The Central Bank of Egypt’s Monetary Policy Committee is expected to raise interest rates by around 200 basis points or more during its last meeting in 2022
The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) is expected to raise interest rates by around 200 basis points (bps) or more during its last meeting in 2022. The potential increase in interest rates would aim to curb inflation and make carry trade attractive. Earlier in December, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced that Egypt’s annual headline inflation rate had risen to 19.2% in November 2022, compared to 6.2% in the same month of 2021. It is worth noting that Egypt’s net international reserves (NIR) stood at 33.523 billion USD at the end of November, growing by 121 million USD from 33.411 billion USD at the end of October. In a special meeting on October 27th, the CBE decided to raise interest rates by 200 bps. (Zilla Capital)
- Banque Saudi Fransi is considering investing in Banque du Caire
The Saudi Bank has expressed interest in acquiring the bank as a strategic investor, explaining that the total value of Banque du Caire may reach, according to the deal, about 3 billion USD. The sources pointed out that no agreement has yet been reached on the size of the deal, whether investing in a minority stake or buying the entire shares of the bank. It is noteworthy that the government plans to attract new investments worth 10 billion USD annually over the course of 4 years, by offering its assets. (Al Shorouk)
- Moreover, as a refresher, Banque Misr acquired Banque du Caire by 99.9%, through a huge purchase deal
That it carried out on 42.9% of its shares on the stock exchange, at a value of 6.97 billion EGP. The average share price in the deal amounted to 6.2 EGP, and it was implemented through the Commercial International Brokerage Company, so that Banque Misr’s share increased after that deal from 57.1% to 99.9%. Banque du Caire has initially registered its shares on the EGX since February 8, 2017, provided that it will complete the final listing procedures at a later time. Listed shares at that time amounted to 2.25 billion EGP, distributed over 562.5 million shares, with a nominal value of 4 EGP per share. (Al Shorouk)
- Egypt to form fair price committee for up to 15 basic commodities
A high committee will be formed of members of the Federation of Egyptian Industries and the Federation of Egyptian Chambers of Commerce to set fair prices for about 10 to 15 strategic and basic commodities. There will be no mandatory pricing, but just a fair price set based on the cost of production and related inputs. The devaluation of the EGP could take its toll prices of basic and strategic commodities across Egypt. (Hapi Journal)
- Egypt assesses size of Nargis block discovery
The volume of the recent natural gas discovery in the Mediterranean’s Nargis block is under assessment. The recently large discovered natural gas field in the Nargis block is the second most important field after the Zohr field. Egypt’s sovereignty of its resources was not negotiable. The Nargis discovery was large and its volume would be disclosed, noting that Egypt’s rights and share with the foreign partner were reserved. Egypt’s exploration plan for fiscal year (FY) 2022/2023 includes 8 billion USD in investments for research, exploration, and development for around 118 exploratory wells. Furthermore, Reuters reported that a survey by the Middle East Economic Survey estimated the size of the new well at 3.5 trillion cubic feet of natural gas. (Al Arabiya)
- It is worth noting that Egypt is trying to maximize its exports of natural gas amid a growing shortage of FX
It is rationing its usage of gas for domestic power production and turning to other types of fuel in order to free up more gas for export. The find comes at a good time for Egypt, which has seen output fall from a peak of 7.2 bn cf per day last September to 6.5 bn cf/d in 3Q 2022. (Zilla Capital & Youm7)
- Germany, Egypt agree on 370.8 million EUR development finance
The governments of Germany and Egypt agreed on 370.8 million EUR in soft development finance, grants, and debt swaps to fund 16 development projects in Egypt until 2024. The projects are being developed in various sectors, including vocational education and training; supporting innovation in the private sector and job market; and energy efficiency and renewable energy. The financings include 258 million EUR in soft development finance, grants, and debt swaps to support the energy axis in Egypt’s Nexus of Water, Food, and Energy (NWFE) program. (Hapi Journal)
- China’s Jushi pilots 200k-ton fiberglass production line in Egypt
Jushi Egypt for Fiberglass Industry has launched of the pilot operation of a new fiberglass production line in its factory in the Ain Sokhna Industrial zone, with a production capacity of 200,000 tons annually. The new expansions at the factory include a new furnace for fiberglass production and storage for final products. The project is located on 120,841 square meters (sqm) at an investment cost of over 320 million USD. The expansion project aims to create 560 jobs. It is worth noting that Jushi’s factory includes three production lines at an investment cost of 600 million USD.
- Local hospitality supply-chain startup Suplyd has raised 1.6 million USD in pre-seed funding
Participants in the round included Endure Capital, Seedstars, Camel Ventures, the International Cooperation Ministry’s Falak Startups, Outlierz, Plus Ventures, Fort, Alex Angels, and other unnamed angel investors. Suplyd will use the funds to scale its tech, team, and operations. Suplyd’s B2B platform offers procurement, fulfillment, and payment services to hotels, restaurants, and caterers in Greater Cairo. The company’s platform and network of tech-enabled fulfillment centers aim to streamline the hospitality supply chain, minimizing waste and improving price transparency. Competitors include OneOrder, which closed a 3 million USD seed round earlier this month. (WAYA)
- EGX unveils details of Vodacom’s offer to buy minority stake in Vodafone Egypt
The Egyptian Exchange (EGX) announced the details of the submitted offer by Vodacom Group regarding the purchase of up to 124,608 shares of 0.05% stake in Vodafone Egypt’s capital. The offer price is €707 per share and it will be paid in the Egyptian pound as per the announced exchange rate by the Central Bank of Egypt (CBE). The offer is valid for 20 days starting from the trading session to be held on December 19th until the end of the trading session to be held on January 15th, 2023, and will be carried out at the EGX five days after this period. On December 13th, Vodafone Group concluded the transfer of its 55% shareholding in Vodafone Egypt to its South African subsidiary Vodacom Group. (EGX)
Stay up to date
More Newsletter to Check
SUBSCRIBE TO NEWSLETTER
Subscribe to download our daily economics and business roundup
×
![]()