B investments to invest 2 billion EGP in healthcare, food sectors in 2023
B investments to invest 2 billion EGP in healthcare, food sectors in 2023. B Investments Holding (BINV) is planning to invest 2 billion EGP, equivalent to 67.5 million USD, in the healthcare and food sectors in 2023, the company’s Chairman Hazem Barakat. The company will complete the acquisition in the healthcare sector before the end of the first quarter (Q1) of 2023, while the second transaction will be executed during Q2. (Asharq Business)
Saudi Obeikan Investment launches ODS head office in Cairo
Saudi Arabian Obeikan Investment Group (OIG) announced the opening of the headquarters of its digital subsidiary Obeikan Digital Solutions (ODS) in Cairo. This expansion in the Egyptian market comes as part of OIG's strategy to provide top-notch technologies to the business community and drive digital transformation in the country. (Mubasher)
GB Auto’s unit sells 45% indirect stake in GB Lease
GB Capital for Financial Investments, a 99.99%-owned subsidiary of GB Auto (AUTO), has completed the agreement to sell a 45% indirect stake in GB Lease, with proceeds of 855 million EGP. Accordingly, GB Auto’s indirect stake in GB Lease after the completion of the transaction. (Al Mal)
Prime Minister Moustafa Madbouly has good news for manufacturers and farmers
The PM announced the approval of new 11% subsidized loans for industry and agriculture as well as a 40% y-o-y increase in the price the state will pay local farmers for wheat this season. Moreover, Madbouly said the imports backlog at ports had been all but cleared and gave some promising preliminary figures for last year’s exports. (Economy Plus)
The Egyptian government raises the local wheat purchase price by more than 40% y-o-y
The state will pay local farmers 1,250 EGP per ardeb of wheat in the 2023 season that kicks off in April, up 25% on the 1,000 EGP it had previously penciled in for this year and more than 40% higher than last year’s price. The state is hoping to give farmers incentives to produce more amid high inflation and rising import costs. The spiraling prices of both agricultural inputs and food imports helped drive food prices up 37.2% y-o-y in December. (Reuters)
Businesses in the industry and agriculture sectors can apply for 11% subsidized loans starting next week after cabinet approved the 150 billion EGP program in its weekly meeting
The new initiative comes to replace the 8% subsidized loans to industry, agriculture, and construction players that were scrapped by the central bank in November. The state is using its own balance sheet to subsidize the cost of the loans taking over a program that had previously been the province of the Central Bank of Egypt. (Al Mal)
The current backlog of imported goods at our ports stands at some 5.3 billion USD, Madbouly said
Of which more than half (3 billion USD) is pending documents from importers rather than hard currency to be released. The government worked to clear goods worth some 4.8 billion USD in four days last week, Madbouly added, putting the total value cleared since 1 December at around 13.9 billion USD. We believe the backlog is quickly falling, but we are not sure yet what a substantial uptick in demand will mean as businesses place new orders.
On the other hand, Madbouly stated that the regular flow of goods through ports means we shouldn’t be waiting for the value of goods at ports waiting for clearance to hit “0” for proof that the backlog has been solved
Pointing to much improved FX liquidity and exchange-rate stability in the local market in recent days as promising signs. On that note, the central bank has once again asked banks to provide it with estimates of their manufacturing clients’ hard currency needs through the end of the current fiscal year in June 2023. (Bloomberg Asharq)
Egypt’s tourism revenues will rise almost 20% in 2023
As more people visit the country on the back of a weaker EGP and the easing of covid-era travel curbs. Fitch Solutions forecasts revenues to reach a record high 13.6 billion USD this year, up 17.7% from 2022. The research firm expects as many as 11.6 million tourists to visit the country, up 46% from last year. The strong outlook for the industry comes on the back of the weaker value of the EGP and favorable market dynamics. The government plans to launch a new tourism strategy later this quarter to bring more people to the country. (Bloomberg Asharq)
Some in the real estate industry are asking for state support
As they battle the economic headwinds that the rest of the business community is presently facing. Developers are asking authorities to give them a breather by extending project deadlines by 9-12 months and exempting them from late delivery fines. Contractors working on government projects are requesting a 4–6-month extension. Developers are also angling for upcoming repayments to be rescheduled and for the government to collect payments for newly-sold lands over long-term periods of up to 10 years. (Al Mal)
Prices of building materials have roughly doubled in price in recent months and the fall of the EGP against the USD in recent months
Could push some developers into bankruptcy. The real question is who will be able to continue and who will not. Not all companies will be able to continue. It is expected that property prices to rise by at least 30% this year on the back of rising material costs. As a refresher, in July, the government gave developers a six-month deadline extension to complete ongoing projects in new cities after the Egyptian Businessmen’s Association submitted a list of demands in April that included rescheduling repayments and extending project deadlines. (Al Mal)
Centamin's production from Sukari exceed 440K ounces in 2022g
Production from Sukari gold mine, Egypt’s first large-scale modern mine, rose 6% year-on-year (YoY) in 2022, hitting 440,974 ounces, compared with just over 415,370 ounces. The production of the mine during the fourth quarter (Q4) of 2022 reached 109,564 ounces, compared to 107,549 ounces in Q4 2021. Centamin was built on the exploration success of our Egyptian founders with the Sukari discovery in the 1990s. (Zawya)
Stay up to date
More Newsletter to Check
SUBSCRIBE TO NEWSLETTER
Subscribe to download our daily economics and business roundup
×
![]()