The Central Bank of Egypt has decided to reinstate fees on cash withdrawal transactions from automated teller machines

Newsletter

04 Jul 2022

The Central Bank of Egypt (CBE) has decided to reinstate fees on cash withdrawal transactions from automated teller machines (ATM), setting the maximum fees for an off-us transaction at 5 EGP. The CBE has also raised the ceiling of off-us cash withdrawals from ATMs to 4,000 EGP per transaction. The bank has exempted clients (only natural persons) from all expenses and commissions imposed on all EGP money transfers through electronic channels (internet, mobile banking, and InstaPay applications) from July 1st until December 31st. The issuance of electronic wallets is free; however, a pricing policy is being applied on transfer services to only natural persons via mobile wallets, with all clients being exempted from the transfer fees on the first transaction monthly. Afterward, fees on transfers of natural persons through mobile wallets have been set at a maximum of 1 EGP per transaction as of the second transaction each month for clients of the service provider (on-us transactions). (Al Mal)

Moreover, the CBE has instated a commission of 0.5% maximum of the transfer value of not more than 10 EGP per off-us transaction.
Meanwhile, the issuance of contactless prepaid cards has been exempted from fees and banks shall waive fees for private sector vendors’ transactions conducted through contactless payment instruments issued by banks operating in Egypt. Issuers of contactless cards shall return interchange fees to banks within the mentioned period. Furthermore, the CBE has exempted the micro-, small-, and medium-sized enterprises (MSMEs) from fees related to the activation of e-commerce transactions for the first time as of July 1st until December 31st, provided that quick response (QR) codes shall be activated and national payment cards (Meeza) are accepted through applications and websites. (Al Mal)
The European Investment Bank (EIB) has financed the construction of Cairo Metro Line 3 with 600 million EUR.
The third line project was also supported by 300 million EUR in financing from Agence Française de Développement (AFD) and a 43 million EUR grant from the European Union (EU). These announcements were made on the sidelines of the inauguration of the new Cairo Metro Line 3 at Adly Mansour Station, where the Vice President of EIB Gelsomina Vigliotti joined a group of Egyptian leaders and international financing institutions to welcome the completion of the new metro line. Cairo Metro Line 3, which represents the largest transport investment by the EIB in Africa, will improve urban mobility and mitigate traffic congestion in Egypt. It will serve over 20 million residents of Cairo. The project is expected to contribute to Egypt’s sustainability and green endeavors. In May 2021, Egypt and the EIB signed an agreement for 1.1 billion EUR in financing for the metro and tram projects in Cairo and Alexandria. (Arab Finance)
The Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) has issued a permit to the Russian nuclear energy company Rosatom for the construction of El-Dabaa Nuclear Power Plant (NPP) Unit 1.
The permit and excavation work at site are prerequisites for the initiation of the main stage of construction. The new plant will be the first power plant of this generation in Africa, Likhachev noted. El-Dabaa NPP will include four power units; each has a capacity of 1,200 megawatts (MW), with VVER-1200 reactors (pressurized water reactors) of generation III+. (Arab Finance)
Egypt has bought 815,000 tons of wheat, the largest amount in a single purchase since 2012. France represented the lion’s share of the recent tender, which took place following a drop in grain prices.
The tender included orders over a three-month span, instead of the usual shorter spans of a few weeks. On June 26th, Minister of Supply and Internal Trade Ali El-Moselhi said that Egypt is seeking to import 10 million tons of wheat during the next six months. (Bloomberg)
Iron and Steel for Mines and Quarries (ISMQ) has extended the period of letter of credit (LC) for Ukraine's Vazhmash until September 30th due to the ongoing Russian-Ukrainian war.
