Egypt’s External Debt Reaches $164.7 Billion, Up 5.8% YoY
Egypt’s External Debt Reaches $164.7 Billion, Up 5.8% YoY The Central Bank of Egypt has reported that the country’s external debt reached $164.7 billion at the end of June 2023, marking a 5.8% year-over-year increase. This surge is attributed to a rise in net disbursements of loans and the depreciation of the US dollar exchange rate against other currencies. The breakdown reveals a predominance of long-term debt, accounting for $136.6 billion, while short-term debt stands at $28.1 billion. The debt is primarily denominated in US dollars, comprising 68.4%, followed by the euro at 11.1%. Egypt’s government remains the main obligor, representing 50.7% of the external debt. Egypt’s Debt Dynamics Egypt’s external debt indicators provide a comprehensive overview, with the external debt stock to GDP reaching 40.3% at the end of June 2023. Short-term external debt, both by original and residual maturity, accounts for 17.1% and 30% of total external debt, respectively. The debt-service ratio decreased to 34.3%, showcasing improvements in Egypt’s debt dynamics. However, challenges persist, as the country’s external debt remains at 222% of exports of goods and services, highlighting the need for continued economic management and financial strategies. (AlMal)
- Egypt and AUDA-NEPAD Collaborate to Establish African Centre of Excellence for Climate Resilience
Egypt’s Minister of Environment, Yasmine Fouad, and AUDA-NEPAD CEO Nardos Bekele, have inked an agreement to create the African Centre of Excellence for Resilience and Adaptation to the Impacts of Climate Change. The deal, signed at COP28 in the UAE, follows 18 months of intensive efforts. Fouad emphasized Egypt's commitment to swiftly launch the center, prioritizing African adaptation and resilience from 2024. The initiative aims to offer interdisciplinary research, innovative solutions, and coordination for resilient and sustainable development across the African continent, with a focus on community livelihoods and empowering women in climate change efforts. Bekele expressed optimism that the center would become a pivotal resource for knowledge, consultation, and technology adoption to address climate change impacts in Africa. (Daily News Egypt)
- British International Investment Corporation (BII) Boosts Egypt Portfolio to $600M and commits $700M for Climate Solutions Across Africa.
Sherine Shohdy, Head of Egypt and Coverage Director North Africa at BII, revealed that the British International Investment Corporation's portfolio in Egypt has reached $600 million. In an interview with Daily News Egypt, Shohdy emphasized the institution's strong focus on Egypt, citing the country's promising investment climate and the corporation's commitment to supporting Egyptian businesses. The BII is particularly interested in backing Egypt's new energy sector, green hydrogen projects, and companies with significant export potential. Shohdy highlighted the corporation's dedication to investing in Egypt despite current economic challenges, including foreign currency shortages, high-interest rates, and inflation. BII is also committing $700 million in funding to address climate challenges in Egypt and across Africa, with a focus on climate adaptation and mitigation projects. Shohdy highlighted notable 2022 investments, including capital support for Banque du Caire ($50 million), funding for Kazyon Retail to facilitate exports to Morocco, and a partnership with MatiTo to launch the AWID water desalination investment platform in Egypt and Africa. The AWID platform aims to address water scarcity by funding water treatment and sewage stations. BII's commitment to allocate up to 30% of its total investments to address climate challenges in Africa and Asia was emphasized, with approximately $700 million allocated in 2022, accounting for 46% of its total investments. Shohdy also underscored the institution's eagerness to leverage artificial intelligence technologies, especially in tackling climate challenges, and mentioned that BII's policy does not prevent it from investing in startups, preferring to direct investments through risk capital funds. The institution manages investments in Africa exceeding $4.6 billion, with total assets under management reaching approximately $8.23 billion by the end of 2022. (British International Investments)
- PayTabs Egypt and mnGm Pioneer Card Acceptance for Online Gold Purchases in Egypt.
PayTabs Egypt, a leading payments provider in the MEASA region, has announced a strategic partnership with mnGm, a digital platform acting as the digital distributor for Gold Net Trading (GNT), a subsidiary of Evolve Investment Holding. This collaboration marks a groundbreaking moment in the Egyptian market, introducing card acceptance for online gold purchases for the first time. PayTabs Egypt's secure and regulated payment channels will enable customers and investors to access investment-grade gold seamlessly. Karim Eyada, PayTabs Egypt’s General Manager, expressed excitement about the partnership, highlighting the importance of gold as a trusted form of investment. The initiative aims to empower more people to diversify their portfolios and safeguard their financial futures through a convenient and secure gold trading experience. (Al Mal)
- SAK Developments Advances on Three Key Projects in Egypt's New Administrative Capital.
