Netherlands will go into a strict lockdown over the Christmas and New Year period
For our top talks today, it’s feeling kind of apocalyptic out there this morning in a covid-19 way as the Omicron variant spreads globally. The Netherlands will go into a strict lockdown over the Christmas and New Year period to try to contain the highly- contagious Omicron coronavirus variant, Prime Minister Mark Rutte said on Saturday. Moreover, Cases in the United Kingdom of the fast-spreading Omicron variant of the coronavirus jumped sharply to almost 25,000 while the total number of reported deaths among people with it so far roseto seven, according to British health authorities. Also, a US federal agency on Saturday said it could start issuing citations to companies as soon as Jan. 10 for failure to comply with a nationwide mandate that they either vaccinate or test regularly for COVID-19, as a U.S. Supreme Court showdown over the policy looms. (Reuters)
- In addition, Egypt’s Ministry of Health announced that it has detected the country’s first three cases of the omicron variant of covid-19. The three cases were detected in people arriving from countries where the variant is already circulating. Two of the three cases are asymptomatic, while the third patient has shown only mild symptoms.
All three are currently in isolation under medical supervision, while no further cases have been discovered among people they had come into contact with. WHO chief Tedros Adhanom Ghebreyesus last week said Omicron had been reported in 77 countries and had probably already spread undetected to most other nations. It is worth noting that Egypt reported 902 new covid-19 infections on December 18th, down from 910 the day before. Egypt has now disclosed a total of 374,411 confirmed cases of covid-19. (Arab Finance)
- In a similar context, EgyptAir announced on Saturday the resumption of direct flights between Cairo and Toronto from Tuesday, December 21st, after the Canadian government’s decision to remove Egypt and nine other African countries from its travel ban list over Covid-19’s Omicron variant.
According to the company’s website, travelers choosing a direct flight from Cairo to Toronto are required to submit Covid-19 information to enter Canada including providing a quarantine plan. They are told to download ArrivaCAN mobile application to submit the information before travel. (Arab Finance)
- On the other hand, poll conducted by "Al-Sharq", which included 9 of the largest investment banks in Egypt, expected that the Central Bank of Egypt would resort to increasing interest rates between 50 and 100 basis points during 2022, in an attempt to absorb the expected inflationary waves. Note that the last time the CBE raised interest rates was in 2017.
Six of these banks expected the Central Bank to raise interest rates between 50 and 100 basis points in the second half of 2022, while 3 investment banks tended to fix the interest rates in 2022 because it did not need to raise them. The investment banks that participated in the survey are: "EFG Hermes", "Beltone Financial", "Naeem Financial", "Al-Ahly Pharos", "HC", "Prime Holding", "Misr Capital, Mubasher and “Zilla Capital”. (Bloomberg Asharq News)
- It’s worthy to mention that Egypt's natural gas exports rose by about 143% in the 2020-2021 fiscal year to record 4.652 billion cubic meters. Gas and oil are important sources of foreign investment and dollar returns for Egypt, which has been trying to establish itself as an energy hub since the giant offshore Zohr field was discovered in 2015.
Egypt is also working to boost regional gas trade by hosting the East Mediterranean Gas Forum, which was established to boost gas exports from the region. Egyptian Petroleum Minister Tariq El-Molla expected that the date for exporting natural gas to Lebanon would be in the first quarter of 2022. He justified the delay due to the approaching festive season and the end of the New Year holidays; Egypt would export 60 One million to 65 million cubic feet of gas per day to Lebanon. Egypt produces about 6.5-7 billion cubic feet per day of natural gaz. (CAPMAS)
- Egypt’s e-commerce transactions recorded 80 billion EGP in 2021, according to the Egyptian Junior Businessmen Association (EJB) member and CEO of BOOST Sherif Makhlouf. e-commerce transactions in the Middle East registered 71 billion USD in in 2021.
