The Cooperative Union Group is preparing to open its new factory specialized in organic fertilizers, primary chemicals, biotechnology and nanotechnology in the Suez Canal Economic Zone

Newsletter

10 Nov 2021

For our top talks today, first, the Cooperative Union Group is preparing to open its new factory specialized in organic fertilizers, primary chemicals, biotechnology and nanotechnology in the Suez Canal Economic Zone. The project is the first of its kind in the Egyptian market and the surrounding region, which depends on extracting organic fertilizers from 100% plant sources with investments of up to 50 million USD. It is worthy to mention that it was intended that the project’s products be fully exported to many countries, as the company had contracted with nearly 16 countries to import them, but after the recent fertilizer crisis in the Egyptian market, all the company’s products will be directed to the local market. (A-Mal)

Second, the Central Bank of Egypt signed a cooperation protocol with the General Investment Authority and I-Score to exchange data and information through electronic systems and facilitate procedures for investors.
The protocol works to automate the issuance of certificates of establishment of companies or increase their capital, as well as linking the three parties to the protocol with an advanced electronic query system, which saves time and effort in all related procedures, and encourages attracting more investments in the Egyptian market. (CBE)
Equally important, Ayman Hossam El-Din, head of the Consumer Protection Agency, confirmed that the amount of the car can be recovered with interest if it is not delivered on time.
The head of consumer protection explained that the decision to announce car prices is normal and exceptional measures can be taken to control the market. The receipt of the car reservation must prove the following: the type of car, its specifications, price and delivery date. Therefore, in the event that the car is not received on the specified date, the amounts that have been paid will be refunded in addition to the interests established by the Central Bank. (Al-Mal)
In addition, the Egyptian Minister of Transport, Kamel El-Wazir, witnessed the signing of 13 agreements and memorandums of understanding (MoUs) in the fields of railways, metro trains, and maritime transport on the second day of the TransMEA conference.
Also, Alstom has signed an 876 million EUR agreement with Egypt’s National Authority for Tunnels (NAT) for the upgrade of Cairo Metro Line 1. The French company will provide 55 new subway trains to Cairo’s oldest underground line. Alstom will also supply spare parts and provide maintenance for eight years. The French government will finance this contract and it is part of a raft of financing agreements signed by French Finance Minister Bruno Le Maire in June that will see Paris lend EUR 2.8 billion for the development of metro lines 1 and 6. (Arab Finance)
Turning to our top talk abroad, oil prices witnessed a rise in global oil markets today, Tuesday, to approach the level of 84 USD a barrel, achieving gains for the third consecutive session,
as the lifting of the US of travel restrictions and the emergence of other signs of economic recovery after the Corona virus pandemic raised expectations for oil demand while it continues Shortage of supply. OPEC+ agreed last week to stick to its current plan to ease a record production cut, ignoring US pleas to pump more oil. Some locals say this will keep the supply short in the short term. And JP Morgan Chase said that global oil demand in November almost returned to its pre-pandemic levels at the level of 100 million barrels per day. (Reuters)
In effect, European Union finance ministers agreed that the current jump in consumer prices will abate next year and that the high public debt created by the Covid-19 pandemic should be reduced, but in a way that does not harm economic growth.
Inflation rose 4.1% on an annual basis last month in the 19 countries that share the euro, from 3.4% in September. Ministers are beginning to worry that the increase may fuel stronger wage growth, creating an inflationary spiral. It is worth noting that the increase in inflation in October was mainly driven by a 23.5% jump in energy prices amid a sharp rise in demand from a rapidly recovering economy, but ministers also pointed to supply chain bottlenecks created by the same sharp increase in demand. (Reuters)
And for our EGX & companies talks, Bel Cash, the consumer finance arm of Beltone Financial Holding, aims to double its financing portfolio to 100 million EGP next year,
compared to targets of 50 million EGP in 2021. It is also negotiating with banks to obtain new funds, and is seeking to conclude agreements, the latest of which was with the British University in Egypt. it is worthy to mention that the financial leverage of “BelCash” reaches 9 times its capital, which currently stands at 25 million EGP, and it is in the process of increasing it to 50 million EGP. Moreover, Bell Cash is in the process of signing 9 new agreements before the end of this year, 5 for the renewable energy solutions sector, and 4 for the education sector, between universities and schools. (Al-Mal)
In the same fashion, around three Arab investors are planning to acquire pharmaceutical companies in Egypt through the special-purpose acquisition companies (SPAC) mergers.
The investors are waiting for the Financial Regulatory Authority (FRA) to release the regulations governing SPACs, which could be ready before the end of November. Some pharma companies are also considering registering blank-check firms that could allow them to list on the Egyptian Exchange (EGX). On November 2nd, the FRA approved the establishment and licensing of SPAC in Egypt for the first time. SPACs are created with the sole purpose of raising capital through an IPO to acquire or merge with another company. (Al Borsa News)
In addition, Abu Dhabi Ports (ADP) eyes investing 500 million USD in Egypt over the coming period, as it won contracts for two upcoming port development projects.
The company will come forward with offers for the Tenth of Ramadan dry port and the Safaga port. In October, the Egyptian government received technical bids from six consortia competing for the PPP contract to construct the 250-feddan dry dock. It is worth noting that a consortium led by Dubai’s DP World has been eyeing the tender since February. (Al Arabiya)
And finally, Nahdet Misr for Entrepreneurship, EdVentures, announced that it will inject 400,000 USD in cash into OTO Educational Company to develop the company's platform and expand its services to include a larger segment of users.
The OTO educational platform will be expanded to include preparatory and secondary students by providing educational programs for various study subjects. Which in turn will be reflected on the educational experience that the students receive. Noting that the investment in OTO comes with the aim of developing distance learning and supporting startups in Egypt and the Arab world. (Al-Mal)