Higher Deficits on the Way

May 09, 2023

Today’s Top News & Analysis

Egypt's budget deficit target increased again
The first hyper-scale data center in Egypt
Safi and Wataniya may receive offers this month
ESRS responds to the circulating news regarding its acquisition of EZDK
OIH signs a strategic partnership agreement with BluEV
B Investments and TSFE launch a new company in partnership with El-Ezaby

MACRO

Egypt's budget deficit target increased again

The Egyptian government raised its budget deficit targets for FY23 from 6.8% to 8% and for FY24 from 6.3% to 7%. (Asharq Business)

The first hyper-scale data center in Egypt

Egypt-based Benya Group and UAE-based Khazna Data Centers paired up to introduce the first hyper-scale data center in Egypt. The data center will offer an expected capacity of 25 megawatts and will be built on a 40,000 sqm parcel in Maadi Technology Park for a total investment of USD250mn. (Economy Plus)

Safi and Wataniya may receive offers this month

The Egyptian cabinet announced that National Co. for Natural Water (Safi) and National Petroleum Co. (Wataniya) would start receiving offers this month (May 2023). The Prime Minister referred that international consortiums have shown interest in both companies. (Cabinet statement)

Corporate

ESRS responds to the circulating news regarding its acquisition of EZDK

Ezz Steel Co. [ESRS] released a statement regarding its reported intent to purchase the Egyptian government’s stake in its subsidiary Al Ezz Dekheila Steel Co. (EZDK) [IRAX], which we had reported on yesterday. The company clarified that it did not formally present any offer to acquire an additional stake. (Company disclosure)

OIH signs a strategic partnership agreement with BluEV

Orascom Investment Holding [OIH] announced signing a strategic partnership agreement with BluEV, a software-based company for e-mobility solutions, aiming to create an industrial leap in lightweight transportation in Egypt. (Company disclosure)

B Investments and TSFE launch a new company in partnership with El-Ezaby

B Investments Holdings [BINV] alongside The Sovereign Fund of Egypt' (TSFE) Healthcare & Pharma Subfund launched a new company named "EZ International" in partnership with El-Ezaby Pharmacies chain, offering logistics and management services as well as pharmaceutical distribution and trade services. (Company disclosure)