CBE approved the launch of the electronic portal for managing mobile phone wallet accounts

Newsletter

10 Jan 2022

For our top talks today, first, the Central Bank of Egypt (CBE) approved the launch of the electronic portal (e-portal) for managing mobile phone wallet accounts, in cooperation with the National Telecommunications Regulatory Authority (NTRA). The user can, through the portal, make an inquiry about any electronic wallet registered with his mobile phone number, as well as unsubscribe from the wallet for free and without the need to visit the branch in preparation for changing the service provider. Ramy Abul-Naga, Deputy Governor of the CBE, stated that the establishment of the electronic portal came in light of the keenness of the CBE to provide more electronic digital financial services that are easy and flexible to suit all spectrums of society. (CBE)

On the other hand, During the first half (H1) of FY 2020/2021, Egypt’s external saw a considerable increase, recording 137.8 billion USD, compared to 129.1 billon USD in H1 of FY 2019/2020.
Egypt’s total long-term debt increased by the end of Q1 of the current FY 2021/2022 to reach 125.9 billion USD, up from the 124.1 billion USD recorded by the end of FY 2020/2021. However, the country’s total short-term debt declined by the end of Q1 of FY 2021/2022 to 11.4 billion USD, down from the 13.7 billion USD recorded by the end of FY 2020/2021. (CBE)
In addition, the Egyptian government is looking to finalize the executive regulations of the Sovereign Sukuk Act by the end of the month, setting the stage for the country’s 2 billion USD maiden issuance before the end of the fiscal year in June, Mohamed Hegazy, head of the Finance Ministry’s debt unit.
The Financial Regulatory Authority (FRA) and Al Azhar are working with the ministry on the regulations, which were previously expected to be issued by November last year. Hegazy said that Egypt could make its first sovereign sukuk issuance to the tune of 2 billion USD within the next five months. Returns and trading on the securities will be subject to the same tax rules as treasury bonds, adding that the sharia-compliant bonds will be issued on both the local and international stock exchanges. Issuing sovereign sukuk is part of a wider strategy to reduce government debt and shift towards longer-term borrowing. (Bloomberg Asharq)
In the same context, the percentage of the number of shipping companies that have become dependent on paying their obligations related to fees and taxes electronically reached 90% of the total players in the sector, especially since instructions were issued to stop dealing with “cash” starting from 2022.
At the same time, a number of representatives of shipping companies welcomed the decision to extend the work period from eight in the morning until six in the evening, in conjunction with the provision of payment services for the dues of shipping agencies required from customers by electronic payment methods.
Turing to our EGX and companies talks, the total profits of the Assiut Petroleum Refining Company recorded a big jump during the last fiscal year, and it jumped by nearly 100%, recording 45 million EGP. The company aims to increase its profits and sales, especially after operating its project to produce high-octane gasoline, which was opened last year.
It is worth noting that the Minister of Petroleum and Mineral Resources, Tarek El Molla, witnessed last October the signing of a memorandum of understanding between Assiut Petroleum Refining and the two companies, Enppi and Petrojet, to establish the new project for atmospheric distillation at the Assiut refinery at an investment cost of about 6 billion EGP, and a design capacity of 5 million tons of crude. Annually to contribute to the sustainability of the operation of current and future projects, including a gas recovery unit (butane). (Al-Mal)
Sixth of October Development and Investment Company (SODIC) (OCDI) has signed an agreement with Finnish British Consortium for Investment (FBC) and Finnish Global Education Solutions (FGES). Under the agreement, the first Finnish-British school in the MENA region will be established in Egypt.
The Finnish British School (FBS) will be developed in SODIC’s flagship development in East Cairo SODIC East. Spanning 20,000 square meters, FBS is expected to serve 8,000 families as well as the catchment area of East Cairo. The sports-themed school is set to start operation in 2023, benefiting from SODIC East’s Club S. The MENA region’s first Finnish-British school is associated with ESPOO International School in Finland, a leading international Finnish school with a 20-year of experience in implementing the Finnish National Core and IB MYP curriculum. (Arab Finance)
Meeza cards will replace the payroll cards of 4.3 million state employees by the end of January, Minister of Finance Mohamed Maait announced. There are approximately six million state employees.
