RETAIL-

US tobacco giant Philip Morris hiked prices by up to 10.5% for its cigarettes and heated tobacco products, effective 1 July, the company said in a statement to distributors seen by EnterpriseAM. The price of a pack of its higher-end Merit cigarettes was hiked 10.5% to EGP 105, Marlboro prices increased 9.0% for the standard pack to EGP 97, and the cheaper L&M brand will now go for EGP 76, up 10.1%. Its Terea heated tobacco products are up 10.1% at EGP 76 a pack.

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REMEMBER- The news comes days after the House greenlit a government-drafted bill amending the VAT Law, which will raise the tax on local and imported cigarettes.

TOURISM-

Egypt earmarks EGP 2 bn for charter flight incentive: The Madbouly government is set to invest EGP 2 bn (USD 40 mn) in its charter flight incentive program this fiscal year, with the figure going toward subsidizing vacant seats on charter flights in a bid to boost tourism, Al Arabiya reports, citing a government document. The initiative is backed by the Tourism Ministry, which is looking to increase non-scheduled, or charter, flights to bolster inbound traffic to the country. The program covers most Red Sea airports, as well as those in Luxor, Aswan, Borg El Arab, and El Alamein.

Over 85% of tourists arriving to Egypt travel via charter flights, former tourism minister Hisham Zaazou told the news outlet, underscoring the value of incentivizing charter flights.

SOUND SMART- Charter flights are operated based on demand from clients, such as tour operators or hotel chains. The seats on chartered flights are usually sold as part of an all-inclusive holiday to passengers.

DATA POINT- The country’s air traffic is forecast to increase to register over 190 aircraft per week in July, which is estimated to boost hotel occupancy rates during the month by 5 percentage points m-o-m to 90%.

ENERGY-

State-led JV Alexandria for Supply Chain Company is set to welcome another state entity to the liquefied ethane gas import initiative, with the Transport Ministry’s Holding Company for Maritime and Land Transport (HCMLT) bid to acquire 10% of the company approved by shareholders, Al Arabiya reports, citing an unnamed government official. The Egyptian Ethylene and Derivatives Company (Ethydco) will also join the company’s shareholders at a later date, acquiring a part of Egyptian Petrochemicals Holding’s (Echem) 37.5% stake, according to the source.

REMEMBER- The Alexandria for Supply Chain Company is a USD 660 mn joint venture aimed at setting up a permanent offshore facility at the Dekheila Port in Alexandria that was launched in August last year. The company aims to import 1.1 mn tons of liquefied ethane gas a year, ensuring a steady supply of raw materials for the petrochemical industry in the region.

What’s next? A general assembly will be held in the coming days to give the final green light, according to the source.

Who owns what? Assuming HCMLT gets the go-ahead, Echem will hold a 37.5% stake, Sidi Kerir Petrochemicals will own 22.5%, the lone private sector partner Gamma Construction will have 20%, and each of the Egyptian Natural Gas Company and HCMLT will have 10%.

MINING-

Elsewedy Capital inked an MoU with the Egyptian Mineral Resources Authority (EMRA) to explore and produce phosphate ore at the Sebaeya mines in the Nile Valley, according to a statement. The agreement also allows for the possibility of Elsewedy Capital or its affiliated companies to enter future negotiations to set up joint ventures for exploration and production. The move is part of the government’s push to raise the mining sector’s share of GDP to 5-6% from less than 1% currently.

A phosphate fertilizer plant could also be in the works, as the agreement includes a feasibility study for the facility.

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