Unlocking Egypt's transport potential: 20 Billion USD investment opportunities await | Zilla Capital

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17 May 2023

Unlocking Egypt’s transport potential: 20 Billion USD investment opportunities await

Transport Minister Lieutenant-General Kamel al-Wazir announced that Egypt presents a wide range of investment opportunities in the transport sector, with potential investments reaching 15 to 20 billion USD. These opportunities span across maritime and land transport, logistics zones, as well as land and dry ports. The minister emphasized Egypt’s aim to attract more investments and foster partnerships with the UAE specifically within the transport sector. These remarks were made during the Middle East Railway Exhibition and Conference. (Economy Plus)

Seven state-owned giants set to hit the market: NI Capital gears up for IPO!
Two IPOs are expected to be completed before the end of the current fiscal year in June, while the remaining five are likely to be finalized by the end of the year. These companies operate in the oil, petrochemical, and transport sectors, although their specific names have not been disclosed. Some of the known companies targeted for sale include the Egyptian Company for the Production of Ethylene and its Derivatives (ETHYDCO), the Egyptian Company for the Production of Linear Alkyl Benzene (ELAB), Helwan Fertilizer Company, the Chemical Industries Development Company (SEED), the Egyptian Company for the Production of Propylene and Polypropylene, and the Egyptian Drilling Company. (Arab Finance)
Revolutionizing Cairo's commute: Qatari company eyes Cairo ring road BRT system management!
In a recent meeting between Transport Minister Kamel El Wazir and Qatari counterpart Jassim Al Sulaiti, an undisclosed Qatari company has shown keen interest in taking charge of the operations and management of Cairo Ring Road's bus rapid transit (BRT) system. The meeting also involved discussions on potential collaboration in various transport sector initiatives. The BRT system is envisioned as a solution to alleviate traffic congestion on the Ring Road by providing an alternative transportation option. (Enterprise)
Oil exploration heats up: "Apache" aims for new conquests in Egypt's western desert!
In a meeting with Minister Engineer Tarek El Molla, CEO John Christman of American company Apache expressed the company's strong interest in acquiring new concession areas in Egypt's western desert. Apache aims to secure areas with significant oil potential as part of its plans to boost production rates in the near future. The Ministry of Petroleum and Mineral Resources issued a statement confirming the discussion on May 16th. (Economy Plus)
Al Baraka Bank Egypt gets 30 million USD from ICD to fund green projects.
Al Baraka Bank Egypt will receive 30 million USD n in sharia-compliant funding from the Islamic Development Bank (IsDB) for on-lending to green projects. The funding will specifically target private-sector SMEs that are embarking on green and sustainable projects. The IsDB approved more than 558 million USD in new funding for six projects that promote sustainability, inclusive growth, and infrastructure development in the bank’s member countries.
It is worth remembering that Mohamed Maait, Egypt Minister of Finance, had said last September that the government is looking at the possibility of issuing a green euro bond soon, depending on market conditions.
Earlier that year, the ministry signaled that it is looking to take to the green bond market for a second time with another 750 million USD issuance, matching the 2020 issuance that saw Egypt debut sovereign green bonds in the MENA region. Private sector players could also be preparing to sell up to 200 million USD in green bonds, the Planning Ministry said earlier this month. CIB had launched the country’s debut corporate green bond issuance in 2020. (Hapi Journal)
Moreover, Egypt and Italy seal the deal: 100 million USD debt swap program extended for a third phase.
It was announced that Egypt and Italy have agreed to extend the third tranche of the Italian-Egyptian Debt for Development Swap Program (IEDS) worth 100 million USD. The extension, which was confirmed on May 15th, will now run until December 2024. The third phase of the debt swap program focuses on various development projects aimed at achieving the Sustainable Development Goals (SDGs) in fields such as the environment, agriculture, nutrition, education, cultural heritage, and civil society. (Arab Finance)
Brace Yourself for a Jaw-Dropping 70 Billion EGP surge in interest payments with every 1% increase in interest rate!
The Egyptian Ministry of Finance has stated that for every 1% rise in interest rates compared to the targeted amount in the proposed budget for the upcoming fiscal year, the interest payment expenses increase by approximately 70 billion EGP. This increase adversely affects the budget deficit. In the forthcoming budget, the Ministry of Finance has set the interest rates for government bills and bonds at 18.5%, maintaining the same level as the current fiscal year. (Al Mal)
Strategic alliance: Saudi Gas and TAQA Arabia join forces to establish new company in the kingdom.
Saudi Natural Gas Distribution Company (GAS) has partnered with TAQA Arabia to establish a new limited liability company in the Kingdom of Saudi Arabia. The agreement aims to develop and operate gas transmission services and networks. The company will announce the incorporation procedures once finalized. The collaboration aligns with GAS's expansion plan and its objective of enhancing profits through improved operations. (Hapi Journal)
Boost for microfinance: FRA raises maximum limit to 220,000 EGP.
The Financial Regulatory Authority (FRA) has raised the maximum funding limit for companies, associations, and NGOs supporting microenterprises by 10%, now reaching 220,000 EGP instead of 200,000 EGP. This move aims to provide a significant boost to the microfinance sector. The total value of financing balances for medium, small, and micro enterprises supervised by the authority has surged to approximately 42 billion EGP as of February 2023, compared to around 29 billion EGP in the same period last year. Notably, the number of beneficiaries has reached an impressive milestone of about 4 million. (Economy Plus)
Egypt strikes a deal with Norway's Scatec to export renewable energy.
Egypt has signed an MoU with Scatec ASA, a Norwegian company, to conduct studies on an electricity interconnection project. The project aims to export renewable energy from Egypt to Europe via Italy using a marine interconnection line with a capacity of at least 3 gigawatts. Scatec will lead the project's development activities and secure competitive financing from international institutions, ensuring a long-term repayment period. (Economy Plus)