The Egyptian pound attracts 150,000 new investors to the Egyptian Stock Exchange, and its prices jump
The Egyptian pound attracts 150,000 new investors to the Egyptian Stock Exchange, and its prices jump. The number of new individual investors has reached more than 150,000 since the beginning of this year, compared to the entry of only 53,000 new investors in 2021, which is nearly three times greater. During the months of October and November; 43 thousand new investors entered the Egyptian capital market. This significant rise of the EGX’s prices and indices in recent months is attributed to investors’ anticipation of a decline in the value of the Egyptian pound, especially since other ways to preserve savings such as gold, real estate and the dollar have become difficult to obtain. (Bloomberg Asharq)
- Egypt’s use of mazut fuel oil in power stations has soared to a five-year high as the country works to increase natural gas exports
Figures from the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) showed that mazut accounted for almost 21% of all fuel used by power stations in October, the highest since September 2017 when it registered 22.8%. Burning mazut is four times less expensive than burning natural gas priced at the European TTF benchmark, Eugene Lindell. Egypt has significantly upped its purchase of discounted Russian fuel oil, enabling it to make “massive” savings. (Hapi Journal)
- The Egyptian government intends to impose a new tax bracket of 27.5% on individuals’ annual income exceeding 800,000 EGP (32,000 USD)
In accordance with a draft law amending some provisions of the income tax law. The current applicable income tax limits in Egypt stand at 25% for individuals on annual income surpassing EGP 400,000, and 22.5% for companies generating net profits of over 200,000 EGP a year. According to the document, the draft law amending provisions of the income tax law includes waiving any unpaid tax on capital gains due from selling listed shares on the EGX during the period from January 2022 until the date of initiating the law amendments. The government seeks to begin amending the law as of January 2023 and is subject to the approvals of the parliament and the president before the publication in the official gazette. (Bloomberg Asharq)
- Egyptian pound weakens in parallel market at 36 EGP/USD: Goldman Sachs
The parallel market rate of the Egyptian pound is dwindling and it stands at 36 EGP/USD, despite the real effective exchange rate (REER) model of Goldman Sachs that shows the Egyptian pound as “fundamentally undervalued” on a spot basis. This is driven by a lack of foreign exchange (FX) liquidity in the monetary system, emerging from clear balance of payments weakness. Regarding Egypt’s four-year Extended Fund Facility (EFF) request from the International Monetary Fund (IMF), the two parties are set to discuss the EFF on December 16th after reaching a staff-level agreement in October. The Egyptian government seeks to adopt a “more flexible exchange rate regime” through the new IMF program. (Goldman Sachs Report)
- Eva Pharma, Eli Lilly to localize diabetes biologic drugs industry in Egypt
Eva Pharma has signed a cooperation agreement with Eli Lilly and Company for localizing the production of the biologic medications for diabetes in Egypt and supplying insulin to the low- and medium-income countries. As per the agreement, the UPA has coordinated with Eva Pharma to sign a cooperation agreement with Eli Lilly for the localization of the pharmaceutical industry of diabetes biologic drugs and the provision of insulin supplements to the low- and medium-income countries. (Hapi Journal)
- Egypt Vodafone Group has transferred its 55% stake in its Egyptian unit to its South African subsidiary Vodacom in a 2.37 billion EUR cash and stock transaction
The British company received 242 million shares in Vodacom and EUR 577 mn in cash in return for the majority stake in Vodafone Egypt. Vodafone Egypt is now jointly owned by Vodacom and Telecom Egypt, which holds the remaining 45% of Vodafone Egypt. Separately, the transaction raises Vodafone Group’s stake in its South African unit to 65.1% from 60.5%. The Qatar Investment Authority is reportedly among three Arab sovereign funds in talks with Telecom Egypt to purchase a 20% stake in Vodafone Egypt, which local reports have suggested could close before the end of the year. (Al Mal)
- French cement producer Vicat Egypt has raised its stake in EGX-listed subsidiary Sinai Cement to 67.2% from 51.0%
The company bought a 16.2% stake (c. 21.5 million shares) for 139.6 million EGP (5.66 million USD). Arab Industrial Investment sold (pdf) a 6.6% stake, United Company for Development and Services offloaded (pdf) 4.85% and the Investments Company for Industry sold 3.1%. Vicat tried to mount a takeover bid for Sinai Cement earlier this year, launching a mandatory tender offer for 42.1% of the company’s shares. (Al Mal)
- Cairo-based grocery delivery startup Appetito and Saudi Arabia’s Jumlaty have merged to form a new company called Nomu
The company will have its headquarters in Riyadh with a holding structure in Abu Dhabi’s International Financial Center. Nomu combines Appetito’s presence in Egypt, Tunisia and Morocco and Jumlaty’s operations in Saudi Arabia to give it access to four markets in the MENA region and 100k F&B stores. The merger sees Nomu on track to deliver 25 million USD in revenue and a positive EBTIDA in 2023. (Al Mal)
- UAE-based tech investor Astra Tech is looking to invest 400 million USD in four Egyptian financial services and consumer finance companies next year
The planned acquisitions are part of the company’s plans to create a super app that includes payment and transfer services. Astra Tech is no stranger to Egypt: The company has been present in the Egyptian market since 2018, Abu Sheikh is quoted as saying, adding that the company has so far invested 400 million USD. Earlier this year Astra Tech acquired Emirati super app Rizek, which launched operations in Egypt last year. (Al Mal)
- Cairo Oils suspends soap production until December-end
Cairo Oils and Soap (COSG) announced that it suspended the production of soap until December 31st. The company said that it was considering extending the suspension of soap production until December 31st 2023. Cairo Oils added that the suspension of the soap activity would not negatively affect revenues, as it has been excluded from the company’s plan since January 2022. In October, a company filing showed a sales expectation of 200 million EGP for 2022. (Arab Finance)
- Centamin delivers 1.3M ounce increase in Egypt’s Sukari gold mine
The gold mining company Centamin Plc reported a 1.3-million-ounce increase in the Sukari gold mine's measured and indicated mineral resources, producing 11.11 million ounces at 1.08 grams per ton of gold. This represents a 13% increase in ounces after 12 months of mining depletion and inclusive of mineral reserves. The company also delivered a 5% increase in Sukari proven and probable mineral reserves, reahinncg 6 million ounces at 1.1 grams per ton of gold after 12 months of mining depletion, including 0.8 million ounces of mineral reserves before mining depletion. (Mubasher)
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