The US-based Space Exploration Technologies Corp is set to launch Egypt’s latest satellite NileSat 301 within days

Newsletter

02 Jun 2022

The US-based Space Exploration Technologies Corp (SpaceX) is set to launch Egypt’s latest satellite NileSat 301 within days, Chairman of Egyptian Satellites (NileSat) (EGSA) according to Ahmed Anis. The new satellite is set to be launched on June 7th or 8th from Florida at Cape Canaveral Space Force Station in the US, Anis noted. NileSat 301 has been developed by Thales Group in France, with a life expectancy of 15 years, as a replacement to NileSat 201 that expires in 2028, he added. Moreover, he said that the satellite has been manufactured in around two and a half years, and was scheduled to be launched earlier this year. (EGX)

The launch of NileSat complements the satellite's internet services offered by Tiba1 which was launched in November 2021, the chairman remarked.
He also highlighted NileSat’s intensive efforts to bolster strategic partnerships with major companies in the region, particularly with United Media Services (UMS), OSN, SES, and Gulfsat. NileSat is an Egypt-based public shareholding company that offers services related to satellite radio and television broadcasting, in addition to broadband internet. (EGX)
Egypt lifted the price of the customs dollar by 10% to 18.65 EGP, starting in June, according to a statement by the Egyptian Customs Authority.
We believe this decision will affect inflation directly noting that there is pressure on the currency. The customs dollar is what the importer pays in local currency, equivalent to the dollar fees imposed on him in return for releasing the imported goods and held in customs. Although Egypt raised the customs dollar price to 17 EGP in May, it has been fixing it since the end of last March at 16 EGP for basic commodities and production requirement. Inflation figures in Egyptian cities jumped strongly, affected by the continued flurry of global food prices, to record 13.1% in April on an annual basis, compared to 10.5% in March, which is the highest level of numbers since the first half of 2019. (Bloomberg Asharq)
The Egyptian Ministry of Finance has decided to set the exchange rate of custom dollar at 18.64 EGP.
In March, the EGP was devalued following the Central Bank of Egypt's (CBE) Monetary Policy Committee (MPC) decision on a special meeting on March 21st to raise the overnight deposit rate, overnight lending rate, and the rate of the main operation by 100 basis points (bps). It is worth noting that Egypt’s external debt recorded 145.5 billion USD at the end of December 2021, rising by around 7.7 billion USD as compared to end-June 2021. (Arab Finance)
The Suez Canal Economic Zone (SCZONE) has signed a memorandum of understanding (MoU) with German energy storing company H2 Industries to build the first plant for recycling waste into green hydrogen with investments amounting to around 4 billion USD.
The plant, located in SCZONE, is set to process around four million tons of waste and produce 300,000 tons of green hydrogen annually, H2 Industries’ CEO Michael Stusch said. The establishment of the first-of-its-kind plant in Egypt is the beginning of an expansion of H2 Industries’ operations in the Middle East and North Africa (MENA), he added. We strongly believe that transformation of green hydrogen into a clean fuel, especially for aviation, is a promising market, amid a global shift towards green economy and reduction of carbon emissions. (Al Mal)
Moreover, the Economic Committee at the Egyptian House of Representatives has approved the new budget of the Suez Canal Economic Zone (SCZONE) for the fiscal year (FY) 2022/2023, with total allocations of 42 billion EGP.
As per the new budget, the SCZONE is expected to achieve a net profit of about 1.9 billion EGP. During the current FY, the SCZONE signed a series of key agreements with the aim to localize industries with global interest, Deputy CEO of the SCZONE for investment Walid Gamalddin said. These agreements include a contract with Red Sea National Petrochemicals Company with total investments of 7.5 billion USD, as well as a contract for the International Methanol Complex with total investments of 2.6 billion USD, Gamalddin added. (Al MalS)
