Egypt plans to quintuple its annual exports to the US to 5 billion USD over the coming period
For our top talks today, first, Egypt plans to quintuple its annual exports to the US to 5 billion USD over the coming period. The step comes within the framework of the Qualified Industrial Zones (QIZ) agreement. In 2019, around 26 Egyptian companies qualified for inclusion in the QIZ export agreement with the US and Israel between January August, bringing the total number of companies under the agreement to 1,030. The new companies manufacture readymade clothes, textiles, furniture, and food products.
- Second, the Central Bank of Egypt (CBE) has signed a protocol of cooperation with the Financial Regulatory Authority (FRA) for the issuance of licences and approvals under the provisions of consumer finance law no. 18 of 2020 in relation to commercial payment cards or other payment methods approved by the CBE.
Under the agreement, all consumer finance companies will be able to get licences with coordination between the CBE and the FRA to use payment cards in disbursing consumer loans for citizens electronically which will streamline procedures for customers and traders dealing with these companies. It is worthy to mention that the three-year protocol is in line with the country's efforts to create a cashless society.
- Moving to our COVID-19 watch, great news to share! Egypt received 546,000 AstraZeneca vaccine doses from the French government under the Covax initiative and will receive its first batch of 1.6 million Pfizer doses on September 24th.
Egypt is expected to get around 3.5-4 million doses of AstraZeneca this week from France, Germany, Greece and Poland. Additionally, the Egyptian government is expecting to obtain 17 million additional doses in September, which includes several international shipments as well local Sinovac, which is currently being produced at a rate of 300,000 doses a day.
- Another great news to announce! Global Finance magazine listed the National Bank of Egypt (NBE) and Banque Misr among the world’s 50 safest banks in 2021, ranked ninth and 10th, respectively, as the safest banks in Africa.
South Africa had the lion's share in the latter list, with five of its banks taking the fourth through the eighth spots. The safest banks are paragons of stability, and continue to provide the necessary support for governments and communities as they seek to recover from pandemic’s economic shocks. Also, Banque Misr is set to receive its largest-ever syndicated loan worth 1 billion USD. The loan will be allocated to pay off 550 million USD that the bank had borrowed back in 2018 from foreign lenders to improve USD liquidity.
- Moreover, regarding Banque Misr, it plans to launch Egypt’s first digital bank by the first quarter of 2022. Misr Digital Innovation (MDI), a subsidiary of Banque Misr set up last year to launch the bank, has signed a seven-year partnership agreement with Visa, that will see it issue Visa-branded cards, use its APIs, and work with it on marketing and design.
MDI is committed to launching the first native digital lifestyle bank with an unparalleled focus on superior user experience, financial inclusion, and youth. We believe Egypt has proven itself as a market that enables digital innovation.
- Likewise, the Sovereign Fund of Egypt (TSFE) and Bidayat signed a memorandum of understanding (MoU) to study the development of Bab El-Azab area of the Salah El-Din Citadel in Old Cairo into the first integrated creativity area in the MENA region.
This step is the first investment projects of the Sovereign Fund of Egypt in the tourism, cultural and service sector in cooperation with the Ministry of Tourism and Antiquities.
- Equally important, Egypt is expected to sign contracts for a 2 GW electricity transmission network that will link Egypt’s electricity grid to Saudi Arabia very soon. Egypt will fund about 40% of the project, while Saudi Arabia will pay for the remaining 60%.
The 1.6 billion USD project is looking to connect both countries’ grids with 900 kilometers of overhead transmission cables. The cable routes extend 25 kilometers across the sea bed. It is worth mentioning that Saudi Arabi’s Alfanar has so far submitted the highest bid at 24.8 million USD, while South Korea's Hyundai Engineering and Construction presented the lowest bid at 446.8 million USD.
- And for our EGX and companies talks, first, Nile City Investment company has adopted a comprehensive plan to adjust its position in the Egyptian Stock Exchange, which includes stock splitting and selling part of their stake to the main shareholder.
On August 23, the company disclosed that it had entered into negotiations with a number of external investors to increase the percentage of its shares trading in the stock market to 10%, within the framework of the conditions for reconciling the situation.
- Second, the board of the General Company for Ceramic and Porcelain Products (Sheeni) proposed increasing the authorized capital to 350 million EGP from 150 million EGP. The board also recommended raising the issued and paid-up capital to 302.19 million EGP from 100.73 million EGP.
Sheeni aims to perform technical and financial restructuring through the proposed capital hike. In addition, the board members approved splitting the stock’s par value by 10 times to stand at 0.20 EGP per share instead of 2 EGP.
- Finally, Six of October Development and Investment (SODIC) has signed a memorandum of understating (MoU) with the Olympic Council at Kazan, Russia to establish the first-of-its-kind sports measurements medical center in the Middle East.
The center will help qualifying Egyptian athletes and preparing a new generation to compete at international standards.
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