Egyptian President Abdel Fattah El-Sisi ratifies virtual establishment of companies digitally through a currently-being-developed platform

Newsletter

17 May 2022

Egyptian President Abdel Fattah El-Sisi ratifies virtual establishment of companies digitally through a currently-being-developed platform

For our top talks today, Egyptian President Abdel Fattah El-Sisi ratifies virtual establishment of companies digitally through a currently-being-developed platform. The new platform is expected to eliminate all obstacles facing startups and entrepreneurs. The president has also directed that virtual companies (e-companies) are allowed to launch their business without the need to have physical headquarters, in order to save expenses. Moreover, El-Sisi has directed the government to facilitate the requirements necessary for setting up one-person companies and called for the expansion in establishing free zones for technological investment as well as in tax exemption for startups. (Arab Finance)

Secondly, the Central Agency for Public Mobilization and Statistics in Egypt reviled that the Egyptian trade balance deficit amounted to 2.44 billion USD during the month of January, compared to 3.60 billion USD for the same month in 2021,
a decrease of 32.3%. The value of exports increased by 34.5%, reaching 3.99 billion USD during January 2022, compared to 2.97 billion USD for the same month of the previous year. The decrease in the trade balance deficit is due to an increase in the value of exports of some commodities, including petroleum exports crude oil exports which increased by 107% and 66.5% respectively. (CNBC Arabia)
The unemployment rate in Egypt has recorded 7.2% first quarter (Q1) of 2022, versus 7.4% in Q4 2021.
This marks a 0.2% quarter-on-quarter (QoQ) decrease in the unemployment rate, data showed. The total labor force edged up 0.8% QoQ to 29.895 million in Q1 2022 from 29.653 million in Q4 2021, the agency added. Labor force in urban communities reached 13.170 million in the first three months of the year, while it stood at 16.725 million in rural areas. In terms of gender, data highlighted that 24.64 million of the Egyptian labor force in Q1 2022 were males, while only 5.225 million were females. (CAPMAS & Arab Finance)
The Egyptian government has signed a memorandum of understanding (MoU) with Energy3 International (E3i) for the establishment of a solid waste treatment and recycling plant in the governorate of Fayoum.
Under the MoU, a plant will be built under the name of BioRefinery E3i to convert waste to biofuel and graphene through the use of eco-friendly and safe technologies. The agreement was signed by Minister of Environment Yasmine Fouad, Governor of Fayoum Ahmed El-Ansari, and Chairman of E3i John Ponchock, with the presence of Prime Minister Mostafa Madbouly. This project is expected to eliminate carbon emissions resulting from solid waste disposal by 500,000 tons annually, according to Ponchock. (Arab Finance)
The European Investment Bank (EIB) has granted around 3.35 billion EUR in development financing to Egypt's public and private sectors in 2020 and 2021, the Egyptian Minister of International Cooperation, Rania El-Mashat, announced.
The bank has reached cooperation agreements worth 1.5 billion EUR with the government to develop vital sectors, El-Mashat said during a meeting with the EIB Vice President, Ambroise Fayolle. In the meantime, EIB has provided the private sector with development financing valued at 1.85 billion EUR. During the meeting, the Minister highlighted the ongoing projects between the government and the bank across the renewable energy and environmental sectors, including the wind plant in the Gulf of Suez and the electricity transmission project. (Mubasher)
The Egyptian Customs Authority (ECA) has succeeded in the safe disposal of more than 95% of the abandoned dangerous goods in ports so far, Minister of Finance Mohamed Maait said in an emailed statement on May 16th.
This comes as part of the presidential directive to get rid of abandoned goods at all Egyptian ports through the daily monitoring of terminals and bonded warehouses, Maait stressed. Joint committees have been formed at ports and customs outlets to carry out the necessary procedures for the disposal of hazardous and banned goods immediately, he highlighted. These committees include representatives from the ECA, the General Authority of Government Services (GAGS), the General Organization for Export and Import Control (GOEIC), and the National Food Safety Authority (NFSA), the minister added. Moreover, he announced the disposal of 1,788 containers at ports for having hazardous substances (Al Mal News)
And now to EGX and Company talks, Edita Food Industries agreed to establish two new companies with an initial capital of 20 Million EGP, one of which is specialized in microfinance.
In a disclosure sent to the Egyptian Stock Exchange on Monday, Edita said that the board of directors approved the establishment of an Egyptian Holding Company that would advise on the establishment process with an issued capital of 5 million EGP. The council, held on May 15th, also approved the establishment of another company (an Egyptian joint stock company) to operate in the microfinance industry, with a minimum issued capital of 15 million EGP. (Al Mal News).
The Egyptian government aims to boost the private sector’s contribution to 65% of the total economic investments in the coming three years, Prime Minister Mostafa Madbouly stated during the global press conference on May 15th.
The private sector’s contribution to the total investments in Egypt accounted for 30% during fiscal year (FY) 2021/2022, while the public sector’s contribution amounted to 70%, Madbouly said. The government is also expected to officially announce ownership policies for state-owned enterprises this month, upon which the sectors they can operate within and exit from will be specified within the next three years, he revealed. (Arab Finance)
Prime Minister Dr. Mostafa Madbouly announced the government's intention to list 10 companies on the Egyptian Stock Exchange in 2022, while Dr. Mohamed Maait, Minister of Finance, revealed that Egypt targets an Estimate of 10 billion USD from IPOs of state owned companies to the Egyptian Stock Exchange.
including 8 business sector companies, and two companies affiliated with the Egyptian Armed Forces.The Minister of Finance added, in exclusive statements to Al Mal, that the number of companies that will be offered on the stock exchange annually will be determined according to specific criteria, including the targeted shares to be offered and their value within the framework of the target annual proceeds. (Al Mal News)
Raya Holding for Financial Investment has authorized its subsidiary Raya Distribution to proceed with the establishment of a new company for electronic trading and distribution.
The company's authorized capital is valued at 1 billion EGP, while the issued and paid-up capital amounts to 10 million EGP, according to a bourse filing on Monday. The new company will launch a state-of-art electronic and digital platform to offer distribution services, electronically deliver devices, mobile phones, and mobile communication devices to retailers, as well as obtain credit facilities. It is also noteworthy to mention that in the first quarter (Q1) of 2022, the consolidated net profits of Raya Holding increased by 49.6% to 53.58 million EGP, compared to 35.80 million EGP in the same period of 2021. (Mubasher)