Egypt determines conditions of granting citizenship to foreigners

Newsletter

09 Mar 2023

Egypt determines conditions of granting citizenship to foreigners. Egypt decided to grant its citizenship to foreigners who buy a property owned by the government or juridical persons for at least 300,000 USD. Citizenship will be also offered to foreigners who deposit an amount of 500,000 USD refundable after 3 years in Egyptian currency. (Bloomberg Asharq)

In addition, Egypt will grant citizenship to foreigners who participated or established an investment project for a minimum of 350,000 USD
Whilst depositing an amount of 100,000 USD as direct revenue in the foreign currency, which is transferred to the state’s public treasury and not refundable. Foreigners who deposit a sum of 250,000 USD as direct revenue in foreign currency, which is later transferred to the public treasury and not refundable, also have the right to hold Egyptian citizenship. (Bloomberg Asharq)
Egypt’s Inflation rate for February will be out at the end of this week
Consumer prices accelerated at their fastest pace in five years in January on the back of record food price inflation triggered by the devaluation of the EGP. We believe that inflation will increase climbing to around 27% in February from 25.8% the month before. This would be the highest rate since October 2017 when inflation was running at 30.8%. (Zilla Capital)
CBE unveils terms of new subsidized lending program
The Central Bank of Egypt (CBE) is capping the funding provided for a single individual at 75 million EGP and a total of 112.5 million EGP per individual and all related parties under the new subsidized lending program for industry and agriculture players. (Al Mal)
It is worth noting that the government introduced a new 150 billion EGP subsidized loan program for industry and agriculture last year
Shortly after the central bank announced it would stop handing out soft loans as part of the loan agreement with the IMF. The IMF agreement required the central bank to transfer responsibility for funding subsidized loans to the state, which is now offering industrial and agricultural companies 11% loans, slightly more expensive than the CBE’s previous 8% rate. (Al Mal)
The Finance Ministry yesterday confirmed that the government is working on a feasibility study regarding the sale of an undisclosed stake in Telecom Egypt (TE)
The government is planning to sell 10% of the company’s shares, most likely to a local investor. However, the government may decide not to go ahead with the stake sale after studying its options. The company could choose to securitize future receivables as an alternative means of raising capital. (Asharq Business)
It’s noteworthy that TE’s share price lost 4.5% to settle at EGP 25.55 during trading last Tuesday
The company has seen more than 8% knocked off its share price since the news broke on Monday. The state currently holds 80% in the EGX-listed company, with the rest in free float. The transaction would be worth some 4.4 billion EGP at TE’s current share price. Representatives of the Qatar Investment Authority (QIA) expressed interest in purchasing a stake in TE during Prime Minister Moustafa Madbouly’s visit to Qatar last week. (Al Mal)
Dubai-based National Paints Holding (NPH) has raised its offer for Paint and Chemical Industries (Pachin) by 17% in a mandatory tender offer (MTO) submitted last Tuesday
The company has offered to purchase at least 75% of the company for 34.00 EGP a share, up from its initial 29.00 EGP bid in November. The offer will value the company at around 816 million EGP. The new offer makes NPH the highest bidder so far for Pachin. Pachin has fielded at least five takeover offers in recent months. (Al Mal)
The updated bid offer is the first following PM Madbouly’s decision to include Pachin in the gov’t privatization program
The three bidders were reportedly rethinking their options for EGX-listed Pachin following its inclusion in the state privatization program in early February. Pachin’s inclusion on the list had raised the possibility that the government could look to dilute its position by calling for a capital increase via the EGX or decide not to bring in strategics. Pachin is currently approximately 54% owned by state companies and banks. (Al Mal)
Elevate Healthcare fund is reportedly looking to fully acquire clinical radiology and lab service provider Nile Scan & Labs for 500 million EGP
The company is expecting to close the deal in April. Elevate Healthcare is a partnership between Elevate Private Equity and Banque du Caire’s Misr Capital, which are targeting a final close of 380 million USD. It aims to invest in verticals spanning hospitals, pharma, medical education and healthtech in Egypt and sub-Saharan Africa. (Asharq Business)
In addition, Elevate is planning to launch a new 50 million USD health education platform in 2023
Companies will be able to offer various qualifications and postgrad studies in pharma and medical management through the platform. Elevate has already made agreements with the University of Vienna to be part of the platform and is currently working to sign similar agreements with other major international universities. (Asharq Business)
Bedaya Mortgage Finance and Al Oula Mortgage Finance each issued securitized bonds worth nearly 1 billion EGP last Tuesday
Bedaya Mortgage Finance issued securitized bonds worth 958 million EGP in the second round of its 3 billion EGP program. The six-tranche bond is backed by a receivables portfolio of 1.56 billion EGP. The tranches received ratings ranging from A to AA+ from the Middle East Rating and Investor Service (MERIS). Bedaya is now more than halfway through its 3 billion EGP securitization program. It issued 651.2 million EGP worth of bonds to kick off the program last year. (Enterprise)
Finally, let’s present some interesting facts and statics on the occasion of the International Women’s Day. Women represent 18% of ministerial portfolios
Women got 6 ministerial portfolios within the Egyptian Cabinet in 2022, constituting 18% of total ministers. Women also won 162 Parliament seats (14 appointed and 148 elected), representing 27% in the House of Representatives. Women represent 14.9% of total labor force in 2022 (aged 15 years and over), compared to 69.1% of males. (CAPMAS)