Egypt Joins New Development Bank to Strengthen International Cooperation and Sustainable Development Efforts

Newsletter

04 Jun 2023

Egypt Joins New Development Bank to Strengthen International Cooperation and Sustainable Development Efforts Minister of International Cooperation Rania Al-Mashat announced Egypt’s recent membership in the New Development Bank (NDB) during her speech at the bank’s annual meeting in Shanghai, China. Egypt’s extensive experience in international cooperation and development financing, as well as its existing relationships with multilateral and bilateral partners, make it a valuable addition to the NDB. Al-Mashat highlighted that Egypt’s membership enhances South-South cooperation, enabling the country to share its expertise and development experiences with other nations in the Global South. Minister of International Cooperation Rania Al-Mashat announced Egypt’s recent membership in the New Development Bank (NDB) during her speech at the bank’s annual meeting in Shanghai, China. Egypt’s extensive experience in international cooperation and development financing, as well as its existing relationships with multilateral and bilateral partners, make it a valuable addition to the NDB. Al-Mashat highlighted that Egypt’s membership enhances South-South cooperation, enabling the country to share its expertise and development experiences with other nations in the Global South. (Al Ahram)

Egypt Government increases investment in green economy by 40%.
The Egyptian government is prioritizing the transition to a green economy as part of its development agenda, focusing on addressing environmental issues and adhering to strict sustainability standards. The economic and social development plan emphasizes monitoring projects with environmental impacts and supporting sustainable green growth. The goal is to increase investments directed towards the green economy from 30% to 40% of total public investment by 2023/2024 and up to 50% by 2024/2025. In the upcoming fiscal year, the government plans to complete the second phase of a project creating a climate change risk map and expand the industrial emissions monitoring network. Additionally, initiatives to promote environmental awareness, such as "Beautiful Egypt" and "Get Ready for Green," will be launched, along with a presidential initiative to plant 1.5 million trees. Various projects are also underway to adapt to climate change, including organic agriculture, water desalination, sewage treatment plants, and canal rehabilitation efforts led by the Ministries of Agriculture, Water Resources and Irrigation, and Housing, Utilities, and New Urban Communities, respectively. (Al Ahram)
Egypt's debt will meet the requirements to be eligible for Euroclear, a financial system that facilitates the settlement of securities transactions by end of 2023.
Egyptian Ministry of Finance is aiming to settle its cross-border link with Belgium-based clearinghouse Euroclear before the end of 2023, finance minister Mohamed Maait told Al Borsa News on May 30th. Maait noted that the government had fulfilled most of Euroclear’s requirements since signing the initial agreement in 2019 to make domestic Egyptian debt available to a larger number of foreign investors. Since the signing, Egypt has been working to meet the clearinghouse’s requirements, including setting up a central securities depository in addition to a number of technical, logistical, and administrative terms. In February 2022, the minister revealed that local Egyptian debt could not be made ‘Euroclearable’ until the second half of 2022 due to unresolved technical issues between the government and the clearinghouse. The ministry was originally expecting a final agreement in the fourth quarter of 2021, which was then pushed into early 2022 as talks dragged on. (Bloomberg Alsharq)
FABMISR Launches a Payment Gateway Supporting Egypt's Digital Transformation and Financial Inclusion.
First Abu Dhabi Bank Misr (FABMISR) has launched Access by FABMISR, a payment gateway, to support Egypt's digital transformation and financial inclusion. The platform simplifies online transactions for businesses, SMEs, and social e-commerce merchants, enabling them to accept, manage, and track payments securely. Access by FABMISR provides website tools, solutions, and payment link services for easy creation of online stores. FABMISR aims to support businesses of all sizes, enhance competitiveness, and contribute to Egypt's digital economy.FABMISR's Head of E-channels and E-payment Acceptance, Shmais Fakhry, emphasized their commitment to meeting diverse business needs and driving Egypt's economy through digital transformation. The gateway prioritizes security with 3D protection for financial transactions. Mariam El-Samny, Head of Consumer Banking at FABMISR, underlined the bank's dedication to digital transformation and financial inclusion. FABMISR achieved a 129% annual growth in net profit in 2022. Additionally, FABMISR successfully integrated Bank Audi Egypt under its umbrella in November 2022. (Mubasher)
Egyptian exports to Rwanda increases by 34% YoY in 2022.
Egyptian exports to Rwanda rose 34.3% year on year (YoY) in 2022 to $55.5 million, compared to $41.3 million, Minister of Trade and Industry stated on May 31st. Egypt’s key exports to the Rwandan market included paper, food, medical, and oil products. The announcement came during a meeting between the minister and the Rwandan Ambassador to Egypt Alfred Kalisa, where they discussed ways to boost the two-way trade via bolstering imports and exports of strategic goods imported by Egypt and Rwanda from other markets. (Arab Finance)
Egypt's net foreign assets (NFAs) deficit fell to EGP 745.864 billion in April, compared to EGP 750.933 billion in March
Total foreign assets with the Egyptian banking sector, including both the CBE and banks, reached EGP 1.464 trillion at the end of April 2023, higher from EGP 1.438 trillion in March, data showed. Meanwhile, total foreign liabilities with the sector stood at EGP 2.209 trillion in April, versus EGP 2.189 trillion in March. (Reuters)
Irrigation Ministry signs 3 agreements to boost irrigation systems, food security
Ministry of Water Resources and Irrigation has signed three agreements with the Food and Agriculture Organization (FAO), financed by Dutch and Japanese governments, to enhance irrigation systems, boost food security, and increase farmers’ income, according to a statement on June 1st. In cooperation with the Dutch government, the first project covers the implementation of the second phase of controlling land and water production via remote sensing. The second project, in collaboration with the Japanese government, aims at boosting water production for irrigation. The third project, in partnership with the Dutch government, aims to enhance irrigation technologies to improve the livelihood of small farmers in Upper Egypt. (Arab Finance).
Private energy company soon to be listed on EGX.
A new private energy company will be listed on the Egyptian Exchange (EGX) within weeks, Chairman Rami El-Dokany told Asharq Business on May 31st. He also expects the launch of a financial derivatives market over the coming three months after establishing the related settlement company that will be headed by Sameh Al Torgman. (Bloomberg Alsharq)
GAFI receives Russian delegation to review investment opportunities.
The General Authority for Investment and Free Zones (GAFI) received a Russian delegation of representatives of the Ministry of Industry and Trade of the Russian Federation, the Russian Financial Corporation, and businesses wishing to invest in the zone, as per a statement on May 31st. The meeting touched upon the current investment opportunities at the zone as well as the financial and non-financial incentives needed to boost these investments. (Arab Finance)
The Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) has acquired 11 medicines for the treatment of chronic diseases
The treatments include such as diabetes and high cholesterol, from a leading pharmaceuticals player in Egypt, according to a press release on June 1st. The acquisition will enable the company to enter five fast-growing therapeutic fields, with a total market value of EGP 2.2 billion. Rameda is a leading Egyptian pharmaceutical company that develops and produces a wide range of branded generic pharmaceuticals, nutraceuticals, food supplements, and veterinary products. (Arab Finance)