The Sovereign Fund of Egypt (SFE) is reportedly planning to offer 10-20% of state-owned Misr Ins. Holding after the company was transferred in its entirety to the SFE

Newsletter

16 Mar 2023

The Sovereign Fund of Egypt (SFE) is reportedly planning to offer 10-20% of state-owned Misr Ins. Holding after the company was transferred in its entirety to the SFE. This comes after Egypt’s President issued a decree transferring the complete ownership of the Misr Insurance Holding Company to the Sovereign Fund of Egypt. The company is among 32 state-owned companies that Egypt intends to offer under its initial public offering (IPO) on Wednesday starting with Safi and Wataniya. (Al Borsa News)

Flat6Labs launches a new 95 million USD VC fund to support startups in Africa
Headquartered in Egypt, the Africa Seed Fund (ASF) will focus on three main investment territories in Africa: North Africa, West Africa, and East Africa. Flat6Labs will be extending its reach into several new territories including Nigeria, Ghana, Kenya, Morocco, and Senegal, amongst others. The fund will invest in more than 160 early-stage startups over the next five years that operate in the technology sector in Africa, such as HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and other sectors. (Hapi Journal)
Private equity firm Tanmiya Capital Ventures (TCV) will spend 30 million USD to add two unnamed food companies to its portfolio in 2023
TCV aims to acquire stakes of up to 49% in the firms, which it will acquire through capital increases rather than buying from existing shareholders. The two food firms each have annual sales in the range of 500 million EGP to 1 billion EGP and significant hard currency income streams from exports. TCV in November said it was planning to add three unnamed companies to its portfolio in 2023, which already contains Abu Auf, Hassan Allam Utilities, Mifad, Plant Form and Tamweel Holding. (Al Mal)
It’s worth noting that the acquisitions will be financed with funds from TCV’s existing shareholders.
TCV acts as a fund manager for the Egyptian-American Enterprise Fund, which has invested a total of 30 million USD in TCV transactions since 2019. TCV is also considering establishing partnerships with new investors to garner fresh funds. (Al Mal)
Raya Holding’s non-banking financial services subsidiary Aman Financial Services intends to roll out installment services in Saudi Arabia
Within two to three months as part of its regional expansion plans. The firm’s Saudi arm will be established in partnership with an undisclosed Saudi investor with a large commercial presence, noting that the partners plan to launch other financial services in KSA in the future. (Al Mal)
And for our diplomatic talks, Iran wants to build on last week’s diplomatic breakthrough with Saudi Arabia and improve ties with Egypt, Jordan and Bahrain
Iran’s Foreign Ministry spokesperson said. “Egypt is an important country and the two countries value each other in the region … We believe in the need to take new steps to improve the relations between the two countries,” Nasser Kanaani said. This came a few days after Tehran agreed to normaliza diplomatic relations with Saudi Arabia, seven years after the two nations cut ties. (Zawya)
President El Sisi and Prime Minister Moustafa Madbouly met last Tuesday Italian Foreign Minister and deputy PM Antonio Tajani, who is heading a delegation of Italian companies to Egypt
The delegation, featuring representatives from 30 agriculture, irrigation, and food processing companies, banks, and financial institutions, sat with Prime Minister Moustafa Madbouly to discuss investment opportunities in Egypt. El Sisi discussed energy, migration and economic ties in his meeting with Tajani. (Zawya)
Moreover, Egyptian-Swedish Business Forum launched to boost economic relations
The Egyptian-Swedish Business Forum was launched to bolster economic relations between both countries. Swedish companies to consider investment opportunities in the sectors of renewables, green hydrogen, healthcare, equipment, information technology, and transport in Egypt. The two countries have agreed to launch an Egyptian-Swedish Business Forum in Egypt in the coming period. It is worth noting that the trade between both countries reached 1.12 billion USD in 2022, representing a 30% year-on-year increase. (Arab Finance)
Egypt offers real estate notarization services at 116 post offices.
Egypt’s Ministry of Justice has partnered with Ministry of Communications and Information Technology to offer real estate notarization services at 116 post offices across the country. The number of total transactions has reached 1.6 million so far since the launch of the service. (Arab Finance)
Egypt to establish railways spare parts factory in Beni Suef
The Egyptian National Railways (ENR) signed an MoU with Linza Egypt to establish of a joint factory in the industrial zone of Kom Abu Rady in Beni Suef to manufacture all types of railways spare parts. The ministry is keen to make Egypt the first country to manufacture railways’ mobile units in the Middle East and Africa. It is worth noting that a joint venture firm will be established to manage the new factory. (Arab Finance)
Moving to our macro talks, Egypt’s exports hit fresh record high of 51.6 billion USDin 2022
Egypt’s total exports surged 18.3% year-on-year (YoY) during 2022. Egyptian exports jumped to 51.6 billion USD in 2022, compared to 43.6 billion USD in 2021. Last year's figure marks the highest value ever in the history of Egyptian merchandise exports. (CAPMAS & Al Mal)
The top commodities that Egypt exported in 2022 included liquefied natural gas (LNG) at a total value of 10 billion USD
Fertilizers at 3.3 billion EGP, crude oil at 3 billion EGP and petroleum products at 3 billion EGP. It also included ready-made garments worth a value of 2.5 billion EGP and plastics with 1.8 billion EGP. (CAPMAS & Al Mal)
Finally, on the global level, Credit Suisse’s shares tanked today, closing down nearly 29% after the Saudi National Bank, its biggest investor, said it would not provide the Swiss bank with any further financial assistance
Credit Suisse (CSGN.S) lost almost a quarter of its value on Wednesday, dropping to a new record low. The Saudi lender acquired a stake of almost 10% last year after taking part in Credit Suisse's capital raising and committed to investing up to 1.5 billion USD. (Reuters)