing to build low-emission freight train. The World Bank Group approved a 400 million USD financing to Egypt to build a low-emission freight train connecting the Alexandria Port to the Dry Port at the 6th of October City. The project will allow for the movement of 15 freight trains daily by 2030 and 50 freight trains by 2060 with the increase in demand. It will increase the number of freight trains connecting ports in Alexandria, Upper Egypt, and the Red Sea. The project will support Egypt’s transformation towards a green economy by reducing greenhouse gas emissions by around 965,000 tons in 30 years. (Hapi Journal)

Egypt is leading MENA in terms of value of green hydrogen projects in the pipeline.
with some 63.8 billion USD of the 180 billion USD worth of projects. Egypt was followed by Oman (48.9 billion USD) and Morocco (16.85 billion USD). Saudi Arabia came in fourth with 10.5 billion USD, while the UAE ranked fifth across the region with USD 10.3 bn. Qatar and Kuwait both ranked last with 15 million USD each. It’s not a surprise that Egypt is in the lead. This summer alone, Egypt signed 32 billion USD worth of preliminary agreements for green ammonia and hydrogen projects with seven international companies set to generate a combined annual capacity of around 5.5 million tons of green fuel in the Ain Sokhna industrial zone. (Middle East Business Intelligence (MEED))
SCZone, Kuwait’s Agility ink agreement to build 60 million USD logistics centers.
The General Authority for the Suez Canal Economic Zone (SCZone) signed an agreement with Kuwaiti logistics company Agility to build two logistics centers with 60 million USD investments. The project will help in the management of the customs system of the SCZone through the automation of customs offices at the zone to facilitate trade for investors. (Arab Finance)
Egypt’s net foreign assets at banks record negative 19.7 billion USD in August.
The deficit of net foreign assets at Egyptian banks grew by around 5% month-on-month (MoM) in August to 19.7 billion USD. Banks’ net foreign assets have been declining since October 2021 before turning into negative territory in February. It is worth noting that CBE’s net international reserves (NIR) stood at 33.14 billion USD at the end of August 2022. (Asharq Business)
El-Sisi meets CBE’s governor to explore monetary policy indicators.
President Abdel Fattah El-Sisi held a meeting with Prime Minister Mostafa Madbouly and Governor of the Central Bank of Egypt (CBE) Hassan Abdallah to monitor the monetary policy indicators and the performance of the banking sector. El-Sisi gave directives for the development of new initiatives to incentivize and attract new foreign investments in the coming period. El-Sisi also called for the continuation of the CBE and the banking system's efforts to secure production and industry inputs with top priority, along with the close follow-up on the import system. (Al Mal)
Moreover, El Sisi received a delegation of Kuwaiti investors headed by the president of the Kuwaiti chamber of commerce last Sunday.
The investors were reportedly interested in renewable energy, tourism, real estate, industry, and healthcare. There’s been speculation in recent months that Kuwait could send inflows our way, following in the footsteps of its Gulf neighbors who have pledged some 22 billion USD in investment to help shore up our economy amid global headwinds. (Al Mal)
Moving to our EGX and companies talks, Saudi Arabia’s PIF buys 34% stake in B. Tech for 150 million USD.
The Saudi Egyptian Investment Company, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), acquired a 34% stake in Egypt's B. TECH for around 150 million USD. B.TECH seeks to increase its revenues by 30% to around 11 billion EGP and round up the number of branches to around 153 by the end of December. It is worth noting that British private equity firm Development Partners International (DPI) owns a 34% stake in B.TECH. (Asharq Business)
Egyptian technology start-up CardoO raises 660,000 seed funding.
The financing round was led by the Alexandria Angels with participation from Sofico Investments, the European Bank for Reconstruction and Development (EBRD), and Saudi Arabian angel investors. According to the statement, CardoO plans to acquire 200 million USD of market share over the next five years. (WAYA)
Rowad downsizes stake in Lecico Egypt.
Rowad Tourism (Al Rowad) (ROTO) sold a stake in Lecico Egypt (LCSW) for 16.349 million EGP. The transaction was executed on 1.514 million shares at an average price of 10.798 EGP per share. Accordingly, Rowad’s stake in Lecico decreased to 3.4% from 5.293%. (Mubasher)
e-finance’s OGM approves 50 million EGP loan contract for subsidiary.
e-finance for Digital and Financial Investments’ (EFIH) ordinary general meeting (OGM) agreed to enter into an 50 million EGP loan agreement with its subsidiary eAswaaq. The OGM also approved a lease contract for a space for eCards company. (EGX)
Nemow for Consulting sells 9.5 million EGP stake in Panda.
Nemow for Consulting Company sold 3.325 million shares in Arab Dairy Products Co. Arab Dairy (Panda) (ADPC) for 9.554 million EGP. The company reduced its stake in Panda to 7.86% from 9.001% for an average price of 2.873 EGP per share. (Mubasher)
EFG Hermes Corp-Solutions, Klickit to offer financial services for education providers.
EFG Hermes Corp-Solutions signed an agreement with e-payment platform Klickit to provide the latter's clients with a set of financial solutions for payment of education fees. Under the agreement, Klickit’s clients of education providers will have access to EFG Hermes Corp-Solutions’ leasing and factoring services to cover their capital expenditures. Capital expenditures covered by EFG Hermes Corp-Solutions comprise all types of assets, including administrative and educational headquarters, school equipment, and transportation fleets. (Hapi Journal)