Oil rises to highest level in two weeks amid red sea shipping concerns
Oil rises to highest level in two weeks amid red sea shipping concerns. The recent escalation in attacks by the Iranian-backed Houthi group in Yemen has fueled a rise in oil prices. Oil prices rose near their highest levels in more than two weeks as companies increasingly avoided the Red Sea due to a rise in attacks on ships along the major shipping channel. The price of the most active February contract for West Texas Intermediate (WTI) crude rose 1.5% to settle near 74 USD a barrel after BP and Equinor said they would halt all shipments through the waterway. (Al Mal)
- The recent escalation in attacks by the Iranian-backed Houthi group in Yemen has fueled a rise in oil prices,
after falling to their lowest levels in five months last week amid signs of rising production. Despite the current rise in current prices, some traders do not expect it to continue in the long term, as time differences - an important measure of supply and demand - still indicate weakness. (Al Mal)
- Prices of home appliances expected to rise following a climb in input prices.
Factories manufacturing in Egypt are facing a surge in steel prices, with the most recent increase by Ezz Dekheila Steel Company (Ezz Steel). Prices of home appliances are expected to jump in the new year following an increase in input prices for companies manufacturing electrical appliances in Egypt. Factories manufacturing in Egypt are facing a surge in steel prices, with the most recent increase by Ezz Dekheila Steel Company (Ezz Steel) earlier this week. (Hapi Journal)
- Remittances to Egypt are expected to see a 15% y-o-y drop this year to 24.2 billion USD,
largely due to the major gap between the official and unofficial exchange rate pushing Egyptians abroad to send in their remittances through unofficial channels. The bank initially saw remittances picking up for the year, penciling in a 3.1% increase in its June report. Money coming in from Egyptians abroad fell 38% y-o-y during the first half of the year to 10 billion USD. The shortage of hard currency has caused a wide gap between the official and black-market exchange rates and pushed the Madbouly government to take a series of measures aimed at drumming hard currency. (Al Mal)
- Egypt-Based Healthtech Chefaa Secures 5.25 million USD Investment.
The investment follows Chefaa’s expansion into the Saudi Arabian market, where it is currently operational in eight cities. Egyptian healthtech firm Chefaa has secured 5.25 million USD investment in a funding round co-led by Newtown Partners from South Africa and Global Brain from Japan. Other contributors include GMS Capital Partners LLC from the United States, Verod-Kepple Africa Ventures from Nigeria, and M3, Inc. from Japan. (Al Mal)
- Publishing house and educational services provider Nahdet Misr has acquired a third of early education startup Innovvette.
The startup’s ownership is now “almost equally” split between its founder, Nahdet Misr, and our friends at EGX-listed CIRA Education. Innovvette plans to set up 25 new nurseries nationwide within the next three years. Proceeds from the stake sale will give the company the resources it needs to “expand its footprint of operating preschool centers across Egypt,” CIRA CEO Mohamed El Kalla stated. (Arab Finance)
- Beltone Financial Holding’s Beltone Capital and investment arm NEPIT are taking a 51% stake in local seed distributor National Seeds Company (NSC) from Cairo Capital for Financial Investments in an 140-306 million EGP transaction.
The acquisition is expected to wrap up before the end of 2023. The initial value of the acquisition is set at 140 million EGP, but NEPIT could add up to EGP 166 mn to the value of the transaction if NSC’s operational and financial results met certain targets. The top-up would be paid in tranches. (Arab Finance)
- Centamin raises estimate for Egypt’s Sukari gold mine reserves by 10%.
Global gold mining company Centamin has raised its estimates of gold reserves in Egypt's largest producing mine by 10%. This upward revision is attributed to an improved geological understanding of the Sukari mine, which led to an increase of 500,000 ounces in gold reserves. Centamin added that its primary focus for 2024 will be on expanding resources in the underground sector. To achieve this objective, the company has plans for extensive drilling in the Sukari mine, targeting a total of 285,000 metres as part of its geological program for 2024. (Hapi Journal)
- The UAE’s Ministry of Investment and Egypt’s Ministry of Communications and Information Technology have signed an MOU to establish a framework for investments in digital infrastructure, centered on data center projects in Egypt.
The agreement looks to develop bilateral relations between public and private bodies, regulatory authorities, implement incentives, and streamline the development of data centers with a targeted capacity of 100 megawatts capacity in the first phase, ramping up to 1k megawatts in the future. (Asharq Business)
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