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 and 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
Manufacturing Egyptian and Chinese firms sign $487m industrial deals Egypt’s Suez Canal Economic Zone (SCZone) said $487 million agreements and contracts have been signed between Chinese companies and Tianjin Economic-Technological Development Area (Teda) Egypt to establish new projects in the Al Ain Al Sokhna industrial zone. The SCZone delegation, led by chairman Waleid Gamal El Dein, met with officials of Tianjin city, comprising 270 representatives of […] May 28, 2023
Banking and 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 Food & Drink 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 and 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
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 and 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
