Egyptian exports of engineering industries grew around 24% to 278 million USD in January 2022

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06 Mar 2022

For our top talks today, Egyptian exports of engineering industries grew around 24% to 278 million USD in January 2022, from 223.5 million USD in the same month last year, according to the Engineering Export Council of Egypt (EEC). The most important sector recorded growth in January 2022 included electrical appliances, cables, and home appliances, which increased by 56%, 100%, and 28.4%, respectively. Additionally, metal and equipment exports rose 114% and 13%, respectively, during the first month of the year. Top countries saw increase in Egyptian engineering exports include Slovakia, UK, France, Germany, Saudi Arabia, UAE, Iraq, Algeria, and Libya. (Al Borsa News)

The Egyptian government has begun the payment of over EGP 2 billion in subsidies to more than 515 exporting companies under the fourth phase of the immediate cash payment initiative launched in mid-November 2021, according to Egypt’s finance minister Mohamed Maait.
Another group of exporters will receive their payments on April 28th, Maait noted, adding that the government has paid more than 30 billion EGP to over 2,500 companies through all initiatives since October 2019. That brings the total amount paid to exporters to around 33 billion EGP. The minister highlighted that the initiative of immediate cash payment for exporters has received attention of businessmen which reflects its success in providing liquidity needed to enable exporters to pay dues to their clients and retain labor. (Arab Finance)
The Egyptian government discussed increasing outlets that collect local wheat production and put incentives for wheat farmers to receive a range between 5 and 5.5 million tons of wheat in the next season.
A wheat shipment has arrived in Egypt from Ukraine without any hurdle, while some shipments faced some troubles but were released eventually. The minister stressed that Toshka, Sharq El-Owainat, and Mustaqbal Misr (Egypt's Future) projects have added 750,000 tons of wheat to the local production. Early this week, member at Cairo Chamber of Commerce’s agricultural crops and grain division, Ezzat Aziz, said that Local prices of wheat increased by 1,000 EGP in the six days following the emergence of the Russian-Ukrainian war. (Amwal Al-Ghad)
The PMI data showed that the Egyptian non-oil economy conditions deteriorated sharply in February, and business confidence fell to its lowest level since April 2012, due to concerns surrounding the economic outlook.
Production levels fell sharply in the non-oil private sector, while the purchase of production inputs and employment continued to decline, as price pressures affected business confidence and consumer spending in February, according to PMI Index, issued by IHS Markit. In February, the "PMI" index recorded 48.1 points compared to 47.9 points, keeping the index in the contraction range for the fifteenth consecutive month. (Bloomberg Asharq)
The number of government-owned electronic points-of-sale (PoS) reached around 16,426 across Egypt, according to the Egyptian finance minister Mohamed Maait.
Total number of transactions recorded 342 million, while total collections of tax and customs by the government amounted to 54.1 trillion EGP. The minister revealed that total amount collected through electronic payments reached around 67 billion EGP, adding that the amount of electronic payment services including payments for salaries and suppliers registered 3 trillion EGP. In 2021, more than 4 million prepaid Meeza cards were issued. (Arab Finance)
Russia lost its credit rating after Moody's and Fitch put it below non-investment grade, amid fears that international sanctions imposed on Moscow in response to its invasion of Ukraine would undermine Russia's ability and willingness to service debt.
Moody's downgraded Russia's long-term external debt rating to B3 from Baa3 today, Thursday, due to what it described as "the heightened risk of sovereign debt default given severe and coordinated sanctions, and significant concerns about Russia's willingness to service its obligations." This came after Fitch on Wednesday downgraded Russia six levels to B from BBB and placed the rating on negative watch, citing weak external and public finances, slowing growth, rising domestic and geopolitical risks and the possibility of further sanctions on the country. (Bloomberg Asharq)
Moreover, the World Bank announced, on Wednesday, that it has suspended with immediate effect all aid programs it is implementing in Russia and Belarus, in response to the Russia's invasion of Ukraine.
Following the Russian invasion of Ukraine and hostilities against the Ukrainian people, the World Bank has suspended all of its programs in Russia and Belarus with immediate effect," the International Financial Corporation said in a statement issued at its headquarters in Washington. (Bloomberg Asharq)