Makhlouf added that electronics top the revenues of e-commerce in Egypt with a percentage of 28%, followed by fashion 21%, food and personal care 19%, toys, hobby & DIY 19%, and furniture and appliances 12%. Makhlouf further noted that the Direct to Consumer (D2C) trend is just a part of the e-commerce world, citing that marketplaces like Amazon, Jumia, and Noon only account for 50% of the e-commerce sector. (Daily News)
- Furthermore, Egypt is joining the Middle East’s push to adopt electric cars, tasking a state-owned company to build affordable vehicles with a Chinese firm while taking advantage of its renewable energy boom to power them.
Egyptian authorities are in contact with three potential companies as they seek a partner for El Nasr Automotive Manufacturing Co. on the project that will see 2 billion EGP invested, Public Enterprise Minister Hisham Tawfik said in an interview, without giving names. Production is set to begin in 2023, with output increasing to an annual 20,000 units over three years. (Bloomberg)
- Moving to our investments talks, the Board of Directors of United Electronics Company approved "Extra", to establish a subsidiary company in Egypt, wholly owned by “Extra” with investments of one billion EGP (63.7 million USD).
The company listed in the stock market said that the new entity in Egypt will be the first expansion station for the Saudi company outside the Arab Gulf region. To complement the policy of diversifying sources of income, maximizing profits, and adding real value to its shareholders. “Extra" was established in the Kingdom of Saudi Arabia in 2003 by the United Electronics Company (UEC), and is engaged in the marketing of electronic and home appliances, including televisions, audio systems, computers, mobile phones, IT communications, cameras, home appliances, and personal care products. (Bloomber Asharq News)
- The general investments directed to the Red Sea governorate in the fiscal year (FY) 2021, recorded 4.2 billion EGP, the Planning and Economic Development Ministry announced.
According to the statement, Planning and Economic Development Minister Hala el Saeed said that Egypt’s 2030 vision aims at enhancing the Egyptian citizens’ livelihood and that the sustainable development plan of the FY 2021/2022 focuses on general investment in the fields of infrastructure, social and economic in order to benefit all citizens nationwide especially youths, women and people with special abilities. (Arab Finance)
- Turing to our EGX and companies talks, the extraordinary general meeting (EGM) of Egyptian Transport and Commercial Services Co (ETRS) (Egytrans) has approved the splitting of the nominal value of the company’s stock.
The company’s board of directors previously agreed on splitting the nominal value of the stock will be 1 EGP, instead of 5 EGP. Egytrans is an Egypt-based company engaged in international sea, air, and land transportation services. (EGX)
- The Sawiris family is selling its majority stake in Euronews to investment firm Alpac Capital. The Portuguese firm has signed a binding offer to buy an 88% stake in Euronews owned by the Sawiris family’s Media Globe Networks (MGN) for an undisclosed amount.
The transaction is set to be finalized during the first quarter of 2022. The remaining 12% stake in Euronews will continue to be held by a consortium of public broadcasters and local authorities that includes France Televisions, Italy's RAI and Abu Dhabi Media Investment Company (ADMIC), though that could change as Euronews looks to tap new capital. (Arab Finance)
- South African-born SweepSouth, Africa’s largest online home services platform, announced acquiring Egyptian start-up, Filkhedma. The acquisition means that SweepSouth will be one of a few African start-ups operating in the continent’s four key tech ecosystems of South Africa, Egypt, Kenya, and Nigeria.
For South Africa, the biggest change will be the imminent rollout of beauty services. This will include manicures and pedicures, hair care and makeup services that can be done at home. This not only gives SweepSouth customers access to more services, but it also gives entrepreneurs in the field the opportunity to list on the platform. This, in turn, allows access to a larger pool of potential customers. (Arab Finance)
- And finally, the board of directors of Arab Dairy Products Co. (Panda) (ADPC) approved to sign 6 contracts worth a combined 344.37 million EGP to sell and re-lease some machines, equipment, and buildings at the company’s factory in Qalubiya governorate with Corplease Leasing Company.
The total value of the sale contracts amounted to 154.15 million EGP, while the re-lease contracts were signed at a total value of 190.21 million EGP. Also, the Cleopatra Hospitals board has green-lit CI Capital’s offer to acquire a 26% stake for 5 EGP per share. Shareholders have until next Sunday to subscribe to the Banque Misr-owned financial services company’s voluntary tender offer. (EGX)
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