Egypt’s Sugar Market Faces 26% Price Surge Amidst Consumption-Production Gap and Imports
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Egypt’s Sugar Market Faces 26% Price Surge Amidst Consumption-Production Gap and Imports. The price of sugar in Egypt has skyrocketed by 26% within a month, reaching EGP 24,000 per ton, posing significant challenges to the domestic market. With annual sugar production at 2.8 million tons, falling short of consumption which exceeds 3.2 million tons, the country faces a substantial consumption-production gap. In response to the shortage, the General Authority for Supply Commodities (GASC) has approved the import of 150,000 tons of raw sugar from Brazil to meet the demand. Nevertheless, strategic reserves are expected to suffice until February 2024. Sugar producers are currently negotiating contracts for the upcoming 2023/2024 harvest season, with their decisions crucial in shaping the market’s future trajectory. (Alsharq Bloomberg)
- Morgan Stanley Lowers Egypt's Growth Forecast Amid Concerns Over Imports and Financial Flows.
In its report titled "Economy, Sovereign Credit and Capital Strategy of Egypt," Morgan Stanley Bank has revised down Egypt's growth forecast, which was previously set at 5.0 percent. The bank attributes the downward revision to the impact of increased imports and reduced financial inflows. However, amidst the concerns, Morgan Stanley Bank brings positive news by adjusting the current account deficit forecast to $9.8 billion for the recent fiscal year 2022-2023 and $10.2 billion for the current one. The bank believes that Egypt's solvency will be boosted by a significant increase in tourism revenue. It's worth noting that Finance Minister Mohamed Maait had already indicated last March that the national Gross Domestic Product growth for this fiscal year is expected to be 4.1 percent, falling below the initial estimate of 5.5 percent announced in December. (Arab Finance)
- Prime Minister Madbouly Oversees Progress on Soda Ash Production Complex Project in New Alamein City.
Prime Minister Moustafa Madbouly led a meeting to monitor the developments of the Soda Ash Production Complex project in New Alamein City. The project aims to maximize the value of Egypt's natural and mining wealth, creating employment opportunities. Minister of Petroleum and Mineral Resources, Tarek Al Molla, explained that the complex will produce soda ash and its derivatives with an annual capacity of around 600,000 tons. This project will cater to the local market's needs and facilitate product exports overseas. The CEO of the Egyptian Soda Ash Company, Shaher Reda, disclosed plans for a competitive tender involving international companies for the project's construction. He also addressed funding arrangements, securing raw materials, and establishing essential facilities, with future plans to connect the site to the high-speed electric railway project (Al Ahram).
- Trade exchange between Egypt, African countries climbs 14.4% YoY in 2022.
Trade exchange between Egypt and African countries grew by 14.4% year on year (YoY) in 2022 to $8.6 billion, versus $7.5 billion in 2021, according to data from the Egyptian Cabinet’s Information and Decision Support Center (IDSC). Egyptian exports to African countries amounted to $6.3 billion last year, compared to $5.5 billion a year earlier, an increase of 14% YoY. (Mubasher)
- Beltone Signs MoU to acquire FRA-licensed microfinance company.
Beltone Financial Holding has signed a memorandum of understanding (MoU) to acquire a microfinance firm licensed by the Financial Regulatory Authority (FRA), as per a statement on July 31st. Under the MoU, Beltone will conduct due diligence after obtaining the required regulatory approvals to set the stage for the acquisition. The acquisition will be executed either directly by Beltone or through one of its subsidiaries. (Al Mal)
- Opay Aims to Establish $60 Million Digital Bank in Egypt to Drive Financial Inclusion and Support Digital Economy.
Fintech firm Opay has announced its intention to apply for a license to establish a digital bank in Egypt with a capital of $60 million. This move reflects Opay's commitment to contributing to the expansion of Egypt's digital economy, supporting the digital transformation plan, and promoting financial inclusion. Opay's impressive track record includes sales worth over $50 billion in the region and a user base of approximately 30 million across all countries. With the recent introduction of new licensing rules for digital banks by the Central Bank of Egypt (CBE) on July 12th, Opay and other applicants must meet certain capital requirements, with issued and paid-up capital not less than EGP 2 billion for full banking operations, except for financing major companies. (Mubasher)
- Tamweely Microfinance Expands Services with New SME Financing Business Line.
