Banking & Finance Egypt central bank may hike interest rates to tame inflation Egypt’s central bank (CBE) is forecast to hike its overnight interest rates by 200 basis points (bps) on Thursday as it struggles to bring soaring inflation under control, a Reuters poll showed on Monday. After that meeting, the state statistics agency announced that annual inflation in January had surged to 25.8 percent and in February to 31.9 percent, […] March 29, 2023
Banking & Finance China spent $240bn bailing out ‘Belt & Road’ countries China spent $240 billion bailing out 22 developing countries between 2008 and 2021. The amount soared in recent years as more have struggled to repay loans spent building “Belt & Road” infrastructure, according to a study published Tuesday. Almost 80 percent of the rescue lending was made between 2016 and 2021, mainly to middle-income countries […] March 28, 2023
Manufacturing Chinese firm to invest $2bn in Suez Canal Economic Zone Chinese company Xinxing Ductile Iron Pipes intends to invest $2 billion in iron and steel plants in the Suez Canal Economic Zone, Egypt’s cabinet said on Thursday. The plants are planned in an industrial zone at the Egyptian Red Sea port of Ain Sokhna developed by China’s Tianjin and will manufacture iron pipes and steel […] March 26, 2023
Banking & Finance World Bank approves $7bn loan to accelerate Egypt reforms The World Bank has approved a new $7 billion partnership agreement with Egypt for 2023-2027 with a focus on boosting private sector jobs, provision of better health and education services and adaptation to climate change. The country partnership agreement (CPF) will entail $1 billion per year from the International Bank for Reconstruction and Development (IBRD) […] March 23, 2023
Markets Egypt suspends sale of state-owned Telecom Egypt stake Egypt has decided to suspend the sale of a stake in state-controlled Telecom Egypt because of market conditions, three sources close to the matter said. Telecom Egypt said on March 7 that the government had started to consider a sale of an additional stake in the company. Sources had previously told Reuters the government was […] March 22, 2023
Economy Egypt to increase tax exemption limit amid rising cost of living Egypt will increase the annual income tax exemption limit to mitigate the effects of the global economic crisis and its repercussions on citizens. President Abdel Fattah El Sisi issued a directive to increase the tax limit to EGP36,000 ($1,168.68) from EGP24,000 ($776.91) per year, Ahram Online reported. The country aims to achieve a growth rate […] March 20, 2023
Logistics AD Ports to invest $200m to develop Safaga Port in Egypt Abu Dhabi’s AD Ports Group has signed a 30-year concession agreement worth $200 million to develop and operate Egypt’s Safaga port. In addition, two 15-year agreements, a memorandum of understanding (MoU) and three head of terms (HoT) for ports in Egypt’s Red Sea region and the Mediterranean Sea were signed. These agreements allow for expanded […] March 19, 2023
Energy Rolls-Royce sees Mena as ‘driver’ for green power growth The Middle East and Africa’s rapid urbanisation and push to decarbonise power generation is a “great economic driver” for Rolls-Royce, the British engineering firm’s regional chief told AGBI. Rolls-Royce is one of the world’s top aero engine manufacturers, supplying civilian and military craft, although its power systems division provided 26.4 percent of its £12.69 billion […] March 17, 2023
Economy Egypt asset sales face obstacles as state maintains grip Egypt has promised the International Monetary Fund it will roll back the state’s involvement in the economy and allow private companies a much greater role, yet several recent moves show it continuing to expand its holdings and tighten its control. As part of a $3 billion, 46-month financial support package announced with the IMF in […] March 17, 2023
Banking & Finance Cairo VC firm launches $95m African startup fund Venture capital firm Flat6Labs has announced a $95 million seed fund to grow early-stage African tech startups. The African Seed Fund (ASF) will invest in more than 160 companies over the next five years. It will pay particular attention to sectors that accelerate digital inclusion through information technology, as well as healthtech, fintech, edtech, greentech, […] March 15, 2023
Economy Egypt’s GDP growth likely to slip to 4.2% in 2022/23 fiscal year Egypt’s economy is expected to grow 4.2 percent in the current fiscal year ending in June, the cabinet said, much less than previously forecast. Gross domestic product grew by 3.9 percent in October-December, the second quarter of the fiscal year, while the unemployment rate fell to 7.2 percent, the statement said. Economic growth slowed from […] March 15, 2023