Turning to our investments talks, Banque Misr has secured around 75 million USD financings from Green for Growth Fund (GGF) and SANAD Fund for MSM
The loan includes 40 million USD provided by GGF to enable Banque Misr to provide green loans to Micro, Small and Medium Enterprises (MSMEs) and Egyptian households, along with funding renewable energy projects. Moreover, the 35 million USD financing provided by SANAD Fund for MSME aims at allowing Banque Misr to finance agricultural MSMEs. The partnership with Banque Misr contributes to the development of renewable energy and energy efficiency at small projects in Egypt. Banque Misr will be a key partner to Sanad in [its endeavors for] financial inclusion in Egypt, Chairperson at SANAD Fund for MSME Daniela Beckmann commented, adding that the collaboration with the bank will create decent jobs and promote economic growth. (Hapi Journal)
French architecture company Jakob + MacFarlane has been awarded the design of a 32,000 square meters (sqm) new campus for the Université Française d'Égypte.
The wining proposal was a consortium including Cairo-based Raafat Miller Consulting, the French engineering firm Artelia, and landscape architects Sempervirens. The new campus will be dedicated to learning, research, accommodation, catering, recreation, and administration. It culminates a partnership between Egyptian and French governments. The design of the new campus is shaped to represent the Nile and the sun, Egypt’s “two dominant natural forces”. It will comprise wind towers equipped with modern mechanics to facilitate air circulation, along with sunken gardens of endemic desert plants. (Arab Finance)
And for our EGX and companies talks, Egyptian furniture and home goods e-commerce startup Homzmart has acquired Germany’s technology company MockUp Studio.
MockUp Studio’s assets will enable Homzmart’s customers to visualize their furnished home though the digitalization of the whole interior design process starting from an empty room. Customers will be able to explore different layouts, finishings, and floorings with various catalogue assortment displayed in 360-degree view. Visualization techniques of MockUp Studio will also allow Homzmart’s customers to view and interact with the company’s whole catalogue in a handful of clicks. (Arab Finance)
Edita Food Industries (EFID) reported a 30.7% year-on-year (YoY) growth in revenue in the full-year ended December 31st 2021.
Revenue amounted to EGP 5.25 billion last year, compared to EGP 4.02 billion in 2020. Moreover, the company achieved a net profit of 473 million EGP in 2021, rising by 56.5% from 302.2 million EGP a year earlier. The cakes and bakery segments were the largest contributor to revenues with growth rates of 31.3% and 28%, respectively. Meanwhile, the wafers segment was the fastest-growing segment for 2021, with an expansion rate of 81.6% in top-line. In the fourth quarter (Q4) of 2021, Edita began operations in Morocco, launching three stock-keeping units (SKUs) of HOHOs brand. (EGX)
True Finance Lease, formerly known as Emirates National Dubai Financial Leasing, is planning to double its issued capital to 200 million EGP early 2023, from 100 million EGP.
The capital increase aims at upgrade the company’s capital base under rules set by regulatory authorities to enable it to initiate a new beginning in the non-banking financial sector which will serve its future expansions, according to the True Finance’s chairman Mohamed Afifi. The company entered negotiates with a group of local and international banks to secure up to 1 billion EGP in credit facilities, Afifi revealed. It is worth noting that Taj Misr Holding fully acquired True Finance following the completion of due diligence and all legal procedures. (Al-Mal)
Owagik Development has signed an agreement with Allianz Egypt to provide insurance services for all unit at Owagik Towers project in the New Administrative Capital (NAC).
Under the agreement, Allianz Egypt’s insurance policies will pay the remaining amount of the prices of Owagik’s units owed by its clients in case of death and total disability, Owagik Development’s Chairman Emad Qasem said. Insurance policies will be activated once signed by clients and Allianz will pay installments without charging clients any fees, Qasem added. (Al-Mal)
El Ezz Dekheila Steel – Alexandria (EZDK) (IRAX) has turned to profitability in the full-year ended December 31st 2021.
The company has achieved a consolidated net profit attributable to the parent company of EGP 5.81 billion in 2021, versus a net loss of EGP 4.68 billion in 2020. Consolidated net sales surged to 61.24 billion EGP last year from 33.94 billion EGP in 2020. Meanwhile, the company’s standalone net profit after tax amounted to 3.60 billion EGP in 2021, versus a net loss of 878.53 million EGP a year earlier. El Ezz Dekheila Steel is an Egypt-based engaged in the manufacture and production of steel in different types and forms. (EGX)