S&P Global Ratings has affirmed Egypt’s B credit rating with a stable outlook.
Prime Minister announced in a speech to reporters the following:
1) The backlog of imported goods at Egyptian ports has been cleared.
2) The government will in two weeks reveal the details of the state-owned firms it plans to offer on the EGX this year.
3) The government will work to activate the initiative to finance the industrial sector, with an interest rate of 11%, starting next week.
4) The government will announce the industrial development map in the coming weeks, which would help the country achieve USD100 billion in exports.
The Ministry of Finance targets in FY23/24 to achieve a real GDP growth rate of 5.5%, a primary surplus of more than 2%, and bring the total budget deficit to less than 6%, along with debt rates of less than 80% to GDP.
The Chairman of the General Authority for Investment confirmed that by next April there will be complete automation of the process for establishing new companies in Egypt, and work is underway to reduce the period for issuing golden licenses to investors to be within 20 days.
The Fed is widely expected to continue to slow the pace of its interest rate hikes with a smaller 25-bps increase when it meets on Tuesday and Wednesday. In Egypt, we are factoring in a 200 bps hike in rates to reduce the magnitude of negative real interest rates, in light of the recent spike in inflation.
The Parliament is discussing a proposal to amend the accounting standards used in evaluating the assets of companies listed on the EGX at fair values instead of their book values.
The cabinet approved giving the Industrial Development Authority the power to cancel or discount penalties to industrial players that fail to deliver projects on time.
CIRA 1Q22/23 net profit climbed by 7.7% YoY to reach EGP107 mn.
EGAL raised its selling price in the local market by EGP23k per ton over the last two weeks to reach EGP116k per ton.
SWDY announced that its subsidiary El Sewedy Cables Qatar received a provisional Letter of Award from Qatar General Electricity & Water Corporation for the establishment of new underground Extra High Voltage / High Voltage Cables (EHV/HV) in addition to different voltage levels from 132kV, 66kV and modifications of the existing circuits MW. The project value exceeds USD328 million, to be executed through a period of 30 months.
The Egyptian Electric Utility and Consumer Protection Regulatory Agency will exempt solar projects producing up to 10 MW of power from paying integration fees, raising the ceiling from 500 KW.
According to local media sources, Mashreq Bank has received the CBE’s approval to issue one-year CDs with a monthly 22.5% return. The bank will also issue three-year CDs offering a one-time payment of 19% on maturity, or opt for payments monthly (18.75%), quarterly (18.80%) or semi-annually (18.90%).
The CBE offered three-year treasury bonds with variable interest rates for the first time on Tuesday. The bonds will pay out interest quarterly at a rate 4.25% higher than the corridor rate. The Finance Ministry agreed to double the size of the auction to more than EGP2 bn after it was almost 6x oversubscribed.
COMI received the approval of the Central Bank of Kenya to acquire the remaining 49% stake in MAYFAIR-CIB Bank.
EFIC standalone 2022 net profit amounted to EGP489 million compared to EGP209 million in 2021.
CPCI 2Q22/23 net profit reached EGP11.3 million in (-75.0% YoY, -70.9% QoQ), bringing 1H22/23 net profit to EGP50.1 million in (-39.0% YoY).