Banking & Finance Egypt defers wheat import payments on cash shortage Egypt has deferred payments for its large wheat purchases, in some cases by months, according to a government official and traders, as the country grapples with a shortage of hard currency. Egypt is one of the world’s biggest wheat importers and uses the purchases to make heavily subsidised bread, a politically sensitive benefit available to […] May 26, 2023
Opinion Agriculture The Arab world needs to ease global food trade barriers The region must embrace food imports May 23, 2023
Economy Egypt’s central bank leaves key interest rates steady Egypt’s central bank kept its overnight interest rates unchanged on Thursday, saying that growth had slowed in the fourth quarter and international commodity prices were easing. As forecast by analysts, the bank left its lending rate at 19.25 percent and deposit rate at 18.25 percent, its monetary policy committee (MPC) said in a statement. “Domestically, […] May 19, 2023
Banking & Finance Egypt sells 9.5% stake in telecoms firm for $122m The Egyptian government has sold a 9.5 percent stake in state-run Telecom Egypt for EGP3.75 billion ($121.6 million). It represents the second sale of state-owned assets since Prime Minister Mostafa Madbouly vowed to proceed with the divestment programme and sell assets worth $2 billion by June-end. The government sold more than 162 million shares for […] May 15, 2023
Economy Egypt’s headline inflation slows to 30.6% in April Egypt’s annual urban consumer inflation in April slowed to 30.6 percent from 32.7 percent in March, data from the state statistics agency Capmas showed on Wednesday, lower than analysts had expected. Month-on-month, urban inflation slowed to 1.7 percent from 2.7 percent in March and 6.5 percent in February. Inflation had steadily crept up over the […] May 11, 2023
Water Firms vie for $3bn Egyptian desalination deals International companies are vying for lucrative contracts in Egypt as the country embarks on a multi-billion dollar plan to develop desalination plants to help offset a looming water crisis. The Sovereign Fund of Egypt has pre-qualified 17 consortia – comprising a mix of local and global firms – to be invited to tender for developing […] May 9, 2023
Manufacturing Egypt’s new pharma venture to boost local manufacturing The Sovereign Fund of Egypt (TSFE) and private equity firm B Investments have announced the launch of EZ International, which will expand the country’s manufacturing capabilities and trade services in the pharmaceutical sector. The new venture will be developed by TSFE’s healthcare and pharmaceutical industries Subfund and local pharmaceutical chain El-Ezaby Pharmacy. EZ International will […] May 9, 2023
Economy Egyptian inflation tipped to ease in April Egypt’s headline inflation rate is likely to edge down in April from a five-and-a-half-year high the month before, a Reuters poll showed, helped by a favourable base effect, a steady currency and weaker commodity prices. The median forecast of 13 analysts polled showed annual urban consumer inflation slipping to 31 percent in April from 32.7 […] May 9, 2023
Banking & Finance Egypt minister blames Fitch downgrade on external forces Egypt’s finance minister has said Fitch Ratings’ decision to downgrade its sovereign credit rating is down to the country’s struggle against extreme external pressures. The ratings agency reduced Egypt’s long-term foreign-currency rating to B, from B+, while maintaining its negative outlook. Mohamed Maait, Cairo’s finance minister, attributed the decision to the difficulties faced by emerging […] May 7, 2023
Banking & Finance Egypt reports current account surplus of $1.41bn Egypt’s current account turned a surplus for the first time in years in the October-to-December quarter as imports dropped and exports rose, the central bank said in a statement. Egypt imposed import restrictions during most of 2022 and continues to suffer an acute shortage of foreign currency. The current account registered a surplus of $1.41 […] May 4, 2023
Economy IMF urges Egypt to embrace flexible exchange rate The IMF chief responsible for the Middle East and Central Asia called on Egypt on Wednesday to liberalise its exchange rate fully, amid stasis in Cairo over a series of reforms demanded by the international community. Speaking at an event in the Dubai International Financial Centre, Jihad Azour said that the Fund was in discussion […] May 3, 2023
Economy Egypt non-oil activity shrinks for 29th consecutive month Egypt’s non-oil private sector activity shrank for the 29th month in a row in April as continuing import and currency restrictions and surging prices caused business confidence to hit an all-time low, a survey showed on Wednesday. The S&P Global Egypt Purchasing Managers’ Index (PMI) improved to 47.3 in April from 46.7 in March, but […] May 3, 2023
Banking & Finance Egypt’s net foreign assets deficit rises $1.5bn in March Egypt’s deficit of net foreign assets (NFAs) rose by about $1.47 billion in March, bringing the total drawdown in the first quarter of the year to $4.47 billion, central bank data showed, a development that may prompt a consultation with the International Monetary Fund (IMF). Almost all of the deficit represented NFAs with banks. NFAs, […] May 2, 2023
Retail Electronics retailer eXtra pulls plug on Egypt plans United Electronics, the Saudi company behind tech retailer eXtra, has abandoned its plan to expand into Egypt as analysts predict that soaring inflation in the North African country will dampen consumer spending. The company said in a filing to the Saudi Stock Exchange on Monday that the decision followed a feasibility review, but did not […] May 1, 2023
Banking & Finance Egypt signs $734m transport investment deal with Japan Egypt has signed its largest investment package with Japan directed at supporting the North African country’s transportation development plan, according to a statement released by Egypt’s cabinet. The package, valued at 100 billion yen ($734 million), will contribute to financing Cairo’s metro expansion, a 30km stretch of land that would link the Egyptian city of […] May 1, 2023
Markets Egypt to press ahead with state asset sales Egypt will not retreat from its programme of selling state assets and will meet all of its debt repayment commitments, Prime Minister Moustafa Madbouly said. Delays in selling stakes in state companies have been caused by the government’s keenness to secure “the best return from the sale”, he told a news conference. “Egypt will continue […] April 30, 2023
Banking & Finance Egypt secures funds for $2bn Alexandria metro project Construction of the Alexandria metro project in Egypt is set to begin after President Abdel-Fattah El-Sisi approved an agreement with the French Development Agency (AFD) for a €250 million ($276.50 million) loan. The project is a joint initiative with the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development (EBRD), the Egypt Today […] April 27, 2023
Economy Egypt faces another devaluation, predict experts Economic analysts are predicting that the Egyptian government will be forced into a fourth devaluation of the Egyptian pound since February last year although uncertainty surrounds its timing and magnitude. Ramona Moubarak, head of Mena country risk at Fitch Solutions, cited sluggish capital inflows to Egypt and a growing parallel currency market due to persistent […] April 26, 2023
Opinion Water How Egypt can address its water challenges Egypt must bring in the private sector to help solve its water issues April 19, 2023
Energy Chevron seeks to expand gas search off Egypt and Cyprus Chevron is seeking a drilling ship to explore for natural gas off Cyprus, Egypt and Israel as the US energy major looks to meet growing demand in the region and Europe, two sources told Reuters. Chevron, which operates in the three eastern Mediterranean countries, issued a lease tender on Monday seeking a drilling vessel in […] April 19, 2023
Opinion Energy Mining the Middle East’s rich seam of copper Red metal can put a shine on the region's diversification from oil wealth April 17, 2023
Banking & Finance IMF says review date for $3bn loan to Egypt not yet decided Egypt and the International Monetary Fund (IMF) have yet to agree on a date for the initial review under a $3 billion financial package signed in December, an IMF official said. The fund in December approved a $3 billion extended facility loan for Egypt, which has been under acute financial pressure since long-standing problems were […] April 14, 2023