Egypt’s Cabinet ratifies formation of Supreme Council for Investment.

Newsletter

17 Nov 2022

Egypt’s Cabinet ratifies formation of Supreme Council for Investment. The Egyptian Cabinet has ratified a presidential resolution on forming the Supreme Council for Investment. The council will be headed by President Abdel Fattah El-Sisi, with the structure made up of Prime minister Mostafa Madbouly and the Governor of the Central Bank of Egypt (CBE), along with a number of ministers and heads of relevant entries, as members. As per the draft law, members of the council will be meeting at least once every three months, or whenever necessary. (Al Mal)

Egypt’s unemployment rate edges up to 7.4% in Q3
The unemployment rate in Egypt has recorded 7.4% of the total labor force in the third quarter (Q3) of 2022, inching up by 0.2% from Q2 2022. Total labor force edged up 0.9% quarter-on-quarter (QoQ) to 30.264 million in Q3 2022 from 29.985 million in Q2 2022. Labor force in urban communities reached 13.400 million, while it stood at 16.864 million in rural areas. The number of the unemployed recorded 2.25 million in the three-month period ended September 30th, accounting for 7.4% of the labor force. (Arab Finance)
Egyptian Cabinet nods to government’s membership in Africa Finance Corporation.
The Egyptian Cabinet has approved a presidential draft law on the government’s membership in the Africa Finance Corporation (AFC) and participation in the institution’s financing structure. This move will strengthen Egypt’s relations with African countries, paving the way for further regional investments across various economic fields. By joining the AFC, Egypt will benefit from the forms of support offered by the institution through investing in the sectors of energy, transport, heavy industries, natural gas, and communication. Based in the Nigerian city of Lagos, the AFC has a capital of around 6.1 billion USD and has 27 members. The AFC invest nearly 7.2 billion USD in the sectors of energy, transport, heavy industries, oil and gas, and communication across African countries. (Al Mal)
EU to back Egyptian energy sector with ‎35 million EUR under NWFE program
Egyptian Ministry of Electricity and Renewable Energy signed a letter of credit with the European Commission to support the energy sector in Egypt with over 35 million EUR under the Nexus on Water, Food and Energy (NWFE) program. Moreover, the ministry signed a memorandum of understanding (MoU) with the European Union (EU) on the strategic partnership in green hydrogen production. The MoU marks the cornerstone of future cooperation between Egypt and the EU in the field of green hydrogen. (Hapi Journal)
SFE could invest in 1.1 GW wind farm being developed by ACWA, Hassan Allam
The Sovereign Fund of Egypt (SFE) could acquire a minority stake in ACWA Power’s planned 1.1-GW wind farm in the Gulf of Suez. The wealth fund is considering making an investment in the facility under the terms of an MoU signed with the Saudi renewables’ developer, which could see it “potentially acquire up to 10%” of the 1.5 billion USD project. That would see the fund invest up to 150 million USD in the project, according to our math. It is expected that a final agreement will be announced “soon”. (Bloomberg Asharq)
Egypt has signed framework agreements with international power companies to construct nine green hydrogen and ammonia facilities in the Suez Canal Economic Zone
The facilities would collectively produce up to 7.6 million tons of green ammonia and 2.7 million tons of hydrogen a year when fully operational, putting Egypt on the road to becoming a regional hub for green hydrogen. These aren’t final agreements. The documents signed are framework agreements and are not binding commitments. The companies will continue to study the projects before coming to a final investment decision in the coming months. If they all go ahead, a lot of money is heading our way, as much as 83 billion USD could be invested across the nine projects. (Arab Finance)
The European Bank for Reconstruction and Development will provide a 80 million USD loan to Fertiglobe-Scatec-OC-SFE ammonia plant
Which will be the country’s first integrated green hydrogen plant, it said in a statement. The loan comes nearly a week after the companies began commissioning the first phase of the 100 MW green hydrogen plant. It will be used to acquire and build a 100 MW electrolyser facility powered by renewable energy. Upon completion, the facility will deliver up to 15k tons of green hydrogen annually. (Hapi Journal)
Egypt's SCZONE, SCCT signs 500 million USD contract for new container terminal
The Suez Canal Economic Zone (SCZONE) and Suez Canal Container Terminal (SCCT) signed a contract to finance, design, build, manage, and operate a second container terminal at East Port Said Port at an estimated investment of 500 million USD. The project is a part of SCZONE’s plan to develop its affiliated ports to serve global trade. The project will offer about 1,000 direct and indirect jobs, especially for the residents of the governorates of Port Said and North Sinai. (Arab Finance)
Egypt seeks cooperation with ABB in power stations establishment
Egyptian Ministry of Public Business Sector is considering potential cooperation with the Swedish-Swiss company ABB in the establishment of power stations for some of the new projects being carried out by affiliated companies to the ministry. The new projects include the development of Misr Spinning and Weaving Company in El-Mahalla El-Kubra, as well as the expansion of Egypt Aluminum Company (Egyptalum). The ministry is also discussing the possibility of collaborating with ABB in the production of high-resistance light bulbs for industrial purposes, mainly in chemicals and fertilizers factories. (Al Mal)
Egypt seals 8 contracts to bolster green energy production
The Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt (TSFE), the New and Renewable Energy Authority (NREA), and the Egyptian Electricity Transmission Co. (EETC) signed eight contracts with major global companies and consortia to carry out projects in the field of clean and renewable energy. As per the contracts, which were signed in conjunction with COP27, the green projects will be established in SCZONE. A contract was sealed with the Norway-based renewable power producer Scatec to set up a new plant for the production of green ammonia with a capacity of 1 million tons per annum that could expand to 3 million tons annually. (Arab Finance)