AUTOMOTIVE-

More made-in-Egypt BYD models? BYD local agent Al Amal Auto is in discussions with the Industry Ministry over producing two new BYD models — a hybrid and a gasoline-powered — locally, AlMal reports citing an unnamed ministry official. EVs aren’t on the agenda at the moment seeing as Egypt still lacks the necessary infrastructure for them, the source said.

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Remember: The Madbouly government has been working to localize the auto industry, introducing the Egyptian Automotive Industry Development Program (AIDP) in 2022, which will offer incentives to auto players with the aim of localizing the industry and its feeder industries, with the aim of enhancing the country’s existing assembly and manufacturing capabilities — and of encouraging new investment to the sector.

INVESTMENT-

USAID to help us enhance the local investment environment: The Egyptian Private Equity & Venture Capital Association (EPEA) and USAID will work together to enhance the local investment environment and the efficiency and capacity of investors under a newly-inked MoU between the two sides, according to a statement. The two sides will work together to build staff capacity, develop a strategic plan, and push for policy reforms to strengthen Egypt's venture capital ecosystem.

M&A-

Premium Healthcare takes a step forward in its acquisition spree: Premium Healthcare — formerly City Lab — inked MoUs for five previously-announced acquisitions that will give its a 50% stake in a number of local and Gulf medical companies and full ownership of local lab operator Hassab Labs, according to an EGX disclosure (pdf).

That’s only part of it: The medical group announced plans last week to acquire 50% of fivemedical companies through a mix of capital increases and a direct share purchase and fully acquire four local labs operators.

MANUFACTURING-

#1- Kraft Heinz inaugurates USD 50 mn expansion to its factory in Egypt, adding seven new production lines and doubling its production capacity, according to a statement. The expansion will help the company increase its export percentage to 20% from 12% at the moment.

#2- How will FiberHome enter the local market? Chinese telecom equipment producer FiberHome is looking to enter the local market either through setting up its own fiber optic cables factory or acquiring a local player, AlMal reports, citing sources with knowledge of the matter. The company is currently looking into the matter and should have settled on a method of expansion before the end of the year.

Remember: Earlier this month, the company inked an MoU with the government to set up a fiber optic cables factory that will produce 1 mn core kilometers of fiber, 500k communication terminal devices, and 3k base station antennas annually. These products will serve both the local market and be exported to the Middle East and North Africa.

#3- Oppo’s USD 20 mn mobile phone factory should go live before the end of the year, Al Mal’s sources said. The factory has a production capacity of 4.5 mn phones annually and was initially expected to go online in H1 2024

INFRASTRUCTURE-

#1- Companies line up to take over rail project: Four consortiums have submitted bids to renovate the USD 285 mn Robeiky-Tenth of Ramadan-Belbeis freight and passenger railway line, Asharq Business reports citing three government sources. The 69-km rail line will link the 10th of Ramadan Dry Port to the main rail network and seaports, bypassing the Cairo railway junction and serving both freight and commuter traffic between Robeiky, 10th of Ramadan, and Belbeis. The railway received a EUR 40 mn loan from the European Bank for Reconstruction and Development back in 2022.The project is slated for completion within three years after contracts are finalized, according to one of the sources.

Who’s interested? The bidders include a consortium of France’s Alstom, Egypt’s Concrete Plus, and Rowad Modern Engineering; a consortium of CBS Group subsidiary GTS and Orascom Construction; and one including Hitachi, Italy’s Mermec and Salchef, and Egypt’s Hazeq ; and a solo offer from Dhaka Bangladesh Group.

#2- Who will carry out the expansion of the Gabal El Asfar water treatment plant? The Madbouly government will soon launch an international tender for the EUR 350 mn expansion of the Gabal El Asfar water treatment plant, Al Borsa reports. The selected company will design, install, and operate the first part of the third phase of the plant’s expansion plan. Phase three will raise the plant's capacity by 1 mn cubic meters per day to serve 17.5 mn people by 2040.

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