Egypt’s annual headline urban consumer price inflation accelerated marginally in March to 32.7%, from 31.9% in February

Newsletter

11 Apr 2023

Egypt’s annual headline urban consumer price inflation accelerated marginally in March to 32.7%, from 31.9% in February. This acceleration came on the back of the weakening EGP, the FX shortage, and increased demand in the lead-up to Ramadan. March reading came slightly lower than our expectations of 33.7%. Egypt’s inflationary pressures are far from over, despite inflation already running close to all-time highs. There are upside risks to inflation, in light of the continued pressure on the EGP, with the parallel rate and NDFs showing further weakness in March, as well as the potential hikes in fuel and electricity prices this summer. (CAPMAS & Zilla Capital)

The Finance Ministry will continue to offer loans at a subsidized rate of 11% to industry and agriculture players despite the recent 2% rise in interest rates
The Central Bank of Egypt (CBE) last month delivered a jumbo 200 bps rate hike in a bid to rein in soaring inflation. The treasury will bear more than 13 billion EGP annually to cover the difference between market rates and the subsidized rate. The program, which will see the Finance Ministry extend around 150 billion EGP worth of loans, had initially been expected to cost the state purse around 10 billion EGP. (Al Mal)
It is worth mentioning that the program seeks to help industry and agriculture players increase exports, in addition to covering domestic needs and limiting imports by providing them with the liquidity to up production
The government aims to increase exports to 100 billion USD a year by the middle of the decade. The government introduced the loan program last year, shortly after the CBE announced it would stop handing out soft loans and transfer the responsibility for them to the state as part of the loan agreement with the IMF. (Al Mal)
NBE’s proceeds from new CDs sale hit 118 billion EGP
The National bank of Egypt (NBE) has received 118 billion EGP in proceeds from the sale of the new certificates of deposit (CDs) in one week. On April 2nd, the largest two state-run banks, NBE and Banque Misr, started selling new three-year CDs at an annual interest rate of 22% to be paid in the first year, 18% for the second year, and 16% for the third one. The lenders also offered another three-year CD with a fixed annual interest rate of 19%. (Al Mal)
GASC has purchased 600,000 tons of Russian wheat in an international tender
GASC agreed to pay 275 USD per ton on a free-on-board basis and 293-294 USD on a cost and freight basis. The wheat is scheduled to arrive in two shipments: the first 300,000 tons between 10-20 May, and the second between 21-31 May. GASC chose Russian suppliers in three separate international tenders earlier this year, all of which were partially funded by a 500 million USD World Bank loan. The authority has reportedly bought at least 1.4 million tons of Russian wheat in tenders so far in 2023. (Reuters)
India’s Flex lays foundation stone of 110 million USD plant in Ain Sokhna.
The foundation stone of the Indian plant of Flex-Egypt for the production of polyethylene company has been laid at Ain Sokhna Industrial Zone with 110 million USD in investments. The plant will be developed by Orascom Industrial Parks over the coming two years on an area of 250,000 square meters within the scope of the industrial developer at the SCZone, with a capacity of up to 30,000 tons per month. The project will be executed in two phases: the first will commence by mid-2024 and the second will be carried out by mid-2025. (Arab Finance)
Egypt and the United Nations Industrial Development Organization will discuss establishing a mechanism to allow Egyptian export of recycled products
Accrediting these products for export requires a license from one of the internationally accredited authorities for recycled goods, Environment Minister Yasmine Fouad said during a meeting with officials from the Egyptian Clothing Bank. Currently, the ministry-affiliated Waste Management Regulatory Authority is the only body in the country licensed to recycle products. (Hapi Journal)
Gov’t building Egypt’s first biogas-powered plant
A subsidiary of the military’s National Service Projects Authority signed an agreement with Al Mawarid Industrial Products Company to establish the first plant in the country to generate electricity using biogas. The plant will produce 1 MWh of electricity by processing 85k tons of livestock manure. (Al Mal)
The five-month exhibition Ramses and Gold of the Pharaohs taking place in Paris could increase the number of French tourists coming into the country by up to 20%.
The exhibition features some 181 Ancient Egyptian artifacts, including the sarcophagus of Ramses II. Former Antiquities Minister Zahi Hawass has called on French authorities to remove a statue showing archeologist Jean Francois Champollion stepping on Ramses’ head from a Parisian courtyard. (Arab News)
EgyptAir to launch new direct route to Bangladesh’s Dhaka
The move comes as part of EgyptAir's plan to expand its airline network and open new horizons around the world. Civil Aviation Minister Mohamed Abbas said that operating a new route between Cairo and Dhaka helps push the movement of trade and economic exchange for both sides. EgyptAir will offer a 50% discount on Cairo-Dhaka flights. It is worth noting that the procedures for issuing a Bangladesh visa take a maximum of 48 hours. (Arab Finance)