Starting our issue by the Federal Reserve two days meetings. The Federal Reserve started its two-day policy meeting yesterday to decide what to do with interest rates

Newsletter

22 Mar 2023

Starting our issue by the Federal Reserve two days meetings. The Federal Reserve started its two-day policy meeting yesterday to decide what to do with interest rates. The central bank is facing sticky high inflation on the one hand, and a simmering banking crisis, triggered by the rapid pace of policy tightening over the past 12 months, on the other. No-one really knows what will policymakers decide. Expectations for the meeting have oscillated between a larger 50-bps hike prior to the banking tremors to a small rate cut at the height of the market panic last week. (Reuters)

UBS’s emergency takeover of Credit Suisse over the weekend has so far helped to calm market nerves, giving the Fed space to maintain credibility in its inflation fight and raise rates by 25 bps
Still, a lot will depend on whether the markets can sustain yesterday’s nascent post-Credit Suisse recovery or whether jitters return over the next potential flashpoints. It’s worth noting that the First Republic Bank’s days are looking numbered right now. (Reuters)
According to Bloomberg, the Central Bank of Egypt (CBE) is expected to raise interest rates by 200-300 bps when it meets on 30 March
The central bank has already raised rates by 800 bps over the past year but will need to go further to curb soaring inflation and contain downward pressure on the currency. EGP futures contracts continued to stray further away from the official rate yesterday. Twelve-month non-deliverable forwards (NDFs) jumped to a record 40 yesterday, suggesting that the currency will fall around another 30% over the next 12 months. (Al Arabiya)
EGP’s 12-month NDFs surge to all-time high
The EGP’s 12-month non-deliverable forwards (NDFs) recorded an all-time high on Monday, posting 40.25 EGP against the USD, up from 39.39 EGP at the opening hour. The latest closing was on 17 March, when the futures recorded 39.42 EGP. (Bloomberg, Ahram Online)
Emirates Global Aluminium (EGA) is in early-stage talks with the government to make undisclosed investments in state-owned, EGX-listed Egypt Aluminium (EgyptAlum) through a capital increase
The minister did not provide further details about how much money the company could invest or the equity stake it could receive. EGA’s potential investment would be earmarked for building a new factory to produce bauxite, the raw material needed for the production of aluminum, which is seeing rising demand overseas. The government has already agreed to allocate land for the potential factory in Safaga, on the condition that the plant uses solar plants to produce its electricity. (Al Borsa)
Online self-learning platform Almentorclosed a USD 10 mn pre-series C round led by Etisalat’s VC arm
Sawari Ventures and Egypt Ventures, the International Cooperation Ministry’s VC, made follow-on investments, along with Partech, Sango Capital, and Endure Capital. Almentor is an Arabic online education platform helping fill the regional gap in the students to teachers ratio and help increase employee’s access to the job market. (WAYA)
Acasia Ventures, the VC arm of the local investment outfit formerly known as Cairo Angels, has invested in Dubai-based digital banking platform Credabl
It participated in a 2.5 million USD seed round led by Ventures Platform which also featured participation from Launch Africa, MAGIC Fund, AAIC Investment, and Emurgo Africa. Launched two years ago, Credable is a B2B2C platform that provides digital banking services to businesses and individuals. It is currently active in Tanzania, Kenya and Uganda where it has acquired more than 1.2 million customers, including 200k who have used its credit and savings products. (WAYA)
Shell Middle East appoints GB Auto Iraq as official distributor
Shell Markets Middle East Limited has signed an agreement with GB Auto Iraq, a subsidiary of GB Corp, to be the latter’s official distributor of automotive lubricants in Central and Southern Iraq. As per the deal, Shell will provide GB Auto Iraq with high-quality lubricant products and solutions, including several automotive lubricants, such as Shell Helix, Shell Rimula, Shell Spirax, and Shell Gadus for end consumers. (Hapi Journal)
EFG Hermes closes advisory on valU’s 856.5 million USD securitized bond issuance
The investment banking division of EFG Hermes has concluded valU’s fourth securitized bond issuance worth 856.5 million EGP. This comes as part of a wider issuance program at a total value of 4 billion EGP. The issuance is backed by a receivables portfolio, assigned to EFG Hermes for Securitization, the issuance’s Special Purpose Vehicle (SPV). (Al Mal)
Ora Developers, QWELL to develop Egypt’s 1st luxury senior living project
Ora Developers Egypt has partnered with QWELL to develop an all-inclusive living community for seniors within their flagship project of ZED El Sheikh Zayed. Under the partnership, QWELL Residence will be built as the Middle East's first luxury senior living community. The first-of-its-kind senior living project in Egypt marks the newest development by Ora Developers. (Arab Finance)
Egypt eyes exporting vegetables to Netherlands via RoRo line
The Egyptian government is considering exporting vegetables to the Netherlands through the operation of a roll-on/roll-off (Ro-Ro) line between the local ports (Damietta-Alexanderia) and the Port of Rotterdam. The two countries discussed cooperation in the field of river transport, especially with the great progress achieved by the Netherlands in this field. (Arab Finance)