Some gold merchants have stopped pricing the precious metal amid confusion about the USD price in the wake of October’s devaluation

Newsletter

07 Dec 2022

Some gold merchants have stopped pricing the precious metal amid confusion about the USD price in the wake of October’s devaluation. Local gold prices have surged to record highs this week, with 21 carat gold reaching EGP 1.8k. Demand for gold has surged in the wake of October’s EGP devaluation which has seen the currency fall almost 25% against the USD. The rise in the prices of the precious metal in the Egyptian market was a shock to both manufacturers and traders, as the successive and rapid increases in the recent period in an unusual way represented a complete confusion of the gold industry and trade in Cairo. The adviser to the Minister of Supply for the gold industry, Nagy Farag, stated that he “does not fear for the yellow metal markets in Egypt,” expecting that “prices will calm down and decline again soon, while he did not deny that the successive increases are not justified and do not reflect the fair price of gold. (Independent Arabia)

State-owned maritime transport company to list on the EGX today
The EGX’s listing committee has signed off on the temporary listing of the state-owned Port Said Container & Cargo Handling Company (PSCCHC) ahead of a planned IPO. This gives the company six months to meet listing requirements including minimum quotas for the number of listed shares and shareholders, and obtain regulatory approvals, under recent changes to listing procedures. (AL Mal & Enterprise)
The Holding Company for Maritime Transport subsidiary will list over 32.8 million shares on the bourse, without disclosing the exact stake size it plans to offer on the exchange
Local media has reported that the company is looking to sell a 25% stake in 1Q 2023. Trading on its shares will eventually take place under the ticker POCO.CA. The EGX approval comes the day after reports that the ordinary general assemblies of PSCCHC and sister company DCHC both approved IPO plans. Both subsidiaries of the Holding Company for Maritime Transport are eyeing 25% stake sales, according to the domestic press. The Madbouly government is reportedly planning to IPO the two companies in 1Q 2023, along with a Nilex listing for the Egyptian Company For Maritime Transport (Martrans) and General Egyptian Warehouse Company. (AL Mal & Enterprise)
IMF to have restricted meeting in Egypt on December 16th
On December 4th, Minister of Finance Mohamed Maait said that Egypt looks forward to receiving the first tranche worth around 750 million USD from the IMF under the 3 billion USD Extended Fund Facility (EFF) this month. In October, Egypt reached an agreement with the IMF over the 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 from the IMF's Resilience and Sustainability Trust (RST) and 5 billion USD from international partners.
Jade Textile, affiliate company of Turkey’s Yesim Group, targets injecting 70 million USD into Egypt’s textile spinning industry
This will bring the company’s total investments in the Egyptian spinning and weaving industry to 220 million USD, raising the number of direct jobs offers to 12,000. Jade Textile aims to increase the local component ratio in production to 95%, stressing that it supports the Egyptian government’s efforts in achieving economic development and sustainability. the company’s investments in Egypt amount to around 150 million USD through five factories for the production of ready-made clothing. (Hapi Journal)
SCZone to accelerate green fuel production process to meet Europe’s demand
The General Authority for Suez Canal Economic Zone (SCZone) is looking forward to accelerating the green fuel production process as scheduled to meet the European markets’ demand and start supplying containers by 2026. It’s worthy to mention that SCZone has integrated industrial zones and six ports connected to the Red Sea and the Mediterranean that would contribute to the green fuel production process and supplying ships. (Al Mal)
Egyptian Customs Authority sets new customs development strategy
The new strategy adopts artificial intelligence (AI) technologies in analyzing and handling data to help detect risks at each aspect of the import process. This step ensures acceleration of customs release and maintaining the highest possible quality in the Egyptian market. The authority is keen to expand the new system for managing risks at all customs outlets and applying the best international practices of modern scanning. (Arab Finance)
Two Egyptian startups close seven-figure USD funding rounds. First, OneOrder secures 3 million USD seed funding
OneOrder, the online one-stop shop food supplier to hotels and restaurants, has raised 3 million USD in seed funding round. The round was led by Nclude, with the participation of A15 and Delivery Hero Ventures. The company will continue backing the hotel, restaurant, and café industry with much-needed supply chain solutions and will work on bringing financial inclusion to the industry. Launched in 2022, OneOrder is an Egypt-based fintech-enabled platform that provides food supplies to hotels, restaurants, and cafes. (WAYA)
Second one, SIDEUP raises 1.2 million USD in seed funding
Egypt-based SIDEUP, formerly known as Voo, has secured 1.2 million USD in a seed funding round. Launch Africa Ventures, 500 Global, Riyadh Angel Investors, Alex Angels, Al Tuwaijri fund, and the Saudi angel investor Faisal Al-Abdulsalam have participated in the round. The recently rebranded startup as SIDEUP has also entered Saudi Arabia, where it will be headquartered. Founded in 2008, SIDEUP is a platform aiming to fulfill e-commerce business needs, offering local and international logistical support, storage services, and a comprehensive and real-time dashboard. (WAYA)
Banque Misr, CIB arrange 6.35 billion EGP syndicated loan for Benya
The loan will be directed to finance some projects assigned to Benya Group in the technological infrastructure of the telecommunication sector which will support the government’s digital transformation in Egypt. The two lenders have taken part in arranging the loan, with Banque Misr acting as a financial agent and CIB serving as a guarantor. (Arab Finance)