The Finance Ministry announces to launch its building next month to investors

Newsletter

24 Aug 2023

The Finance Ministry announces to launch its building next month to investors. The sovereign Fund of Egypt plans to issue the finance ministry building to public in exchange of a percentage of monthly revenues. This is for the aim to turn it into a multi-use building that can be used as hub for startup companies. This issuance will be done through two phases. The first phase is mainly related to technical proposals, and the second phase is related to the financial offers which will determine which company will get the offer. (Asharq)

The Japanese company “JTI” enters the competition to buy “Eastern Tobacoo”.
The Egyptian company “Eastern Tobacco” has received many offers from foreign investors willing to buy a minority share in the company and the company is now negotiating to choose the best. Japan International Tobacco Company “JTI” which the Japanese government owns 33% of its shares has entered the competition to buy the minority stake in Eastern Tobacco. The company have received offers to buy 30% of its shares. (Asharq)
Egypt signs USD 500 million financing agreement to purchase wheat from UAE’s Al Dahra.
UAE will provide Egypt with wheat for a 5-year period, after a 400 million wheat purchase agreement done between the two countries. The supplier is Emirati agribusiness Al Dahra and Abu Dhabi Exports Office (ADEX) is the financing arm for this agreement. Egypt will benefit from the low-cost financing package of ADEX, that will assist the country in obtaining high quality wheat at the lowest cost. (Enterprise)
Egypt plans to increase the gas imports from Israel by 31% next October.
Egypt’s increase of imports from Israel is accompanied with the decrease in Israel’s local demand of gas, and an increase in Egypt’s production. This may get back Egypt to exporting gas to Europe again. Egypt’s Imports of gas from Israel is now 800 million cubic feet since last July and it will stay the same till September. Moreover, it will increase to reach 1.05 billion cubic feet starting from the beginning of October. (Asharq)
Egypt’s unemployment rate edges down to 7% in Q2
According to the Central Agency for Public Mobilization and Statistics (CAPMAS), the unemployment rate hit 7% in Egypt in Quarter 2 of 2023. Males unemployment rate reached 4.8% of the male labor force. On the other hand, the unemployment rate among female labor force is 17.3%. In addition, the overall total labor force has increased by 1.3% to reach 30.571 million people. Males represented 25.514 million, while females represented 5.455 million. (Arab Finance)
GAFI gives its approval regarding the establishment of Tarboul industrial city.
The General Authority for Investment and Free Zones (GAFI) have accepted GV Developments’ request to build Tarboul industrial city. This project targets building a project on an area of 26000 feddan that is located near Atfih city in Giza, that have different activities including industrial, economical, and logistic activities. The Tarboul industrial city project will add value to the 16 investment zones that are located in different areas across Egypt, 11 already existing, and 5 zones that are still under construction. The project will be pending until the prime minister’s approval. (Arab Finance)
Gold prices in Egypt are rocketing up.
Egypt has witnessed an increase in its gold prices. The price of 21 carat gold has recently increased by 12% on renewed demand for gold coins and alloys. Bullion prices have increased as well. To clarify, the price of a 24-carat gold increased by almost 8% to EGP 2,65K in the week to Saturday while 21-carat gold increased 7% to EGP 2.32 thousand during the week. This dramatic surge in gold prices is attributable to the fact that savers started investing their money in gold after the FX crunch. (Enterprise)
Egyptian government plans to fix electricity prices until January 2024.
In a move aimed at alleviating financial burdens on the citizens of Egypt and easing the cost of living, the Prime Minister has made the decision to maintain the current electricity prices. This step is not unprecedented, as Egypt has previously taken similar actions. Notably, the government had previously adjusted electricity prices three times during the year 2022. (Enterprise)
Egypt cabinet approves fresh loans to support banking industry, fund Abu Qir metro.
The Madbouly cabinet has just confirmed the provision of a USD 615.8 million loan to assist the banking sector. This loan will assist in boosting the nation’s payment systems infrastructure, aiding financial inclusion as well as improving the regulatory framework for the banking and financial sector. The Cabinet has also approved a EUR 250 million in financing to help fund the redevelopment of Abu Qir’s railway in Alexandria to become an electric, low carbon and underground metro. (Enterprise)
Central Bank of Egypt (CBE) stops tourism financing initiatives.
The Central Bank of Egypt announced that it has suspended tourism financing initiatives and immediately ordered other banks to stop providing loans at discounted interest rates to companies working in the tourism sector. The CBE is now working alongside ministries of finance, tourism and antiquities on developing new projects for the tourism sector without providing further information. (Enterprise)