Exporters in the automotive, ceramics, pharma, electronics, and chemicals industries can now enroll in the export subsidy program

Newsletter

21 Jun 2021

Exporters in the automotive, ceramics, pharma, electronics, and chemicals industries can now enroll in the export subsidy program for the first time. This comes as the central bank prepares to launch a new export credit risk guarantee company in the coming weeks, which will protect Egyptian businesses exporting to other parts of Africa. The government has recently been talking up its ambitions to revive Egypt’s non-oil exports, which despite the EGP float in 2016 have remained anemic.
The Central Bank of Egypt’s Monetary Policy Committee (MPC) left interest rates unchanged for a fifth consecutive meeting on Thursday as it looks to preempt a possible rise in inflation reaching 4.8% last month on the back of spiraling global commodity prices. Overnight deposit and lending rates remain at 8.25% and 9.25% respectively, while the main operation and discount rates were kept unchanged at 8.75%. This will consequently raise the prices in the food and beverages sectors. However, it is not all bad news, we can expect a good harvest in North America which Egypt’s grain exports.
Moreover, it is worthy to mention that the CBE’s hold means that Egypt continues to have the world’s highest real interest rate and maintain its position as the most lucrative carry trade for foreign investors which is a core objective of the central bank as it looks to preserve a key source of hard currency. EGP-denominated bonds have risen 5% so far this year, making Egypt the best emerging-market performer after Argentina and South Africa.
Egypt Construction Sector is booming according to Fitch reports. Egypt’s construction sector will become the largest in 2029. The sector is projected to grow 9% in the coming years, the Construction sector is projected to grow to USD 89 bn in the coming decade. Even amidst the global pandemic real estate sector reported a profit.
The Egyptian transport tracking startup Tareeqi has been acquired by Oman-based eMushrif for an undisclosed amount. This is the latest MENA acquisition by eMushrif, a transport startup that employs “internet of things” technology to track transport, and the first in North Africa. The Omani company is aiming to be the region’s foremost company using IoT tech in the transport sector and raised USD 2.3 mn series A funding in December.
Emerging markets careers network Localized has raised an undisclosed amount of seed funding from tech investors in the education and recruitment sectors. Investors included Trend Forward Capital, One Planet VC, Mexico’s Angel Ventures, and angel investor Esther Dyson. Its platform connects students from EMs to industry experts and employers.
Hardliner Ebrahim Raisi wins the Iranian presidential election! The long-serving conservative judge won 62% of the votes, amidst a historic low turnout. This is partly caused by no international observers like in recent years. Currently, there are no prospects for any political change in terms of the nuclear Vienna talks and political agenda settings.