The Central Bank of Egypt is expected to raise interest rates 1% at its Monetary Policy Committee’s upcoming meeting, Thursday 24th of March

Newsletter

20 Mar 2022

For our top talks today, first, the Central Bank of Egypt (CBE) is expected to raise interest rates 1% at its Monetary Policy Committee’s (MPC) upcoming meeting, Thursday 24th of March. Egypt could also need another financing program backed by the International Monetary Fund (IMF) to face the challenges resulting from the ongoing Russia-Ukraine war. We also expect higher interest rates, 5% to 15% exchange-rate depreciation, and an IMF program as being among the policy options available to the Egyptian authorities to shore up the country’s external position. (Zilla Capital)

Second, El Nasr Automotive Manufacturing Company has signed an agreement with National Automotive (NATCO) to establish the first company in Egypt for selling and distributing electric vehicles (EVs).
The new company will offer after-sale and maintenance services, cover car warranties, and provide financing and insurance solutions. Under the agreement, the company will be established with 500 million EGP in capital, of which El Nasr Automotive’s contribution amounts to 76%, while NATCO’s contribution to the capital stands at 24%. The joint venture (JV) will be Egypt’s first sole dealer of locally-manufactured EVs, which El Nasr Automotive will begin their production in 2030. Moreover, the JV will also import and distribute global brands of EV models to meet the needs of Egyptian citizens. (Arab Finance)
The Union of Arab Banks has organized the “Future of Small-and Medium-sized Enterprises (SMEs) – Vision 2030 Conference”, in cooperation with the Central Bank of Egypt (CBE).
During the conference, it has been recommended that central banks shall set policies to encourage banks to pump further financing in SMEs and emerging markets. Moreover, the conference called banks for allocating a percentage of their credit portfolios for investing in SMEs and establishing specialized internal sectors regarding credit or risk. It has been also recommended to establish and develop a specialized committee for projects at the federations of banks as a linking point between the members of the committee (banks) and the central banks. (Arab Finance)
Shell Egypt has signed a memorandum of understanding (MoU) with Egypt’s National Training Academy to introduce Shell NXplorers to the training programs of the academy.
Shell NXplorers is a training program specialized in the development of sustainable solutions. The MoU aims at reinforcing cooperation between the two parties in supporting youth and improving their skills. The signing ceremony has been witnessed by the Egyptian Minister of Petroleum Tarek El Molla. (Arab Finance)
The National Bank of Egypt (NBE) is planning to pump direct financing worth around 30 billion EGP in the small- and medium-sized enterprises (SMEs) portfolio by the end of 2022.
The bank is targeting to bring the total direct financing in SMEs to 140 billion EGP by the end of December from 110 billion EGP on March 15^th. Regarding the indirect financing in SMEs, it ranged between 6 billion EGP and 7 billion EGP until mid-March. (Bloomberg Asharq)
And for our EGX and companies talks, Welnes, an Egypt-based fitness app, has secured $300,000 in a seed funding round.
The round was led by Flat6labs, with the participation of Samurai Incubate, and UI Investments, along with a group of angel investors. The startup will use this round to expand its team and extend its footprint in the GCC by 2023. To date, the company has served more than 15,000 users, offering them customized nutrition and workout plans. (Arab Finance)
Misr Life Insurance is expected to float a 25% stake on the Egyptian Exchange (EGX) in October.
The company is currently finalizing all related details to advisors and bookrunners of the initial public offering (IPO). It is worth noting that Misr Insurance Holding Company appointed Zaki Hashem and Partners Law Firm as the legal advisor to the IPO of its subsidiary Misr Life Insurance. (EGX)
Sinai Cement Company (SCEM) has presented documents for the listing of 1 billion EGP increase in authorized capital and 650.074 million EGP increase in issued capital.
The company’s authorized capital will be increased to 2 billion EGP from 1 billion EGP. Moreover, issued capital will be increased to 1.33 billion EGP from 680.584 million EGP through the issuance of 65.007 million shares at a nominal value of 10 EGP per share. Sinai Cement is engaged in the manufacture and packing of different types of cement and its related products. The Egypt-based company also produces clinker, cement, and other related products, in addition to cement packing bags. (EGX)
Astute Imaging LLC, a US-based imaging-guided therapy provider, has acquired the Egypt-based technology healthcare startup Dileny Technologies (DilenyTech).
The acquisition will help Astute Imaging to improve its current offering and expand services through developing innovative artificial intelligence (AI) solutions in the medical imaging domain. It is worthy to mentions that this acquisition of DilenyTech will enable Astute Imaging to expedite the development of an AI driven image-guided therapy platform and add more automation to our imaging services and procedure planning solutions. (Arab Finance)
Misr Italia Properties has signed a memorandum of understanding (MoU) with Honeywell International Inc.
Under the MoU, an integrated smart e-system will be developed to facilitate the daily lifestyles of Misr Italia’s customers as per the standards of sustainable development. This move aims at offering customers integrated solutions across all the real estate developer’s projects. Moreover, Misr Italia has been able to record sales of 6 billion EGP in 2021, targeting sales of 7.5 billion EGP in 2022. (Hapi Journal)
Development and Engineering Consultants (TAMEER) (DAPH) has launched AZ Homes housing project in the Fifth Settlement.
The project includes various spaces, installment systems, and an eight-year payment plan. Located in AZAD Views complex near the American University in Cairo (AUC), the residential project is 20 minutes away from the New Administrative Capital (NAC) and 15 minutes away from Cairo International Airport. AZ Homes comprises 284 units of different spaces to cater to the needs of all customers. Unit spaces start from 56 square meters (sqm) studios up to 133 sqm three-bedroom apartments. Moreover, the project is slated for completion and delivery in 2025. All amenities are provided, along with common area, co-working space, and a gym. (Arab Finance)
Rolaco EGB Investment has increased its stake in MM Group for Industry and International Trade (MTI) (MTIE) to %12.06 from %11.99.
Rolaco bought 725,000 shares in consideration of 3.69 million EGP, or 5.1 EGP per share. MTI is one of the leading distribution companies by geographic coverage in Egypt, with access to more than 40,000 points of sale. The Egyptian joint stock Company operates in a wide range of businesses, including consumer electronics, telecommunication, automotive, seamless pipes, and tractors through partnerships with leading global brands including Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier and Bosch. (Amwal Al Ghad)
Al-Futtaim Group Real Estate has launched the latest phase of “Aura” smart homes in Cairo Festival City (CFC).
This comes after the business progress rate in “Aura” apartments remarkably reached over 60%, including 404 fully-finished smart units. The entire project is set to be fully delivered in 2023 as all concrete works and external finishes are complete. “Aura apartments are offered for purchase with a 10% down payment and a convenient eight-year payment plan to comply with the needs of its customers in exchange for high-quality, luxurious products that ensure their comfort and safety,” Managing Director of Al-Futtaim Group Real Estate Ashraf Ezz El-Din said. (Arab Finance)