“Qatar Investment” is negotiating the development of the port of Safaga in Egypt
“Qatar Investment” is negotiating the development of the port of Safaga in Egypt. The deal, if completed, represents the first Qatari entry into the port sector, which is the field of Emirati companies. The port of Safaga is one of the Egyptian ports affiliated to the General Authority for Red Sea Ports. It is a natural bay on the western coast of the Red Sea, located 60 km south of Hurghada, and is specialized in mining activity. In May, the Ministry of Transport announced that Egypt would establish a holding company that includes 7 seaports, in preparation for offering a share of them on the stock exchange. It will include the ports of Alexandria, Damietta, East and West Port Said, Adabiya, Sokhna and Safaga. (Bloomberg Asharq)
- The Qataris are reportedly offering more than 1 billion USD for the 20% stake, valuing Vodafone Egypt at 5 billion USD at least
That’s more than South Africa’s Vodacom is paying for its ongoing acquisition of a 55% stake in Vodafone Egypt from Vodafone Plc, which values the company at around 4.25 billion EUR (4.4 billion USD). That transaction is still waiting on approval from Egyptian regulators. QIA isn’t the only interested party. TE is in talks with three Arab sovereign funds to divest part of its stake in Vodafone Egypt, though the telecoms giant has yet to receive any official bids. We’ve previously reported that QIA, Saudi Arabia’s Public Investment Fund, and Abu Dhabi’s ADQ are all in talks with the government over a piece of Vodafone Egypt. TE could come to an agreement with one of the Arab sovereign funds by the end of the year. (Bloomberg Asharq)
- Egypt tops most vulnerable EMs to currency crisis in Namura’s Damocles Index
Egypt scores 165 on Namura’s Damocles Index, putting the country’s economy at high risk of a currency crisis after its score exceeded the threshold of 100. Nomura has warned that seven countries, including Egypt, are currently at risk of a currency crisis with Damocles scores above 100. The seven countries are Egypt, Romania, Sri Lanka, Turkey, the Czech Republic, Pakistan, and Hungary. A Damocles index score of over 100 indicates an economy is vulnerable to an exchange rate crisis in the next 12 months. As per the report, Nomura suggests that Egypt is the most vulnerable emerging market (EM) to a country crisis over the upcoming 12 months, after topping the 32 EM countries. (Al Mal)
- A decree issued by Prime Minister Moustafa Madbouly earlier this week will see the CBE stop providing funding for subsidized loans, and pass the responsibility to the housing, finance and tourism ministries
The central bank currently backs soft loans for key areas of the economy, including construction, industry, agriculture and tourism, as well as mortgages and some cars. It has allocated hundreds of billions of EGP to financing borrowers in these sectors with loans at an interest rate of 8%. The IMF wants this to stop: In the weeks leading up to last month’s loan agreement with the IMF, reports in the press had suggested that ending subsidized loans was one of the conditions attached to fresh financing. Under its 2020 standby loan program, the central bank had pledged not to renew the programs past FY2021-2022 but still hasn’t pulled its support. (Hapi Journal)
- CBE approves ADIB Egypt’s Takka cards
The Central Bank of Egypt (CBE) granted preliminary approval to Abu Dhabi Islamic Bank Egypt (ADIB) to launch Takka prepaid cards in cooperation with its consumer financing arm ADI-CF and Meeza. CEO and Managing Director of ADIB Egypt Mohamed Aly said that obtaining the CBE’s approval for Takka cards reflects the trust in the bank and ADI-CF in the Egyptian market. Moreover, Yasmin Helal, CEO of ADI-CF, noted that Takka's new application would satisfy the needs of consumers and promote financial inclusion, adding that the application is user-friendly. (Arab Finance)
- El-Sisi endorses 776.9 million EUR loan agreement with France
President Abdel Fattah El-Sisi issued the presidential decree No.194 of 2022 ratifying the 776.9 million EUR loan agreement signed between Egypt and France. On March 28th, Egyptian Ministry of International Cooperation signed a loan agreement with the government of France to finance the supply of 55 trains for Cairo Metro’s Line 1. The loan will also contribute to financing the development and upgrade works of equipment and warehouses of the Metro’s first line. (Arab Finance)
- EBRD provides 50 million USD package to NBK Egypt for on-lending MSMEs
The European Bank for Reconstruction and Development (EBRD) approved a financial package of 50 million USD to the National Bank of Kuwait Egypt (NBK Egypt) to support micro, small-, and medium-sized enterprises (MSMEs) in Egypt. The package includes a 40 million USD loan that NBK Egypt will on-lend to local private MSMEs and a 10 million USD loan under the EBRD Youth in Business Program to be on-lent by NBK Egypt to local private MSMEs led or majority owned by entrepreneurs under the age of 35. (Arab Finance)
- Egypt’s GAFI to build Trans Egypt at Alexandria Port
The Egyptian Cabinet agreed upon the Egyptian General Authority for Investment and Free Zones’ (GAFI) request to build a free zone under the name of Trans Egypt Company for managing and operating terminals. Spanning an area of 21,690 sqm at Alexandria Port, Egypt Trans aims at promoting investment projects that ensure the flow of foreign currencies, creating a stable investment climate, and offering jobs. Egypt Trans is projected to have a positive impact on all economic sectors related to the activities of free zones. (Arab Finance)
- Egypt’s social solidarity ministry, Mountain View Institution sign cooperation protocol
Ministry of Social Solidarity has signed a cooperation protocol with Mountain View for Development Institution within the framework of the presidential initiative of Hayah Karima. Under the signed protocol, several development activities and services will be provided to households in villages under the initiative. Moreover, the institution will implement an academic program to economically train households through vocational training centers across all sectors to meet the demand of the labor market in each governorate. The first phase of the protocol will commence from the governorate of Faiyum. (Al Mal)
- Egypt’s CIT sector eyes EGP 67.1B investments under FY 2022/2023 plan
Egypt is targeting EGP 67.1 billion in investments in the communication and information technology (CIT) sector under the budget of fiscal year (FY) 2022/2023. This marks a growth rate of 15% as compared to expected investments of EGP 58.2 billion at the end of FY 2021/2022. Based on current prices, the production of the CIT sector is expected to increase by over 20% in the FY 2022/2023 plan, with the sector targeting to increase contribution to gross domestic product (GDP) to 21%, according to the report. (Hapi Journal)
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