IMF considers possible hike in 3 billion USD loan program for Egypt: Georgieva
IMF considers possible hike in 3 billion USD loan program for Egypt: Georgieva. The International Monetary Fund (IMF) is “seriously considering” a possible increase in the 3 billion USD loan program for Egypt, Managing Director of the IMF Kristalina Georgieva. This comes due to the economic challenges facing Egypt as a result of the Israel-Hamas conflict, Georgieva explained on the sidelines of the Asia Pacific Economic Cooperation summit. In October, it was reported that Egypt is already in talks with the IMF to increase the value of the agreed-upon 3 billion USD loan program for the country to more than 5 billion USD. The IMF approved the 46-month 3 billion USD loan to Egypt under the Extended Fund Facility (EFF) in December 2022. (Reuters)
- Egyptian automotive company EgyptSat Auto successfully obtained the golden license late last month to produce two models of locally made electric vehicles.
Although some parts of the experience were smooth sailing, others brought hiccups to the company’s production plans. Introduced in the Investment Act of 2017, golden licenses create a streamlined process to set up new industrial and infrastructure projects that fit a certain list of requirements and criteria. Rather than exempting investors from the necessary approvals, the acquisition of the license serves as a one-stop shop for all necessary approvals to move forward with a project. The Madbouly government made it easier in December for industry to receive the licenses by scrapping a minimum issued capital requirement and allowing companies to apply for it online. (Daily News)
- Madbouly says current foreign currency shortage to end soon.
Prime Minister Mostafa Madbouly confirmed that the foreign currency shortage issue in Egypt “will end soon”. “The lesson that we must have learned from the global economic crisis is the necessity of possessing our capabilities and products to the greatest extent possible,” Madbouly said. He added that industry is the primary concern for the government, as Egypt targets increasing its exports to exceed the imports, or at least to cover the needs of the Egyptian market. Moreover, Madbouly noted that every factory established, as well as industrial expansions, contributes to reducing Egypt's import bill. (Hapi Journal)
- Saudi Arabia’s Jamjoom Pharma opens new factory in Egypt.
Egyptian Prime Minister Mostafa Madbouly has inaugurated a new pharmaceuticals factory of Saudi Arabian Jamjoom Pharma in Egypt. The factory has been launched with investments amounting to about 3 billion EGP. The move comes as part of Jamjoom’s expansion plan to open new investment channels for African and Francophone countries. (Asharq Business)
- Saudi Arabian private sector’s investments in Egyptian markets hit 35 billion USD.
The Saudi Arabian private sector’s investments in Egypt amount to 35 billion USD, Chairman of the Saudi-Egyptian Business Council Badr Al-Amiri. He added that the volume of trade exchange with Egypt exceeded 60 billion SAR (492.32 billion EGP) during 2023. Egypt and Saudi Arabia agreed to hold a Saudi-Egyptian forum in the near future to market investment opportunities in the two countries. (Asharq Business)
- Egypt’s financial inclusion rate sees 5.4% climb in 6 months: CBE.
Egypt’s financial inclusion rate among citizens increased by 5.4% during the first six months of 2023, hitting 67.3%. At the end of June 2023, there were 44.6 million Egyptians aged 16 and over with accounts in banks, Egypt Post, mobile phone wallets, or prepaid cards, up from 42.3 million at the end of December 2022. The report also showed that Egypt issued 30.3 million prepaid cards during the January-June period up from 28.6 million cards at the end of December 2022. (Arab Financial)
- CIB secures 150 million USD loan from EBRD.
The European Bank for Reconstruction and Development (EBRD) has approved a 150 million USD subordinated loan to the Commercial International Bank (CIB). The loan will be used to support CIB’s Tier II capital to back its growth outlook, enhance its capital structure, and improve its ability to better withstand external economic shocks. It is worth mentioning that EBRD has invested over 11 billion EUR in 169 projects in Egypt since 2012, nearly 80% of these projects are in the private sector. (Al Borsa News)
- OPEC+ is mulling a deeper production cut to support prices.
The oil cartel is reportedly considering whether further oil production cuts are needed when it meets later this month. Oil is down almost 20% since September despite price cuts, Some cartel members are worried that demand will weaken further. KSA and Russia decided earlier this month to leave their production cap in place. (Reuters)
- Cairo Housing’s consolidated profits see 1,856% leap in 9 months.
Cairo Housing and Development Company’s (ELKA) consolidated net profits attributable to the parent company skyrocketed 1,855.59% during the first nine months of 2023, hitting 15.168 million EGP, compared to 775,645 EGP. Operating revenues fell to 262.278 million EGP in January-September from 2.095 billion EGP the year before. Furthermore, Cairo Housing registered a standalone net profit after tax of 24.966 million EGP from January to the end of September, compared to 11.063 million EGP in the same period last year. (Arab Finance)
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