Today’s Top News & Analysis
Laws granting foreigners Egyptian citizenship amended
Egypt/Qatar joint investment fund to be USD1bn in size
An unidentified petroleum company will be listed on EGX next month
February Urban CPI rises 31.9% y/y
Details of the Industrial & Agriculture Loan Initiative released
The Egyptian government will bear an extra EGP100bn in subsidies this year
Exports of building materials rise 6% y/y to USD6.9bn in 2022
China Energy to invest USD5.1bn in a green hydrogen plant
A shareholder buys an additional stake in MCRO
South Valley Cement 2022: Still in the red
Macro
Laws granting foreigners Egyptian citizenship amended
Egypt has amended its laws for granting foreigners citizenship. Foreigners can attain Egyptian citizenship for:
· Paying USD250,000, without purchasing assets, to the state’s public treasury.
· Buying real estate worth at least USD300,000.
· Establishing or participating in an investment project worth at least USD350,000.
· Depositing USD500,000 in a 0% interest 3-year CD, to be returned in EGP upon maturity. (Asharq Business)
Egypt/Qatar joint investment fund to be USD1bn in size
The joint investment fund between Qatar and Egypt, which we reported on 2 March, will have a size of USD1bn. The investment fund will be under the direct jurisdiction of either the Ministry of Planning or The Sovereign Fund of Egypt. (Al-Borsa)
An unidentified petroleum company will be listed on EGX next month
The Chairman of the Egyptian Exchange (EGX) expects a new petroleum services company will be listed on the EGX within April. He also expects two new private-sector companies to be listed within 2023. (Amwal Al-Ghad)
February Urban CPI rises 31.9% y/y
Urban CPI in February 2023 climbed 31.9% y/y (vs +25.8% y/y the previous month). Urban CPI also rose 6.5% m/m (vs +4.7% m/m in January), according to CAPMAS. (Bloomberg)
Details of the Industrial & Agriculture Loan Initiative released
We had reported on 19 January 2023 that the Egyptian government was finalizing a loan initiative for private-sector companies in the industrial and agriculture sectors. The details of this loan initiative are as follows:
· Total value of EGP150bn, with EGP140bn allocated for financing working capital operations and EGP10bn for machinery and equipment.
· An interest rate of 11% p.a.
· A maximum validity period of 5 years during which the initiative will decrease by 20% each year.
· Eligibility is for:
o Industrial, agricultural, and renewable energy companies.
o Large and medium-sized enterprises according to the CBE’s definitions.
o Small enterprises affiliated with medium or large entities, factories inside free zones, and cooperatives in the agriculture field.
· The maximum loan per company is EGP75mn or EGP112.5mn including its related parties (covering both working capital and machinery financing).
· Each company will only be able to deal with two banks. (Hapi)
The Egyptian government will bear an extra EGP100bn in subsidies this year
According to the Prime Minister, the state will bear this year an extra EGP54bn in ration goods and bread subsidies and an additional EGP45bn for diesel and liquefied petroleum gas cylinder subsidies due to persisting global commodity crisis and crude oil volatility. (Al-Mal)
Exports of building materials rise 6% y/y to USD6.9bn in 2022
The Export Council for Building Materials, Refractories, & Metallurgical Industries (ECBM) said that exports of building materials, refractories, and metallurgical industries rose by 6% y/y in 2022 to USD6.9bn. The exports for some of the building materials are:
· Cement: USD670mn (+44% y/y)
· Ceramics: USD185mn (-7.5% y/y)
· Aluminum: USD681mn (-14% y/y)
· Steel: USD1.4bn (-21% y/y)
Meanwhile, exports of building materials fell 9% y/y to USD526mn in December 2022. (Al-Borsa, ECBM: 1, 2, 3, 4)
China Energy to invest USD5.1bn in a green hydrogen plant
Investments in China Energy’s green hydrogen plant could reach USD5.1bn, as the company hopes to export green ammonia to Europe. The MoU for the project was signed last November, and the initial implementation could start in May 2023. China Energy is also interested in renewing Egypt’s electricity grid, as well as, partnering with the Ministry of Housing to manufacture sewage pumps and establishing desalination plants. (Cabinet statement)
Corporate
A shareholder buys an additional stake in MCRO
Coronation Africa Frontiers Fund Universal increased its stake in Macro Group Pharmaceuticals [MCRO] by a total of 1,307,361 shares (+0.22%), raising its stake to 5.11%. (Company disclosure)
South Valley Cement 2022: Still in the red
South Valley Cement [SVCE] 2022 consolidated net loss came at EGP330.4mn (+7% y/y) on revenues of EGP2.3bn (+62.4% y/y). GPM came at 4.3% compared to 1.6% the year before (+2.7pp y/y). (Company disclosure)
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