The Egyptian Mineral Resources Authority (EMRA) has announced the results of the second international bid round of the for gold and metal exploration in the Eastern Desert, where eight areas have been allotted to four English, Canadian, and Egyptian companies.
EMRA noted that the results of the second bid round succeeded in attracting new investments despite successive global challenges from the Covid-19 pandemic to the Russian-Ukrainian war. It is worth noting that the first bid round involved assigning 82 areas in Eastern Desert to 11 Egyptian and international companies. (Arab Finance)
In the same line, Sawiris-backed Altus Strategies has made multiple “high grade” gold discoveries across the four projects held by its Egypt subsidiary Akh Gold.
The company has mapped more than 100 hard artisanal gold workings with grades of up to 100g of gold per ton, it said, adding that samples show a prospect of multiple multi-km long prospective structures. Altus was awarded two gold exploration licenses in the Eastern Desert earlier this month in the government’s recent bid round. The company said the two blocks cover 349 sq km, bringing the company’s total land holding to 1.9k sq km. (Bloomberg Asharq)
Saudi Arabia-based Etihad Etisalat Company (Mobily) has inked a memorandum of understanding (MoU) with Telecom Egypt to establish the first submarine cable system that directly connects the Kingdom to Egypt.
Through the new system, both companies seek to meet the rising communication traffic and demands between Saudi Arabia and Egypt. The agreement also highlights new ways to connect international capacity to Europe in the west through Telecom Egypt's network and to the GCC in the east through Mobily's network. This objective will be achieved by expanding the two companies' networks and connecting them to neighboring countries. (Mubasher)
Moving to our EGX and companies talks, AlKahera Company for Ferries and Maritime Transport (KCFMT) has signed a lease agreement with Saudi Maritime Transportation Company (Macna) for Al-Riyadh Ferry, expanding the national fleet's international partnerships within the martime transport sector.
Under the agreement, Al-Kahera’s Al-Riyadh Ferry will be used for coastal navigation between Saudi Arabia’s Jazan and Farasan islands. It is worth noting that Al-Riyadh Ferry has the capacity to accommodate 1,168 passengers, 150 cars, and 15 busses. Established in 2009, KCFMT Transport is a subsidiary of Ministry of Transportation. (Arab Finance)
Appetito acquires Tunisia’s Lamma to expand operations in Morocco, Tunisia and West Africa.
Appetito delivers thousands of grocery and household products through its mobile app to customers from dark stores across 3 cities in Egypt. Lamma has developed a similar Q-Commerce business in Tunisia and Morocco. The founders of both startups have now reached an agreement to create a single entity operating as Appetito and the closing of this deal is expected by the end of Q3 2022. (WAYA)
Raya Holding for Financial Investment has agreed to sell around 53.95 million shares in its 62.3% subsidiary, Ostool for Land Transportation, to Paradigm Logistics.
Raya will sell its shares in Ostool in exchange for 266.55 million EGP or 4.94 EGP per share, according to a recent bourse filing. It is noteworthy to mention that in the first quarter (Q1) of 2022, the consolidated net profits of Raya increased by 49.6% to 53.58 million EGP, compared to 35.80 million EGP in the same period of 2021. (Mubasher)
Fawry partners with Tanmeyah Micro Enterprise Services, the fast-growing, high-street lender operating on a local level to provide comprehensive microfinance solutions to lower-income business owners.
Providing more services to their customers and availing easier access to advanced and flexible e-payment solutions. The contract was signed by Eng. Hossam Ezz, CCO of Fawry and Mr. Hossam ElNaggar, CEO of Tanmeyah. (Fawry)
Al Tawfeek Leasing Company (A.T.LEASE) (ATLC) has completed the third issuance of its securitized bonds program worth 1.629 billion EGP, CEO and Managing Director Tarek Fahmy revealed.
Proceeds from the securitization process will be directed to reinforcing the financial position of the company as well as supporting its future growth plans and boosting profitability, Fahmy said. Misr Capital and Al Ahly Pharos have acted as the bookrunner, financial advisor, arranger, main promoter, and guarantor of the issuance for AT LEASE. (Arab Finance)