SAK Developments, chaired by Ahmed Kadri, is actively engaged in three major projects within the New Administrative Capital (NAC) in Egypt, spanning residential, administrative, commercial, and serviced apartment spaces. The V Hub Mall, covering 7,500 sqm, has completed excavation and replacement operations, with construction underway for its commercial, administrative, and serviced apartment spaces. The Elite project, a collaboration with Landmark, features two eight-story buildings for administrative, commercial, and branded residential units, with a 75% completion of the concrete structure. Sueño, SAK's residential project, has delivered 50% of units, with an 85% completion of the residential construction. Contracts with renowned brands for The V Hub Mall, including SEIF Pharmacy, Chili's, Casper & Gambini, Pottery Café, and BBQ Pro, have been signed, anticipating the project's operational launch. The Elite project is expected to be delivered by Q3 2024, while Sueño is scheduled for full completion by the end of 2024. (Alahram)
- IFC Partners with Al Baraka Bank Egypt to Boost Finance Accessibility for MSMEs, Including Women-Owned Businesses
The International Finance Corporation (IFC) has announced a collaboration with Al Baraka Bank Egypt to enhance access to finance for micro, small, and medium-sized enterprises (MSMEs) in Egypt, with a particular focus on women-owned businesses. IFC's $50 million Murabaha Finance to Al Baraka Bank Egypt aims to address the lending gap estimated at $71 billion, hindering the growth of MSMEs in the country. The initiative will enable the bank to extend financing to various sectors, including technology, transport, communications, and health, with a commitment to allocating at least 25% of the funding to women-owned SMEs. Al Baraka Bank Egypt's CEO, Hazem Hegazy, emphasized their dedication to addressing environmental and social issues through Sharia-compliant financing solutions. The project aligns with the World Bank Group's objectives for Egypt, focusing on supporting private sector job creation. As part of the collaboration, IFC will provide support for the development and implementation of an environmental and social management system at Al Baraka Bank Egypt. (IFC)
- Egypt Revises Growth Forecast to 3.5% for FY 2023/2024 Amid External Shocks
Egypt has adjusted its growth projection for the fiscal year 2023/2024 to 3.5%, reflecting a downward revision of 0.7% from previous forecasts, according to Hala El-Said, the Minister of Planning and Economic Development. She attributed this adjustment to various external factors, including geopolitical tensions, global crises, and the impact of events such as the Israeli war on Gaza. The Covid-19 pandemic and the Russia-Ukraine war also contributed to a decline in Egypt's economic growth rate in FY 2022/2023, dropping to 3.8% from the targeted 5.2%. The government aims for a primary surplus of 2.5% of GDP, with inflation estimated at around 16%. The FY 2023/2024 budget includes measures to increase revenues, expand the tax base, and implement subsidy allocations, particularly for fuel, to support exports. In addition to the growth forecast update, El-Said highlighted the government's commitment to accelerating its privatization program. The plan includes finalizing the sale of stakes in seven state-owned hotels by the end of 2023, offering stakes in Chill Out fuel stations to strategic investors in Q1 2024, and proceeding with the sale of state-owned petrochemical companies and Wataniya fuel stations, albeit with a slight delay. The privatization initiative aims to sell stakes in 35 state-owned assets through the government's IPO program or strategic investor sales by the end of June 2024. (Al Ahram)
- Beltone Investment Banking Secures EGP 832 Million Financing for Hadayieq's Historic Zoo and Garden Revamp
Beltone Financial's subsidiary, Beltone Investment Banking, has successfully concluded its role as the exclusive financial advisor for Hadayieq Zoos & Recreational Facilities Management. The company secured long-term financing totaling EGP 832 million from the National Bank of Egypt and China Development Bank. This substantial funding, the largest facility granted for an entertainment project in Egypt, will be utilized for the extensive redevelopment of Giza Zoo and Orman Botanical Garden, two historical landmarks. Neglected for decades, the project aims to restore and transform these attractions to international standards, providing an enhanced environment for animals and plants while offering a more enjoyable experience for visitors. Beltone Investment Banking played a crucial role in planning, structuring, and arranging the financing, leveraging its financial expertise and recognizing the historical and cultural significance of the revitalization project. (AlMal)
- Pope Francis and Grand Imam of Al-Azhar Unite in Urgent Call for Climate Action at COP28
In a historic moment at the United Nations Climate Change Conference (COP28) in Dubai, Pope Francis and the Grand Imam of Al-Azhar, Ahmed Al-Tayeb, jointly signed a declaration advocating urgent climate action. Their powerful message was delivered via video addresses, highlighting the critical nature of the climate crisis and the imperative for immediate global efforts. The declaration coincides with the establishment of the Faith Pavilion at COP28, a groundbreaking initiative led by the Muslim Council of Elders and the United Nations Environment Programme. This pavilion serves as a platform for interfaith dialogue, knowledge sharing, and collaborative endeavors to address climate change. Both leaders urged religious figures to champion sustainable living and advocate for robust environmental policies. The Faith Pavilion, hosting over 70 sessions, is set to facilitate interfaith collaboration and discussions on climate justice solutions, reinforcing the role of faith communities in the fight against climate change. (Daily News Egypt)
- Qatar Sends 27 Tons of Aid to Gaza Through Egypt in Collaborative Humanitarian Effort
Two Qatari Armed Forces planes landed in Arish, Egypt, carrying 27 tons of humanitarian aid destined for Gaza. The aid, including food supplies, is a collaborative effort involving the Qatar Fund for Development, Qatar Red Crescent Society, Qatar Charity, and the Christian Churches Steering Committee. This delivery, part of a larger initiative, brings the total aid transported to Gaza to 1,219 tons across 37 planes. The Christian Churches Steering Committee sought assistance from Qatar to address the severe shortages faced by the Palestinian people in Gaza due to the ongoing conflict. Lolwah bint Rashid Al Khater, Minister of State for International Cooperation, received the aid at Arish International Airport, reinforcing Qatar's steadfast support for the Palestinian population during challenging times. (AlJazeera)
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