The EGP is currently sitting at 24 against the greenback
The EGP is currently sitting at 24 against the greenback. The EGP continued its slide against the USD yesterday, dropping an additional 4% to 24, according to data from state-owned Banque Misr and the National Bank of Egypt. The EGP was trading at 23.03 on Thursday after the central bank pledged a “durably flexible” exchange rate as we reached a staff-level agreement with the IMF. The EGP was trading at 19.75 on Wednesday before the latest devaluation. The EGP has so far dropped 34.5% against the USD this year. (Asharq Business)
- El-Sisi launches Ebdaa initiative to bolster localization of industries
The National Initiative of Developing Egyptian Industry (Ebda) will invest 200 billion EGP over the next four years through its executive arm, Ebda, which is majority owned by the Hayah Karima (Decent Life) Foundation, to help support existing industrial projects and fast-track the development of new ones. It also aims to create some 150,000 direct and indirect jobs over the course of four years. The initiative has so far helped 64 projects — with participation from 33 local companies and 20 foreign ones from 12 different companies — in different sectors go live. (Hapi Journal)
- Moreover, Ebdaa will provide the necessary support to ration conditions for violators as well as offering the required technical and financial support for defaulters
Ebdaa targets localizing modern industries, filling the import gap, and creating job opportunities. The objectives of Ebdaa complement with the government’s goals to achieve economic growth and sustainability, in addition to offering clean energy solutions and innovations in the industrial field. (Hapi Journal)
- While the initiative’s primary objective is to reduce imports and support local industries, it also plays into the state’s plans to strengthen the private sector’s role in the economy
It also helps feed into the Decent Life Initiative, with the financial returns from Ebda’s investments filtering back into the Hayah Karima Foundation. Earlier this year the government earmarked nine priority investment industries to start the push towards localizing manufacturing: Wood and furniture, engineering, food and agriculture, chemicals, textiles, pharma and medical, printing and packaging, building materials, and metallurgical industries. 141 product categories fall under these nine investment areas, amounting to USD 17 bn and accounting for 23% of Egypt’s 2019 import bill. (Hapi Journal)
- Saudi APSCO plans to invest in aircraft fuel services in Egypt
Riyadh-based Arabian Petroleum Supply company (APSCO) is planning to provide aircraft fuel services in Egypt. The Saudi company also aims to pump investments in lubricants trade in Egypt, from the Cairo International Airport to the rest of airports in Egypt. Egypt is a top priority for the company as part of APSCO’s expansion plan worldwide. (Arab Finance)
- Suez Canal’s revenues grow 27.2% YoY in October
Suez Canal’s revenues jumped by 27.2% year-on-year (YoY) to 703.4 million USD in October 2022 from 552.9 million USD in October 2021. The number of vessels transiting through the canal amounted to 2,117 in October, rising by 14.6% from 1,847 in the same month of 2021. The net tonnage increased by 12.6% to 126.5 million tons in October from 112.3 million tons in the year-ago month. It is worth noting that the Suez Canal’s revenue reached its highest level during the fiscal year (FY) 2021/2022, recording around 7 billion USD. (Hapi Journal)
- As part of the raft of measures brought in on Thursday that included the EGP float and rate hike, the central bank will phase out its letter of credit (L/Cs) system for importers before the end of the year
The “gradual” rollback of the system will come as welcome news for importers, who have been struggling for months to get goods released from Egyptian ports as the state looked to preserve FX. Imports worth up to 500,000 USD will no longer need to use L/Cs and can rely on documentary collection, a huge leap up from the previous 5,000 USD limit. The bank has also added rice to the list of commodities exempted from requirements to use L/Cs, joining tea, fish, wheat, powdered milk, and corn. (Hapi Journal)
- Scientific research startup Nawah Scientific is investing up to USD 10 mn in the first phase of a regional expansion to Saudi Arabia
Total investments in the expansion are expected to exceed 20 million USD. Nawah expanded into the Jordanian market in 2021. The biggest number of universities and industries in the pharma, food, and agriculture sectors in the GCC make it a very attractive market for Nawah. Also, the company plans to launch in Nigeria in 1Q 2023 through strategic partnerships with local players who have an understanding of the country’s culture and business environment. (Arab Finance)
- Emirati UNIMED to become agent of Egypt’s Wadi El-Neel Benta in UAE
Egypt-based Wadi El-Neel Benta and Emirati United Medical Supplies (UNIMED) have signed a partnership agreement. As per the partnership, UNIMED will obtain the rights to become an agent for Wadi El-Neel Benta’s products in the UAE market. The sealed agreement comes within the EDA’s framework to support local industry, encourage the competitiveness of key products in the Egyptian pharmaceutical market, and enter new regional and global markets through promising strategic partnerships. (Mubasher)
- Thiqah for Business Administration’s profits skyrocket 1,184.4% YoY in 9 months
Thiqah for Business Administration and Development (TRST) recorded a 1,184.45% year-on-year (YoY) hike in net profit after tax for the first nine months of 2022. The company recorded a net profit of 1.786 EGP in the nine-month period ended September 30th, compared to a net profit of 139,072 EGP in the same period last year. Net sales amounted to 11.59 million EGP in the January-September period, up from 2.85 million EGP. (Mubasher)
- EGAS signs letter of intent to supply ships in Egypt with LNG
The Egyptian Natural Gas Holding Company (EGAS) has signed a letter of intent (LoI) with Shell Plc, Pyramid Navigation, Infiniti, and Eagle Gas. Under the signed LoI, the companies will consider cooperation in a project to supply ships in Egypt with liquified natural gas (LNG) by the establishment of a joint venture to conduct the feasibility study for this project. The signing comes within the framework of the ministry’s strategy to expand in the usage of clean and low-carbon fuel. (Arab Finance)
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