Egypt witnesses the launch of MENA’s 1st supper app. PaySky
For our top talks today, Egypt witnesses the launch of MENA’s 1st supper app. PaySky, the premium payment solutions provider and technology partner to the Egyptian Post and Visa, has been working relentlessly to bring the Egyptian community “Yalla Super App”. The step falls in line with Egypt’s Vision 2030 towards sustainable development and digital transformation. The super app will behave as a single point of entry for individuals, merchants, financial institutions, and companies around the globe to process, accept and facilitate financial and non-financial payments and transactions. This contributes significantly to the development of financial performance through adopting the most advanced financial technologies. (Arab Finance)
- AIM Technologies, an Artificial Intelligence based customer experience platform, has raised its seed round led by Sequence Ventures,
a new Egyptian venture capital firm focused on supporting homegrown technology-based startups. AIM Technologies is the first investment in Sequence Ventures’ portfolio, who have launched their investment platform earlier in 2021. Sequence Ventures aims to raise 500 million EGP over the next three to five years, with its first tranche of capital currently being raised of 150 million EGP. The capital will be deployed in Egyptian startups in transformational and crucial sectors including artificial intelligence, fintech, health-tech, ed-tech, logistics and dev-ops. (Arab Finance)
- Huawei plans to launch an electric car model supplied with Huawei’s operating system in Egypt during the second half (H2) of 2022,
according to Ahmed Abdel-Aal, Vice President of Huawei Egypt. Abdel-Aal added that the company is negotiating with is negotiating with its commercial partners to make the electric car available in Egypt before the end of 2022, pointing to Huawei’s endeavor to launch a number of different products in the Egyptian market during the coming period, including the smart phone sector. He further noted that the company plans to manufacture television screens in Egypt during the next year. He explained that the company currently accounts for 26% of tablet sales in Egypt, with a growth rate of 21% annually. (Al-Mal)
- ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy,
has established a new office in Egypt to build on its commitment to investing in the country’s economic growth. The opening of ADQ’s new office complements the 20 billion USD strategic investment platform launched in 2019 between ADQ and the Sovereign Fund of Egypt (SFE). The platform aims to help advance Egypt’s economic development through joint strategic investment projects, specialized funds and investment tools in key sectors such as healthcare and pharma, utilities, food and agriculture, real estate and financial services. (Arab Finance)
- The board of directors has approved International Company for Medical Industries (ICMI) has approved to raise the company’s issued capital to 58.67 million EGP to 24.18 million EGP.
The capital increase amounts to 33.48 million EGP distributed over 33.48 million at a par value of 1 EGP per share. This comes following the oversubscription in the rights issue of ICMI at a coverage ratio of 69.21%. Moreover, the board has agreed on the amendment of Articles 6 and 7 of the company’s Articles of Association. (EGX)
- The screen of the Egyptian Exchange’s (EGX) special operations market (OPR) showed that 137 million shares of Cleopatra Hospitals Group (CHG) (CLHO),
representing an 8.5% stake, have responded to the purchase offer submitted by MCI Capital. Last week, the Financial Regulatory Authority (FRA) announced that MCI Capital Healthcare submitted a non-binding purchase offer to acquire up to 26.21% stake, representing 419.34 million shares, in CHG at a price of 5 EGP per share. The offer will be valid starting from Monday, December 13th, until December 22nd, 2021. The transaction is projected to be closed within months.It is worth noting that MCI Capital Healthcare is a joint venture (JV) between Banque Misr and CI Capital Holding for Financial Investments (CICH). (Al Borsa Newspaper)
- Egyptian Electricity Transmission Co (EETC) has signed two contracts valued at EGP 165 million with El Nasr Transformers and Electrical Products (ELMACO) and Elsewedy Transformers, a subsidiary of Elsewedy Electric (SWDY).
