The Central Bank of Egypt’s Monetary Policy Committee will be meeting today and is expected to increase interest rates by around 100 to 150 basis points

Newsletter

19 May 2022

For our top talks today, the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) will be meeting today and is expected to increase interest rates by around 100 to 150 basis points. The Egyptian pound is likely to be subject to downside risks as the currency rate is “flow-driven”, noting that higher outflows from further industrial imports after being exempted from the letters of credit (LCs) requirements. It is worth noting that Egyptian President Abdel Fattah El-Sisi recently directed the government to exempt production supplies and raw materials from the previously applied procedures on the importation process. Moreover, the net foreign liability (NFL) position of the Egyptian banking sector, including the CBE, increased to 12.1 billion USD in March from 3.39 billion USD in February. Excluding the CBE, the NFL of Egyptian banks stood at 7.04 billion USD in March, down from 11.4 billion USD the month before. It is worth noting that Egypt’s annual headline inflation rate increased to 14.9% in April 2022, compared to 4.4% in the same month of 2021. The international reserve at the CBE increased by around 41 million USD month-on-month (MoM) at the end of April. (Zilla Capital)

Secondly, Dr. Mostafa Madbouly, the Egyptian Prime Minister, presided a meeting held yesterday evening in preparations for the annual meetings of the Islamic Development Bank for the year 2022, which will be held during the period between the 1st to 4th June next in Sharm El Sheikh.
During the meeting, the Minister of Planning and Economic Development reviewed a report on the Bank’s activity and its investments. The Islamic Development Bank is one of the most active multilateral development banks in Islamic finance in the world, which aims to support the economic and social development of the peoples of member states and Islamic societies in the world. Non-member states, by contributing to the capital of projects, providing loans and financing facilities to institutions and productive projects in member states, as well as infrastructure projects, as well as providing various forms of development assistance to finance and support trade exchange between Member States, and combat poverty, by achieving human development and economic cooperation. (Mubasher)
Thirdly, Dr. Khaled Abdel Ghaffar, Minister of Higher Education and Scientific Research and Acting Minister of Health and Population, met his counterpart in the State of Portugal, Ms. Marta Temedo, as part of the minister's foreign tour that started from Portugal.
The Minister discussed with his Portuguese counterpart the coordination and support to deal with infectious and emerging diseases and emergencies in public health, within the framework of coordination between countries and joint efforts to address and rapid response during epidemic outbreaks. The meeting included discussing the exchange of experiences in biotechnology and epidemiological studies in combating malaria and disease vectors, as well as cooperation in the field of environmental monitoring technology, risk assessment and an early warning system to confront epidemics. (Mubasher)
Moreover, Egyptian Customs Authority provides a new service for foreign companies exporting to Egypt authorizing other companies to upload the required documents on their behalf, taking into account that both the issuing companies and the authorized companies are registered and is on the CargoX platform.
This service is one of the services that MTS has provided to facilitate paperwork for customs Clearance Agents, explaining that the company holds meetings from time to time with the shipping and commercial market to find out which services can be provided to facilitate the registration process on the CargoX platform. (Al Mal News)
International Financial Corporation (IFC), an affiliate of the World Bank Group, has partnered with Egypt’s Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) (RMDA) to integrate green energy in its operations and improve the efficiency of its output.
Under the partnership, IFC will aid Rameda in adopting energy solutions that help the company cutting carbon emissions and rationalizing water consumption. Cooperation with Rameda comes within the framework of IFC’s pharmaceutical project for North Africa which is implemented in Egypt, Morocco, and Tunisia. Rameda is an Egypt-based pharmaceutical company that manufactures both human and veterinary pharmaceuticals. (Arab Finance).
British multinational bank HSBC has launched Female Entrepreneur Fund with $1 billion worth of investments to finance female-owned businesses over the coming 12 months in 11 markets, including Egypt.
The recent announcement comes in the context of HSBC’s Roar initiative, which provides female entrepreneurs with access to masterclasses and sessions hosted by business leaders. “The level of funding received over time by female-led businesses is significantly lower than male counterparts, while the recent impacts of the pandemic have seen these same businesses disproportionately affected,” Global Head of Market Strategy at HSBC Business Banking Sam Cooper-Gray said. Founded in 1865, HSBC is the second largest bank in Europe behind BNP Paribas, with total equity of $206.777 billion and assets of $2.958 trillion as of December 2021. (Arab Finance)
Now to EGX and Company talks, Egypt Free Shops Company (EFSC) (MFSC) has reported a standalone net profit after tax of EGP 40.617 million during the first quarter Q1-2022, up from EGP 24.293 million in Q1-2021, according to financial statements filed to the Egyptian Exchange (EGX)
Total operating revenue surged to EGP 185.157 million in the three-month period ended March 31st, up from EGP 148.541 million the year before. EFSC is an Egypt-based company listed on the Egyptian Exchange (EGX) that is engaged in the import and sale of duty-free goods and consumer products. It offers several brands and types of alcoholic beverages, tobacco, fragrances, and gift item. (EGX, Arab Finance)
Arab Company for Asset Management and Development (ACAMD) has received an offer from the Egyptian Company for Housing and Development (RAMW) for the acquisition of a piece of land in Gharbia on return-sharing basis, according to a filing to the Egyptian Exchange (EGX).
Arab Company for Asset Management will receive quarterly returns based on the value of sales and the percentage of partnership. The offer includes launching a mixed-use project by RAMW on the units of which will be sold over five years. Under the study conducted by RAMW for the project, 70% of land area will be utilized for one-story to a minimum of four-story buildings. The land will be used for residential, commercial, administrative, and entertainment purposes. ACAMD will be responsible for presenting documents and applying for official licenses and permissions for all procedures and activities of the project. (Arab Finance-EGX)
The consolidated net profits of Orascom Development Egypt (ODE) increased by 5.7% to EGP 463.70 million in the first quarter Q1-2022, compared to EGP 438.46 million in the same period of 2021
The company's revenues jumped by 32.3% year-on-year (YoY) to EGP 1.93 billion in Q1-2022 from EGP 1.45 billion, according to a bourse filing on Wednesday. As for standalone businesses, the company's net profits retreated to EGP 354.63 million in the January-March period of 2022 from EGP 370.02 million in the year-ago period. It is noteworthy to mention that in 2021, the consolidated net profits of ODE jumped by 130% to EGP 1.31 billion from EGP 571.32 million in 2020. (Mubasher-EGX)
BG International Limited, a wholly-owned by Shell plc, has signed an agreement with ExxonMobil Egypt (Upstream) Limited to fully acquire the Nile Delta Block 3, a northeast El-Amriya offshore concession block.
Following the transfer of ownership, Shell will manage and operate the concession block, according to a press release on Wednesday. The agreement is subject to the government and regulatory approvals. It is noteworthy to mention that in 2020, BG Delta Limited, owned by Shell, acquired the rights to operate the North Sidi Gaber and North El-Fanar concession areas. (Mubasher)