Logistics Agility and Hassan Allam link up to build logistics parks in Egypt Kuwaiti logistics specialist Agility has formed a joint venture with the development arm of Hassan Allam Holding to build and run warehouses in Egypt. The venture, Yanmu, is due to open its first logistics park in August with an initial investment of about $100 million, Agility said in a stock market filing. The development, a […] March 14, 2023
UK and UAE firms to develop Africa’s water infrastructure Metito Utilities Limited, a UAE-based investor and operator of water, wastewater, and alternative energy management solutions, and British International Investment, the UK’s development finance institution, have launched a joint venture to promote private investment in climate-smart water projects across Africa. Africa Water Infrastructure Development will promote private investment in Africa’s water, sanitation, and hygiene sectors. It […] March 14, 2023
Retail GMG opens Egypt HQ with plans for 1,000 new jobs GMG, which manages more than 120 retail brands across the Middle East, North Africa and Asia, has announced plans to increase its Egyptian workforce 10-fold over the next four years. The retailer, headquartered in Dubai, said it has opened a dedicated office in Cairo to support plans to create more than 1,000 new jobs in […] March 13, 2023
Markets Egypt to initiate steps for listing two army companies Egypt will begin procedures on Wednesday to list army companies – National Service Projects Organisation (NSPO) and National Company for Natural Water in Siwa (SAFI) – on the country’s stock exchange, the cabinet said in a statement. “The offering process aims to maximise the value of the two companies and attract investors from the local […] March 13, 2023
Agriculture Egypt to withdraw from decades-old UN grain treaty by June-end Egypt, one of the world’s largest wheat importers, has given notice it will withdraw at the end of June from a decades-old UN grains treaty, causing consternation among some other signatories to the convention. Egypt’s departure from the multinational Grains Trade Convention (GTC), which promotes market transparency to further trade cooperation, follows a period of […] March 12, 2023
Economy Egypt’s core inflation hits record high of 40.3% in February Egypt’s official annual headline inflation rate leapt in February to a higher-than-expected 31.9 percent, its highest in five and a half years, while core inflation skyrocketed to a record 40.26 percent, according to official data. The soaring inflation follows a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and […] March 10, 2023
Logistics Bahri links with Suez as Saudi and Egypt revamp trade alliance Saudi shipping giant Bahri has signed a memorandum of understanding with Egypt’s Suez Canal Authority to set up a joint venture to transport general and bulk cargo, chemicals and oil. Bahri, also known as The National Shipping Company, and the Authority, which manages and operates one of the world’s most heavily used shipping lanes, aim to establish […] March 9, 2023
Manufacturing UAE food group Agthia seeks to build Egypt as export hub UAE food and beverages group Agthia is considering Egypt as an export hub after making acquisitions there as part of a regional growth strategy, group CEO Alan Smith said. Agthia, majority-owned by the Abu Dhabi government through state investor ADQ, aims to be one of the Middle East’s leading players in the food industry by […] March 9, 2023
Banking & Finance Egypt offers to sell 10% stake in Telecom Egypt Egypt is offering to sell a 10 percent stake in state-controlled Telecom Egypt, sources with knowledge of the offer said on Monday. The sale of state assets would be one of the first to buyers other than Gulf sovereign funds since President Abdel Fattah Al-Sisi in April ordered the government to draw up a programme […] March 7, 2023
Economy How deep are Egypt’s economic woes? Egypt’s economy has come under severe pressure over the past year, with the Egyptian pound tumbling, foreign currency drying up, and inflation soaring. Some of the causes date back decades, such as failed industrial development and export policies that created a persistent trade deficit. An over-valued currency, weak property rights and institutions, and an overbearing […] March 6, 2023
Tourism Egypt imposes tourism fee on hotel stays to support new fund Egypt has imposed an additional fee for hotel accommodation at one percent of the price of a room to boost the tourism and antiquities support fund. The decision came into effect on March 1, Egypt Today newspaper reported. The fees will be paid at a rate of not less than 5 pounds and not more […] March 5, 2023
