Egypt is among the attractive emerging markets in which BlackRock could be investing through its new 673 million USD climate-focused infrastructure fund
For our top talks today, Egypt is among the attractive emerging markets in which BlackRock could be investing through its new 673 million USD climate-focused infrastructure fund. The announcement of the fund coincided with the COP26 summit, where representatives of more than 100 countries are meeting to find consensus on how to reach net-zero emissions over the coming decades. The fund’s average equity investment will likely be in the 25-75 million USD range. (Reuters)
- It is worthy to mention as well that Egypt, which was recently ranked by E&Y as one of the top 20 countries in the world for renewable energy attractiveness, recently set a goal of generating 42% of the country’s electricity from renewable sources by 2035.
The Egyptian government plans to authorize 2.4 GW worth of renewable energy projects that would cost a combined 1.5 billion USD. Several projects will also be funded through our maiden 750 billion USD green bond issuance, which made Egypt the first country in the region to sell climate-related debt. (Reuters)
- Moreover, the Minister of Trade and Industry, Nevine Gamea, announced that the Export Development Fund issued 721 export certificates as part of the second batch of the third phase of the immediate disbursement of export subsidies initiative.
A total of 700 companies received total subsidies worth 1.788 billion EGP or a net value of 1.625 billion EGP after deducting due tax and gas bill arrears. The initiative includes the payment of subsidies owed by the Export Development Fund to exporters in a lump sum at a 15% discount instead of scheduling payments over years. (Arab Finance)
- Also, the Egyptian Customs Authority collected about 3.267 billion EGP in taxes, customs duties, and other charges at Ain Sokhna port during October.
The total value of taxes and customs duties collected for imported goods at Ain Sokhna port amounted to 867.970 million EGP last month. In addition, the value-added tax (VAT) and other charges imposed on the imported goods at the port stood at 2.399 billion EGP. Moreover, the port exported goods at a total value of 1.648 billion EGP. Charges collected for the exported goods reached 6.404 million EGP. (Egypt Ministry of Finance)
- Equally important, Egypt's non-oil private sector contracted in October to its lowest level since May amid an international supply chain crisis.
The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index edged down to 48.7 in October, compared to 48.9 in September. A reading above 50 indicates expansion, while a reading below that signals contraction. Worsening supply chain disruption appeared to weigh more heavily on firms' projections for future output in October. After climbing to a record high in September, the respective index saw its largest ever monthly decline of over 20 points, bringing expectations down to the lowest since April. Firms were particularly concerned that high inflation could lead to a slump in demand and reverse the economic recovery seen since COVID-19 restrictions were eased. (Arab Finance)
- Moreover, October Pharma (OCPH) achieved a net profit after tax of 100.32 million EGP in the first nine months of 2021, compared to a profit of 60.66 million EGP in the year-ago period.
Earnings per share (EPS) stood at 13.38 EGP in the nine-month period ended September 20th, 2021, compared to EPS of 8.09 EGP in the same period of 2020. Net sales reached 489.07 million EGP in the January-September period of 2021, rising from 379.20 million EGP in the same period of 2020. (EGX)
- Turning to our top talk abroad, It was fed day yesterday! Likely to be an interesting one. First, the consensus among analysts is inclined towards a "dovish tightening" that is: Greater recognition of high and persistent inflation in the Federal Reserve's economic assessment;
The initiation of the tapering of large-scale asset purchases at around 15 billion USD per month; and A push back by Chair Jerome Powell in particular against market pricing of early rate hikes. The Fed would quickly leave behind legacy positions and overcome cognitive and other traps that behavioral scientists readily identify. They would base their policy adjustments on fresh evaluations of recent developments and prospects rather than remain hostage to outdated narratives and ill-suited frameworks. The more this needed transition lags, the greater the risks to a global economy that needs to maintain a robust and inclusive recovery if it is to deal effectively with other urgent challenges starting with climate change and the need to lower vulnerability to renewed pandemic dislocations. (Zilla Capital & Bloomberg)
- And for our EGX & companies talks, two companies are targeting establishing special-purpose acquisition companies (SPACs) in Egypt to acquire and list fintech players.
Both companies are non-banking financial services (NBFS) players, one of which is Egyptian, while the other is international with stakes in several Egyptian companies. These companies are currently in talks with the Financial Regulatory Authority (FRA) about the steps they would need to take once SPACs are formally allowed. On November 2nd, the FRA approved the establishment and licensing of SPAC in Egypt for the first time. (Arab Finance)
- Likewise, Edita Food Industries (EFID), the Egypt-based pioneer packaged snack food company, has achieved a net profit of 112.4 million EGP in Q3 2021, up by 4.6% from 107.5 million EGP in Q3-2020.
Moreover, Edita’s revenues have jumped by 31.7% year-on-year (YoY) in Q3 2021, recording 1.39 billion EGP from 1.059 billion EGP. The company’s volume growth grew in Q3 2021 on the back of the segments of cakes, wafers, rusks that increased YoY by 31.2, 45%, and 20%, respectively. On the level of the first nine months of 2021, the company has recorded a top-line of 3.71 billion EGP, up by 33% YoY. Higher top-line backed Edita’s net profit in the January-September period of 2021 to record 276.2 million EGP. (EGX)
- In addition, Obour Land for Food Industries (OLFI) is planning to raise the prices of its products in the fourth quarter (Q4) of 2021 to offset the increase in raw materials’ prices.
The company was able to achieve growth in Q3-2021 despite of the sudden increase in prices of raw materials, higher shipping costs, and volatile global supplying chain. The company’s sale volume from the white cheese segment fell by 5% to 29,800 tons in Q3-2021, compared to 31,500 tons in Q3-2020. The company has raised the average price of white cheese by 5% during the first nine months of 2021, adding that the company will continue raising the prices in Q4-2021. (EGX)
- Furthermore, Cairo-based grocery delivery startup Appetito has raised 2 million USD in its latest funding round.
The round was led by y Jedar Capital, a US based early-stage VC focusing on MENA and Emerging Asia, with additional participation from Golden Palm investments, DFS Lab and a group of prominent angel investors and family offices some of which had previously invested in similar grocery startups namely Jiffy in U.K and Chaldal in Bangladesh. In April, the company raised 500,000 USD in a seed round. The grocery retail market size in Egypt is valued at 60 Billion USD. The fact that 2% of it is currently online, creates a massive opportunity for growth betting on the younger generations as 50% of the Egyptian population are below the age of 25 years. (Arab Finance)
- And finally, Benya Capital plans to go for a dual listing on the Egyptian Exchange (EGX) and a foreign stock exchange.
The company will soon complete studies on a potential initial public offering (IPO) in Egypt, after which it will decide on the second market and the timing of the offering. Benya is the leading digital solutions and ICT infrastructure provider in Egypt and the MEA Region. Through its subsidiaries that operate across various ICT verticals, Benya offers a wealth of products, services and digital solutions including telecommunication services, cloud, and security solutions, hyperscale data centers, manufacturing technology-based solutions and systems integration. (Al-Mal)
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