Egyptian cotton will be traded on the commodity exchange starting from 2022

Newsletter

29 Sep 2021

For our top talks today, first, Egyptian cotton will be traded on the commodity exchange starting from 2022 noting that the country is developing the spinning and weaving sector with investments exceeding 21 billion EGP. The plan includes merging 23 spinning and weaving companies into eight companies, along with merging cotton trading and ginning companies into one company. Moreover, foreign trade companies are also being merged, which will bring the number of companies affiliated with the ministry to 82.

Second, Egyptian Propylene & Polypropylene (EPP), Egypt’s and North Africa’s largest and only integrated producer, exports 75% of its production to Europe, Turkey, Latin America.
EPP exports its products to many international markets, and on top of these markets are Turkey, Europe, and Latin America. The company manufactures 350,000 tons of polypropylene annually. The Turkish market accounts for 40% of the company’s production, while the remaining 60% are directed to Europe, Latin America, and Egypt. It is worth mentioning the company’s sales exceeded 400 million USD annually, which represents a major source of hard currency in Egypt.
Also, regarding Egypt’s electric energy exports, the Ministry of Electricity and Energy revealed that Egypt's total exports of electric energy to Sudan amounted to about 630 gigawatt-hours.
The Ministry succeeded in inaugurating the interconnection line project with Sudan, and began exporting electrical energy to it at 70 megawatts since April 2020, aiming to increase it to about 240 megawatts within a few months. It is noteworthy that Sudan comes in first place as the most importing country for energy from Egypt, followed by Jordan due to the weak electrical network in Sudanese territory and the increase in demand for it.
Additionally, statistics issued by the CAPMAS showed a decline in the value of imports of automobile production components by 17.7% to reach 348 million and 370 thousand USD during the first half of this year,
compared to 423 million and 580 thousand USD in the corresponding period of the previous year. The decline in imports of vehicle production components attributed to the difficulties facing most local manufacturers of cars and their components due to the slowdown in the import movement and the decline in the number of shipments supplied by international companies, in addition to the increase in fees collected from sea freight business by rates Equivalent to 5 times prepaid.
Furthermore, 4 Egyptian companies are competing to supply flanges for the express electric train in its first phase,
which is currently being implemented in the distance from the city of Sokhna to Matrouh, with a length of 460 km, according to Al-Mal. The sources said that the list of competitors includes 3 private sector entities, and the fourth is the Egyptian Company for Pipes and Cement Products affiliated to the Ministry of Public Business Sector. Pointing that the value of the monthly supply is expected to reach 175 million EGP, and that the applicants are being examined and the best among them will be selected according to the requirements set by the winning coalition led by Siemens, Germany, in the project.
Moving to our M&As and companies talks, Porto Group Holding (PORT) revealed the future investment plan of Asmak Co, which holds a 15.03% stake in the company, in accordance with Article 29 of the listing rules,
according to a statement filed to the Egyptian Exchange (EGX). Asmak plans to acquire over 25% of Porto Group’s capital through the EGX’s open market, the statement highlighted. Asmak aims at increasing the number of its representatives in Porto Group’s board of directors, in order to strengthen its position and participate in taking decisions. These decisions include the suggestions of changing Porto Group’s name and some of its activities as per the latest updates occurred to the economic fields and raising the group’s capital.
In addition, Egyptian Financial Group Hermes Holding (EFG) announced that its ordinary general meeting (OGM) has approved raising the company’s issued capital to EGP 4.865 billion from EGP 4.611 billion,
according to a statement filed to the Egyptian Exchange (EGX). The capital increase amounts to 253.644 million EGP distributed over 50.728 shares at a nominal value of 5 EGP per shares. The increase will be financed from the company’s reserve as per the financial statements for the period ended June 30th, 2021 and will be carried out through the issuance of employee stock ownership plan’s (ESOP) shares.
Moreover, Flat6Labs, a regional seed and early-stage VC firm, announced the second close, and increase of its Tunisia-based Anava Seed Fund (ASF) to 10 million USD from 3 million USD.
The company aims at expanding its impact through world-class startup programs across the North African markets. Sawari Ventures is the latest addition to the investors of the Anava Seed Fund, with an investment amount of 1.6 million USD. Other investors include the International Finance Corporation, the International Arab Bank of Tunisie, the Tunisian American Enterprise Fund and Meninx Holding.
In the same fashion, ABB Egypt aims to reach a turnover of about 175 million USD, an increase of 8% during the current year 2021, compared to its business during the previous year, which recorded about 160 million USD.
It is worth mentioning that the company recently obtained a certificate with pride, “Made in Egypt”, issued by the Industry Modernization Authority, pointing out that the proportion of the local component in all the company’s products exceeds 40%, which gives the company a competitive advantage in government tenders, in addition to exporting through Egyptian ports.
Finally, for our EGX talks, first, Emerald Development and Projects Management (EMDE) is planning to float a 10.95% stake or 45 million shares
on the small- and medium-sized enterprises (SMEs) market at a share price of 1.28 EGP, Al Borsa Newspaper reported. It is worth noting that the company’s total shares amount to 425 million shares. Trading on Emerald Development’s stock is likely to start in mid-October 2021 after the end of receiving orders for the public offering on October 14th. The company will begin promoting for the offering locally today to attract institutions.
Second, Pioneers Holding (PIOH) has submitted a request to the Egyptian Exchange (EGX) to voluntarily halt trading on the company’s stock as of October 5th, 2021,
for three consecutive sessions or until the listing committee decide on listing the company’s capital cut and name, according to a statement. The company’s name shall be changed to Aspire Capital Holding for Financial Investments. Moreover, the company seeks the listing committee’s approval on listing the shares of the demerged companies, namely Pioneers Properties for Urban Development and Gadwa for Industrial Development, on the EGX.