INFRASTRUCTURE-

#1- Arab Contractors to build 56 km, USD 70 mn road in Uganda: Local construction firm Arab Contractors signed a USD 70 mn agreement with the Uganda National Roads Authority for the design and construction of the 56 km-long Iganga-Kamuli road project, according to a statement. The road project — Arab Contractors’ fifth in the country in as many years — will connect a number of cities and is expected to enhance Uganda’s export trade, particularly with neighboring Kenya.

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#2- Gov’t will within weeks offer a desalination plant to private players to be implemented under a public-private partnership (PPP) in the Suez Canal Economic Zone, the Finance Ministry’s PPP unit head Atter Hannoura told Al Arabiya. The new plant is set to desalinate some 250k cubic meters of seawater daily.

The first of many? The government plans to offer more desalination plants early next year, he added.

We heard this was coming: SCZone director Ahmed Saad said Tuesday that the zone was close to launching its first-ever water desalination PPP, adding that the plant will be used to help produce green hydrogen in the SCZone.

PRIVATIZATION-

Elhefny pitches Copelouzos Group on our airport privatization plans: Civil Aviation Minister Sameh Elhefny met with a delegation from Greek infrastructure investment company Copelouzos Group to discuss potential joint projects to develop, manage, and operate airports in the country, according to a ministry statement.

Remember: We’ve been on the lookout for airport privatization news since Prime Minister Moustafa Madbouly said earlier this week that some “important” updates regarding our plans to privatize airports and banks would be announced soon. The Madbouly government first revealed in November 2023 that it planned to invite private sector players — including foreign companies — to take over the management of airports in the country.

Copelouzos is no stranger to Egypt: The company recently signed a partnership agreement with state gas firm EGAS to set up a Greece-headquartered JV focused on the trade, transport, supply, and regasification of natural gas in Eastern Europe and Greece. Copelouzos and Infinity Power are also developing renewable energy projects to supply energy to the 3 GW Greece-Egypt Interconnector (GREGY).

BANKING-

More banks are cutting rates on their high-yield CDs: CIB and HSBC cut interest rates on their local currency high-yield CDs yesterday. CIB has lowered interest rates on its premium, plus, and prime three-year fixed-rate CDs by 2 percentage points to 20%, 19%, and 18%, respectively, while HSBC has slashed its three-year fixed CD by 1.5 percentage points to 20.5%.

MANUFACTURING-

#1- Alporsaideya For Food Industries will invest EUR 5 mn in a new ghee production line, with the company in talks with a German company to source parts for the new line, CEO Mohamed Soliman told Al Mal. The production line is set to produce 120 tons of ghee daily once it begins operation in six months’ time, with the company currently in negotiations to rent a temporary line for ghee production until the project’s completion.

#2- EGFCO to launch new polyethylene pipe plant: Pipe producer EGFCO has completed construction work on its new polyethylene pipe factory in Tenth of Ramadan, Al Mal reports, citing managing director Karim Sadek. The plant will manufacture pipes for key sectors like natural gas, water, sewage, and irrigation, supporting Egypt’s infrastructure development. The firm — a JV between Egypt Gas, the Swiss GF Piping Systems, and the UAE’s GF Corys — also plans to target new export markets in north and east Africa.

EARNINGS-

Kima’s revised FY 2023-24 earnings see net income more than double in: Egyptian Chemical Industries (Kima) saw its net income rise 120% y-o-y to EGP 2.5 bn during the fiscal year 2023-2024, it said in its revised earnings release (pdf) for the fiscal year. Total sales fell 1.2% to EGP 6.5 bn during the fiscal year. Pre-revision the company had reported a 93.9% y-o-y dip in its net income to EGP 70 mn.

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