Afrixim Bank Renews $1 Billion in Loans to United Bank as Egypt Ramps Up Asset Sales
Afrixim Bank Renews $1 Billion in Loans to United Bank as Egypt Ramps Up Asset Sales. African Export-Import Bank (Afrixim Bank) has renewed two loans, totaling nearly $1 billion, to Egypt’s United Bank for a one-year period, with the Central Bank of Egypt acting as a guarantor. These loans are intended to fund projects. As part of a plan to offload more than 32 state-owned entities, the Central Bank of Egypt aims to divest its ownership of United Bank through an IPO or strategic stake sale. To raise dollar liquidity, Egypt has been selling assets to investors, already generating up to $1.9 billion with hopes of raising another billion by selling additional assets, as per Prime Minister Mostafa Madbouly. (Asharq)
- Egypt secures $616M loan from Arab Monetary Fund for fiscal overhauls.
Egypt has received a loan of $615.8 million from the Arab Monetary Fund (AMF) to facilitate reforms in its financial and banking sectors. The agreement was signed on July 25th by the Governor of the Central Bank of Egypt, Hassan Abdalla, and the AMF's Director General Chairman, Abdulrahman Al Hamidy. The loan's objectives include enhancing payment systems, financial inclusion, and the regulatory framework. Meanwhile, Egypt is awaiting the International Monetary Fund's review of a $3 billion loan under the Extended Fund Facility. The review's approval could hinge on the country's commitment to wider-ranging reforms. (Arab Finance)
- Egypt announces steps to conserve energy in response to ongoing power outages.
Egypt's Prime Minister, Mostafa Madbouly, announced new measures to mitigate energy consumption amidst persistent power outages caused by a heatwave. The policies include allowing government employees to work from home on Sundays, adjusting the timing of sports matches to just before sunset, and promoting the setting of air conditioners to 25 degrees Celsius. Madbouly denied the government's preference for exporting natural gas over domestic use. He also encouraged private firms to adopt hybrid work arrangements where possible. An additional $250-$300 million in diesel imports were agreed upon to enhance fuel supplies for power plants. (Arab Finance)
- Technical issues caused Beltone's IPO problem, says First Abu Dhabi.
First Abu Dhabi Bank Egypt, in a statement, confirmed that technical issues stemming from the massive volume of subscriptions caused problems for investors subscribing to Beltone Financial Holding Company's capital increase. Despite these issues, trading of the new Beltone shares, part of the biggest fully paid capital increase in the history of the Egyptian Stock Exchange, commenced on July 27. The bank, in a bid to address the issue, purchased alternative shares and affirmed that no investor would be affected by these technical glitches, with all investor rights being fully safeguarded. (Economy Plus)
- Morgan Stanley projects Egypt's economy to experience a 4.2% growth in fiscal year 2023/24.
Morgan Stanley predicts a 4.2% growth in Egypt's gross domestic product (GDP) for the fiscal year 2023/2024, a downward revision from its earlier 5% estimate. The country's GDP growth in fiscal year 2022/2023 was also recorded at 4.2%, as declared by Finance Minister Mohamed Maait on July 19th. Meanwhile, tax revenue, contributing to an annual rise of 12.5% in state revenues, saw a substantial increase of 23.1% in the same period. (Asharq)
- Egyptian stock exchange sees a 1.24% increase, with trade surpassing 2 billion pounds.
Sunday, with the main index, EGX30, increasing by 1.24% to close at 17,554 points, despite a 0.84% drop in the share of the Commercial International Bank (CIB). The EGX70 and EGX100 indices rose by 0.04% and 0.41% respectively. Trading activity saw a turnover of EGP 2.06 billion across 202 companies. Arab and foreign investors mostly sold shares, while Egyptian investors showed a trend towards buying, primarily from institutions. The highest gainer was Universal Manufacturing of Packaging Materials and Paper - Unipack, while Naeem Holding was the leading decliner. (Hapi Journal)
- Ain Sokhna Port's first renovation phase set to conclude by the end of 2023.
The first phase of Ain Sokhna Port's development in eastern Egypt, which involves the creation of 12-kilometer-high berths and 5.3-square-kilometer commercial and logistics zones, is expected to be completed by the end of 2023. Superstructure work should be finished by October 2024. The project, which was handed over to global port operator Hutchison International, will include a 2,600-meter container terminal capable of handling 3.5 million twenty-foot equivalent units (TEUs) per year. It will be developed and operated in collaboration with COSCO and CMA CGM. The terminal will also accommodate ships up to 400 meters long, with the project involving $1.6 billion in investments and a handling capacity exceeding 5 million TEUs. (Asharq)
- American firm 'Waptec' delivers 20 railway tractors to 'Naql.
The Egyptian Ministry of Transport has taken delivery of 20 new railway tractors from US firm Waptec. The delivery is part of a larger order for 110 tractors, all of which have now been supplied and put into service. Additionally, the Ministry has contracted for another 100 tractors, 40 of which have already been received. This is in line with the Ministry's plan to bolster the railway traction force with 260 new tractors. To service these new additions, the Egyptian National Railways is establishing a new maintenance and overhaul workshop. (Economy Plus)
- Tax authority calls for taxpayers to refresh their primary information in the interest databases.
The Egyptian Tax Authority is urging all taxpayers to keep their basic data up-to-date in the organization's databases. This move aims to streamline communication and improve the efficiency of tax-related matters. Dr. Fayez Al-Daba’ani, the head of the authority, highlighted that the details taxpayers need to update include address, national ID number, phone number, and email. These requests are particularly applicable to the financiers using the new main tax business system and those who submit their returns electronically on the online portal for tax services. (Al Mal)
- Sodic's Sales see a 22% increase, reaching 8.2 billion pounds in the first half of the year.
SODIC saw a sales increase of 22% in the first half of this year, recording EGP 8.2bn from the sale of 674 units. This was fueled by strong demand for ready-to-deliver projects. Net profits also grew by 15% annually, reaching EGP 335m after tax and minority interest deductions. The company's activity revenues also rose by 7% compared to the same period last year, totaling around EGP 2.9 billion. SODIC managed to deliver 402 units across various projects during the first half of the year. (Economy Plus)
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