Meeza is Egypt’s national payment system, which is part of the government’s strategy geared towards digital transformation and financial inclusion. Meeza cards are issued in cooperation with the country’s banking system, including Banque Misr, the National Bank of Egypt, Housing and Development Bank, Arab African International Bank, Emirates NBD, Banque du Caire, Arab Banking Corporation, the United Bank, and the Commercial International Bank, in addition to Egypt’s Post Authority, Maait stated. (Central Agency for Public Mobilisation and Statistics (CAPMAS))
Abu Dhabi Islamic Bank Egypt (ADIB) announced it has increased the issued and paid-up capital of its consumer finance arm in Egypt ADI-Consumer Finance.
ADIB Egypt has raised the issued and paid capital of ADI-Consumer Finance to 30 million EGP from 10 million EGP. This comes in line with the government’s financial inclusion initiatives, which are one of the main incentives of economic growth as per Egypt Vision 2030. In September 2021, ADIB Egypt obtained the Financial Regulatory Authority’s (FRA) approval to launch ADI-Consumer Finance to provide diversified financial solutions and Sharia-complaint services in the Egyptian market. (Arab Finance)
Banque du Caire (BDC) (BQDC) is considering participating in the establishment of the Pyramids Company for investment in small- and medium-sized enterprises (SMEs) with a sum ranging between 25 million EGP and 50 million EGP. The Pyramids Company’s capital amounts to 500 million EGP.
The company targets investments’ volume of over 1 billion EGP, in collaboration with a number of banks, in the coming three years. It is worth noting that the Financial Regulatory Authority (FRA) has approved the establishment of the Pyramid Private Equity Co, with an initial capital of 10 million EGP. BDC, the 99.9%-owned by Egypt's second-largest state-owned bank Banque Misr, is the sixth-largest bank in Egypt in terms of total assets, acquiring a 3% market share in system-wide loans and deposits. (Al-Mal)
Edita Food Industries (EFID) is unlikely to approve any increase in prices of its products during the first months of 2022. The recently approved resolution by the Egyptian government regarding raising the prices of subsidized sugar could not impact Edita’s performance. The global prices of sugar are witnessing consecutive growth for nearly four months.
Moreover, the chairman noted that the company has raised its products’ prices by an average of 13% year-on-year (YoY) during the first nine months of 2021 and approved a new pricing increase on brand names such as Molto in the last months of 2021. These increases in prices are attributed to higher global prices of sugar which rose by 40% in the fourth quarter (Q4) of 2021. On the other hand, Edita is aiming at maintaining its expansion plan this year, targeting further investments. (Mubasher)
Dairy Panda Arap dairy products cover the first stage in the IPO issued capital increased by 99.9% with the opening of a second phase. Arab Dairy said in a disclosure sent to the EGX on Sunday that the number of covered shares in the first phase amounted to 129.9 million shares, while 86.9 thousand shares were not covered.
It is scheduled to open a second phase to subscribe for the capital increase to cover the remaining shares after the approval of the Financial Supervisory Authority. On September 30, Arab Dairy obtained the approval of the Financial Supervisory Authority to increase its capital from 160 million EGP to 290 million EGP, an increase of 130 million EGP. The company said in a disclosure to the stock exchange, that this increase is cash and will be allocated to the old shareholders to subscribe to, each according to the percentage of his contribution to the capital. (EGX)
GB Lease has completed the sale of 4.3 billion EGP of securitized bonds to investors. The leasing arm of GB Auto sold the securities in two separate issuances with tranches rated A through AA+.
Abu Dhabi Commercial Bank was the sole subscriber to both issuances, which were backed by leasing receivables. This is considered the company’s first issuance in 2022. CIB, Banque du Caire and the Suez Canal Bank acted as joint arrangers, underwriters, and financial advisors on a 1.65 billion EGP sale, while CIB, AAIB, Banque du Caire, and Al Ahly Bank of Kuwait worked on the second, 2.65 billion EGP issuance. (Arab Finance)
And finally, Banque Misr recently signed a cooperation protocol with OPay Egypt to provide online electronic collection services as a payment facilitator for medium and small businesses in Egypt.
Under this agreement, OPay provides electronic collection services via the Internet in cooperation with the Bank of Egypt for merchants and small and medium-sized companies from the bank’s partners. The company aims to reach the largest number of merchants to provide e-commerce solutions by accepting various types of online collections using all types of bank cards. In addition to the QR Code and the Request to pay (R2P) service, as well as providing installment services for credit card holders from Banque Misr. (Al-Mal)