Egypt, UN sign framework of partnership in sustainable development cooperation Tuesday

Newsletter

10 May 2023

Egypt, UN sign framework of partnership in sustainable development cooperation Tuesday. The partnership agreement will be signed by International Cooperation Minister Rania al-Mashaat as well UN Resident Coordinator in Egypt Elena Panova, in their capacities as co-head of the facilitation committee on the strategic framework of partnership between Egypt and the UN toward sustainable development. The framework of partnership outlines development projects carried out in Egypt in collaboration with the UN agencies, in accordance with the priorities of the Egyptian government as well the national plan for sustainable development “Egypt’s Vision 2030”. (Al Ahram)

Egypt upgrades budget deficit target for FY2023/24 to 7% of GDP
Egypt has upgraded its budget deficit forecast for fiscal year (FY) 2023/2024 to 7% of gross domestic product (GDP) from the previous forecast of 6.3%. The country also expects the budget deficit to hit 8% of GDP in the current fiscal year from the previous forecast of 6.8%, the document stated. Moreover, the document showed that Egypt targets increasing its revenues in the FY 2023/2024 budget by 41% to EGP 2.142 trillion, including roughly 71% of tax revenues predicted to rise by 31% to EGP 1.529 trillion from in FY 2022/2023 budget. (Arab Finance)
A fund affiliated with ADQ Holding, one of Abu Dhabi’s sovereign wealth funds, is on the verge of buying a 20-25% stake in the state-owned Egyptian Linear Alkyl Benzene (Elab).
Once the deal is completed in May, as expected by the sources, Elab would be the first company to sell stakes within the framework of the country’s initial public offering (IPO) program. One of the sources disclosed that an extra 10% stake in Elab would be offered on the Egyptian Exchange (EGX) before the end of May after finalizing the ADQ-affiliated fund’s deal. It is worth noting that the National Investment Bank owns a 34% stake in Elab, while the Egyptian Petrochemicals Holding Company (ECHEM) holds a 21% stake, the Egyptian Natural Gas Holding Company (EGAS) owns 21% of it, while the Ministry of Finance has 13% in Elab, and the Egyptian General Petroleum Corporation and Royal Chemicals hold 10.5% and 0.22%, respectively. (Bloomberg Alsharq)
Egypt is receiving offers from investors seeking to buy shares in the military-owned National Company for Producing and Bottling Water (Safi) and the fuel retailer Wataniya during May
Major Egyptian and international consortia expressed their interest in submitting their offers, Sadd noted. The remarks came during the meeting held by Prime Minister Mostafa Madbouly to follow up on the country’s initial public offering (IPO) program. Madbouly stated that the country is currently finalizing the procedures of several offers within the IPO program, adding that the details will be disclosed soon. The IPO program aims to sell stakes in 32 state-owned companies across various sectors to attract strategic investors. (Arab Finance)
Global equity index provider MSCI is to apply "special treatment" on Egyptian securities listed in its indexes following investor feedback about low FX liquidity.
In a note published late on Monday, MSCI said the issues meant it would not "implement any changes as part of upcoming index reviews for any securities classified in Egypt for MSCI Egypt indexes, impacted composite, derived and custom indexes." MSCI is scheduled to release the results of its quarterly index review where it provides investors with an update on securities that will be added or removed from its equity benchmarks on Thursday after U.S. market close. (Reuters)
Egypt starts implementation of silicon production project in New Alamein.
The project is set to be built on a 200-feddan area in four stages, with the aim of providing locally-made products of silicon and its derivatives. The first phase of the project will be carried out with about $172 million in investments, with an annual production capacity of 45,000 tons. As per the feasibility study of the project, the value of the final product from the first phase is estimated to stand at $340 per ton. The second phase of the project will be dedicated to the production of silicon derivatives with an initial production capacity of 60,000 to 100,000 tons a year, while the third stage will cover the production of polycrystalline silicon with an initial capacity of 10,000 annually. As for the fourth stage, it will witness the establishment of a complex for small- and medium-scale industries, with the purpose of exporting the final production. (Arab Finance)
General Authority For Investment and Free Zones chief discusses Samsung Egypt’s expansion plans.
