On the back of hikes in fuel prices and the continued depreciation of the EGP
On the back of hikes in fuel prices and the continued depreciation of the EGP, annual urban inflation rose 31.9% y-o-y in the second month of the year, up from 25.8% in January. This is the highest rate since August 2017 and is up from just 10% in February 2022. The uptick was primarily driven by food prices, which have increased 61.8% y-o-y. February inflation was the highest since August 2017, nine months after another steep devaluation, when it reached 31.92%. The high February inflation number renews pressure on the central bank’s Monetary Policy Committee to raise interest rates when it meets on March 30. (Bloomberg Asharq)
The bourse is reportedly studying temporary listings for four companies
The listings would, if executed, bring the total number of companies temporarily listed on the EGX to seven. The FRA had introduced new listing rules back in September that allow companies to “temporarily” list their shares on the EGX for six months as they work to meet listing requirements. Also, the government reportedly hopes to wrap up a roadshow and receive offers for a 10-20% stake in national telecoms provider Telecom Egypt (TE) before the start of Ramadan. (Bloomberg Asharq)
CBE calls for advisory proposals from investment banks on United Bank sale
However, major investment banks, including EFG Hermes, CI Capital, and Al Ahly Pharos, have not received any requests yet. Additionally, one of the sources revealed that an international investment bank will be arranging the sale, in cooperation with a local bank. The move came after discussions with the Saudi Public Investment Fund (PIF) to acquire the United Bank of Egypt failed due arguments over calculating the impacts of devalued Egyptian pound on the deal. (Bloomberg Asharq)
You can now send more money through InstaPay, after the Central Bank of Egypt (CBE) raised the limit for each transaction to EGP 70k, from EGP 50k previously
The Central Bank of Egypt (CBE) has amended the daily and monthly withdrawal limits through payment service providers (PSP) applications certified by the rules regulating participation in the Instant Payment Networks (IPN). The daily transaction limit on the CBE’s national digital payments app will become 120,000 EGP, up from 60,000 EGP previously, while monthly transactions will be capped at 400,000 EGP, rising from 200,000 EGP. The new limits come into effect next Wednesday, 15 March. (Al Mal)
The Central Bank of Egypt (CBE) has issued new regulations allowing contactless card payments via mobile apps
Consumers will be able to register cards “of all kinds” to their smartphone e-wallets to make contactless and online payments. The statement says the system will be compatible with Apple Pay and Samsung Pay, among other e-wallets. The CBE’s move is part of the government’s drive to move towards a cashless economy. (Hapi Journal)
The central bank didn’t introduce new ATM withdrawal fees
ATM withdrawal fees are still capped at EGP 5, the cabinet said, putting an end to rumors that the CBE had raised withdrawal fees to 20-50 EGP. Ten banks are now charging fees of between 20-50 EGP for withdrawing cash using credit cards. (Al Mal)
Agthia is looking to make Egypt an export hub for its products
Agthia last year bought a 60% stake in Egyptian food company Auf Group, and in 2021 acquired 75% of Atyab brand owner Ismailia Agricultural and Industrial Investments. The company‘s intent in Egypt is really now to bed those acquisitions, consolidate them and unlock the potential there to see how we can build Egypt as an export hub as well. The company currently exports around 16.3 million USD from Egypt. (Reuters)
IFE signs 2 agreements to support EVs industry localization, food industry in Egypt
The Facility Investing for Employment (IFE) has signed two grant agreements worth 6.5 million EUR with Ghabbour Foundation for Development and the Dutch Ice Cream Company (DARA’s Ice Cream) to create 1,200 direct and indirect job opportunities. The deal signed with Ghabbour Foundation aims to localize the electric vehicles (EV) industry in Egypt and create up to 500 job opportunities. (Arab Finance)
State-owned Metallurgical Industries Holding Company (MIH) signed a MoU with the Egyptian arm of Saudi wealth fund PIF to increase the capital of its subsidiary El Nasr Glass aand Crystal Company
The fresh investment will be used to add production lines making glass panels used in solar plants, the statement read, without specifying the value or mechanism of the investment. The agreement comes as part of the state ownership policy, which aims to more than double the private sector’s role in the economy and attract private investment. (Al Mal)
China Energy to start establishing 5.1 billion USD green hydrogen plant in Egypt in May
China Energy and Egypt signed last November a memorandum of understanding (MoU) to establish a green hydrogen production project in Egypt, with the possibility of exporting green ammonia to European markets, a move that would bring more hard currency for the country. (Al Mal)
Government bodies signed agreements with international pharma firms including a Saudi and Emirati company to build pharma factories and diagnostic labs here in Egypt.
UAE investment firm Scope, Saudi chemicals maker Oxide Chemicals, and state-owned vaccinemaker Vacsera will set up a JV to build, manage, and operate a factory for biodegradable syringes and other medical supplies. The factory will be built at a cost of 10 million USD at Vacsera’s Sixth of October industrial complex. (Hapi Journal)
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