Foreign Direct Investments reach 2.5 billion USD in the Egypt’s petroleum sector within 2020

Newsletter

29 Aug 2021

For our hottest news of the day, Foreign Direct Investments (FDIs) reach 2.5 billion USD in Egypt’s petroleum sector within 2020 on oil and gas exploration and production at the concessions and fields operated by foreign and joint venture companies. Nearly 60 oil exploration activities were carried out last year, which reflects the growing demand of foreign companies for investing in the Egyptian petroleum sector. Earlier, Minister of Planning and Economic Development Hala El-Said revealed that the Egyptian government plans to invest a total of EGP 65.5 billion in the petroleum sector during the current fiscal year.

Second, Egypt’s self-sufficiency rates reached 89% following increased planting of cane and beet with strategic reserves covering the needs of the Egyptians until the next season.
The imports of white and raw sugar had been possible since June after a rolling ban on imports expired. As a result, Egypt is seeking 200,000 tons of raw sugar in a tender. The government has been working on increasing local production of strategic commodities in a bid to increase self-sufficiency and contain the import bill.
Third, City Edge Development signs a contract with Counsel Masters for managing and operating the commercial part of the “Mamshah Ahl Masr” for a nine-year period covering the management of the promenade, including commercial, touristic,
recreational, and service activities such as restaurants, cafeterias, shops, garages, and seating areas for receiving the promenade’s visitors. The first phase of the project includes the completion of a 1.8-kilometer promenade overlooking the hotels and hospitality zone, located between Imbaba Bridge and 15 May Bridge.
Moving on to the Investments coverage, Egyptian Startup e-commerce startup MaxAB has secured 15 million USD to acquire Morocoo Based counterpart WaystoCap.
The acquisition will assist MaxAB in increasing its regional footprint by expanding the services to over 70,000 retailers across multiple markets. Established in 2018, MaxAB has been deploying technologies to serve a number of traditional retailers in Egypt’s most under-served geographies.
In other news, Suez Canal Bank commits 100 million EGP in Banque Misr’s newly launched fund of funds “Tiba” in collaboration with the National Bank of Egypt (NBE), Banque Du Caire (BDC), Suez Canal Bank.
Hussein El Refai, the bank’s Chairman, revealed that the bank seeks to play a main direct or indirect role in the investment funds, such as the fund of funds specializing in investing in small- and medium-sized enterprises (SMEs) with intentions to invest in funds covering the education and real estate sectors.
On a similar note, The National Bank of Egypt (NBE) and Commercial International Bank (CIB) consortium to issue a securitized bond offering worth 585 million EGP for Aman Financial Services, a subsidiary of Raya Holding Financial Investments.
The bonds are issued in five tranches: a six-month tranche worth 175.5 million EGP, a nine-month tranche worth 146.3 million EGP, a 12-month tranche worth 81.9 million EGP, a 36-month tranche worth 146.3 million EGP, and a 60-month tranche worth 35 million EGP.
With regards to companies’ coverage, Misr Fertilizers Production Company’s (MOPCO) consolidated net revenues up 84% year on year in H1 2021, reaching 2.17 billion EGP compared to 1.18 billion EGP in the same period last year.
MOPCO’s sales grew less aggressively, increasing 11.1% year on the year to 4.18 billion EGP in the first half of the year from 3.76 billion EGP in H1 2020.
Equally important, Naad for Investment and Development cuts its stake in Egypco to 14.62% from 16.83%. The transaction involved the sale of 750,000 shares for 4.93 million EGP at a share price of 6.58 EGP.
Egypco is a public shareholding company that operates in the food processing industry. It manages poultry farms and slaughterhouses and is engaged in land reclamation and agricultural activities, as well as cattle and fish product manufacturing.