S&P Global Ratings has affirmed Egypt’s BB credit rating with a Stable outlook
S&P Global Ratings has affirmed Egypt’s BB credit rating with a Stable outlook. This comes following the IMF and the World Bank annual October meetings, where Egypt and the IMF agreed on the soon to be announced economic reform package. While the loan will unlikely replenish Egypt’s foreign reserves, it will help restore investor confidence. International bonds will be issued from 2023 onwards, following the IMF agreement programme. GCC countries will pledge more funds to cover any funding gaps for the country given the importance of stability in Egypt to the region as a whole. Exchange rate flexibility- a key condition for the IMF agreement -will help cushion the economy from future external shocks. (S&P)
- Our S&P Global EGP/USD outlook for 2022 currently stands at EGP22:1USD and EGP24.3:1USD for 2023
The pound has become more flexible since March sharp devaluation, moving weaker in small increments, and a new Central Bank of Egypt (CBE) governor (appointed on 17 August) is on board with currency liberalization and on improving co-ordination between the central bank and the government on the economic agenda. Maait, the finance minister, welcomed the S&P Global Ratings outlook as a sign of the economy’s stability and its ability to handle external shocks. (S&P).
- EGP’s devaluation could support economy: Madbouly
Devaluation of the Egyptian pound could boost investments and support the economy, Prime Minster Mostafa Madbouly stated in his speech at the opening of the Economic Conference. He added that the problem has nothing to do with the exchange rate but with inflation. Madbouly revealed that 73% of Egypt’s external debt is medium-term or long-term, which means that it will not be due soon. If we set the debt service aside, we would find that Egypt’s revenue exceeds its expenditure and that the surplus is paying the debt service, Madbouly noted. (Bloomberg Asharq).
- Egypt keeps fuel prices unchanged for Q4
Egypt’s Fuel Automatic Pricing Committee decided in its quarterly review to maintain domestic fuel prices unchanged for the fourth quarter (Q4) of 2022. The price of 80-octane fuel has been kept unchanged at 8 EGP per liter, while the price of 92-octane fuel has been maintained at 9.25 EGP per liter. The 95-octane fuel will still cost 10.75 EGP per liter, and diesel per liter will be sold at EGP 7.25. Meanwhile, mazut will be sold for non-electricity uses and bakeries at 5,000 EGP per ton. This decision was driven by the current global economic situation and its impact on the oil market amid the Russian invasion of Ukraine. (Al Mal).
- Zohr field enabled Egypt to become self-sufficient in natural gas: El-Sisi
The giant offshore natural gas field of Zohr has enabled Egypt to become self-sufficient in natural gas, President Abdel Fattah El-Sisi stated on the sidelines of the Egyptian Economic Conference. Egypt used to import natural gas valued at around 2 billion USD per month, and this figure was expected to increase to 10 billion USD at the current prices, El-Sisi added. Egypt’s boundary delimitation between Greece and Cyprus on the Mediterranean Sea and with Saudi Arabia on the Red Sea gave the oil companies the opportunity to commence oil exploration works. On a similar note, Prime Minister Mostafa Madbouly added that Egypt ranks the region’s 5th in terms of natural gas production, with a volume of 58 billion cubic feet. (Hapi Journal).
- Banque Misr launches fixed-rate USD certificates
Banque Misr launched El Thabat USD certificates with fixed interest rates for renewable maturities of three and five years. The certificates have fixed rates of up to 5.3% annually over their whole duration, which is determined based on maturities and the frequency of payment. The annual interest rate could be paid monthly, quarterly, semi-annually, or annually for USD certificates. The certificate can be fully or partially redeemed after 6 months from the issuance date for three-year certificates and after 12 months from the issuance date for five-year certificates. (Arab Finance).
- KarmSolar receives 47 million EGP in funding from QNB Al Ahli
KarmSolar, a leading solar energy company and multi-utility enterprise, has secured 47 million EGP in funding from Qatar National Bank Al Ahli (QNB ALAHLI), with advisory led by Ezdaher Financial Advisory, an Egypt-based debt advisory firm. The funds will be used to build “the first financed solar Power Purchase Agreement (PPA) battery storage system in Egypt”. This comes as part of a Phase 2 expansion of KarmSolar’s existing solar microgrid solution for the Cairo 3A poultry farm facility located in the Bahareya Oasis in Giza, Egypt. (WAYA)
- Juhayna signs a contract with KarmSolar to establish a hybrid central power plant
Juhayna signed a contract with KarmSolar to establish a hybrid central power plant to generate and sell energy using solar panels, diesel generators, and industrial batteries at the Al-Enmaa farm in Abu Minqar area in the New Valley. The new plant aims at producing electricity from the central station, with a production capacity of 8.3 megawatts of solar energy, 10.8 megawatts of diesel, and 27.5 megawatts per hour from the battery storage system. 65% of the energy consumed by Juhayna’s El-Enmaa farm will be provided by solar energy and 35% by diesel generators. (WAYA)
- Cairo-born ArabyAds acquires global marketing platform indaHash.
Advertisement technology company ArabyAds announced the acquisition of the global influencer marketing company indaHash. The acquisition followed ArabyAds’ securing of 30 Million USD in a pre-series B funding round pledged by the company to global expansions and acquisitions. indaHash was founded in 2016 in Poland and has successfully executed influencer marketing campaigns since its launch including world leaders such as Adidas, Danone, Coca-Cola, McDonald’s, Samsung, and IKEA. (WAYA)
- Ibnsina Pharma, OMRON Healthcare seal deal to distribute medical devices in Egypt
Ibnsina Pharma (ISPH) has signed an importation and distribution agreement with the global health monitoring and therapy leader OMRON Healthcare. Under the agreement, Ibnsina Pharma will act as the primary distributor of OMRON Healthcare’s devices in pharmacies and medical shops in Egypt. This strategic partnership will enable Ibnsina to expand its product offering to include home blood pressure monitors and other healthcare products. (Arab Finance)
- Hassan Allam considers 150 million USD investments in Morocco
Hassan Allam Holding is seeking to enter the Moroccan market with up to 150 million USD in initial investments in renewable energy and seawater desalination. The company’s first investment in Morocco could take place in 2023. On October 21st, Amr Allam stated that Investments of Hassan Allam Holding’s joint venture with the UAE’s Masdar for the green hydrogen project at the Suez Canal Economic Zone (SCZone) amount to 10 billion USD over a period between 7 and 10 years. (Asharq Business)
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