The Supply Ministry is selling imported yellow corn to poultry feed factories through the Egyptian Mercantile Exchange (EMX)

Newsletter

10 Apr 2023

The Supply Ministry is selling imported yellow corn to poultry feed factories through the Egyptian Mercantile Exchange (EMX). Poultry feed factories should use the corn to make and sell fodder to small poultry breeders that have a maximum production capacity of 20k birds per year. Factories must disclose the buyers and the quantities of feed sold. Egyptian poultry companies have struggled to obtain chicken feed over the past year as capital controls and a shortage of foreign currency prevents importers from bringing supplies into the country. Traders are currently able to buy and sell only wheat on the EMX but the Supply Ministry intends to expand the list of tradable commodities to eventually include oil, sugar, rice, cotton, steel, and gold. (Al Mal)

World Bank revises downward its Egypt economic growth forecast
The World Bank now expects Egypt’s economy to grow at a 4.0% clip during the fiscal year 2022-2023. The forecast marks a downward revision from its October forecast of 4.8% and roughly tallies with the government’s latest estimates. Only Djibouti is expected to see higher growth among regional oil importers in 2023, at 4.4%. Egypt is also forecast to outperform all oil exporters bar Oman, as weakening global oil demand sees GDP growth in the GCC moderate from 7.3% in 2022 to 3.2% this year. (Hapi Journal)
The downgrade comes thanks to the household and business purchasing power are being constrained as a result of the devaluation of the EGP, imported inflation, higher fuel prices, and monetary tightening.
“Inflation is eroding incomes and constraining business activity,” it says. The lender is predicting inflation to average 18.9% in FY 2022-2023 before moderating to 15.0% next fiscal year and 10.0% in FY 2024-2025. It’s worth remembering that March inflation will be released today, after price hikes hit a five-and-a-half year high of 31.9% y-o-y in February.
Egypt allocates 28.1 billion EGP to support exporters in FY 2023/24.
The government also plans to disburse the exporting subsidies to exporters as of the next fiscal year to provide the necessary cash liquidity for production optimization. Additionally, the ministry continues to refund export burdens through the Export Development Fund, with 48 billion EGP disbursed to 2,500 exporting companies since October 2019. As per the presidential directives, the country will proceed with supporting the industrial and agricultural sectors with 150 billion EGP in concessional financing at an 11%-subsidized interest rate. (Arab Finance)
Egypt extends registration deadline for tax-free car import initiative to May 14th.
The deadline for registering in the tax-free car import for expats' initiative and paying for its determined deposit is on May 14^th. There is no intention to extend the deadline again after May 14th. Moreover, 600 imported cars were released for the benefit of Egyptians abroad with facilitated controls. Noting that the total value of payment orders transferred from Egyptians residing abroad amounted to 385 million USD so far. (Arab Finance)
Gov’t building Egypt’s first biogas-powered plant.
A subsidiary of the military’s National Service Projects Authority signed an agreement with Al Mawarid Industrial Products Company to establish the first plant in the country to generate electricity using biogas. The plant will produce 1 MWh of electricity by processing 85k tons of livestock manure. (Al Mal)
CIB discontinues 22% CDs, replaces it with a series of three-year 18-20% CDs.
CIB discontinued its 22% three-year certificate of deposit (CD), which was launched last week for only four days. The bank replaced it with a series of new three-year CDs offering rates between 18-20%, depending on the subscription amount, with monthly payments. The first CD offers an interest rate of 20% with a minimum deposit of 1 million EGP, the second offers an interest rate of 19% with a minimum deposit of 200,000 EGP, while the third offers an interest rate of 18% with a minimum deposit of 10,000 EGP. (Hapi Journal)
Egypt and London listed Integrated Diagnostics Holdings (IDH) continued its pivot to the post-covid world in 2022, with its bottom line declining 65% y-o-y in 2022 as covid-19-related revenues sharply declined.
Net income fell to 527 million EGP from almost 1.5 billion EGP in 2021 on the back of a 31% decline in revenues. Sales of conventional tests were up 18% last year, supported by rising test volumes and per-test revenues. Sales returned to their pre-covid trend following a spike revenues driven by demand for pandemic-related tests. 2022 saw a 75% fall in covid-related revenues as infection rates fell and governments ended mandatory testing. Conventional revenues accounted for 81% of IDH’s sales last year. (Al Mal)
B.TECH, Coldwell Banker partner up to offer unique furnishing solutions in Egypt.
B.TECH has signed a deal with the real estate investment and marketing company Coldwell Banker Egypt to provide integrated unit furnishing solutions and exclusive discounts on several products to the latter’s customers. The deal is part of Coldwell Banker’s plans to boost the privileges offered to the CB Star Club’s members. (Hapi Journal)
Q Developments to launch 9 billion EGP projects in North Coast, Alexandria.
Developments has started its business in the Egyptian market, announcing the launch of three projects in North Coast and Alexandria with 9 billion EGP in investments. To be announced in June, the first project is a coastal one that will be executed in Sidi Abdel Rahman area, followed by a commercial project in Alexandria with 7 billion EGP in investments. The third one will be launched on the North Coast for 2.8 billion EGP. (Arab Finance)