The Central Bank of Egypt has announced the launch of the Instant Payment Network and InstaPay app which allow for the conduction of online financial transactions instantly

Newsletter

27 Mar 2022

For our top talks today, first, the Central Bank of Egypt has announced the launch of the Instant Payment Network (IPN) and InstaPay app which allow for the conduction of online financial transactions instantly. The new network is an important step in the way towards realizing our comprehensive vision for national payment network which promotes the objectives of reducing the use of cash and facilitates electronic financial transactions. IPN is operating by most up-to-date systems to connect banks through a digital infrastructure that allows for integration with fintechs. (Al Mal)

Second, the Egyptian government has requested an assistance package from the International Monetary Fund, IMF’s Mission Chief – Egypt Celine Allard said in a statement.
IMF will support Egypt’s endeavors to “implement comprehensive economic program”, he added. The top official noted that the fund’s staff will work with Egyptian authorities to prepare a program discussion to ensure the growth, stability, and sustainability of the country’s economy. Allard referred to a group of measures and amendments relevant to macroeconomy and policies that would alleviate the impact of economic shocks on Egyptians which would “protect the vulnerable” and preserve economic resilience and growth. (Bloomberg Asharq)
Turning to our investments talks, ManFoods Egypt, operator of McDonald’s Franchise in Egypt, is planning to invest 3 billion EGP in Egypt over the next five years, according to the Managing Director Mohamed Mansour.
The announced amount will be directed towards opening new branches, Mansour added. The top official revealed that ManFoods’ sales surged around 30% in 2021. It is worth noting that ManFoods is a subsidiary of Mansour Group. Manfoods operates the exclusive McDonald’s franchise in Egypt. It comprises over 100 outlets and serves over 80,000 customers per day. (Al Mal)
EFG Hermes Holding (HRHO) is expected to invest around 30 million USD to 40 million USD in two deals within the education sector over the coming period through Egypt Education Platform (EEP), according to the Co-CEO of EFG Hermes Investment Bank Karim Moussa.
The group is mulling over investing in the kindergartens sector for the first time, Moussa revealed. The Sovereign Fund of Egypt invests in the EEP, along with other investors with solid financial solvency from Egypt, the UAE, Saudi Arabia, and the Southeast Countries, he pointed out. It is worth noting that the EEP operates and managed the assets of Egypt Education Fund that was established in December 2018. (Al Mal)
Moreover, EFG Hermes Holding (HRHO) reported robust financial results for the full year ended December 31st 2021.
The group leading investment bank generated revenues of EGP 6.1 billion last year, rising by 12% year-on-year (YoY) to surpass the 6 billion EGP mark for the first time. Moreover, the group’s net profit after tax and minority interest jumped by 12% YoY in 2021, recording 1.5 billion EGP. The positive financial performance was backed by the group’s lines of business, along with the consolidation of aiBank, which contributed 306 million EGP to EFG Hermes’ 2021 top line. (Arab Finance)
American locomotives manufacturer Wabtec is seeking to supply battery electric freight FLXdrive locomotives to Egypt, according to the Managing Director of Wabtec Egypt Islam Fathi.
The new locomotives have capacities ranged between 2,400 kilowatts per hour (kWh) and 6,000 kWh, Fahti said. The top official revealed that his company entered into an agreement with the Egyptian transport ministry in February to supply 100 locomotives with 290 million EUR financing provided by European Bank for Reconstruction and Development (EBRD). The first 3,200-horse-power locomotive will be supplied within the next 14 months, Fathi announced, adding that after that, the company will supply 20 locomotives monthly. (Amwal Al Ghad)
And for our EGX and companies talks, Macro Group Pharmaceutical (Macro Capital) (MCRO) is planning to complete acquisition transactions of companies operating within the sector of pharmaceuticals and dietary supplements in 2022, according to the Macro Group’s Chairman Ahmed El-Nayeb.
