Egypt Taps EBRD and IFC as Advisors for $3.3 Billion Desalination Projects

Newsletter

04 Sep 2023

Egypt Taps EBRD and IFC as Advisors for $3.3 Billion Desalination Projects The Egyptian government has chosen the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) to advise on a series of water desalination projects initiated by the Sovereign Fund of Egypt. The plan involves offering four stations in the first phase out of a total of 21, set to be awarded by the first half of 2024. These projects, slated for private sector implementation between 2024 and 2026, have a combined investment of over $3.3 billion. The goal is to boost water supply in coastal areas, with an initial capacity of 3.3 million cubic meters per day and plans for 8.8 million cubic meters per day in the second phase. Over 90 investors from 30 countries applied for pre-qualification, with 17 alliances qualifying. The initial station offering is scheduled for Q4 2030. (EBRD)

Egypt Allows Residency Fee Payment in USD, Offers Grace Period for Illegal Residents
Egyptian Prime Minister Mostafa Madbouly has made a significant decision allowing the payment of residency fees in USD or equivalent currencies for foreigners applying for residence rights, whether for tourism or other purposes. Additionally, foreigners residing illegally in Egypt are granted a three-month grace period to legalize their status, provided they have an Egyptian national host. This regularization process includes payment of administrative fees amounting to $1,000, following the Interior Ministry's specified rules and procedures.(Al Ahram)
Egypt's Largest Tobacco Firm Boosts Cigarette Production Amid Price Crisis
The Eastern Company for Tobacco (EETC), Egypt's leading tobacco manufacturer, has taken urgent measures to increase cigarette production by 40 percent to address a recent surge in cigarette prices, particularly for the Cleopatra brand. With the aim of controlling rising prices and preventing exploitation by sellers, EETC has ramped up production and distribution, supplying over 150 million cigarettes daily in local markets. This effort has already led to a LE20 price reduction per pack, bringing it down to LE40. EETC's CEO, Hani Aman, affirmed collaboration with state agencies to ensure adequate supplies for the public, initially increasing production by 15 percent and later by an additional 25 percent to meet citizen demand. (Daily News Egypt)
Egyptian Prime Minister Amends Anti-Money Laundering Regulations.
Egyptian Prime Minister Mostafa Madbouly has issued amendments to certain provisions of the Anti-Money Laundering Law. The changes introduce definitions for key terms such as assets, underlying crime, proceeds, financing terrorism, and terrorist crimes. The amendments also clarify the definition of a customer and include the beneficial owner in the context of financial transactions. Additionally, high-risk persons are defined as individuals in high-ranking public positions, and the scope of financial institutions is expanded to include payment systems operators and providers, as well as the National Post Authority. These adjustments aim to enhance anti-money laundering measures in Egypt. (Egypt Independent)
Egypt's Foreign Assets Deficit Decreases by $807.95 Million in July
Egypt's foreign assets deficit saw a significant monthly decrease of nearly 3 percent, equivalent to EGP 24.92 billion ($807.95 million) in July. Data from the Central Bank of Egypt (CBE) reveals that the net foreign assets deficit lowered to EGP 812.41 billion ($26.34 billion) in July 2023, down from EGP 837.329 billion ($27.15 billion) in June 2023. Despite this improvement, the deficit had surged by 120 percent year-on-year compared to July 2022. Total foreign assets increased to EGP 1,475 billion in July, while foreign liabilities rose to EGP 2,287 billion. Egypt continues efforts to address its USD shortage, with the government's privatization program securing $5 billion from recent asset sales and $5 billion more planned, aiming to bridge a financing gap until 2026 and fulfill IMF commitments. (Al Ahram)
Egypt Leads Africa in Foreign Direct Investments in 2022.
Egypt has secured the top position in Africa for the value of incoming foreign direct investments (FDI) in 2022, as announced by Hossam Heiba, CEO of Egypt's General Authority for Investment and Free Zones (GAFI). Heiba highlighted Egypt's investment incentives, including key industries like automotive, energy, and green hydrogen, during a business and investment forum in Beijing. Egypt's special and free economic zones, offering tax exemptions to stimulate exports, were also emphasized. Egyptian Ambassador to China, Assem Hanafi, underscored the nations' strong bilateral relations and the growth of economic cooperation. According to UNCTAD, Egypt received $11.4 billion in FDI inflows in 2022, ranking first in North Africa. A Kearney report ranked Egypt 14th among attractive emerging markets for foreign investments. (Arab Finance)
Madinet Masr and ASEC Automation Enhance Infrastructure for Sarai's Cavana Project.
Egyptian real estate developer Madinet Masr has signed a Memorandum of Understanding (MoU) with ASEC Automation (ASA), a subsidiary of Qalaa Holdings, to enhance the infrastructure and road network for the Cavana project within Sarai's masterplan in New Cairo. The project, with an estimated cost of EGP 100 million ($3.2 million), aims to accelerate project delivery and leverage advanced engineering solutions. Sarai is a sprawling multi-purpose project spanning over 5.5 million square meters along the Cairo-Suez Road and Al-Amal axis, with the Cavana project covering 240,349 square meters. (Arab Finance)
Saib Bank Launches Inclusive Banking Project for People with Disabilities.
Saib Bank is embarking on a project to improve accessibility to banking products and services for individuals with disabilities in alignment with the Central Bank of Egypt's initiative. The initiative includes equipping select branches with accessibility features like ramps, automatic doors, elevators, and special ATMs, as well as training employees in sign language. Saib Bank is also converting forms and documents into Braille and implementing web accessibility software for visually impaired customers. Additionally, it offers customer support through WhatsApp and ensures transaction confidentiality through audio and video documentation. (Arab Finance)
UN General Assembly Recognizes World Youth Forum's Role in Empowering Young People.
The United Nations General Assembly has unanimously passed a resolution acknowledging the valuable contributions of youth forums and conferences, with a special mention of the World Youth Forum in Sharm El-Sheikh, in empowering youth and nurturing their understanding of multilateral work. The resolution encourages UN support for Model United Nations programs and urges member states to organize their youth forums and conferences. Egypt's Ambassador to the UN, Osama Abdel Khalek, emphasized the international recognition of the World Youth Forum's role in facilitating idea exchange and skill development for youth in various domains, including peace, creativity, and development.(Al Ahram)
Tripartite Talks Over Nile Dam Deadlocked, Another Round Scheduled for September
The recent tripartite discussions involving Egypt, Ethiopia, and Sudan concerning the contentious Nile dam concluded without a resolution. Egypt and Ethiopia have remained firm on their positions, making the prospects for the next round in September, set to be held in Addis Ababa, uncertain. The key point of contention revolves around how to fill the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile. Egypt asserts that the colonial-era Anglo-Egyptian agreements of 1929 and 1959, which grant it veto powers, must be upheld, disregarding the 2010 Nile Basin Cooperative Frame Agreement (CFA) that allows upstream nations to share Nile waters. (The African Post)