Egypt ranks second in the Economist’s normalcy index
For our top talks today, first, we need to highlight that Egypt ranks second in the Economist’s normalcy index. Egypt’s economy has proven to be more resilient in the face of challenges as the country came in the second position in The Economist’s normalcy index tracking the return to the pre-pandemic life. We believe that there are promising investment opportunities in major national projects in Egypt that attract international development partners, and that the government is paying its efforts to stimulate economic activity and deepen the development partnership with the private sector. Which contributes to achieving comprehensive and sustainable development.
- Second, Egypt's PMI rises in August as purchasing posts record expansion recording 49.8 compared to 49.1 in July, slightly down from the neutral 50.0. Increasing demand and growing fears over further price increases triggered a record expansion in purchasing activity among Egyptian companies in August.
As travel reopened, the number of tourists increased and the market activity saw a rebound. Meanwhile, employment rose for the second month in a row. However, PMI data also showed the widespread risk of inflation, as input prices picked up at the fastest rate since August 2019. Selling prices were raised to the greatest extent in three years, while firms also sought to create buffer stocks amid fears that costs will continue to increase.
- Equally important, we need to mention the top five companies in the Egyptian cotton export season race. The total Egyptian cotton export recorded about 237.4 million dollars during the 2020/2021 export season, compared to 154 million dollars for the 2019/2020 season. Abu Madawi Company topped the list of companies exporting cotton during the 2020/2021 season, with contracts worth 43.5 million USD, followed by Modern Nile 42.9 million USD, to maintain the position it recorded in the last season before.
Al-Ikhlas Company ranked third, with a contract value of 41.7 million USD, falling two places after it topped the last export season. And in the fourth place, United Company came, with a contract value of 38.34 million USD, and in fifth place was Alcan, with about 15.49 million USD.
- As a matter of fact, the Land and Dry Ports Authority has agreed with the Holding Company for Silos and Storage of the Ministry of Supply and Internal Trade to conduct a detailed feasibility study for a project to establish a dry port in Beni Suef.
With this in mind, we need to mention that the Ministry of Transport is currently preparing a new law that includes increasing the period of use for land and dry ports to 30 years to attract the largest number of companies to implement the ministry's plan to establish 9 projects by the end of 2025.
- Likewise, the New Valley Reconstruction Authority is implementing 316 projects in the Manfalut and Dayrut centers at a cost of 1.24 billion EGP, including 141 projects in Manfalut at a cost of 541 million EGP and 175 projects in Dayrout at a cost of 699 million EGP.
And 49 projects in the youth and sports sector, raising the efficiency, replacing and renovating 9 health units, establishing and developing 6 ambulance units, as well as 55 walkers and 8 projects in the electricity sector.
- And in the light of Corona vaccines, the Minister of Health and Population announced receiving the second shipment of “Johnson & Johnson” coronavirus vaccines, with a total of 525,000 and 600 doses.
Noting that the received shipment will be distributed to centers designated to vaccinate travelers abroad with coronavirus vaccines, and to complete the process of vaccinating citizens through 776 centers distributed throughout Egypt. In addition, the Egyptian government is studying reinstating some preventative measures to combat the fourth wave of COVID-19 due to the climbing case numbers and spread of the delta variant in many governorates.
- Moving to our companies talks, DD, the Chinese company for smart transportation services, intends to officially launch its services in the Middle East and start providing “Waslny” and “Waslny Plus” DD Express services in Alexandria, Egypt on September 13, 2021.
DD aims to become the safest choice for those who need to move around the Egyptian cities, as well as for entrepreneurs. We believe that Egypt is a huge market with great opportunities for technology companies such as DD.
- By the same token, Elsewedy Electric signs 16.7 million USD contract for transformer station in Ghana. It is worthy to mention that Elsewedy Group signed similar contracts in five African countries (Congo, South Sudan, Tanzania, Zambia, Madagascar) over the past years, in the field of electricity, dams and solar energy.
Also, the company signed electrical works worth 124.5 million AED for the Dubai Electricity and Water Authority in the UAE. Moreover, during the last period, the group embarked on the procedures for completing the acquisition of two Asian companies, one Indonesian and the other Pakistani, with a total value of 60 million USD.
- And for our EGX listed companies, Dice Readymade Garments Company showed that it turned to profitability by achieving 5.8 million EGP during the first half of 2021, compared to losses of 92.7 million EGP during the comparative period of 2020.
The sales rose to 666 million GPP during the first half of 2021 compared to sales of 445 million EGP during the comparable period last year. Noting that a recent fair value study issued by Solid Capital for Financial Consulting (May 25th), evaluated the company’s share at 2.7 EGP.
- Furthermore, for our Egypt real estate sector’s investments talks, first, Orascom Development invests 800 million EGP in O West Club in 6 October city.
This club comes in line with Orascom Development's strategy to build integrated cities that provide all facilities and services for a distinguished lifestyle. Second, Misr Italy signs a contract with Solid Contracting to implement the third phase of the “Bosco” project in the Administrative Capital, for 400 million EGP. Here, it is noteworthy that this is a serious step in implementation of the recent presidential directives for real estate developers to complete projects at rapid rates, especially in the New Administrative Capital.
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