Egypt's annual inflation rate rose to 6.5% in December 2021, compared to 6% in the same month in 2020 | Zilla Capital

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11 Jan 2022

Egypt’s annual inflation rate rose to 6.5% in December 2021, compared to 6% in the same month in 2020

For our top talks today, Egypt’s annual inflation rate rose to 6.5% in December 2021, compared to 6% in the same month in 2020. In November 2021, the country’s annual inflation rate recorded 6.2%. Moreover, Egypt’s annual urban consumer price inflation accelerated to 5.9% year on year in December 2021 from 5.6% in November 2021. The consumer price index (CPI) stood at 117.8 points in December 2021, registering a decline of 0.2% from November. This decrease is attributed to lower prices of vegetables by 8.2%, fish and seafood by 1.4%, and meat and poultry by 1.2%. On the other hand, the prices of cereals and bread, fruits, and ready-made garments increased by 0.9%, 0.9%, and 0.7%, respectively. (The Central Agency for Public Mobilization and Statistics (CAPMAS))

Second, the Central Bank of Egypt (CBE) approved a set of rules under which it would be able to provide emergency liquidity to local lenders, according to a recent statement by the bank.
Under the new rules, banks can apply to receive emergency liquidity if they cannot get it from the interbank or financial markets. Emergency liquidity will be made available to solvent banks only and for a maximum period of 180 days. It will be priced at a premium of at least 5% above the overnight lending rate, the statement added. Egypt's banks are facing a deterioration in asset quality due to the economic impact of the pandemic. The economy eked out growth overall in 2020 and 2021, with the help of government support packages for the hardest-hit sectors. (CBE)
In addition, Egypt’s Ministry of Oil plans to increase mining’s contribution to gross domestic product (GDP) tenfold by 2026, Oil Minister Tarek El Molla said.
Part of the plan kicks off in March, with Egypt hosting a virtual global mining show bringing together international mining corporations, investors, solution providers and governments, all to help seal long-term strategic partnerships and tap potential opportunities in the sector. Egypt is home to several mineral resources, including raw materials, metals, precious metals, or nonmetals. The mineral resources are dispersed across the country with the bulk concentrated in the Eastern Desert and the Sinai Peninsula. With an average of 48 million tons of tantalite, 50 million tons of coal, and 6.7 million ounces of gold, Egypt has the potential to be one of the top mining locations in the world. (Arab Finance)
In the same context, the Customs Authority in January will begin a three-month trial extending its Advance Cargo Information (ACI) system to air freight, ahead of a full launch planned for April 2022.
In 2021, the Finance Ministry began looking into adapting ACI for airborne cargo. Turnaround time for planes on runways is significantly shorter than for ships at port, with repercussions for how the airborne ACI system would be run. Air freight makes up around 30% of Egypt’s cargo movement. It is worth noting that the ACI system, which came into effect as of 1 October 2021, provides public and private trade operators with holistic electronic cargo information prior to the arrival of shipments to the country of importation in order to facilitate processing and clearance. (Al Shorouk)
Also, Egypt’s plasticware exports jumped 43% during the January-November 2021 despite the challenges imposed by the ongoing pandemic.
The plasticware industry has become an imperative component of Egypt’s local manufacturing over the past ten years as a result of relying on plastic materials instead of other items like glass and metals. Accordingly, the productive capacity of between 40-60% of factories that produce synthetic fibers draws on plastic materials. It is worthy to mention that the government pays greater attention to such industry, which has been reflected through establishing two industrial complexes for tupperware industries in Alexandria that include 442 industrial units. (Arab Finance)
Turing to our EGX and companies talks, MNT-Halan plans to expand its services in new markets in 2022, CEO and co-founder Mounir Nakhla.
The fintech firm, which last year raised 120 million USD in what remains the region’s largest-ever fintech round, is looking at “several” countries in Africa and elsewhere. The firm could also look to grow its service menu in Egypt in the short-term to include cards and supply chain financing, Nakhla said. The company currently offers buy-now-pay-later (BNPL) loans, microfinance solutions, P2P transfers, bill payments, and remittances through its recently-launched core banking system, Neuron. (Banker magazine)
Premium Card is looking to tap the securitized bond market again this year with a two-tranche, 500 million EGP issuance, in the final round of a securitization program it launched in 2020.
Osama Farid, managing director of Premium Card, said that the company’s securitization program was initially slated to total 2 billion EGP, but has been reduced “under pressure of several factors.” The program has seen six issuances worth a combined EGP 1.05 billion so far, including an 170 million EGP short-term securitized bond sale consisting of a single 10-month tranche that closed last week. Since the start of 2021, Egyptian issuers have sold 6.9 billion EGP worth of securitized bonds. (Al-Mal)
ODIN Investments (ODIN) announced that its ordinary general meeting (OGM) has approved expenses of EGP 206,070 for the establishment of Odin for Investment and Development (ODID).
Moreover, the OGM endorsed forming the first board of directors of Odin for Investment and Development for a five-year term that ends 2026. ODIN, formerly known as Egyptians Abroad for Investment and Development Company, aims to attract funds from Egyptians living abroad and invest them in the ongoing development of Egypt, with a focus on the real estate and financial services sectors. (EGX)
BP announced that it had won the rights to explore for gas in an offshore concession area in the eastern Mediterranean, following its successful participation in the first digital global bid for gas exploration and exploitation in the Mediterranean, previously announced by the Egyptian Natural Gas Holding Company through the Egypt Gateway for Exploration and Production in 2021.
BP has acquired the 50% exploration rights on par with Eni, the Italian operator of the EGY-MED-E5 concession area. The concession is located about 130 km northeast of Port Said. The concession area covers an area of about 3,200 square km, at a depth of between 500 and 1,200 meters. (Reuters)
Al Shams Housing and Development Company disclosed the financial details of the partnership with Olive Tree Contracting and Real Estate Investment regarding the development of its residential project (Solana) in the New Administrative Capital.
Al Shams Housing and Development said in a statement sent to the Egyptian Stock Exchange on Monday that it will receive 36% of the project's revenues, while Olive Tree Contracting will receive 64%. Al Shams Housing is currently working on the Solana project in the New Administrative Capital, and expects it to achieve sales of 1 billion EGP during 2021, according to estimates by Major General Mahmoud Maghawry, the late chairman of the board. (Al-Mal)
And finally, Homzmart, which sells furniture products online, aims to expand during the next stage in the countries of South Asia,
after being present in the Saudi market last October, in addition to serving 20-25 million homes, including residential units built in the New Administrative Capital and vacation units in the North Coast city. Mahmoud Ibrahim, co-founder and CEO of the company, said that the number of Homesmart customers currently ranges between 100,000 to 200,000, explaining that the company's goals in this regard are subject to several considerations, including the map of future expansions and the different working methods from time to time according to market need. (Al-Mal)