Tamweely Microfinance, licensed by the Financial Regulatory Authority (FRA), is set to launch a new financing business line targeting small and medium-sized enterprises (SMEs). According to an emailed press release on July 31st, the line will offer financing options ranging from EGP 220,000 to EGP 7 million per ticket, catering to SMEs with annual revenues between EGP 1 million and EGP 200 million. The expansion is aimed at enhancing Tamweely's competitiveness in the non-banking financial services market, as emphasized by the CEO and Managing Director, Ahmed Khorched. This strategic move is expected to provide valuable support to SMEs and bolster the firm's position in the sector. (Arab Finance)
- EGX Witnesses Collective Rise with EGP 1.191 Trillion Market Capitalization on Monday Trading.
The Egyptian Exchange (EGX) experienced an overall upward trend on Tuesday, culminating in a market capitalization of EGP 1.191 trillion. The benchmark EGX30 index gained 0.24%, closing at 17,595.92 points. The EGX50 equal-weight index (EWI) and the small- and mid-cap EGX70 (EWI) also registered gains of 0.46% and 0.37%, respectively, reaching 3,195.78 points and 3,530.92 points. Furthermore, the EGX100 EWI index rose by 0.49%, concluding at 5,217.86 points. During the session, 659.437 million shares were exchanged through 59,406 transactions, resulting in a total turnover of EGP 2.099 billion. Retail investors dominated the market with 67.31% of the total trading transactions, while institutional investors constituted 32.68% of the trading. Of the total trading transactions, Egyptian investors accounted for 84.55%, followed by Arab and foreign investors with 4.89% and 10.56%, respectively. Egyptian and Arab traders were net sellers with EGP 80.812 million and EGP 40.685 million, while non-Arab foreigners were net buyers with EGP 121.498 million. Overall, the session showcased positive market sentiment and active participation from various investor groups. (Arab Finance)
- Egypt's Ministry of Environment and ISTIDAMA Join Forces to Launch Second Round of 'Africa Grows Green Awards' at COP28 in Dubai.
Egypt's Ministry of Environment and the Association for the Sustainable Quality of Living (ISTIDAMA) have signed a cooperation protocol to initiate the second round of the "Africa Grows Green Awards" during the COP28 event in Dubai, UAE. The signing took place in the presence of Egypt's Minister of Environment, Yasmine Fouad, who emphasized the awards' significance in fostering momentum and collaboration among various stakeholders to combat the impact of climate change and achieve a greener future for Africa and the world. The second edition of the awards follows the successful recognition of innovative science and technology initiatives during COP27 in Sharm El Sheikh. Minister Fouad highlighted the upcoming awards' focus on celebrating female entrepreneurs with exceptional environmental projects. The Egyptian Environmental Affairs Agency (EEAA) will provide technical and logistical support for the awards, setting evaluation standards and encouraging local and international experts to participate in the jury committee. The Ministry's website will also promote the awards. (Arab Finance)
- Abu Dhabi Islamic Bank (ADIB Egypt) Granted License to Launch First Sharia-Compliant Microfinance Firm in Egypt.
The Financial Regulatory Authority (FRA) has approved Abu Dhabi Islamic Bank (ADIB Egypt) to establish Egypt's inaugural Sharia-compliant microfinance firm, as stated in an emailed press release on July 30th. With an authorized capital of EGP 100 million and a paid-up capital of EGP 25 million, the new company's CEO and Managing Director, Ahmed El-Khatib, highlighted its competitive advantages, including leveraging cutting-edge technologies and focusing on extending services to underserved governorates and regions in need of financing. El-Khatib emphasized that the company is capable of providing financing of up to EGP 220,000. This initiative aligns with ADIB Egypt's broader plans to promote financial inclusion and bolster the micro-sized enterprise sector. By combining the principles of Sharia compliance with microfinance services, the newly licensed firm aims to support the growth and economic empowerment of small businesses and entrepreneurs across the country. (Arab Fiannce)
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