Today’s Top News & Analysis
Record-breaking Egyptian exports in 2022
The new 11% industrial and agricultural loan initiative will start next week
Minister of Planning expects inflation to recede by the end of 2023
CBE urges banks to assess foreign currency demand for the next six months
Russia adding EGP to its official list of currencies
More sanctions coming for Russia
Egyptian government to increase wheat incentives
Poultry fodder prices to fall
Obeikan Investment Group establishes a digital solutions subsidiary in Egypt
Global Auto to assemble BMW in Egypt
FRA approves FWRY's Capital increase
Subscription rate of ADIB's capital increase reached 93.4%
Ezz Steel raises rebar prices for the second time in January
MPCO adds new land in 10th of Ramadan City to increase its expansion
EEP and TSFE acquires Selah El Telmeez
MACRO
Record-breaking Egyptian exports in 2022
The Egyptian Prime Minister said Egyptian exports reached an all-time high of USD53.8bn in 2022 (+20% y/y). He also added that non-oil exports alone increased 12% y/y to USD35.6bn. Meanwhile, the Egyptian Minister of Petroleum revealed that petroleum exports reached USD18.2bn (+41% y/y). (Asharq Business, Al-Mal)
The new 11% industrial and agricultural loan initiative will start next week
The Egyptian Prime Minister said the new 11% p.a. industrial and agricultural loan initiative will start next week. The initiative will provide a total of EGP150bn of financing, with EGP140bn earmarked for working capital requirements and EGP10bn for capex needs. The initiative will have an EGP75mn limit for each company, with conditions to prevent using the finance initiative to pay back any outstanding debt. (Economy Plus)
Minister of Planning expects inflation to recede by the end of 2023
The Egyptian Minister of Planning said she expects inflation in Egypt to go down to the 7-9% range by the end of 2023. (Asharq Business)
CBE urges banks to assess foreign currency demand for the next six months
To estimate the expected demand for foreign currency, the Central Bank of Egypt (CBE) requested from banks to give ballpark figures for foreign currency requirements over the next six months based on their backlog of letters of credit (LCs) and documents collection (DCs) requests. (Asharq Business)
Russia adding EGP to its official list of currencies
The Russian Central Bank will now officially set daily exchange rates for the Russian ruble against the Egyptian pound. (NASDAQ)
More sanctions coming for Russia
The European Union, the G-7, and their allies will impose sanctions on Russian oil products starting on 5 February. Currently, the restrictions that were imposed in December placed a cap on Russian crude oil. The new sanctions will put a cap and a ban on refined fuel products, most notably diesel fuel. This is expected to create volatility as Russia finds new buyers and the EU replaces 600,000bbl/day worth of diesel fuel. (Bloomberg)
Egyptian government to increase wheat incentives
The Egyptian government approved increasing the wheat incentives by 25% to EGP1,250/ardeb in order to encourage local farmers to expand the planting of strategic corps, especially wheat. (CNBC Arabia)
Poultry fodder prices to fall
Poultry fodder prices reportedly fell after the increased releases from ports. Prices of soybeans and yellow corn fell to c.EGP26,000/ton and EGP12,000/ton from EGP33,000/ton and 15,000/ton, respectively. Bran also fell to EGP8,000 from EGP10,000. (Al-Borsa)
Obeikan Investment Group establishes a digital solutions subsidiary in Egypt
KSA-based Obeikan Investment Group decided to expand its services in Egypt through establishing Obeikan Digital Solutions to make use of the increasing demand for digital transformation technology and tech services in the Egyptian market. (Economy Plus, Obeikan Group)
Global Auto to assemble BMW in Egypt
Global Auto Group, the official agents of BMW and Mini in Egypt, started assembling BMW locally. (Al-Mal)
CORPORATE
FRA approves FWRY's Capital increase
The Financial Regulatory Authority (FRA) has approved Fawry for Banking Technology & Electronic Payments' [FWRY] capital increase from EGP1,654mn to EGP1,703mn or EGP50mn distributed on 99.2mn shares. The increase is part of FWRY's employees reward system and is to be financed through the company's reserves. FWRY's BoD is yet to call for an ordinary general meeting (OGM) to approve the increase. (Company disclosure)
Subscription rate of ADIB's capital increase reached 93.4%
Shareholders of Abu Dhabi Islamic Bank - Egypt [ADIB] subscribed to 93.4% of the bank's EGP1bn capital increase at a par value of EGP10/share. The remaining unsubscribed amount of 6.5mn shares will be offered in a second-phase subscription. (Company disclosure)
Ezz Steel raises rebar prices for the second time in January
Ezz Steel [ESRS] raised its rebar prices by EGP1,000/ton or 3.8% to EGP26,985/ton. This is the second time prices have increased this month, with the last price increase taking place on 11 January. (Al-Mal)
MPCO adds new land in 10th of Ramadan City to increase its expansion
Mansoura Poultry [MPCO] reported that New Urban Communities Authority (NUCA) approved the allocation of 550sqm land near to MPCO’s building and land in the Tenth of Ramadan City with a combined worth of EGP744,976. Currently, MPCO has total land of 6,600 sqm. The new land will be used in an expansion plan that includes farms to raise the production efficiency of the company’s hatchery labs. Additionally, MPCO will expand the fattening activity after the sector recovers following the continuous releases of poultry feed by the government. The financing of this expansion will come from the company's own financial resources, including selling its stake in Safwa Poultry amounting to EGP10mn. (Company disclosures: 1,2)
EEP and TSFE acquires Selah El Telmeez
The Egyptian Education Platform (EEP) and The Sovereign Fund of Egypt (TSFE) acquired a controlling stake in Selah El Telmeez, a publisher of educational books, for EGP646mn. (Al-Mal)
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