The EGP notched a new record low yesterday as the currency dipped another 5%

Newsletter

01 Nov 2022

The EGP notched a new record low yesterday as the currency dipped another 5% in the wake of the central bank’s decision to move to a “durably flexible” exchange rate on Thursday. The currency closed the day at 24.2 to the greenback, according to central bank figures. The EGP has now tumbled 22.1% since Thursday and is down 53.0% since the start of the year, making it one of the worst-performing emerging-market currencies of 2022. We believe that USD/EGP to remain under pressure in the coming days as it finds a clearing level. (Asharq Business)

Auto sales fell 49.8% y-o-y in September 2022 to around 11.4k units sold as the market continued to struggle with import restrictions
Passenger car sales dropped nearly 58.9% y-o-y last month to just 6.8k vehicles, according to figures provided by the Automotive Information Council (AMIC). It’s Nafeza deadline day tomorrow: Importers, exporters and customs agents have just one day left to register to join the Finance Ministry’s digital customs system Nafeza before they can no longer clear goods out of customs at seaports. (Hapi Journal)
Egypt to launch roadshow in November for Pre-IPO Fund
The Egyptian government is set to launch a roadshow in November to promote the pre-IPO fund in a number of world capitals, Minister of Planning and Economic Development, Hala El-Said said. The fund is receiving attention from Arabian sovereign funds. It’s noting that the capital of the pre-IPO fund is expected to reach EGP 1 trillion over the next five years. (Asharq Business)
El-Sisi urges expansion in renewable energy projects
The president gave directives for expansion in the manufacturing of components used in the production of new and renewable energy, including wind turbines and solar panels. Mohamed Shaker, the Minister of Electricity and Renewable Energy, demonstrated the national project for electricity generation from new and renewable energy, especially wind and solar power projects. Moreover, Shaker presented updates on cooperation with global expertise in the generation of green hydrogen using renewable energy. (Arab Finance)
CBE cancels MPC meeting on November 3rd
The Central Bank of Egypt (CBE) decided to cancel the meeting of the Monetary Policy Committee (MPC) on November 3rd. The CBE ascribed his decision to the sufficiency of the special meeting of the committee on October 27th. On October 27th, MPC decided in a special meeting to raise interest rates by 200 basis points. (Hapi Journal)
Egyptian government, E-Finance launch SPGS platform
The Egyptian government, in collaboration with e-finance for Digital and Financial Investments (EFIH), launched the SPGS governance system to be linked to the electronic tax invoice system (E-Invoice). The new system will facilitate many tasks for administrative bodies in Egypt, including entering into contracts, procurement of goods and services, and contracting works. Minister of Finance, Mohamed Maait, stated that the government is continuing to realize presidential directives for promoting governance in the state’s financial system and collecting the Public Treasury’s dues. (Arab Finance)
Egypt, Saudi Arabia ink MoU to support competition, prevent monopoly
The Egyptian Competition Authority (ECA) and Saudi Arabia’s General Authority for Competition (GAC) signed a memorandum of understanding (MoU) to set a framework for effective cooperation between both bodies. The MoU aims to promote competition and prevent monopoly practices in Egypt and Saudi Arabia. (Arab Finance)
IFAD, partners to offer Egypt 2 billion USD financing for food security
The United Nations’ International Fund for Agricultural Development (IFAD) and other international institutions are set to provide $2 billion in financing to Egypt to boost the country’s food security. The financing will be provided to Egypt through loans until 2030 under the Nexus of Water, Food, and Energy (NWFE). NWFE is a program that aims to accelerate the achievement of Egypt’s climate goals to be announced during the 2022 United Nations Climate Change Conference (COP27). The funding will be directed to smallholder farmers. (Arab Finance)
Egyptian startups receive over 500 million USD FDIs in 2022
The foreign direct investment (FDI) pumped in Egyptian startups reached over $500 million in 2022. Floating the exchange rate of the USD against the EGP will attract more investments to Egyptian startups in the last two months of 2022. It is expected an increase in foreign investments in all sectors of startups, adding that entrepreneurial investors do not focus on a certain sector. In 2021, total funding secured by startups in the Middle East grew 15% to 2.5 billion USD. (Asharq Business)
Money Fellows secures 31 million USD in series B funding round
Egyptian fintech startup Money Fellows raised 31 million USD in a series B funding round. The funding round was led by CommerzVentures and is aimed at geographical expansion. Among participants in the round were Middle East Venture Partners, Arzan Venture Capital, Invenfin, National Investment Co. Partech, Sawari Ventures, 4DX, and P1Ventures. Founded in 2016, the Money Fellows app digitalizes money circles or rotating saving and credit associations. (Hapi Journal)
EFG Hermes acts as bookrunner on Riyadh Cables’ IPO
EFG Hermes Holding (HRHO) has been appointed as bookrunner on the initial public offering (IPO) of Riyadh Cables Group Company in the Saudi Stock Exchange (Tadawul). The Egyptian investment bank acts as an institutional bookrunner on the IPO along with ANB Capital. It is worth noting that Riyadh Cables Group Company obtained the approval of the Capital Market Authority to offer 22% stake or 33 million shares for public subscription. (Arab Finance)
Al Khair River’s OGM approves Al Ahly Group for Modern Agriculture’s capital increase
The ordinary general meeting (OGM) of Al Khair River for Development Agricultural Investment and Environmental Services (KRDI) approved raising Al Ahly Group for Modern Agriculture’s capital by 40 million EGP. The OGM agreed to increase Al Ahly Group’s capital to 100 million EGP from 60 million EGP. The decision requires a contribution of 22.912 million EGP by Al Khair River to increase the capital of Al Ahly Group. Al Khair River’s stake of 57.28% in Al Ahly Group will remain the same after the capital hike. (Mubasher)
Target sells stake in Lecico Egypt, raises stake in Rowad Tourism
Target for Real Estate Investment, Development, Agricultural Reclamation, and Tourism Development sold 2.983 million shares in Lecico Egypt (LCSW) for 29.624 million EGP. Accordingly, the company’s stake in Lecico Egypt fell to 2.257% from 5.986%. According to a separate disclosure, Target for Real Estate Investment purchased 1.075 million shares in Rowad Tourism (Al Rowad) (ROTO) at a value of 28.95 million EGP or 26.907 EGP per share. As a result, Target’s stake in Rowad Tourism rose to 10.689% from 4.474%.