The Qatar Investment Authority has accelerated talks with Telecom Egypt over the purchase of a 20% stake in Vodafone Egypt

Newsletter

24 Nov 2022

The Qatar Investment Authority has accelerated talks with Telecom Egypt over the purchase of a 20% stake in Vodafone Egypt. The Qataris are reportedly offering more than USD 1 bn for the stake. QIA and the national telecoms provider have reportedly been in talks over the transaction since September, while the Saudi and Abu Dhabi sovereign funds have also been eyeing a piece of Vodafone Egypt. The Saudi Public Investment Fund (PIF) and ADQ have invested bns of USD in a number of EGX-listed companies this year, with PIF reportedly still eyeing stakes in at least three high profile Egyptian companies. (Bloomberg Asharq)

Cairo-born mass transport app Swvl carried out a second wave of layoffs.
Swvl had already let go a third of its global workforce this year amid tough economic conditions but the company has now been forced to make further cuts in a bid to stem losses. A period of rapid expansion at Swvl that culminated in its Nasdaq debut in April has in recent months given way to austerity, as tightening financial conditions and economic uncertainty batter the company’s share price and losses widen. Despite solid revenue growth, Swvl’s losses doubled during the first six months of the year due to rising expenses and costs relating to its Nasdaq listing, forcing the company to lay off employees, reduce executive pay and cut back routes. (Bloomberg Asharq)
The Egyptian Mercantile Exchange (EMX) will go live on Sunday.
Traders will be able to buy and sell wheat from next week, which plans to make more commodities tradable on the exchange in the coming months. GASC will offer imported wheat from its stock for sale to private mills through the exchange twice a week. This is a spot market, meaning traders will only be able to buy and sell commodities at the current market price, rather than hedge and speculate based on future prices. (Hapi Journal)
Madbouly pursues government’s efforts to attract further investments into EGX.
The Egyptian Prime Minister Mostafa Madbouly has discussed the government’s efforts to attract further investments into the Egyptian Exchange (EGX) in a meeting. The FRA ratified additional amendments to the listing procedures as per the recommendations of the Egyptian Economic Conference, including facilitating the requirements of listed companies to acquire non-listed companies. (Al Mal)
Cabinet discusses ways to raise foreign currency gains in short term.
The Egyptian Cabinet’s Economic Ministerial Committee discussed a number of programs that target raising the country’s foreign currency gains in the short term. The programs included the tax-free car importation initiative and the offering of land plots and residential units for Egyptians abroad. In a cabinet meeting on November 22, the committee reviewed the state’s foreign exchange reserves position needed to fill the gap of basic commodity demands, as well as support the different economic sectors that hinge on dollars. Increasing Egypt’s foreign currency gains will bolster tourism and promote medical tourism. (Arab Finance)
Four bills get final nod in the House of Representatives.
MPs yesterday gave final approval to a number of legislative amendments focused on regulating telecommunications, compensating contractors for losses on state contracts, and property registration in new cities. The final sign offs were the last before the House adjourned, with the lower house set to reconvene again on Sunday, 4 December. (Hapi Journal)
Egypt, Germany’s Ruhrpumpen partner to support localization of pumps manufacturing.
Egypt is considering ways to support and reinforce the localization of manufacturing pumps in cooperation with Germany’s Ruhrpumpen Group through the Egyptian German Company for Pumps (RuhrPumpen Egypt) in Suez. The company’s activities are remarkably growing recently, which reflects the success of the ministry’s strategy to achieve progress in manufacturing pumps needed in the oil and gas projects. The company approved a budget of 20 million EUR, which is 30% higher than in 2021. (Arab Finance)
The US and Russia will hold nuclear talks in Cairo next week.
Washington and Moscow will discuss resuming mutual nuclear inspections during week-long talks from Tuesday, 29 November through to 6 December, Russian Deputy Foreign Minister Sergei Ryabkov said. Russia halted Inspections under the treaty in August, blaming travel curbs imposed by the US and Western allies on the back of the war in Ukraine. (CNN)
Saudi Arabia in talks to deposit 5 billion USD at Türkiye’s central bank.
Saudi Arabia is in negotiations with Türkiye to deposit $5 billion at the Central Bank of the Republic of Türkiye (TCMB). TCMB declined to give a comment on the matter, while a Turkish official reported that talks with the Saudis are in their final stage regarding a swap or deposit agreement. TCMB made 28 billion USD worth of swap deals with other central banks, including a 6 billion USD deal with China, a 15 billion USD deal with Qatar, and a 5 billion USD deal with the UAE. The Turkish economy is struggling. In October, annual inflation in the country soared to 85.51%, which is the highest level since June 1998. (Reuters)
Fawry, TAQA Gas cooperate to offer prepaid charging for gas meters.
Fawry for Banking Technology and Electronic Payment (FWRY) entered into a cooperation agreement with TAQA Gas to launch prepaid charging services for the company’s natural gas meters. Under the agreement, Fawry will also offer e-payment services for natural gas bills through its multiple digital platforms. It is worth noting that TAQA Gas is a subsidiary of TAQA Arabia, which is the energy unit of Qalaa Holdings (CCAP).
Flat6Labs launches Makers in collaboration with SIAC, Dar-Al-Handasah.
Flat6Labs launches Makers in collaboration with SIAC, Dar-Al-Handasah. The program is designed to support entrepreneurs and guide them to develop and showcase their innovative ideas and solutions to SIAC and Dar, with the possibility of being selected to run a pilot program with both companies. Once the program is complete, startups will be well-positioned to raise funding. (Arab Finance)