IIF estimates Egypt’s financing gap for FY2023/24 at 7 billion USD
IIF estimates Egypt’s financing gap for FY2023/24 at 7 billion USD. This gap is likely to be bridged mainly by foreign direct investment (FDI) and official financial inflows. Moreover, the institute expects Egypt’s real gross domestic product (GDP) to grow by 3.3% in the current fiscal year, which is below the International Monetary Fund’s (IMF) expectations of 4%. (Al Mal)
- The institute also said that soaring inflation, foreign currency shortage, supply bottlenecks, and the Gaza-Israel war are likely to cause a shrinkage in private consumption and limit exports in the North African country.
The IIF’s forecasts are based on speculations that the IMF would resume its 3 billion USD loan program in early 2024 after the Egyptian presidential elections, and that Egypt would endorse a significant devaluation of the pound and move toward a flexible exchange rate regime. (Al Mal)
- The UK-based bank HSBC expected a further devaluation of the Egyptian pound during the first quarter (Q1) of 2024,
which could range between 40 EGP and 45 EGP against the US dollar. The bank’s previous forecasts for the exchange rate in for Q1 2024 were between 35 EGP and 40 EGP per 1 USD. This devaluation is expected to facilitate the completion of the International Monetary Fund's loan program. (Ahram Online)
- HC Securities expects CBE to maintain interest rates. HC Securities and Investment is expecting the Central Bank of Egypt (CBE) to keep interest rates unchanged during its upcoming Monetary Policy Committee (MPC) meeting on December 21st.
The agency also expects Egypt’s urban inflation to see a 1.9% monthly, or 34.4% annually, increase in December as the supply shortages of basic commodities, caused by restrictions on imports and the lack of USD continue to lead to inflation spikes. (Arab Finance)
- IFC’s Le Houérou inks 3 investment deals to back Egypt’s private sector.
The International Finance Corporation’s (IFC) Executive Vice President and CEO Philippe Le Houérou sealed three agreements to support Egypt’s infrastructure development and enhance access to finance for small businesses and young entrepreneurs. (Al Mal)
- Maait unveils new incentives to support industrial sectors.
The Egyptian Minister of Finance Mohamed Maait has announced several financial incentives and benefits to support the industrial sectors with top strategic priorities. The strategic industrial projects were exempted from several taxes for five years, with the possibility of refunding of up to 50% of the investment costs, provided that the project is executed in half of the agreed-upon period. (Al Mal)
- Egypt’s public spending reduction plan spares healthcare services, subsidized commodities.
The Egyptian Cabinet’s decision on the public spending rationalization is not applied to healthcare services, as well as subsidized commodities, petroleum products, social insurance pensions, and the Takaful and Karama program. Maait also noted that priority would be given to Egyptian products in terms of contracts, even if their prices exceed the imported ones by around 15%. (Ahram Gate)
- Egypt’s exports of outsourcing services likely to reach 9 billion USD by 2026: Talaat.
The outsourcing industry will offer various job opportunities to youth in a wide range of IT fields, bringing the number of specialists in this field to 550,000 by 2026. Additionally, Ramy Kato, the former Head of Vodafone Intelligent Solution Egypt Center and Global Care, said that the outsourcing industry is projected to grow by over 15% between 2023 and 2024. (Asharq Business)
- EFG Holding seeks to raise 300 million USD in 2nd closing of Vortex Energy IV.
The close will wrap up before end of 2023. The size of the fund will exceed 500 million USD after the completion of the second closing, which targets Gulf sovereign funds, in addition to European investors. The new proceeds will be directed to new investments in the expansion of Ignis Energy, in addition to acquiring a major company in the field of renewable energy. It is worth noting that the fund secured 200 million USD in the first closing. (AL Borsa News)
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