Today’s Top News & Analysis
CBE hikes rates by 300bps
World Bank is looking to finance several projects in Egypt
Sugar prices are expected to be raised next month
Egypt's medical and pharmaceutical exports reach USD791mn
Elsewedy Electric is bidding on supplying transformers to EETC
First filling begins for Tanzania’s dam
B Investments inks agreements to sell its entire stake in TotalEnergies
MACRO
CBE hikes rates by 300bps
The Monetary Policy Committee (MPC) has decided on 22 December 2022 to raise the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 300bps to 16.25%, 17.25 %, and 16.75%, respectively. The MPC listed many drivers to its decision, including increasing inflationary pressures from the demand side. In return the MPC targets to steer annual headline inflation rates towards its upcoming targeted levels of 7% ±2% by Q4 2024. Meanwhile, the MPC is targeting 5% ±2% by Q4 2026. (CBE)
World Bank is looking to finance several projects in Egypt
The World Bank is looking to finance several projects in Egypt worth USD1.73bn. The projects are related to improving education, green projects, digital transformation, and economic reforms programs. (Economy Plus)
Sugar prices are expected to be raised next month
On the back of raising both beet and sugar cane prices last week, the Ministry of Supply & Internal Trading is reportedly looking to raise subsidized sugar prices starting next month. (Al-Borsa)
Egypt's medical and pharmaceutical exports reach USD791mn
Medical and pharmaceutical exports grew to USD791mn in 10M 2022 (+46% y/y). The main driver to this growth was cosmetics, reaching USD508mn (+118% y/y). (Al-Borsa)
CORPORATE
Elsewedy Electric is bidding on supplying transformers to EETC
Elsewedy Electric [SWDY], Giza Cables, Schneider Electric, and others are competing on a contract to supply connecting lines and transformers stations to The Egyptian Electricity Transmission Company (EETC). (Economy Plus)
First filling begins for Tanzania’s dam
The Julius Nyerere Dam (Rufiji Dam), which is built by Elsewedy Electric [SWDY] and Arab Contractors, starts its first filling. We note that a consortium of SWDY and Arab Contractors won a USD2.9bn contract back in 2018 to build the Rufiji Dam. SWDY had expected the project to be 65% done by the end of 2022. (Al-Mal)
B Investments inks agreements to sell its entire stake in TotalEnergies
B Investments Holding [BINV] signed definitive agreements to sell its entire stake of 6.38% in TotalEnergies Marketing Egypt LLC to TotalEnergies Marketing Afrique SAS (TEMA) for a total consideration of USD27.6mn (i.e. EGP680mn). Furthermore, BINV is eligible for an additional amount equal to USD2.2mn (i.e. EGP54mn) subject to certain milestones concerning TEMA’s transaction with Abu Dhabi National Oil Company for Distribution (ADNOC). (Company disclosure)
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