Minister of Environment met with representatives of the American company “I Energy 3” to discuss the possibility of implementing a project to convert waste into biofuels in Fayoum.

Newsletter

09 Aug 2021

For our top talks today, first, Dr. Yasmine Fouad, Egypt Minister of Environment, met with representatives of the American company “I Energy 3” to discuss the possibility of implementing a project to convert waste into biofuels in Fayoum. It is worthy to highlight that the project will produce, in addition to biodiesel and alternative fuels, products that can be used for fertilization in agriculture, and will be rich in paraffin, which is used in many other industries such as plastic production and construction. We believe the project will achieve a number of advantages that serve the local community in Fayoum, including creating one of the green financing mechanisms that enables to establish more other green projects through its financial return.

Second, Egypt signed 12 development financing agreements within the framework of the joint cooperation strategy with Germany, during the first half of this year, at a value of 197 million EUR, to support the country's development vision and implement a number of projects in various sectors, including energy.
It is worth noting that the ongoing development cooperation portfolio with Germany amounts to 1.7 billion EUR, through which 30 projects were financed in the form of funds, technical support grants and financial contributions, benefiting many development sectors.
Equally important, Japan External Trade Organization (JETRO) announced that the Japanese company's DMG Mori factory is scheduled to start operation in the fall of 2023, noting that it is specialized in the field of machinery.
Stressing that DMG Mori is not only looking to work in the Egyptian market, but also the African market, adding that more other Japanese companies consider Egypt a gateway to the growing Middle East and African markets. We believe that once the spread of Corona is contained globally, the movement of businessmen and trade missions between the two countries will be restored.
Moving to Egypt real estate sector, Talaat Moustafa Group (TMG) sales record a historical rise in the first half first and showing an increase in net profits by 23.16% on an annual basis.
The company achieved profits of 869.38 million EGP during the six months ending last June, compared to profits of 705.85 million EGP in the comparative period of 2020. Noting that the group achieved new sales of 21 billion EGP during the first half of 2021, compared to 4.4 billion EGP in the previous year, a growth of 375%.
In the same fashion, Abu Qir Fertilizers’ profits jump to 3.5 billion EGP recording a 30.5% growth in net profitability during 2020-2021 for the first time in its history.
These numbers are driven by the improvement in the company’s efficiency in maintaining continuity of operation, resulting in increased production and sales volumes and lower operating costs in addition to the favorable market conditions, which are reflected in urea prices and growing demand improvement.
And in the light of Egypt energy sector, Egyptian petroleum minister Tarek El-Molla announced the establishment of a new complex for high-octane gasoline production in the governorate of Assiut at a cost of 450 million USD, with a production capacity of around 800,000 tons of gasoline per annum.
We believe that the new complex will help boosting the refining capacity, which will contribute to maximizing the added value of the economy and reducing the petroleum products’ import bill.
Furthermore, Chevron Corporation, the US-based multinational energy corporation, is planning to pump new investments into Egypt’s gas and oil exploration sector.
The American company is currently carrying out oil and gas exploration projects across four areas in Egypt as the main operator, with up to carrying out oil and gas exploration projects across four areas in the Mediterranean and the Red Sea as the main operator, with up to 360 million USD in investment. Moreover, Chevron is investing in another two projects, namely North Marina and North Cleopatra, in the west Mediterranean as a partner to Shell Global.
Additionally, the Egyptian Ministry of Transport signed yesterday the contract for installing the first phase of the high-speed rail system with Germany’s Siemens Mobility.
This project will contribute to connecting the New Administrative Capital and the new cities with the railway network for transporting passengers and goods. It is worth adding that the high-speed rail system project extends over 460 kilometres from El Shokhna to Marsa Matrouh, including 15 stations.
Regarding our M&As talks, the Sovereign Fund of Egypt will participate with a minimum of 5% stake in the acquisition of Amoun Pharmaceutical Company, which was recently purchased by Ultra-welfareltd, a subsidiary of the Abu Dhabi Holding Group (ADQ).
It is worthy to highlight that Amoun Pharmaceuticals is one of the largest foreign companies operating in the Egyptian market, in terms of the number of preparations and annual sales, and was affiliated with the Canadian company Bausch Health.
Finally, Taaleem for Management Services revealed that it is currently studying the acquisition of an existing entity in the local market, with its readiness to sign a memorandum of understanding with an American university to develop study programs for some faculties of Al-Nahda University, and another European one to provide Badia University with study programs.
Adding that the partnership option is also proposed for existing entities that need financial support, provided that the partnership is fruitful and leads to growth and positive results.