Diamond and silver licenses for industry are coming into play after the success of the previous golden licenses

Newsletter

30 Jan 2023

Diamond and silver licenses for industry are coming into play after the success of the previous golden licenses. Since the Madbouly government last year made fast-track gold licenses for industry easier to obtain, we’ve seen a surge in interest among industrial players looking to get their hands on the license. Now, there could be at least two new tiers of licenses, alongside some new incentives, introduced to help capture some of this action and to support ailing industrial players. (Al Mal)

The licenses allow investors to obtain a single approval for all phases of a project
From land allocation through operation. The one-stop-shop license is given to investors working on strategically valuable national projects and those aligned with the government’s development strategy. Golden licenses were late last year awarded to some 9 big ticket projects including a USD 5.5 billion green ammonia plant in Ain Sokhna and an 8.8 billion EGP home and electrical appliances manufacturing and assembly facility group in Menoufia. (Al Mal)
Most importantly, investors need to know how these policies will be put into practice
Despite a generally optimistic outlook on these new programs, industrial sector players are still waiting closely to see how these policies will be implemented and whether coordination between various government entities will actually be achieved. Putting these new incentive schemes into practice will be crucial in re-instilling confidence to local and foreign investors and strengthening the industrial sector in Egypt. (Zilla Capital)
It is still unknow when we’ll hear from the government’s fuel pricing committee
It is expected at any time soon that the committee will meet to decide on fuel prices for the current quarter. The committee usually meets at the beginning of every quarter to decide on fuel prices for the coming three months. The government has increased prices at the pump by 23-28% since April 2021, and decided on a rare fuel oil price hike last July. The government has committed to changing local fuel prices in line with movements in the global markets under the 3 billion USD loan agreement with the IMF. (Zilla Capital)
Mashreq Bank received the central bank’s approval to issue one-year certificates of deposits (CDs)
The savings products will reportedly offer a 22.5% return with interest to be paid out monthly. The bank will also issue three-year CDs offering buyers a one-time payment of 19% on maturity, or opt for payments monthly (18.75%), quarterly (18.80%) or semi-annually (18.90%). On the other hand, the National Bank of Egypt and Banque Misr announced they would be pulling their 25% one-year CDs at the end of the month. CIB, QNB Al Ahli and Banque du Caire also launched high-interest CDs of their own as defensive measures to protect deposits. Expect all of the banks to pull their CDs from the market at the same time. (Al Mal)
Egypt to make 13.3 billion EGP investment in Matrouh in FY 2022/23
Egyptian Ministry of Planning and Economic Development will invest 13.3 billion EGP in Matrouh Governorate under the fiscal year (FY) 2022/2023 plan. The ministry is carrying out up to 217 development projects in the governorate as per the plan. This marks the fourth consecutive year to announce the investment plan for investment across the state’s governorates. (Arab Finance)
Indian billionaire Gautam Adani eyes further cooperation with Egypt
Indian billionaire Gautam Adani, Chairman and Founder of Adani Group, is looking forward to further cooperation with Egypt to support development in light of Egypt’s attractive and stable investment climate. Moreover, the group aims to enter partnerships with the Sovereign Fund of Egypt (TSFE). (Arab Finance)
Egypt to mint 3 million coins of EGP-note to commemorate people of determination’s efforts
Ministry of Finance is set to launch EGP 3 million worth of coins of the EGP-note bearing the slogan of “Differently Abled” to appreciate the efforts of people of determination. The best design of the "People of Determination" coins was chosen from 4 designs by the Public Treasury Authority, so that 3 million coins in of the EGP 1 note would be minted. (Arab Finance)
Egypt to unveil IPO program details within 2 weeks
Madbouly. The Egyptian government is planning to unveil the plan for offering state-run companies on the Egyptian Exchange (EGX) in 2023 within two weeks. This announcement has been made after a series of postponements for the plan due to the unfavorable conditions of the market. (Asharq Business)
CIB fully acquires Mayfair CIB in Kenya
Commercial International Bank Egypt (CIB) (COMI) has obtained the approvals of the Central Bank of Egypt (CBE) and the Central Bank of Kenya (CBK) to acquire the remaining 49% of Mayfair CIB for 40 million USD. Mayfair CIB is now a fully owned subsidiary of the bank. CIB entered the Kenyan market in April 2020 with the acquisition of a 51% stake in Mayfair Bank. (Mubasher)
Misr Chemical Industries posts 191% YoY profit hike in 6 months
Misr Chemical Industries Company (MICH) reported a 191% year-on-year (YoY) hike in net profit after tax for the first half (H1) of fiscal year (FY) 2022/2023. The company recorded a net profit of 280.58 million EGP in H1 FY 2022/2023, compared to a profit of 96.48 million EGP in the prior-year period. Sales totaled 455.84 million EGP in the six months to December 31st, 2022, up from 270.56 million EGP in the same period of FY 2021/2022. (EGX)