The first contract has been signed with Elsewedy Transformers at a value of 82 million EGP to supply, install, and test 10 transformers, with a capacity of 66/11/22 kilovolt (KV), for the substations affiliated with Cairo, the Canal, and Middle Egypt. The contract will be self-financed by EETC and is expected to be executed within three months from the date of the signing, she noted. Meanwhile, the second contract worth 83 million EGP has been signed with ELMACO to supply, install, and test 10 transformers, with a capacity of 66/11-22 KV, for substations in Cairo, the Nile Delta, and Alexandria. This contract is set to be implemented in a three-month period from the date of signing the contract. (Amwal Al Ghad)
- Mohamed Hany El-Assal, CEO and Managing Director of Misr Italia Real Estate, revealed that he is negotiating with several banks to obtain a loan of 1.5 billion pounds,
to finance the projects of Vinci and Bosco Compounds in the New Administrative Capital, and Bosco City in the Mostakbal City, in addition to Kai Village in Ain Sokhna. Al-Assal explained that the company intends to shift its projects during the next year from east to west Cairo, pointing to the study of penetrating several areas, the most important of which are the new cities of Sheikh Zayed, 6th of October and the North Coast. (Al-Mal)
- Attijariwafa Bank - Egypt has signed a partnership contract to launch a bank insurance alliance with Al-Wafa Life Insurance Company, to market and sell its products through the bank's branches.
Hisham El-Safa, the managing director of the bank, revealed that the marketing of the company's products will start through 17 branches of the bank out of a total of 64, covering 90% of the governorates, expressing his confidence in the solidity of the Egyptian market and its promising investment opportunities. (Al-Mal)
- The Customs Authority will hold a public auction session scheduled for the sale of 53 cars and motors imported from abroad and stored in the Car Customs yard at Cairo International Airport on December 28, at the Cairo Egyptian Club Hall in Ain El-Sira.
The types of cars are Peugeot, Ford, Toyota Microbus, Subaru, Mitsubishi Pickup, Subaru, Tempera, Dodge and Hummer, in addition to a motorcycle. The authority clarified that each successful bidder must pay 30% of the transaction price as soon as the auction is successful. The rest of the amount, within 15 days from the day after the auction was awarded. (Arab Finance)
- Alexander Voronkov, CEO of the Russian company Rosatom in the Middle East and North Africa, said that the rise in metal prices and inflation worldwide will not affect the cost of implementing the Dabaa nuclear plant project.
He added that pouring concrete for the first nuclear reactor in El-Dabaa will start in the second half of 2022, after obtaining permission to start implementing the Egyptian nuclear plant, which is the first in North Africa. (Al-Mal)
- According to Fitch Ratings recent published report, Egypt is highly dependent on external financing, exposing it to global liquidity and monetary conditions, which are becoming less accommodative.
The report highlighted that Egypt’s attractiveness to non-resident investors has been supported by its record of reforms, IMF programs, high real interest rates and a stable exchange rate. Egypt has exited its IMF program; its real interest rates, though still comparatively high, are being eroded by inflation; and global financial-market conditions are contributing to risks. Meanwhile, real appreciation in recent years could undermine confidence in Egypt’s ability to maintain a rigid nominal exchange rate. The Central Bank of Egypt (CBE) maintains that it is committed to exchange rate flexibility. (Arab Finance)
- It is worthy to mention that the rating agency stressed on that another IMF program is likely, particularly if Egypt were faced with a liquidity shock. Index inclusion and improvements to market structure will provide some structural support to investor demand.
Current account deficit (CAD) should moderate, with recovery in external demand and tourism. The government’s fiscal and economic reform agenda has not been dependent on the IMF program and will likely continue.
- On the other hand, the market value of the American company, Tesla, for electric vehicles, jumped to more than 1.2 trillion USD this year until the beginning of this week,
surpassing the ten largest car companies in the world, whose combined market value stopped at about 1.1 trillion USD. The rise in the market value of Tesla led to the increase in the fortune of its founder, Elon Musk, to become the richest billionaire in the world, to the point that he sold nearly 12 million shares for a total amount of more than 12 billion USD, approaching his pledge to sell 10% of his stake in the company. (Reuters)
- The Bank of England raised its main interest rate to 0.25% as inflation pressures mounted in Britain, becoming the first major central bank in the world to raise borrowing costs since the pandemic hit last year.
We believe this policy move reinforces that, among the major central banks, the BoE has been ahead in understanding the inflation dynamics and their implications for policy. The MPC's decision to hike Bank Rate, before it knows the full extent of the economic damage wrought by the surging Omicron variant, underlines how worried it is about the outlook for inflation and the risk that inflation expectations would de-anchor if it did nothing. (Reuters)
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