The Sovereign Fund of Egypt’s health and pharma fund is launching a new pharma company

Newsletter

09 May 2023

The Sovereign Fund of Egypt’s health and pharma fund is launching a new pharma company, EZ International, in partnership with El Ezaby Pharmacy. Moreover, Abu Dhabi-based Khazna and Benya Group are planning to build a 250 million USD data center in Maadi Technology Park, after the three sides signed an MoU today. The center is expected to have an IT load capacity of 25 GW. (Alsharq Business)

Further delays to currency and structural reforms will ramp up liquidity pressures and raise questions about the sustainability of Egypt’s debt.
The investment bank said that while a near-term default isn’t in the cards, the recent sell-off in Egyptian bonds indicates growing anxiety about the medium-term outlook, especially with the heavy debt repayment schedule over the coming years. (JPMorgan)
It is worth remembering that Egypt committed to maintaining a flexible exchange rate and undertake a host of structural reforms,
including selling down state assets and improving transparency of state- and military-owned companies, as part of its 3 billion USD agreement with the IMF. Following a sizeable depreciation during the first two months of the year, the official EGP-USD exchange rate has remained unchanged, while the government is yet to make a sale under its ambitious privatization program. (Hapi Journal)
The Madbouly government has purchased 1.3 mn tons of local wheat since the local harvest season kicked off last month — taking it a third of the way to reaching its 4-mn-ton target.
The harvest season began in April and runs through to August. Last year the government procured around 4.2 million tons of wheat from local farmers, missing its ambitious 6-mn-ton target. The government is paying a lot more for local wheat, recently hiking its purchase price by 74% to 1,500 EGP per ardeb. (Al Mal)
Noteworthy, global food prices rose 0.6% m-o-m in April, while falling 19.7% y-o-y as prices continue to decline from last year’s record highs.
The slight upward trend in April was due to increases in the prices of sugar and meat. Cereals, dairy, and vegetable oil prices dropped, continuing a downward trend. (Al Mal)
Finance Minister Mohamed Maait and Planning Minister Hala El Said will deliver statements in the House for the draft FY 2023-2024 budget.
This will kickstart a month of discussions at the House Budget Committee before the final budget heads to the general assembly for a final vote before the end of the fiscal year on 30 June. The Finance Ministry has proposed allocating EGP 586.7 bn to what it calls public investments for the coming fiscal year, up 56% from FY 2022-2023. (Al Mal)
Allocations to education will rise 19% to EGP 305.2 bn in FY 2023-2024 while health spending will increase 14% to 111.2 billion EGP.
The government is constitutionally required to spend a total of 10% of GDP. The House Budget Committee has a busy week ahead, with six meetings scheduled until the end of the week. The committee has two meetings starting today to discuss the state budget and the draft budgets for various state agencies for FY 2023-2024. (Al Mal)
World Bank funds 175 projects in Egypt with over 25 billion USD.
The World Bank Group (WBG) has funded more than 175 projects in Egypt so far with over 25 billion USD. The country’s current development cooperation portfolio with the World Bank comprises 15 projects across various sectors, including education, health, transport, social protection, petroleum, food security, and environment, at a total value of 7 billion USD. The portfolio also includes 23 projects for technical and advisory support and building abilities. (Arab Finance)
Lynx partners with global advisory Dentons-Albright.
Egyptian consultancy Lynx Strategic Business Advisors has entered a “strategic affiliation” with global strategic advisory firm Dentons Global Advisors — Albright Stonebridge Group. The partnership will support Lynx’s efforts to increase private-sector participation in the local economy, support economic growth and attract new foreign direct investment into the country. (Al Mal)
OIH, BluEV partner to revolutionize the light mobility industry in Egypt.
Orascom Investment Holding (OIH) inked a partnership with BluEV to enhance the light mobility industry in Egypt and beyond. Accordingly, the two companies will cooperate to create a platform to accelerate the green transformation under the sustainable development goals of the transportation sector. Moreover, both will jointly work on introducing the BluEV Smart Network of battery swapping stations. (Arab Finance)
B Investments, TSFE Healthcare and Pharma Subfund launch EZ International.
B Investments Holding (BINV) and the healthcare and pharma subfund of the Sovereign Fund of Egypt (TSFE) have launched EZ International in partnership with El-Ezaby Pharmacy. EZ International will provide logistics and administrative services to pharmacies as well as drug distribution and trade services. The new firm will also roll out high-quality services to more than 500 pharmacies countrywide, starting with El-Ezaby’s more than 250 branches. (Arab Finance)