The Ukraine crisis restores the growth of this year in Egypt to 5.7% for the current fiscal year 2021-2022
For our top talks today, first, the Ukraine crisis restores the growth of this year in Egypt to 5.7% for the current fiscal year 2021-2022, from previous expectations of 6.4%, according to the Egyptian Minister of Planning Hala Al-Saeed. Egypt was aiming at the beginning of the current fiscal year to achieve economic growth at 5.7%, then it raised its expectations to 6%, and at a later stage to 6.4%, to return today under the weight of the repercussions of the Russian-Ukrainian crisis and restore its growth expectations as they were at the beginning of the year. (Bloomberg Asharq)
- In addition, the Minister of Planning indicated that Egypt is focusing on expanding the size of the real economy, i.e. industry, agriculture, communications and information technology, as "we aim to reach 35% of the economy together”.
The minister added as well that the government is currently reviewing the government companies' offering program in light of recent developments. Noting that the 10 companies are studying a program to offer with advisors, and aiming to offer 4 to 5 companies during 2022 in the energy, insurance and financial sectors. (Bloomberg Asharq)
- Second, Egypt lowered its expectations to budget deficit in the current fiscal year 2021-2022 to 6.7%, from a previous forecast of 6.9%, and to 6.1% for the next year 2022-2023, from 6.3% in a previous forecast.
The total deficit in Egypt increased during the first 8 months of the current fiscal year 2021-2022 to 5.15% of GDP, compared to 5% for the same period of the last fiscal year, under pressure from increased expenditures, especially debt interests, government support and wages, according to recent data issued For the Egyptian Ministry of Finance. In the current budget, Egypt aims to reach 990.133 billion pounds in domestic finance, compared to 832.293 billion pounds in 2020-2021, and external finances will reach 78.375 billion EGP, down from 165.440 billion EGP in 2020-2023. (Bloomberg Asharq)
- Egyptian startups attracted 491 million USD investments in 2021, an all-time high record, registering a 168% year-on-year (YoY) surge, according to Magnitt’s 2021 Egypt Venture Investment Report.
Egypt topped the continent of Africa in terms of the number of deals closed in 2021, occupying the third place in terms of total funding. As for the Middle East and North Africa (MENA), Egypt ranked second among top active markets in terms of venture capital (VC) deals in 2021, making up 24% of all deals closed in the region. (Arab Finance)
- Egyptian startups saw a surge in investors from outside MENA.
The North African country attracted highest number of foreign investors in the region, followed by the UAE and KSA. Fitech accounted for 17% of total VC deals closed in Egypt in 2021 and 18% of total transactions in MENA. Egyptian transport and logistics industry attracted 36% of investments last year, driven by 120 million USD funding secured by Egypt’s fintech startup MNT-Halan. (Arab Finance)
- The Egyptian government has signed an agreement with France for manufacturing and supply of 55 airconditioned rail carriages for the First Line of Cairo Metro for 776.9 million EUR.
The agreement covers maintenance works for eight years, along with supply of equipment to maintenance workshops. The project will be executed by French manufacturer Alstom. The loan financing the project has a term of 40 years, including 15-year grace period and 25-year payment plan with an interest of 0.0092%. The Egyptian government will contribute EGP 1.183 billion to the deal, while the local components will account for 13.3% of manufactured carriages and will be contributed by Egypt’s Semaf For Trading & Engineering Services. (Arab Finance)
- And for our EGX and companies talks, financial services startup Khazna is planning to establish a special purpose acquisition company (SPAC) in collaboration with international investors in 2024, according to Khazna’s co-Founder and CEO Omar Saleh.
The company is also seeking local and international initial public offerings (IPO), Saleh added. The top official revealed negotiations and primary studies with four public and private banks to offer new fintech services in 2022, including saving, lending, and car loans. Khazna is discussing partnerships with the four banks to offer the new services, Saleh unveiled, noting that agreements could be reached in 2022. Saleh said that Khazna is considering the acquisition of three technology companies in the local market, but he did not give more details. As for partnership with Abu Dhabi Islamic Bank (ADIB) for the issuance of Meeza prepaid cards under the name of “Khazna Meeza”, Saleh revealed that the number of applications for these cards have reached 200,000. (Shorouk News)
- Banque Misr and National Bank of Egypt (NBE) have collected 225 billion EGP in seven days through the sales of their certificates of deposits with annual return of 18%.
Banque Misr attracted 73 billion EGP in proceeds from its Talaat Harb certificates in seven days, the bank’s Chairman Mohamed El-Etreby revealed. Meanwhile, NBE generated 152 billion EGP in sales of its certificates of deposits with %18 annual return, NBE’s Deputy Chairman Yehia Aboulfotouh said. Earlier in March, NBE and Banque Misr issued certificates of deposits with annual return of 18%, following the Central Bank of Egypt’s (CBE) decisions to increase interest rates and devalue the EGP. (AL Mal)
- Al Baraka Bank Egypt (SAUD) has contributed 750 million EGP to the coverage of the issuance of EGP 3.251 billion sharia-compliant sukuk by Palm Hills Development Company (PHDC), according to the bank’s CEO Hazem Hegazy.
The sukuk issuance was also covered by Arab Investment Bank and Suez Canal Bank (SCB). On March 27th, Sarwa Capital, a subsidiary of Contact Financial Holding, announced the issuance of 3.251 billion EGP sharia-compliant sukuk for Palm Hills. The issuance will finance Palm Hills’ Badya project in the 6th of October City. Badya is an integrated residential complex including different units with various spaces, comprising apartments and villas. The sukuk issuance was organized and promoted by Sarwa Capital, while Misr Capital promoted and guaranteed the coverage of the issuance. (Al Mal)
- South Cairo and Giza Mills and Bakeries (SCFM) has recorded a surplus of 1.606 million EGP in February 2022, compared to a deficit of 4.458 million EGP in the same month last year.
South Cairo and Giza Mills’ net profit after tax fell by 85% year-on-year (YoY) for the six-month period ended December 31st 2021. South Cairo and Giza Mills, a subsidiary of the Holding Company for Food Industries, is an Egypt-based joint-stock milling company engaged in the processing, trading, importing and exporting, packaging, warehousing, and distributing grains and its related products. Its product portfolio includes flour, pasta, bakery products, and fodder. (EGX)
- The Commercial International Bank Egypt’s (CIB) (COMI) ordinary general meeting (OGM) has approved the distribution of 1.354 EGP per share in cash dividends for the full year 2021.
Dividends will be paid on April 7th 2022 with eligibility to shareholders of record date on April 4th. It is worth noting that CIB’s consolidated profits excluding minority interest rose to 13.272 billion EGP in 2021, from 10.238 billion EGP in 2020. (EGX)
- Telecom Egypt (ETEL) has inked an agreement with the European Investment Bank (EIB), the banking arm of the European Union (EU), for a 150 million EUR medium-term loan.
The funding will be used to expand Telecom Egypt’s 4G broadband network and help improve its mobile network coverage through the deployment of about 2,000 new mobile sites. The Egyptian company will also tap EIB’s funding to install more capacity layers, adding to its portfolio of service towers. (Arab Finance)
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