Egypt is on its way to start exporting locally-made Covid-19 vaccines to African countries

Newsletter

22 Feb 2022

For our top talks today, Egypt is on its way to start exporting locally-made Covid-19 vaccines to African countries, positioning the country as a regional hub for inoculations, according to the president of Holding Company for Biological Products and Vaccines (VACSERA) Heba Wali. Export plans will be discussed between Chinese and Egyptian officials by the end of February. She revealed that Egypt is negotiating with authorities in Libya to provide the neighboring country with the Sinovac vaccine, which is manufactured in Egypt. Wali added that other countries in Africa requested shipments and the distribution may be conducted via the Covax alliance or direct payments. Negotiations are also underway with AstraZeneca company for the production of its vaccine in Egypt. (Bloomberg)

The Central Bank of Egypt (CBE) launched an initiative to help banks cover risks when issuing letters of credit (LCs) to importers.
The initiative is aimed at encouraging banks to issue new LCs for importers who used to facilitate transactions through documentary collection. The CBE entered into an agreement with Credit Guarantee Company (CGC) to cover 100% of uninsured LCs. The central bank’s initiative also exempts banks of guarantee commission for six months. Moreover, CGC will inform banks with the details and the framework of the initiative. It is worth noting that the CBE introduced a new policy requiring importers to present a set of documents to banks for their transactions. (Hapi Journal)
The Financial Regulatory Authority (FRA) has issued a new regulation requiring non-banking financial institutions to obtain the FRA’s prior approval before conducting due diligences.
The new regulation dictates investors seeking to acquire stakes in a non-banking financial services company to obtain an approval from the FRA before having access to the company’s internal documents or data, the statement revealed. The FRA will set up two new dispute resolution committees for non-bank financial services companies. The new committees will settle conflicts between companies and their clients, including complaints within companies working in securities and issues occurred in companies working in the non-banking financial sector. (Arab Finance)
Egypt’s current production capacity of natural gas reached 73.4 billion cubic meters (bcm) per annum. According to London-based BP, Egypt was ranked 14th among the world gas producers and second in Africa in 2020.
The report highlighted Egypt’s success in maintaining its average production levels during the fiscal year (FY) 2020/2021 despite the impact of the Covid-19 pandemic. Egypt was self-sufficient of natural gas in September 2018, producing 66.1 bcm in FY 2018/2019, while the consumption reached 61.8 bcm. As shown in the report, Egypt signed 99 new offshore oil and gas exploration agreements with up to 17 billion USD in investments.. (Al Arabiya.net)
The Egyptian government is getting ready for the pilot application for advance cargo information (ACI) system at air ports, Minister of Finance Mohamed Maait.
The date of commencing pilot application of the ACI system will be disclosed over the coming period. This move comes after the successful application of the API system at marine ports. The government aims at completing all development projects related to the automation of customs in June, which will contribute to turning Egypt into a global logistic hub. (Arab Finance)
Moving to our EGX and companies talks, EFG Hermes Corp-Solutions, a subsidiary of EFG Hermes (HRHO), has signed a deal worth 25 million USD with Transmar, a wholly-owned subsidiary of IACC Holdings.
The deal has been signed to finance the purchase of the new 204-meter cargo vessel ‘Transmar Legacy’, which has a capacity of 2,100 twenty-foot equivalent units (TEU). The new vessel is expected to support Transmar’s Red Sea Service, mainly connecting Egypt and Saudi Arabia. The total value of the leasing transaction amounts to 33 million USD. The purchase of Transmar Legacy will bolster Transmar’s growth and reinforce its position as the region’s leading container line and as a long-standing reliable partner. (EGX)
Al Tawfeek Leasing Company (A.T.LEASE) (ATLC) has recorded a consolidated net profit attributable to the parent company of 134.06 million EGP in the full-year ended December 31st 2021.
This marks a growth from the consolidated net profit reported in 2020 of 74.13 million EGP. Consolidated operating revenue rose to 546.56 million EGP in 2021 from 514.47 million EGP in 2020. Meanwhile, standalone net profit after tax stood at 134.007 million EGP in 2021, up from 74.05 million EGP in 2020. AT LEASE is an Egypt-based Islamic sharia-compliant leasing company, which provides a variety of international leasing solutions and products. (EGX)
Bonyan for Development and Trade, a subsidiary of the private equity firm Compass Capital, acquired six grade A office buildings in East Cairo.
The total build-up area (BUA) of the acquired buildings amounts to 74,227 square meters (sqm), with a gross leasable area (GLA) of 47,450 sqm. The new deal increases Bonyan’s total GLA to 95,000 sqm and marks its first significant acquisition of a fully leased grade A office space, with tenants including multinationals and large Egyptian corporations. Moreover, the latest transaction adds commercial office buildings in East Cairo to the retail assets owned by Bonyan in West Cairo, bringing the total value of its portfolio to 5.5 billion EGP. It is noteworthy that Bonyan was acquired by Compass Capital in July 2018. (EGX)
Samcrete Engineers and Contractors is currently working on the establishment of Neric plant for manufacturing electric locomotives in East Port Said, according to the Chief Business Development Officer Refky Kamel.
The factory is being executed in collaboration with the Sovereign Fund of Egypt (SFE). The new plant will start production by the end of 2022. It is worth noting that the project is under development in partnership with South Korea’s manufacturer Hyundai Rotem. (Hapi Journal)
Raya Holding for Financial Investments (RAYA) is seeking to issue securitized bonds worth 2 billion EGP in 2022 for a number of its subsidiaries, according to the CFO Hossam Hussein.
The company is currently in talks with some banks to manage the issuance. The first bond offering is expected to be issued in the first quarter (Q1) of 2022. Moreover, the CFO pointed out that the company aims at boosting the financing portfolio of Aman for Financial Services to reach 800 million EGP. He also noted that Raya is targeting investments worth 400 million EGP in 2022. (Hapi Journal)
Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO) is set to appoint Goldman Sachs Group Inc as an independent advisor on the offer submitted by First Abu Dhabi Bank (FAB).
Once hired, the independent advisor will counsel shareholders of EFG Hermes regarding FAB’s offer to acquire a majority stake in the Egyptian group, sources who asked not to be identified told the news agency. Spokespeople at both EFG Hermes and Goldman Sachs have declined to comment. It is worth noting that investors in Egypt’s largest investment bank include Natixis SA and the US-based Ripplewood. (Bloomberg)