Egypt Secures $460 Million Agreement with South Korea for Cairo Metro Expansion

Newsletter

14 Jun 2023

Egypt Secures $460 Million Agreement with South Korea for Cairo Metro Expansion. Egypt has announced a significant financing agreement with South Korea, valued at $460 million, to support the expansion of Cairo’s metro system. Under the deal, Egypt will receive 40 trains consisting of 320 carriages. The Economic Development Co-operation Fund of Korea, an entity of the Export-Import Bank of Korea, will provide the necessary financing. While some carriages will be directly imported from South Korea, a partnership between the National Egyptian Railway Industries Company (Neric) and South Korean manufacturer Hyundai Rotem will facilitate domestic manufacturing. The joint manufacturing plant, set to be established in the Suez Canal Economic Zone, is expected to create around 5,000 job opportunities for Egyptians. (The National)

Egypt and United Nations Collaborate to Support Micro, Small, and Medium Enterprises
Basil Rahmi, CEO of Egypt's Micro, Small and Medium Enterprises Development Agency (MSMEDA), held a meeting with Elena Panova, the United Nations Resident Coordinator in Egypt, to explore potential areas of cooperation in bolstering micro, small, and medium enterprises (MSMEs). The discussions align with the United Nations Framework for Cooperation for Sustainable Development for Egypt 2023-2027, which recognizes the pivotal role of the MSME sector in fostering an inclusive, competitive, and sustainable economy. Rahmi emphasized the importance of partnering with the United Nations and its specialized development agencies to support MSMEs, youth empowerment, entrepreneurship, financial inclusion, and the transition to green economy and digital transformation. Panova lauded the strong partnership between the United Nations and MSMEDA and expressed enthusiasm for enhancing collaboration to advance comprehensive development and green economic initiatives for Egypt's MSME sector. (Daily News)
Egypt and Iraq Forge Stronger Ties with 11 Memorandums of Understanding
Egypt and Iraq have solidified their partnership by signing 11 significant memoranda of understanding (MoUs) during the second round of the Egyptian-Iraqi Higher Committee. The agreements encompass various sectors and institutions, highlighting the commitment to collaboration and mutual development. Key areas of cooperation include empowering small and medium-sized enterprises (SMEs), diplomatic training, public services, tourism, trade, youth and sports, labor, and expertise exchange in planning. These MoUs pave the way for enhanced bilateral relations and foster opportunities for growth and progress between the two nations. (Arab Finance)
Egypt's Parliament Approves Fiscal Year 2023/2024 Budget.
Egypt's House of Representatives has granted final approval to the upcoming fiscal year 2023/2024 budget, which aims to drive economic growth and revenue generation. The budget targets a 41% annual increase in revenues, reaching EGP 2.142 trillion, with tax revenues predicted to rise by 31% to EGP 1.529 trillion. The government plans total expenditures of EGP 3 trillion, aiming for revenues of EGP 2.1 trillion and a primary surplus of 2.5% of GDP. Additionally, Egypt aims to attract $12 billion in foreign direct investments (FDI) in the fiscal year, representing a 20% increase from the current year's expected figures. These budgetary measures reflect Egypt's commitment to economic stability and attracting investment for sustainable development. (Al Ahram)
Egypt to Host Asian Infrastructure Investment Bank's Annual Meeting
Egypt has been chosen as the host for the eighth annual meeting of the Asian Infrastructure Investment Bank (AIIB), scheduled to take place in Sharm El-Sheikh on September 25th and 26th. This marks Egypt's first time hosting the prestigious event. The Finance Minister and Governor of Egypt at AIIB, Mohamed Maait, highlighted the significance of the annual meeting in enhancing development collaboration between African and Asian nations. Maait also emphasized Egypt's commitment to expanding opportunities for domestic and international investment, particularly in partnership with the private sector, to attract a broader base of investors. The event presents a valuable platform to promote investment and strengthen economic ties between participating countries (Arab Finance)
Saudi Arabia Grants EGP 150 Million for Industrial Projects in Egypt.
Egypt's Micro, Small and Medium Enterprises Development Agency (MSMEDA) has signed a financing agreement worth EGP 150 million (approximately $4.8 million) with the Saudi Arabia Grant Management Committee (SAGMC). The agreement aims to support industrial projects throughout Egypt by providing funding for raw materials, production inputs, machinery and equipment, working capital, and construction works. The agreement is expected to benefit around 520 entities, creating approximately 1,200 jobs. The SAGMC, operating under the Saudi Fund for Development (SFD), has already allocated EGP 1.5 billion ($48.5 million) to 3,524 projects across 27 governorates, contributing to the creation of approximately 17,000 jobs. This collaboration reflects the growing Saudi investments in Egypt, which amounted to $491.6 million in the fiscal year 2021/2022, marking a 51.1% increase from the previous year. (Al Ahram)
Ministry of Agriculture Releases 205,000 Tons of Corn and Soy Fodders Worth $100 Million.
The Ministry of Agriculture in Egypt has announced the release of 205,000 tons of corn and soy fodders with a total value of approximately $100 million. The released amount includes 149,000 tons of corn and 56,000 tons of soybeans, valued at $53.4 million and $42 million, respectively. Additionally, feed additives worth around $5 million were also released from ports. Since October 16th, 2022, until June 8th, 2023, a total of 5.6 million tons, comprising 4.2 million tons of corn, 1.4 million tons of soybeans, and feed additives, have been released, amounting to a value of $2.7 billion. These measures contribute to ensuring an adequate supply of fodder for the agricultural sector in Egypt. (Mubasher)
Egypt to Host Third Intra-African Trade Fair with Afreximbank.
Egypt is collaborating with the African Export-Import Bank (Afreximbank) to organize the third edition of the Intra-African Trade Fair (IATF) in November. The event is scheduled to be held in Cairo from November 9th to 15th. With the objective of bolstering Egyptian companies operating in Africa across diverse sectors, Minister of Trade and Industry, Ahmed Samir, expressed the fair's aim to provide support and opportunities for Egyptian businesses on the African continent. The IATF serves as a platform to enhance intra-African trade and foster economic cooperation among African nations. (Arab Finance)
Egypt Considers Alternative Currencies for Trade Amidst Discussions with India.
Egyptian Minister of Supply and Internal Trade, Ali Moselhy, has confirmed ongoing discussions about utilizing currencies other than the US dollar for trade purposes, but clarified that Egypt has not yet opened a credit line with India. The discussions aim to explore the possibility of trading in local currencies such as those of India, Russia, or China. This development comes as Bloomberg previously reported that India would provide Egypt with an undisclosed credit line to assist the country in navigating its economic challenges. Credit lines typically facilitate the import of essential commodities, including food, and help alleviate economic pressures. (Arab Finance)
Egyptian travelers brought over 194 kilograms of gold into the country Egypt Grants Customs Duty Exemption for Travelers Bringing Gold from Abroad.
From May 11 to June 11, Egyptian travellers brought over 194 kilograms of gold into the country, benefiting from customs duty exemptions and other fees. To qualify for these exemptions and avoid charges of customs evasion, travellers must declare all their belongings. Prime Minister Mostafa Madbouly issued a decree in May, granting exemptions for gold imports (excluding value-added taxes) for a period of six months. The measure aims to address the local gold supply shortage and alleviate the surge in gold prices. While the decree did not specify the exact amount of gold exempted from taxes, it was expected to be within reasonable limits. Since the decree's implementation, gold prices have significantly decreased in the Egyptian market. (Al Ahram)