Egypt Minister of International Cooperation has offered to finance private environmental sectors worth USD 1.9 bn
In September 2020, Egypt issued USD 750 mn in green bonds, the issuance was oversubscribed attracting USD 3.7 bn worth of orders. It is worthy to mention that the Egyptian government and investors are taking the first steps to achieve the UN’s 2030 sustainable development goal (SDG).
- Moreover, to our macro talks, Egypt’s tourism revenues were between USD 3.5 bn to 4 bn during H1-2021. We believe tourism will increase 45% to 60% in the next period.
The tourism sector is the most important sector in Egypt where it relies on 10% of the workforce and worth around EGP 400 bn. Fortunately, Egypt’s economy didn’t shrink during the COVID pandemic; thus, we expect that Egypt’s economy will bounce back faster than expected.
- Equally important, The Egyptian president, Abdel Fattah El Sisi announced that he will allocate EGP 600 bn for national rural development.
This is part of the (Haya Karima) whose main objective is improving the quality of life in the poorest communities. This is achieved through infrastructure investing in human capital. It is worth noting that the socio-economic project has the potential to lift many Egyptians from poverty.
- By the same token, Egypt’s senate to discuss general unified finance law. This law consists of improving budgetary allocation to socio-economic development.
The draft law stipulates that employees in financial sectors in digital financing. This can be a beneficial law since fintech is currently booming in Egypt.
- In other news, Trella a digital freight marketplace raised USD 42 mn for their startup.
The two-year start-up aspires to have a more effective shipping method. Trella so far has reduced moving cost least 17%. Trella has the potential to tap into a USD 50 mn freight market. This will not only increase shipment productivity but could increase efficiency in the overall economy.
- For our COVID updated talks, the first batch of Egyptian vaccine production has been produced.
In the first phase of production, will produce 2.25 million doses and 10 million doses at the end of July. Definitely, the domestic production of vaccines will help curb coronavirus cases faster in Egypt.
- Moving to Egypt’s presence in the foreign press, Egyptian President Abdel Fattah al-Sisi inaugurated a large naval base 135 km from the border with Libya, alongside Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan and Libya's unity president.
It is worthy to highlight that the new naval base will help Egypt in protecting strategic and economic interests as well as helping guard against irregular migration as it boosts its naval presence on the Mediterranean and the Red Sea.
- In the same fashion to our world news, we need to ask; is stagflation looming for the U.S. economy? The Fed’s dovish stance on loose monetary and fiscal policy continues to fuel asset and credit bubbles.
This is frighteningly similar to the 1970 stagflation (recession accompanied with inflation). The Fed wants the U.S economy to fully recover, however, this might be at a cost of stagflation. We believe that if the U.S economy falls into stagflation emerging economies, such as Egypt, would see more dire consequences in their sectors.
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