The group is currently considering a number of investment opportunities, El-Nayeb said, adding that it does not target a specific number of acquisition deals. Moreover, he noted that the group has the necessary cash to finance all the targeted deals. Regarding expansions, El-Nayeb pointed out that the group does not plan for any new expansions in terms of the owned factories. Founded in 2002, Macro Group is a leading Egyptian cosmeceutical company based in Cairo. (Al Mal)
Acrow Misr for Scaffolding and Formwork (ACRO) announced that its board of directors has approved the establishment of a private limited company based in Amman, Jordan, with 30,000 JOD in capital.
The company will be set up in partnership with Acrow Misr’s Jordanian partner Akram Mohamed Qasem Haymoor. Acrow Misr will hold a 49% stake in the new company, while the Jordanian partner will own 51% of the company. Moreover, the board decided to begin the process of setting up a private limited company in Tunisia, which has been delayed due to the COVID-19 pandemic. (EGX)
valU, a subsidiary of EFG Hermes Holding (HRHO), is planning to enter the Saudi market prior to the end of the first half (H1) of 2022, according to the CEO Walid Hassouna.
Moreover, the company is currently considering expansion in Tunisia and Morocco, he revealed. valU has also allocated a sum of $40 million for new investments in 2022, of which 20 million USD will be used to acquire two companies, Hassouna revealed. The due diligence process for acquiring one of the two companies, which operated within the consumer finance sector, has been completed, he pointed out, adding that the acquisition is set to be announced in April. (Bloomberg Asharq)
Vortex Energy, a global renewable energy platform managed by the private equity arm of EFG Hermes Holding (HRHO), has launched its fourth fund “Vortex Energy IV”.
The fund’s first close recorded around 200 million USD, backed by investments from Spain, the UAE, and the UK. The fourth fund is expected to be closed for a second time by the beginning of 2023 to reach 500 million USD. EFG Hermes invests in all the funds established with investors, noting that it pumps around 5% of venture capital in investments. Moreover, he stressed that EFG Hermes has taken part in the fund with around 25 million USD as a conditional risk-taking commitment. (Al Mal)
The board of directors of Raya Customer Experience (Raya CX), a subsidiary of Raya Holding for Financial Investments (RAYA), has approved granting a loan worth up to 500,000 USD to Gulf Customer Experience.
The board set a six-month deadline for the repayment of the loan which is pending general assembly approval. It has subsidiaries operating across North America, the British Islands, Northern Africa, Western Africa, and the Middle East. (EGX)
Egyptian private equity firm Compass Capital has secured a 10 million USD mezzanine debt funding from South Africa’s fund manager Vantage Capital.
The funding will be used to finance an acquisition of six grade A office buildings in East Cairo by Compass Capital’s real estate arm Bonyan for Development and Trade. The office buildings are located in New Cairo’s central business district and have a total leasable area of 47,000 square meters. They are all rented by multinational companies including Nestlé, General Electric, Johnson & Johnson, and Lafarge Cement. (Arab Finance)
Waha Investment Management Company – Waha MENA Equity Fund has purchased 1.5 million shares in Talaat Moustafa Group Holding (TMG Holding) (TMGH) at a total value of 13.55 million EGP, equivalent to EGP 9.03 per share.
Accordingly, Waha’s stake in TMG Holding rose to 5.015% from 4.942%. TMG is an Egypt-based company engaged in real estate investment activities. The company establishes and develops hotels and touristic and residential projects in Egypt. (EGX)
El Khalifa Group is seeking to generate 1 billion EGP in contractual sales in 2022.
The company is planning to expand in West Cairo’s cities of 6th of October and Sheikh Zayed, Chairman Amr Khalifa said. The top official revealed that the company is executing projects in both cities with total investments of 650 million EGP. El Khalifa is studying the expansion in Ain Sokhna through the launch of a new project in 2023 to diversify its investment portfolio, he added. It is worth noting that the real estate company is completing two projects in Sheikh Zayed including residential units and villas with various spaces, along with a commercial district. (Hapi Journal)