This comes in line with the company’s deal signed with Vazhmash to complete the semi-industrial unit at an estimated cost of 657,000 USD. Once complete, a concentrate ore plant will be established in Bahariya Oasis at an estimated cost of 35 million USD. In September 2020, the board of directors of Metallurgical Industries Holding had agreed to commence the construction of the semi-industrial unit, with the Ukrainian company and ISMQ handling 30% and 70% of the implementation, respectively. The holding company also approved to finance the project in case ISMQ was not capable and a sum of 500,000 USD was already transferred to ISMQ to cover the LC in favor of Vazhmash. (Arab Finance)
Moving to our EGX and companies talks, Amazon Egypt has launched installment plans through valU, a subsidiary of EFG Hermes Holding (HRHO).
The new service will enable customers of both Amazon Egypt and valU to choose their favorable payment method and installment plan on amazon.eg. The installment plans will range from six to 60 months, without any down payment. The buy-now pay-later solutions offered by valU are part of Amazon’s customer-oriented approach to provide customers with a seamless hassle-free shopping experience. Customers are now able to purchase from a wide range of quality products from local and international brands at good value for money, along with swift reliable delivery. (Al Mal)
Easy Lease, the Egyptian financial leasing company, aims to double its portfolio 4 times within two years from 1.3 billion EGP currently to about 5 billion EGP, according to CEO Ahmed Al-Khouly.
Easy Lease was established in 2021, with a capital of 50 million EGP, and it was increased to 100 million pounds, and the company seeks to increase it again to 150 million EGP this year and 200 million EGP next year, according to the company's president. There are 46 financial leasing companies operating in Egypt until December 2021. The size of the financial leasing market in Egypt during the first quarter of the year amounted to 21.7 billion EGP, an increase of 12% on an annual basis, according to the latest available government data, and the market size increased by 35.5% in 2021 on an annual basis to 79.8 billion EGP. (Bloomberg Asharq)
Al Fanar for Contracting, Construction, Trade, Import, and Export Company (FNAR) has signed a contract worth 60.255 million EGP to carry out drilling and bridging works at the Silversands North Coast project.
The contract has been signed on June 29th, the company added. Al Fanar is an Egypt-based company, operating within general contracting, construction, trade, import, and export, in addition to, land reclamation and land division. (Arab Finance)
The board of directors of Madinet Nasr Housing and Development (MNHD) approved to sign the final contracts for the acquisition of MINKA Developments and EGYCAN Properties at a value of 200 million EGP.
The signing of the final contract will be subject to updating the report conducted by the independent financial advisor (IFA) and setting the fair value (FV) of both companies. In December 2021, the ordinary general meeting (OGM) of MNHD had approved the acquisition of MINKA Developments and EGYCAN Properties as the total FV of both companies was set by the IFA at around 232 million EGP. (EGX)
Qalaa Holdings (CCAP) recorded consolidated revenues of 18.68 billion EGP in the first quarter (Q1) of 2022, surging by 134% from 7.66 billion EGP in Q1 2021.
Excluding ERC, Qalaa's revenues stood at 4.97 billion EGP in Q1 2022, up by 28% year-on-year (YoY), on the back of the recorded revenues from the group's subsidiaries, namely TAQA Arabia, National Printing, ASEC Holdings, ASCOM, Dina Farms Holding, and Nile Logistics Holding. Moreover, Qalaa Holdings incurred a consolidated net loss after minority interest of 584.1 million EGP in Q1 2022, versus a net loss of 478.6 million EGP in the same quarter last year. The group's selling, general, and administrative expenses (SG&A) increased by 7% YoY to 510.6 million EGP, including 122.9 million EGP related to ERC. (EGX)
AD Ports Group has agreed to acquire a 70% stake in Egypt’s International Associated Cargo Carrier (IACC) for consideration of 514 million AED.
The value of the deal will be funded by AD Ports’ cash reserves which amount to over 3 billion AED as of March 31st. KPMG LG has served as the financial advisor, PwC as the commercial advisor, and Matouk Bassiouny and Hennawy as the legal advisor on the deal to AD Ports Group. EFG Hermes Holding (HRHO) has acted as the exclusive financial advisor and White & Case as the legal advisor on the transaction to Transmar and TCI. (EGX)