Sisi: Granting a "golden license" to those who invest in Egypt for a period of 3 months | Zilla Capital

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30 Oct 2022

Sisi: Granting a “golden license” to those who invest in Egypt for a period of 3 months

Sisi: Granting a “golden license” to those who invest in Egypt for a period of 3 months. The license gives companies the opportunity to obtain a single approval for the establishment, operation, management and construction of the project. The original golden license was granted to companies that establish strategic or national projects with the aim of developing the country, especially for green hydrogen projects, electric cars and infrastructure, seawater desalination projects and renewable energy. (Asharq Business)

Al-Sisi also said that the time period may be extended to another three months if there is a good response from investors or a return to work with the previously established system
We believe that "this decision is a confirmation of the state's keenness to provide equal opportunities, enhance competition mechanisms and empower the private sector. We expect the decision to succeed in attracting new investments to Egypt during the next few period. (Asharq Business)
Egypt strikes deal with IMF for 3 billion USD assistance package
The Egyptian government finalized a deal with the International Monetary Fund (IMF) for an assistance package of 3 billion USD to finance the state’s budget for 6 months. The government reached an agreement over a four-year international financing program worth a total of 9 billion USD, including the 3 billion USD package from the IMF, along with 1 billion USD from the IMF's Resilience and Sustainability Trust (RST) and 5 billion USD from international partners. (Asharq Business)
CBE raises interest rates by 200 bps
The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided during a special meeting to raise interest rates by 200 basis points (bps). The MPC raised the overnight deposit rate, overnight lending rate, and the rate of the main operation to 13.25%, 14.25%, and 13.75%, respectively. The discount rate was also maintained at 13.75%. The CBE ascribed the decision to its mandate to ensure price stability over the medium term. The bank noted that Egypt seeks to intensify its reform agenda and achieve macroeconomic stability and sustainable growth. (Hapi Journal)
CBE ups LCs’ exemption limit for imports to 500,000 USD
The Central Bank of Egypt (CBE) decided to raise the limit of exemption from letters of credit (LCs) for imported cargoes from 5,000 USD to 500,000 USD. The CBE said in a letter sent to banks that the decision will be effective as of October 27th. The CBE announced that it would start gradually reversing the decision mandating the use of letters of credit (LCs) for import finance to be completely removed by December 2022. (Hapi Journal)
CBE allows FX Forwards transactions for banks’ corporate clients
The Central Bank of Egypt (CBE) now allows banks to conduct FX Forwards transactions for corporate clients. The CBE set some conditions including that the purpose of transactions should be covering expenses of letters of credit (LCs), collection documents, supplier facilities, profit transfers of foreign shareholders with fixed dates, and revenues of merchandise and services exports. The CBE also allowed banks to conduct FX Forwards for corporate clients, provided that the transactions cover proceeds resulting from trade activities carried out through banks. An FX forward is a contractual agreement between the client and the bank, or a non-bank provider, to exchange a pair of currencies at a set rate. (Ahram Online)
Egypt postpones increase in electricity bills for additional 6 months
The Egyptian government decided to postpone the plan to increase electricity prices for households to additional six months ending June 30th 2023. The decision will add a cost of 1.9 billion EGP to the general budget and bring up the total costs to 3.8 billion EGP for fiscal year (FY) 2022/2023, Minister of Finance, Mohamed Maait, revealed. (Hapi Journal)
Moreover, Prime Minister, Mostafa Madbouly, announced earlier raising the minimum wage to 3,000 EGP and paying an exceptional bonus of 300 EGP for employees in the public sector
And its affiliate companies, as well as pensions. The exceptional bonus to public sector employees will cost 16.4 billion EGP annually, Maait noted. Maait unveiled that around 67 billion EGP were allocated to the exceptional social security package, adding that it will be effective as of November 1st. Moreover, Maait noted that the package would be financed by the reserve allocations of the general budget, which amounts to 135 billion EGP. (Hapi Journal)
SCZone, DP World ink agreement to build 80 million USD logistics zone
The General Authority of the Suez Canal Economic Zone (SCZone) signed an agreement with DP World to build a logistics zone in the Ain Sokhna Industrial Zone with expected investments of 80 million USD. The project will be built on an area of 300,000 square meters (sqm) and aims to create around 600 direct jobs, Chairman of SCZone Walid Gamal El-Din revealed in his speech during one of the Egyptian-UAE Business Council (EEBC) sessions, entitled “Egypt As A Logistics Hub”. (Arab Finance)
TMG Holding enters strategic partnership with Baraka Group
Talaat Moustafa Group Holding (TMG Holding) (TMGH) has entered a strategic partnership with the regional retailer for optics and fashion Barak Group. Under the partnership, Baraka Group will bring seven new brands to the recently launched mall at Madinaty, All Seasons Park, while one brand will be opened at the Open-Air Mall. Spanning an area of 700 square meters (sqm), the stores are set to open in late 2022. The partnership will elevate the overall retail offering of Madinaty and offer visitors an exciting shopping experience. (Arab Finance)
Egypt targets increasing TSFE’s capital to 1 trillion EGP
Egypt is seeking to increase the capital of The Sovereign Fund of Egypt (TSFE) from 400 billion EGP to 1 trillion EGP within 5 years. A roadshow was launched for the TSFE’s Pre-IPO Fund in a group of international capitals to attract strategic investors to Egyptian companies ahead of offering on the Egyptian Exchange (EGX). The Pre-IPO Fund has caught the attention of some Arabian sovereign funds. Arabian sovereign funds are interested in participating as strategic investors in the IPOs of Wataniya Petroleum and Safi. (Asharq Business)