Egypt sees a 17% drop in goods exports in the first half, totaling $16 billion

Newsletter

09 Aug 2023

Egypt sees a 17% drop in goods exports in the first half, totaling $16 billion. Egypt’s non-oil merchandise exports experienced a 17% dip in the first half of this year, amounting to $16 billion, down from $19.3 billion the previous year. This is despite a 12% increase in exports last year, hitting $35.61 billion. A government official cited shortages of raw materials and the global crisis as reasons for the decline. To increase dollar liquidity, Egypt sold assets to investors, raising approximately $1.9 billion, and aims to garner another billion from future sales. Egypt is seeking new external financing sources to meet its rising foreign currency demands. (Asharq)

Egypt's Natural Gas Output Hits Three-Year Low Amid Rising Heatwave Demand.
Egypt's natural gas output has decreased to its lowest in three years during the first five months of 2023, according to data from the Joint Organizations Data Initiative (JODI). Production saw a 9% year-on-year drop from January to May 2023, and a 12% reduction compared to the same timeframe in 2021. A recent heatwave in the country has increased the demand for cooling, leading to a power deficit. (Arab Finance)
Beko Egypt plans $100M household appliance facility in 10th of Ramadan.
Beko Egypt plans to launch a $100 million plant in the 10th of Ramadan industrial city by year-end to produce eco-friendly appliances. Spanning 114,000 square meters, the facility aims to manufacture 1.5 million units annually, with 60% destined for export, potentially generating $250 million in annual exports. Announced during Trade and Industry Minister Ahmed Samir's visit to Türkiye, this move aligns with ambitions to increase bilateral trade to $15 billion within five years. The plant, emphasizing green technology, will focus initially on energy-efficient refrigerators and ovens and is anticipated to provide over 2,000 jobs. (Arab Finance)
Central Bank reports 25 banks released 30 million "Meeza" cards by September 2022's close.
The Central Bank reports that 20.3 million transactions were processed through the InstaPay application. In Egypt, 28 banks are licensed to issue MEEZA-branded cards, with 25 banks having issued 30 million such cards by September 2022. These actions align with decisions by the National Payments Council to adopt a national system for government payments. The initiative aims to transition pensioners into the banking sector, ensuring easy, quick, and secure access to their benefits. This includes updating 6.5 million government pension cards to the MEEZA system, of which 6 million have already been replaced. (Arab Finance)
Egypt’s ‘Ethydco’ looks to secure 250 million USD loan from UAE’s Mashreq Bank.
Ethydco, Egypt's leading ethylene and polyethylene producer, is in talks to secure a $250 million loan from the UAE's Mashreq Bank. The intended loan, with a two-year term, aims to settle outstanding debts to local banks due in 2024. Previously, in 2014, a consortium of 19 banks had granted Ethydco a $1.25 billion loan for a project in Alexandria. The firm has already repaid $1 billion and plans to clear the remaining $250 million in a single payment upon securing the new loan. (Asharq)
Otsuka of Japan plans 1.2B EGP health supplements facility in Egypt.
Otsuka Pharmaceutical, part of Japan's Otsuka Group, plans to invest over EGP 1.2 billion in a new health supplements and energy drinks factory in Egypt. The Industrial Development Authority (IDA) has allocated a 95,000-square-meter site in the 10th of Ramadan City for this venture. IDA Chairman, Mohamed Abdel Karim, assured full support for the project's prompt initiation. The facility will use clean energy and implement the latest global technologies, stated Egypt Otsuka’s President, Ahmed Zaghloul. (Arab Finance)
Mohamed Farid continues as FRA Chairman with new term.
President Abdel Fattah El-Sisi has renewed Mohamed Farid's position as the Financial Regulatory Authority (FRA) Chairman for an additional year from August 7th, according to the FRA. Prior to this, Farid led the Egyptian Exchange (EGX) from 2017 to 2022. (Arab Finance)
Egypt's electricity consumption in the first week of August reaches historical high.
In response to record high electricity consumption, the Ministry of Electricity and Renewable Energy initiated a load reduction program two weeks ago, initially cutting capacities by about 3,000 megawatts. As of August, consumption peaked at 35,500 megawatts. However, load reductions have decreased by over 45% since early August to around 1,600 megawatts. On August 1, no load reduction was needed due to decreased consumption and increased diesel fuel imports. A scheduled load reduction is in place, but tourist areas in Matrouh, South Sinai, and the Red Sea are exempt. The national grid's peak load and daily reductions are being closely monitored. (Al Mal)
Since its debut, Egypt's inaugural gold investment fund accumulates EGP 200M.
Egypt's premier gold investment fund has accumulated EGP 200 million from 32,000 investors since its inception, as stated by CEO of Azimut Holding, Ahmed Abou El-Saad. The firm contemplates initiating an investment fund tailored for overseas Egyptians to foster foreign investments and secure assets in foreign currency. This initiative awaits endorsement from Nasser Social Bank and the Financial Regulatory Authority. El-Saad highlighted the nation's goal to draw savings from expatriate Egyptians and announced forthcoming insurance policies developed with Egyptian Takaful Insurance. (Arab Finance)
CI Capital releases EGP 700m securitization bonds for "Reifi”.
CI Capital has issued EGP 700m securitization bonds for the Egyptian Company for Securitization under a three-year, EGP 3 billion program. The microfinance subsidiary of CI Capital, REVI, originated the portfolio. The bond issuance was divided into three parts, with different maturity periods and credit ratings. CI Capital's CEO, Amr Helal, highlighted the firm's active role in the Egyptian debt market, completing 7 deals worth about EGP 22 billion this year. Refi, licensed since 2007, is a pioneer in microfinance, serving over 170,000 clients in 21 Egyptian governorates. (Economy Plus)