As Zilla capital expected,talks with the IMF on an assistance package are set to continue

Newsletter

25 Oct 2022

As Zilla capital expected earlier this month, talks with the IMF on an assistance package are set to continue “the first week of November” in Cairo. A delegation of the International Monetary Fund (IMF) will visit Egypt in the first week of November to resume talks over a new loan agreement in US dollars. It is worth noting that the Central Bank of Egypt (CBE) and the Ministry of Finance have reached an agreement with the IMF on the policies and restructuring of the new Egyptian economic reform program. On October 15th, the IMF’s Director of Communications Gerry Rice revealed in a statement that Egyptian authorities and the staff of the IMF agreed to finalize their negotiations in preparation for reaching a staff-level agreement very soon. (Al Akhbar Al Yom)

CBE to launch index for Egyptian pound soon: Abdalla
The Central Bank of Egypt (CBE) will launch an index for the Egyptian pound soon. The index is set to include a group of currencies, and possibly gold, Abdalla revealed on the sidelines of the first day of the Egyptian Economic Conference. During the conference, Abdalla pointed out that the interest rate mechanism could not be suitable for dealing with the supply crisis. The interest rate mechanism could be used when demand is the source of the problem, he noted, adding that the current issue is resulting from the supply crisis. (Reuters).
Moreover, Abdalla highlighted that the CBE’s main mission focuses on containing inflation, but not through launching financing initiatives
He ruled out the possibility of any breakthrough in the global economy soon, indicating that it is the case in most central banks worldwide. Abdalla also asserted that the CBE is working on reinforcing its credibility in the market. Meanwhile, Advisor to the CBE’s Acting Governor Hisham Ezz El-Arab stated that the foreign exchange market in Egypt requires new products. (Reuters)
Egypt aims to cut debt-to-GDP to 72% in 5 years: Maait
Egypt is looking to cut the debt-to-GDP ratio to reach 72% in the coming five years. This ratio would be the lowest level to be recorded in Egypt in over 42 years. Moreover, the minister noted that the government targets a primary surplus of 2.3% in fiscal year (FY) 2026/2027. The country has recorded a primary surplus of 1.3% at the end of FY 2021/2022. (Al Mal)
Egypt’s ownership policy document ensures clear vision for investors: Kouchouk
The Egyptian government has set the state’s ownership policy document for governing relations with the private sector as well as ensuring a clear comprehensive vision for investors. The government always targets maximizing returns for Egyptians and pushing investment rates up to match the global rates to achieve high growth and create job opportunities. The government will be present in specific sectors that are related to the national benefit or that require huge investments. (Hapi Journal)
The Suez Canal Economic Zone (SCZone) launched its promotional campaigns to drum up investment in the zone this morning ahead of COP27
The campaigns are designed to highlight how the zone differs from other economic zones, as well as its efforts to localize the green energy industry. The domestic campaign’s slogan is “An Integrated Path — One Destination” while the international campaign’s slogan is “Green Energy Destination.”. (Al Mal)
Egypt is playing host to the annual Gas Exporting Countries Forum meetings
Ministers from the 19 member countries as well as eight observer nations are in Cairo until end of today for the annual meetings of the Gas Exporting Countries Forum. Egypt has been positioning itself for some years now as the premier energy hub in the Eastern Mediterranean, serving as a hub for natural gas and electricity exports to Europe, the Levant, GCC, Sudan and North Africa. Throw in the energy war between Russia and Europe and things look very interesting right now. (Hapi Journal)
Let’s not forget, Egypt and the UAE will host a gathering marking 50 years of bilateral ties
The conference takes place Wednesday-Friday (26-28 October) and is being produced in association with the two governments. Day one is an economic forum featuring ministers, senior officials and business leaders from the two countries, while the following day will feature a cultural forum. (Al Mal)
Seqoon secures 500,000 USD in pre-seed round
Egypt-based real estate co-ownership startup Seqoon raised 500,000 USD in pre-seed funding round. The funding round was backed by Banque Misr through its pilot program to support fintech startups in Egypt. A number of notable angel investors participated in the round as well, though their identities were not mentioned in the press release. The secured round will be used to grow the startup’s team, which has now launched its first co-ownership destination in El Gouna. Seqoon aims to expand into other Red Sea destinations, such as Dahab, as well as the North Coast by 2023. (WAYA)
Remco’s subsidiary receives 700 million EGP for hotel
Remco for Tourism Villages Construction (RTVC) announced that its subsidiary Scandinavian Investments and Tourism Development received a preliminary offer from TOLIP Hotels and Resorts for the acquisition of one of its hotels for 700 million EGP. The offer is under study and will be presented to the board of directors. Remco is an Egypt-based company that operates in tourism and entertainment projects development and construction. (Arab Finance)
Raya Holding ups stake in Haier Raya Electric for 47.7 million EGP
Raya Holding for Financial Investments (RAYA) announced that it bought a 10.27% additional stake in Haier Raya Electric For Manufacturing for 47.742 million EGP. After the transaction, both Raya Holding’s direct and indirect stakes in the company rose to 100%. The deal is pending approval from the Financial Regulatory Authority (FRA) and EGX, in addition to other authorities. (Mubasher)
Dice sees 36.7 million EGP block-trading
Dice Sport and Casual Wear (DSCW) witnessed a block-trading transaction of 36.698 million EGP. The transaction was executed on 108.575 million shares. Dice is an Egypt-based company engaged in the casual wear garments and textile industry. The company manufactures and distributes ready-made casual wear made of pure and mixed cotton, polyester, and viscose fabrics in different types, as well as other knitting products. (EGX)