Economy Egypt pins hopes on FDI to offset domestic woes Egypt’s faltering privatisation drive was given a shot in the arm this week after the government announced that it had entered into a five-year partnership with the International Finance Corporation to sell off state assets. Under the partnership, the IFC – the private sector development arm of the World Bank – will help to structure […] June 26, 2023
Economy Egypt and India bilateral trade up 14% to $6bn in 2022 Bilateral trade between Egypt and India reached $6 billion in 2022, an increase of 13.7 percent year-on-year, the state-owned Central Agency for Public Mobilizations and Statistics (Capmas) reported. Indian Prime Minister Narendra Modi began his official two-day visit to Cairo on Saturday, the first visit by any Indian premier to Egypt since 1997. Egyptian exports […] June 25, 2023
Banking & Finance Egypt’s central bank keeps interest rates unchanged The Central Bank of Egypt (CBE) kept its key overnight interest rates unchanged on Thursday, saying commodity prices appear to be falling and economic growth is likely to recover in the fiscal year that begins next week. As expected, the bank’s monetary policy committee (MPC) left the lending rate steady at 19.25 percent and the […] June 23, 2023
Banking & Finance Egypt says tax reforms aimed to drive private investments Egypt’s cabinet has approved a draft law to eliminate tax exemptions for state entities in a bid to attract private investment, a cabinet statement said, but the law appeared to retain at least some privileges enjoyed by the army. Egypt, in the midst of a severe foreign currency shortage, has been seeking to encourage both […] June 22, 2023
Markets Suez Canal Authority to offload 20% of subsidiary Egypt’s Suez Canal Authority (SCA) is offering a 20 percent stake in a subsidiary company in line with a government drive to boost the private sector, but selling or leasing the canal is “out of the question”, SCA head Osama Rabie said. Rabie said the sale of the 20 percent stake in the Canal Company […] June 22, 2023
Economy Egypt to increase minimum private sector wage to $97 per month The Egyptian government has approved increasing the minimum wage for workers in the private sector by EGP300 ($9.72) to EGP3,000 a month as of July. The National Wages Council’s decision to raise the minimum wage to EGP3,000 is in line with the council’s policy of achieving a balance between workers and business owners amid the […] June 21, 2023
Banking & Finance Egypt gets IFC on board to help monetise state assets The International Finance Corporation (IFC) will strategically advise Egypt on its plans to boost private sector participation in the economy. IFC said in a statement that it will advise the Egyptian government’s asset monetisation programme, which will focus on harnessing private capital and manage state-owned assets. It will give the government technical assistance and support […] June 19, 2023
Banking & Finance India weighs barter trade with Egypt amid credit talks India is weighing a proposal to begin barter trade in goods like fertiliser and gas with Egypt as part of a wider deal that could see New Delhi extending a credit line worth several billion dollars to Cairo, sources told Reuters. An agreement is likely to be announced later this month during Indian Prime Minister […] June 18, 2023
Economy Egypt asks to join Brics to lessen dependency on dollar Egypt has submitted an application to join the Brics group of large emerging market countries to develop trade ties and potentially reduce dependency on the US dollar, according to the Russian ambassador in Cairo. Brics consists of Brazil, Russia, India, China, and South Africa. “Egypt has submitted its application to join the Brics group because […] June 16, 2023
Banking & Finance Egypt signals no immediate plans for pound devaluation Egyptian President Abdel Fattah Al Sisi appeared to rule out a further currency devaluation anytime soon in remarks made to a youth conference on Wednesday, saying such a move could harm national security and hurt Egyptian citizens. Egypt has devalued the Egyptian pound by about 50 percent against the dollar since February 2022, when Russia’s […] June 15, 2023
Banking & Finance Qatari fund in talks to invest in Egypt’s historic hotels Qatar’s sovereign wealth fund is in talks with Egypt about potentially investing in seven historic hotels there, in what could be a landmark deal between the two countries that restored diplomatic ties in 2021 after a long-running dispute. The Qatar Investment Authority (QIA) is in talks with The Sovereign Wealth Fund of Egypt (TSFE) about […] June 15, 2023