Hossam Haiba, CEO of the General Authority for Investment and Free Zones emphasized that the cooperation between the two sides resulted in an inspiring success story for investment in Egypt, as the company’s investments exceeded $500m, so that the company succeeded in meeting the needs of the domestic and foreign markets, and its sales exceeded the barrier of $1.3bn, and it became the first exporter in Egypt in the field of electronic devices. Benefiting from the trade and investment agreements that Egypt concluded with many countries and blocs, Samsung also contributed to achieving economic development plans and technology localization by manufacturing educational tablets and mobile phones, in addition to providing 5,000 direct and indirect job opportunities. The two sides reviewed the company’s investment plans according to the latest developments in the investment environment in Egypt, the most important of which is the establishment of the golden license unit, which is granted by the Cabinet to companies within twenty days only. The golden license system to establish their next factory, in addition to the incentives and benefits stipulated in the regulations and legislation regulating investment in Egypt. (Al Ahram)
Foreign Minister Sameh Shoukry delivered a message to his Chadian counterpart on Monday that discussed coordination between Egypt and Chad regarding the ongoing development in Sudan.
The message also discussed the role of Chad and neighbouring countries in supporting efforts to stop the fighting, according to the Egyptian foreign ministry. It also discussed the humanitarian crisis the Sudanese people face due to the ongoing fighting between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). Shoukry is visiting Chad to discuss the developments in Sudan and the impact of the conflict there on neighboring countries. (Al Ahram)
The air forces of Egypt and India carried out a joint exercise at an Egyptian airbase as part of military cooperation with friendly countries.
The exercise included a number of sorties on air refueling and air training skills. The drill showed the high performance of the airmen and their professionalism in carrying out their tasks. (Egypt Today)
Egypt cuts oil price by 15% in new 2023-2024 budget to $80.
Egypt Intends pricing a barel of Oil at $ 80 in the budget for the fiscal year 2023-2024, which represent a decrease of 15% from the price of a barrel in the current budget, in addition to setting the price per ton of imported wheat at $ 340 which represents a decrease of 20% compared to the current budget according to governmental sources. The government aims to increase subsidies on petroleum products by 106% to EGP 119.4 billion, while it expects a slight decline in subsidies on food commodities by 2% to EGP 127.7 billion. Fakhry al-Feki, chairman of the Planning and Budget Committee in the Egyptian parliament reported earlier this week that the price of a barrel of oil in the new budget is $90 per barrel, which is higher than what was reported previously by the government. (Bloomberg Alsharq)
A consultancy firm will soon be chosen to conduct the technical and economic feasibility study for a $4 billion joint intercontinental power connection project.
The EuroAfrica Interconnector is a collaborative project set to create an underwater electricity connection that will link the electrical grids of Egypt and Greece through Cyprus. The project will contribute to an EU target of 10% electricity interconnection among member states and has the potential to significantly reduce harmful greenhouse gas emissions via promotion of renewable energy sources. The intention to award a contract to a consulting firm was announced in January by Mohamed Shaker, Egypt’s Minister of Electricity and Renewable Energy. The award will be an early step forward for the project that aims to identify the financial and technical requirements of the power infrastructure initiative and to determine the ideal route for a cable connection.The current shortlist of candidates for the consulting contract include Électricité de France, a multinational electric utility company; Elia Grid International, a global consultancy; CESI, an Italian technical consulting company; DNV, a Norwegian-German technical consulting; Lahmeyer International, an engineering consultancy; and ESB International, a Dublin-headquartered engineering consultancy. (Greek Reporter)
Egypt raises its financing needs in the new budget by 27%.
Egypt raised Its financing needs in the new budget for the fiscal year 2023-2024, which begins after 50 days, by 27% to EGP 2.14 trillion, with more focus on issuing treasury bills at the expense of treasury bonds, according to a government statement. The 2023-2024 budget targets the issuance of treasury bonds for EGP 815.6 billion, down from EGP 1.2 trillion in the current fiscal year. While it is looking to increase its treasury bill issuances by about 157% to more than EGP 1.2 trillion, from about EGP 476 billion in 2022-2023. (Bloomberg Alsharq)