The Egyptian Ministry of Electricity and Renewable Energy is considering cooperation with Slovenia

Newsletter

16 Aug 2022

The Egyptian Ministry of Electricity and Renewable Energy is considering cooperation with Slovenia in the fields of electricity, new energy, and green hydrogen. Several actions have been taken to encourage the private sector to participate in the new renewable energy projects, mainly wind energy and solar power. Shaker added that Egypt is collaborating with a global entity to set a strategy that targets boosting the contribution of renewable energy to the energy mix to over 42% by 2035. (Arab Finance)

The unemployment rate in Egypt remains unchanged at 7.2% of the total labor force in the second quarter (Q2) of 2022 as compared to in Q1 2022.
The number of the unemployed reached 2.151 million in the three-month period ended June 30th, accounting for 7.2% of the labor force. The unemployment rate among males recorded 5% of the total male labor force participation in Q2 2022, while unemployed females made up 17.5% of the total female labor force participation. (Economy Plus)
It is interest rates week here in Egypt. The Central Bank of Egypt (CBE) is likely to resume its tightening cycle and raise rates for the third time since March when it meets this Thursday in a bid to curb down on inflation and support the EGP.
It is expected that the Monetary Policy Committee (MPC) to raise rates by around 0.75 bps to 100 bps. The overnight deposit rate currently stands at 11.25%, and the lending rate is 12.25%, while the main operation and disc. rates are at 11.75%. The bank’s monetary policy committee (MPC) has hiked rates by 300 bps since March, but chose to leave them unchanged during its latest meeting in June, after inflation in May came in below expectations. (Zilla Capital)
We believe the MPC hiking rates by 100 bps as a proactive measure to curb inflation, which we expect will continue to rise over the course of the year driven by rising fuel and food prices, as well as the weakening EGP.
Inflation reached a fresh three-year high in July on the back of higher food and fuel prices, with consumer prices in urban areas rising 13.6% y-o-y. External pressures triggered by the war in Ukraine and rising interest rates in developed markets have squeezed foreign-currency liquidity in the banking system and caused the country’s FX reserves to fall 20% since March. (Zilla Capital)
Moving to our EGX and companies talks, Fawry for Banking Technology and Electronic Payment (FWRY) registered a 53.83% year-on-year (YoY) decline in consolidated profit attributable to the parent company during the first half (H1) of 2022, recording 52.301 million EGP.
Operating revenue surged to 1.014 billion EGP in H1 2022 from 742.560 million EGP in H1 2021. The company’s standalone net profit after tax reached EGP 40.636 million in the six-month period ended June 30th, down from 90.53 million EGP the year before. (EGX)
The Financial Regulatory Authority (FRA) has approved a proposal from the Egyptian Exchange (EGX) to expand the use of the reverse execution mechanism, along with other mechanisms, to correct trading violations.
The mechanism will also help in neutralizing the impact on the closing prices. This move comes within the framework of the keenness of both the FRA and the EGX on maintaining the stability of markets and the security of transactions by applying mechanisms that prevent disruptions in the market. The reverse execution mechanism focuses on correcting transactions that have violated trading regulations. (EGX)
Arabian Food Industries Company (Domty) (DOMT) turned to profitability during the first half (H1) of 2022, recording a consolidated net profit attributable to the parent company of 111.101 million EGP.
Sales surged to 2.274 billion EGP in H1 2022 from 1.317 billion EGP in H1 2021. The company posted a standalone net profit after tax of 107.852 million EGP in the six-month period ended June 30th, compared to a net loss of 37.421 million EGP the year before. (EGX)
Emaar Misr for Development (EMFD) posted a 131.58% year-on-year (YoY) hike in consolidated profit attributable to the parent company during the first half (H1) of 2022, recording 3.08 billion EGP.
The company’s revenue soared to 7.026 billion EGP in H1 2022 from 3.785 billion EGP in H1 2021. Standalone net profit after tax jumped to 3.08 billion EGP in the six-month period ended June 30th from 1.33 billion EGP the year before.
Trans Oceans Tours’ (TRTO) net profit after tax rose 96.16% year-on-year (YoY) to 937,487 EGP in the first six months of 2022.
Total operating revenue reached 1.124 million EGP in the six-month period ended June 30th from 294,034 EGP the year before. The company provides several types of touristic services, such as transportation arrangements, accommodation and hotel booking, and airline reservation services inside and outside of Egypt. (Arab Finance
Export Development Bank of Egypt (EBank) (EXPA) posted a 121.58% year-on-year (YoY) surge in consolidated profit attributable to the parent company during the first half (H1) of 2022, registering 619.796 million EGP.
The bank’s consolidated net interest income soared to 1.258 billion EGP in H1 2022 from 930.619 million EGP the year before. Moreover, standalone net profit after tax rose to 605.522 million EGP in the six-month period ended June 30th from 248.038 million EGP in the same period a year earlier. (EGX)
Edita Food Industries (EFID) announced the commencement of the operations of a new bakery production line in the E07 factory whose investment cost amounted to around 135 million EGP.
The new line will increase the production capacity of the company’s bakery segment by 20%, or 11,000 tons, annually. Moreover, the new production line is the eighth in Edita’s bakery segment which will help the company meet the growing demand for Molto’s products. (EGX)