Edita obtains a loan from the International Finance Corporation worth 45 million USD
Edita obtains a loan from the International Finance Corporation worth 45 million USD. The purpose of obtaining the loan is to finance capital expenditures in Egypt and Morocco, finance the company’s expansion plans, and repay the entire loan previously granted by the International Finance Corporation within the limits of 10 million USD of the total financing amount. It is noteworthy that Edita Food Industries achieved an increase in consolidated net profits by 116% to 809.797 million EGP during the first half of this year, compared to 374.910 million EGP in the comparative half last year, taking into account minority rights. (Hapi Journal)
- Eva Pharma to build 500 million SAR industrial complex in Saudi Arabia.
Eva Pharma signed an agreement with the Saudi Authority for Industrial Cities and Technology Zones (MODON) to establish an integrated industrial complex for pharmaceutical research and manufacturing in Saudi Arabia with 500 million SAR in investments. The project will be built on a 50,000-square-meter land plot in Sudair Industrial and Business City. The complex targets the launch of more than 150 pharmaceutical products, equivalent to 990 million units annually. Moreover, it will include five factories for the production of biopharmaceuticals, oncology treatments, advanced tablets and capsules, as well as immunosuppressants and vaccines. (Saudi News Agency)
- valU to enter Jordan in early 2024.
valU, EFG Holding’s Buy-Now, Pay-Later (BNPL) solutions provider, is planning to launch in Jordan in early 2024. The company has taken the required measures to obtain a license from the Central Bank of Jordan (CBJ). The move comes as part of the firm’s strategic plan to expand to new markets. valU is also studying launching its operations in North African markets in the near future. On the other hand, valU decided to exclude the Saudi Arabian market from its expansion plan, as it realizes that the market's current dynamics prevent seamless implementation of its whole range of financial products. (Asharq Business)
- MIDAR in talks with Gulf investors over lands sale in USD.
Egyptian real estate developer MIDAR for Investment and Urban Development is currently in advanced talks with Gulf investors over selling plots of land in US dollar. The company is also seeking to seal development partnership agreements with them. As per MIDAR’s website, the firm’s land bank extends over more than 11,000 feddans. (Asharq Business)
- GAFI eyes issuing silver licenses for start-ups end-2023.
The General Authority for Investment and Free Zones (GAFI) is considering issuing silver licenses for start-ups before the end of 2023 to facilitate its business activities. The authority will submit details on the new licenses to the cabinet within two months to be approved. Earlier this year, GAFI issued a new single-approval license for investors as a new version of the golden license, which covers construction, environmental, civil protection, and any investment activity licenses. (Asharq Business)
- Egypt faces possible demotion on FTSE stock indexes amid FX crunch.
Egypt is at risk of being demoted from “secondary emerging market” to “unclassified,” a move which could see Egyptian equities deleted from the provider’s indexes. Global index provider FTSE Russell is adding Egypt to a watchlist for possible demotion in its suites of equity indexes amid reports of foreign investors having difficulties repatriating capital from the country. The country remains in the grip of an ongoing hard currency shortage, triggered in part by major foreign portfolio outflows as global economic conditions tightened following the outbreak of the Russia-Ukraine war. A sharp shortage of FX is making it difficult for investors to repatriate capital when exiting a position here. (Reuters)
- Global index provider MSCI in June said it could consider reclassifying its Egyptian indices from “emerging” to “frontier” or “standalone” status, citing the FX liquidity crunch.
Moody’s in August extended its review of a potential downgrade for our sovereign credit rating, while JPMorgan last week put Egypt on review for potential removal from its widely-tracked suite of emerging-market sovereign bond indexes. FTSE has also put Pakistan and Vietnam on the watchlist. Pakistan could drop to “frontier market” from “secondary emerging market” while Vietnam will remain on the watchlist for a possible upgrade to secondary emerging from frontier. (Reuters)
- Egypt’s FDI inflows up 10% in FY2022/23: Heiba.
Foreign direct investment (FDI) inflows to Egypt rose by 10% year on year (YoY) in fiscal year (FY) 2022/2023, citing CEO of the General Authority for Investment and Free Zones (GAFI) Hossam Heiba. He noted that Egypt ranked first in Africa and second in the Middle East after the UAE in terms of the value of FDI inflows. Over the last six months, GAFI has dedicated around 4.5 million square meters of lands as industrial zones for several foreign investors, Heiba pointed out. (Ahram Online)
- EBRD lowers Egypt’s GDP growth outlook for 2024.
The European Bank for Reconstruction and Development (EBRD) has downgraded its forecast for Egypt’s real gross domestic product (GDP) growth to 4.5% for 2024, 0.7% down from its previous forecast in May. As for growth projection for fiscal year (FY) 2023/2024, Egypt’s GDP is likely to pick up to 4.8%. The North African country’s growth is estimated to have slowed to 4.1% in FY 2022/2023.
- It’s worth noting that Egypt’s natural gas production is estimated to have fallen by 9.3% year on year (YoY) in the first half of 2023, recording a three-year low.
Foreign exchange reserves stabilized, partly thanks to an IMF-supported program that improved access to finance, but the currency remains under pressure and a significant differential remains between the official and black-market exchange rates. In its May forecast, EBRD lowered its forecast for Egypt’s GDP growth to 4.8% for FY 2023/2024 to 4.8%, 0.2% down from its February projection. (Arab Finance)
- Egypt imports 200,000 tons of raw sugar.
Egypt has imported 200,000 tons of raw sugar, with the shipment to arrive over the coming period. The shipment will arrive through the General Authority for Supply Commodities (GASC), Egyptian Sugar and Integrated Industries Co. (ESIIC), and all the affiliated companies with Holding Company for Food Industries (HCFI). This is in addition to the quantity that had previously been imported. This came as part of the country’s strategy to increase its strategic reserves of basic commodities and ensure their sufficiency for at least six months. (Arab Finance)
- CBE, China’s PBoC mull signing currency swap agreement.
The Central Bank of Egypt (CBE) is considering the signing of a currency swap agreement with The People's Bank of China (PBoC). The agreement targets boosting the partnership between both parties and contributing to financial stability. The Egyptian government expressed the intention to issue Panda bonds, in addition to encouraging the presence of Chinese banks in the Egyptian market and vice versa to enhance financial integration between the two countries. (Economy Plus)
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