Today’s Top News & Analysis
CBE hikes rates by 200bps, moves towards a “durably flexible” exchange rate regime
Egypt announces a series of social protection measures
Egypt's food exports decline in 8M 2022
SODIC posts 9M 2022 results
SUGR announced its preliminary 9M 2022 results
Elsewedy Electric is looking to expand on the UAE
Beltone Financial settles a dispute against one of its U.S. companies
Maha Capital to participate in developing West Port Said Terminal
MACRO
CBE hikes rates by 200bps, moves towards a “durably flexible” exchange rate regime
The Monetary Policy Committee (MPC) has decided in a special meeting today to raise the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 200 basis points to 13.25%, 14.25 %, and 13.75%, respectively. The discount rate was also raised by 200 basis points to 13.75%. The MPC cited that the elevated global and domestic prices are expected to keep headline inflation above the MPC’s target of 7% ±2 percentage points on average in Q4 2022. The objective of raising policy rates is to anchor inflation expectations and contain demand-side pressures, higher broad money growth, and second-round effects of supply shocks. In addition, the CBE said it will move towards a “durably flexible” exchange rate regime, leaving the forces of supply and demand to determine the value of the EGP against other foreign currencies. (CBE)
Egypt announces a series of social protection measures
The Government of Egypt is pushing ahead with a raft of fresh social protection measures that are set to cost the state some EGP67bn, according to Prime Minister. The social protection measures include:
(1) A continued freeze on household electricity prices through mid-2023.
(2) A hike to the public-sector minimum wage from EGP2,700 to EGP3,000 per month.
(3) A bonus of EGP300 will be distributed next month to employees within the public sector to counter rising inflation.
(4) The increase in ration cards allowance will continue to take place until June 2023. (Enterprise)
Egypt's food exports decline in 8M 2022
Egypt's food exports have reportedly decreased in 8M 2022 to USD2.3bn (-14.8% y/y), the same level when COVID-19 hit the world. (Economy Plus)
CORPORATE
SODIC posts 9M 2022 results
SODIC [OCDI] reported 9M 2022 results, where net earnings grew to EGP434mn (+27% y/y) in view of a 40% y/y growth in top line to EGP4.6bn. GPM remained stable y/y at 32%. (Company disclosure)
SUGR announced its preliminary 9M 2022 results
Delta Sugar [SUGR] recorded 9M 2022 net profits of EGP735mn (+79% y/y) with revenues growing to EGP3.1bn (+24% y/y) as a result of higher prices. Moreover, gross profit margin reached 33.6% (+12.7 pp y/y). (Company disclosure)
Elsewedy Electric is looking to expand in the UAE
Elsewedy Electric [SWDY] is currently studying several projects in the UAE to invest in and expand its operations. (Mubasher)
Beltone Financial settles a dispute against one of its U.S. companies
Beltone Financial Holding [BTFH] has agreed to pay USD0.7mn in settlement to end a court dispute against one of its companies in the United States. (Al-Mal)
Maha Capital to participate in developing West Port Said Terminal
The Ministry of Transport agreed with Maha Capital, a subsidiary of Qatar Investment Authority (QIA), to participate in the future operations, marketing, and development of West Port Said Port Terminal with the help of Port Said Container Handling Co. (Al-Mal)
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