Government expresses intent to sell additional shares of Telecom Egypt

Newsletter

07 Jun 2023

Government expresses intent to sell additional shares of Telecom Egypt. According to a reliable government source, the Madbouly government is actively pursuing its privatization program and is now considering selling an additional stake in Telecom Egypt (TE). This move follows the recent sale of a 10% stake in the company, which successfully raised approximately 3.95 billion EGP. (Enterprise)

Egypt-Saudi interconnection transformers nearing testing phase.
ABB and Saudi Electric Company are preparing to test the electrical transformers for the Egypt-Saudi interconnection project, which aims to establish a fully operational electrical link between the two countries by May 2025. With a cost of 1.8 billion USD, the project includes three high-voltage transformer stations in Saudi Arabia and Egypt. By utilizing Egypt's daily electricity production capacity of 58,000 megawatts, the project aims to meet the daily consumption of 33,000 megawatts. (Arab Finance)
Qatar's Sovereign Fund reengages in talks for Vodafone Egypt stake sale.
Qatar Investment Authority (QIA) and Telecom Egypt (TE) are back in discussions over the potential sale of a stake in Vodafone Egypt. The Qatari sovereign wealth fund has resumed talks with TE, the minority shareholder, aiming to finalize the details regarding the stake's value and size. Previously stalled since February, negotiations between the two parties have faced hurdles in determining the extent of the stake to be sold. QIA has expressed interest in acquiring TE's stake in Vodafone Egypt since at least September of last year. (Enterprise)
Elevate Capital's Healthcare fund acquires 70% stake in Nile Scan & Labs.
Elevate Capital's Healthcare Fund has acquired a 70% stake in Nile Scan & Labs, a clinical radiology and lab service provider, for 312 million EGP. The transaction allows some founding partners to exit and benefit from the company's growth. Elevate Healthcare, a partnership between Elevate Private Equity and Misr Capital, aims to invest in healthcare sectors such as hospitals, pharma, medical education, and healthtech in Egypt and sub-Saharan Africa, with a target final close of 380 million USD. (Enterprise)
Egypt's foreign exchange reserves surge to 34.66 billion USD in May 2023.
The Central Bank of Egypt has revealed a remarkable increase in the country's foreign exchange reserves, reaching 34.66 billion USD at the end of May 2023. This represents a notable rise of 109 million USD compared to the previous month's balance of 34.551 billion USD. Egypt's foreign reserves comprise various major international currencies, including the US dollar, euro, British pound, Japanese yen, and Chinese yuan, with their distribution determined by exchange rates and market stability. The Central Bank follows a carefully planned approach to manage these reserves effectively. (Arab Finance)
AZ's Gold Fund raises 153 million EGP in first tranche.
Egypt's first gold investment fund, managed by Wolf Azimut, has achieved significant success by raising 153 million EGP in its first tranche from over 7,000 investors, predominantly Egyptians. Following this impressive response, the fund is now considering a second tranche offering, utilizing a different mechanism to meet the growing demand. The launch of the fund reflects Egyptians' growing interest in gold as a safe haven investment, driven by the decline in the local currency. (Arab Finance)
Indian company set to establish plastics plant in SCZone, boosting industrial growth.
Abdos, a renowned Indian company known for manufacturing plastic lab equipment, has recently signed an agreement with Orascom Industrial Parks' (OIP) Sokhna complex within the Suez Canal Economic Zone (SCZone) to establish a plastics factory valued at 30 million USD. This development signifies a significant investment in the SCZone, further bolstering industrial growth in the region. (Enterprise)
Nestlé Egypt partners with Shift EV to electrify fleet of cars.
Nestlé Egypt partners with Shift EV to convert its logistics fleet to electric vehicles, using the innovative Electrofitting technology. This move marks the first comprehensive electric operating program for a Middle East and Africa-based company's food and consumer goods vehicles. The collaboration aims to reduce carbon emissions, extend vehicle lifespan, and cut operating costs. (Economy Plus)
DHL International Express explores exciting investment prospects in Egypt's market.
Prime Minister Mostafa Madbouly met with DHL Express CEO John Bersen to discuss new investment opportunities in the Egyptian market. Accompanied by Trade and Industry Minister Ahmed Samir and DHL Express MENA CEO Noureddine Soliman, they explored future plans and potential collaborations. DHL's contributions to the shipping and logistics sector in Egypt were recognized, and the Trade Minister emphasized the potential partnership in transporting fresh produce to Europe. (Arab Finance)
Finance Ministry pledges fiscal discipline and debt reduction target of less than 80% by 2026/27.
With a focus on enhancing joint investments, Finance Minister Dr. Mohamed Maait, aims to achieve fiscal discipline and reduce debt rates to below 80% by 2026/2027, despite global economic challenges. Egypt's remarkable progress is evident as the country achieved a primary surplus of 1.3% of GDP in the previous fiscal year, marking a significant turnaround from a longstanding deficit. The ministry's target for the upcoming fiscal year is set at 2.5% of GDP, reflecting a commitment to sustainable financial management. (Arab Finance)