The decision to stop importing tuk tuks has entered into force
For our top talks today, first, Officially… The decision to stop importing tuk tuks has entered into force. This decision comes within the framework of implementing the state’s plan aimed at developing the transportation system and providing safe vehicles to maintain the safety of citizens. The first article of the decision stipulates that “the import of basic components (base – chassis – engine) for three-wheeled vehicles – tuk-tuks” shall be suspended. It is noteworthy that this decision came after careful study by all concerned agencies and aims to replace the tuk-tuk with a safe means of transportation, in implementation of the presidential initiative to replace vehicles with clean energy, especially “natural gas”, as the government aims to provide “minivans” as an alternative to Tuk Tuk. (A-Mal)
- Second, the Egyptian government announced a package of measures to make the EGX more attractive for both investors and companies.
The package includes EGX tax cuts and free reductions to support trading on the market ahead of the introduction of the capital gains tax on resident investors in 2022. Accordingly, investors are going to be paying less in fees. Trading and clearance fees, as well fees paid to the Financial Regulatory Authority and the Investor Protection Fund, will all be reduced. All fees will be classified as expenses, meaning investors paying taxes here will be allowed to use them to offset their tax bill. The government is looking to cushion the blow for shareholders who have owned stock for a long period by tweaking how capital gains are calculated. A 10% capital gains tax would typically be calculated on the delta between the price at which the investor sold and the price at which she bought. However, the government is planning to propose a grandfather clause that could cushion the impact of the tax on people who held shares at the time the tax comes in. (Egypt Cabinet)
- By the same token, Mamdouh Afia, head of the Small and Medium Enterprises Sector at the National Bank of Egypt, said that it has pumped 100 million USD in funds to farmers to switch to modern irrigation systems (drip or solar energy).
He added that his bank pays great attention to small and medium enterprises, especially agricultural activity, as it provides an integrated system of solutions for all parties, in addition to providing financing to farmers who need to implement modern irrigation networks. (Al-Mal)
- And for our EGX & companies talks, Pyramisa Hotels and Resorts (PHTV) achieved a consolidated net profit of 29.7 million EGP during the first nine months of 2021,
compared to 6.74 million EGP in the same period of 2020. The company’s standalone net profit stood at 19.96 million EGP during the nine-month period ended September 2021, compared to 7.62 million EGP in the corresponding period of 2020. Pyramisa Hotels is engaged in tourism and hotel development and investment. The company, along with its subsidiaries, is primarily involved in the ownership, establishment, sale, rent, and management of hotels, in addition to providing travel, entertainment, therapeutic, and sports facilities. (EGX)
- In the same fashion, Minapharm Pharmaceuticals (Minapharm) posted a standalone net profit of EGP 225.638 million during the first nine months of 2021, compared to EGP 96.09 million in the same period of 2020.
During the first half of 2021, the company logged consolidated net profit before minority interest of 250.358 million EGP. Minapharm Pharmaceuticals is an Egypt-based company engaged in the production and distribution of pharmaceutical products. It is in cooperation with several international pharmaceutical companies and it distributes its products within and outside Egypt. (EGX)
- Also, the net profit of Misr National Steel (Ataqa) (ATQA) reached 65.73 million EGP during the first nine months of 2021,
compared to 20.244 million EGP in the corresponding period of 2020. During the first half of 2021, the company achieved a net profit of 94.02 million EGP, when compared to 19.7 million EGP in the same period a year ago. ATAQA is an Egypt-based company engaged in the manufacture of reinforced steel bars according to Egyptian and international standards in different sizes and thicknesses. (EGX)
- On the other hand, the board of directors of the global company, Rubex, for the manufacture of plastic and acrylic, has approved the establishment of a factory for recycled materials products - wood plastifiber - consisting of plastic and wood materials.
Noting that the cost of the project is estimated at 16.5 million EGP. The company is seeking to obtain bank financing, and in the event of disagreement with the banks, the establishment will be self-financing. Moreover, the company aims to increase the efficiency of the stock's performance in the market to ensure that the stock responds to the development of the company's performance, the improvement in its indicators, and the expansion of the ownership base. (Al-Mal)
- The Real Estate Development Company of Egypt aims to invest 2 billion EGP to build several hotels in the El Monte Galala project in Ain Sokhna.
The company plans to build 9 medium-quality hotels in the Elmont Galala project, starting with five with a capacity of 300 rooms in the first phase, followed by four others as a second phase with a capacity of 700 rooms. The company had obtained multiple government approvals to develop the 1.3-kilometre beach overlooking the project, through the establishment of wood works, and it is planned to inject investments of about 1.1 billion EGP in it. It will be ready for operation by the middle of next year. The project includes the construction of large areas of crystal lagoon lakes, with an investment cost of 250 million EGP. (Al-Mal)
- In addition, the Saudi-based tech firm, Brmaja, eyes listing 20% of its shares on the Egyptian Exchange (EGX) in March 2022.
The company has submitted a listing request to the Financial Regulatory Authority and has been in talks with officials on the IPO for the past six months. The company expects to raise more than 400 million EGP through the sale. It is worth noting that the Saudi parent company has two wholly-owned subsidiaries currently operating in Egypt, Brmaja IT and Brmaja Innovation. Brmaja IT will acquire the Saudi firm in a reverse acquisition ahead of the bourse listing, bringing the company’s issued capital to 100 million EGP or more, and therefore make it eligible for listing on the EGX rather than the small-cap Nilex. The new merged entity will acquire Brmaja Innovation before going on to acquire all remaining Brmaja subsidiaries across Dubai and Africa. (Masrawy)
- Furthermore, Rabbit, grocery delivery startup, has raised 11 million USD in a pre-seed VC funding round. Participants from the international investor base include Global Founders Capital, Foundation Ventures, Raed Ventures, MSA Capital and Goodwater Capital. The company is set to transform the future of retail.
Established in 2021, Rabbit is an on-demand ultra-fast delivery company with the promise of delivering groceries, cosmetics, electronics and more under 20 minutes by using dark stores. The company is currently serving four locations in central Cairo: Mohandeseen, Zamalek, Maadi and Nasr City, with plans to expand areas of coverage soon. The company also plans to cover several major cities in the next 12 months and expects to be processing hundreds of thousands of orders per month. (Arab Finance)
- Equally importanr, the National Bank of Kuwait-Egypt (NBK-Egypt) announced the provision of EGP 850 million in funding for Madkour for Projects Company for replacing and upgrading medium and low voltage electricity networks in some villages of Markaz Esna and Markaz Armant in Luxor Governorate.
Madkour Group, a national company engaged in energy and infrastructure sector projects, has executed more than 50 mega projects over the last five years. For his part, El-Alfy noted that the bank has been adopting a clear strategy to support and finance mega and infrastructure projects that help the country in its plans to achieve progress for all Egyptians as part of the presidential initiative of Haya Karima (A Decent Life). In the first half (H1) of 2021, NBK-Egypt logged net profits of 694.47 million EGP, down from 753.48 million EGP in H1-20. (Mubasher)
- And finally, DYRES, one of the companies of the Fixed Group specialized in applied research in modern and advanced technologies, has signed a partnership agreement with On Air Academy Group (Digital Media Technologies Training Sector) to market and publish virtual laboratories in Egypt and Africa.
Both parties agreed to benefit from all the accumulated experiences that the two groups had in the fields of information technology, marketing and applied training. As well as benefiting from the presence of “On Air Group” in various sectors in the fields of training and business development, as well as interconnection with the Arab and African sectors, in improving the levels of training services provided in all agencies and institutions. (Al-Mal)
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