Banking & Finance Egypt invites banks to pitch for AlexBank stake sale Egypt’s ministry of finance has invited banks to pitch for an advisory position on the sale of its 20 percent stake in Bank of Alexandria, a subsidiary of Italy’s Intesa Sanpaolo, two sources familiar with the matter said. The invitation went to local and international banks, said the sources, declining to be identified as the […] June 14, 2023
Opinion Economy Roubles, risks and rewards There are pros and cons to maintaining economic links with Russia despite Western sanctions June 13, 2023
Markets Egypt plans to divest stake in 250 state firms The Egyptian government intends to divest its stakes in 250 companies under its privatisation programme, according to assistant prime minister Osama El Gohary. “The committee supervising the privatisation programme has identified 800 companies with government stakes,” Ahram Online newspaper reported, citing the official’s comment during a meeting with a delegation from the US treasury department […] June 12, 2023
Economy Egypt’s inflation rate accelerates to 32.7% in May Egypt’s annual urban consumer inflation rate in May accelerated to 32.7 percent from 30.6 percent in April, data from the country’s statistics agency Capmas showed on Saturday, approaching an all-time record and higher than analysts had expected. Month-on-month, urban inflation increased to 2.7 percent from 1.7 percent in April. Inflation has risen sharply over the […] June 11, 2023
Renewable Energy UAE-led consortium to build $10bn wind farm in Egypt A consortium led by Masdar has signed an agreement to secure land in Egypt to build a $10 billion 10gw capacity wind farm. Infinity Power, a joint venture between the UAE’s Masdar and Egyptian renewables business Infinity, and Hassan Allam Utilities, a Cairo-based developer and investor, signed the deal with Egypt’s New and Renewable Energy […] June 7, 2023
Economy Egypt inflation to climb in May on rising fuel prices Egypt’s urban consumer price inflation rate is likely to climb back towards record highs in May, as higher fuel prices and an increase in ration card and food prices take their toll, a Reuters poll suggested on Tuesday The median forecast of 13 analysts polled showed annual urban consumer inflation climbing to 31.4 percent in […] June 7, 2023
Banking & Finance Egypt finds it tough to raise capital after borrowing spree Egypt faces an increasingly tough task raising cash for foreign debt repayments after external borrowing quadrupled over the past eight years to help fund a new capital, build infrastructure, buy weapons and support an overvalued currency. Few of its grand projects are generating additional hard currency inflows, while foreign investors have added to its woes […] June 7, 2023
Economy Egypt’s economy weakens as long wait for reforms goes on Egypt’s non-oil private sector activity contracted for the 30th consecutive month in May, but at a slower pace than the previous 15 months, according to S&P Global’s latest survey. Businesses told S&P’s Egypt Purchasing Managers’ Index that high inflation continued to dent sales, output and purchasing. Some of those surveyed for May’s report, issued on […] June 6, 2023
Manufacturing Japan’s Sumitomo to set up $100m factory in Egypt Work has commenced on establishing Sumitomo Electric Egypt, the new $100 million vehicle electric-wiring harness factory 10th of Ramadan, a city in the country’s Sharqia governorate. The factory will be constructed on a plot of land measuring 150,000 square metres, Ahram Online newspaper reported, citing a cabinet statement. The project includes the building of technical […] June 5, 2023
Real Estate Egypt’s commercial property sector resists economic woes Demand for commercial property in Egypt remains buoyant despite the fragile economy, as retail and office landlords offer “flexible and generous” terms until the market stabilises, according to a report. Landlords are resorting to making changes to retail and office lease terms in response to “challenges stemming from the current local and global economic volatility”, […] May 31, 2023
Egyptian bank to support MSMEs with $260m loan Banque Misr, the second largest public bank in Egypt, is set to receive a $260 million loan from the International Finance Corporation (IFC) to support micro, small, and medium-sized enterprises (MSMEs) in the African nation. The five-year loan from the IFC, a member of the World Bank Group, is slated for approval at a board […] May 30, 2023
