Egypt targets 5.4% GDP growth in FY 2021/2022

Newsletter

17 Aug 2021

For our hottest news of the day, Egypt targets 5.4% GDP growth in FY 2021/2022 as part of the state’s economic development plan for the fiscal year according to Minister of Planning and Economic Development Hala El-Said. Under the FY 2021/2022 economic development plan, the Egyptian government aims to increase remittances of Egyptians working abroad to around 30 million USD and attracting 7 billion USD in net foreign direct investments (FDI) compared to an expected FDIs of around 5.4 billion USD in 2020/2021.

Second, Egypt receives the second tranche from the Arab Monetary Fund (AMF) worth 282 million USD aimed at supporting the country implement the economic and financial reforms amid the implications of Covid-19.
AMF provides support the efforts to its member countries in implementing economic, financial, and structural reforms, in face of various challenges, through several means, including financing the needs of the balance of payments and public budgets and financing trade through its affiliate the Arab Trade Financing Program. The regional financial institution is currently in the process of providing another loan to Egypt to support the country’s financial position.
Third, in line with the state’s initiatives towards transitioning towards more sustainable energy sources, Egypt’s total renewable energy production increases 22% year on year in 20/21, producing around 4,518 megawatts per hour during the fiscal year.
The increase was the result of improved quality of operations and maintenance across all projects which have provided over 750,000 tons of oil equivalent and prevented more than 2,230 tons of CO2 emissions. The New and Renewable Energy Authority (NREA) is developing a 250-megawatt wind turbine project and 50-megawatt photo-voltaic (PV) project which is planned to be operational in Q4 and Q2-2022 respectively
On another note, Minister of International Cooperation Rania Al-Mashat has revealed that Egypt has secured financing worth 2.36 billion USD from multilateral and bilateral partners to support the education sector with the establishment of 36 projects.
The world bank has committed a total of 500 million USD for the integrated national strategy project while the Saudi Fund for Development (SFD) is providing 50 million USD for the second phase of King Salman International University to improve access to higher education in the Sinai Peninsula.
Moving on to the investment coverage, EFG Hermes Finance, a subsidiary of EFG Hermes Holding, is planning to invest in four new startups in logistics, fintech, education, and healthcare.
EFG Hermes Finance’s portfolio includes around 35 startups with investments of 60 million EGP with a focus on the education sector, having already signed deals with more than 30 schools.
Equally important, Ibn Sina plans to launch two companies in the field of digital technology and logistics before the year-end as part of the company’s expansion plans in the local market.
The company has invested so far in the first half of 2021 around 76 million EGP with 20.5 million EGP directed towards improving the current digital infrastructure and launching new systems to link the contracted pharmacies with a unified electronic system that allows for the integration of systems with the company's digital platform.
With regards to companies’ coverage, Fawry for Banking Technology and Electronic Payments (Fawry) reported a net profit before minority interest of 113 million EGP in H1 2021 compared to 70 million EGP in H1 2020, representing a 61% year on year increase.
Ashraf Sabry, Fawry’s CEO, revealed that the company has plans to expand in the digital banking lending services leveraging the business’ recent success in this area. Fawry is an Egypt-based company that provides an electronic payment network. The company allows users to pay bills in multiple channels, such as online, using automated teller machines, mobile wallets, and retail points.
Similarly, Speed Medical's net profits surge 408% year on year in H1 2021 to record 108.1 million EGP compared to 21.2 million EGP in H1 2020.
Mahmoud Lasheen, the company’s CEO, revealed plans to establish a first-of-its-kind company to finance medical and pharmaceutical services in Egypt. Speed Medical is an Egypt-based medical lab operator is engaged in establishing, operating, and managing diagnostic laboratories, clinics, and hospitals