BANKING-

The country’s foreign reserves surpassed the USD 50 bn mark for the first time on record, increasing by USD 537 mn from September to hit USD 50.1 bn by the end of October, according to data (pdf) released by the Central Bank of Egypt.

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This rise was driven by a USD 702 mn increase in gold reserves, alongside a USD 135 mn increase in Special Drawing Rights, which helped offset a USD 299 mn decrease in foreign currency holdings.

MANUFACTURING-

#1- Arabia Developments and Elsewedy Industrial Development will set up a 2 mn square meter industrial zone in Sixth of October under a cooperation agreement inked between the two, according to a statement. The Elsewedy Electric subsidiary will manage and develop the zone.

What they said: “Through this partnership, we aim to create an attractive investment environment that enhances production efficiency and accelerates the business cycle for industrial investors, by providing integrated services that include design, planning, development, and operational management after activity commences,” said Elsewedy Electric CEO Ahmed El Sewedy.

#2- Mopco to invest up to USD 250 mn to boost output: State-owned Misr Fertilizers Production Company (Mopco) plans to invest between USD 200-250 mn next fiscal year to raise production capacity and tap into new export markets, Chairman Ahmed Mahmoud told Al Borsa. The company aims to lift annual output by 10% to 2.2 mn tons and step into new markets in South Africa and Latin America to reduce reliance on European markets, which currently absorb 89% of its exports.

#3- Saudi Arabia’s Zamil Steel plans to set up a new production line for heavy steel structures in Sadat City at a cost of USD 15-20 mn, Export Director Ayman Galal told Asharq Business. The self-financed expansion is expected to take 18 months to complete. The new line will add 40-45k tons of heavy steel output annually, primarily serving Egypt’s oil and fertilizer industries.

DEBT WATCH-

#1- Egypt and Germany signed a EUR 50 mn debt swap agreement to fund two renewable energy transmission projects linking the Ras Ghareb and Gabal El Zeit wind farms to Egypt’s national grid, according to a statement from the Electricity Ministry. The financing, provided through Germany’s KfW and converted into a full grant, will be released in two EUR 25 mn tranches.

REMEMBER- The two sides signed a EUR 21 mn debt swap agreement in May to fund renewable energy upgrades and another EUR 54 mn in 2023 to link the 500-GW Ras Ghareb and Gulf of Suez wind farms to the national grid.

#2- FABMisr’s parent company First Abu Dhabi Bank Group has applied for a financial assurance of up to USD 550 mn from the World Bank’s Multilateral Investment Guarantee Agency, according to a statement from the agency. The three-year pledge would support the bank’s lending to micro, small, and medium enterprises and climate-related financing in Egypt and reduce FAB Group’s consolidated risk-weight assets.

PHARMA-

Saudi Spimaco to turn Egyptian unit into export hub: The Saudi Pharma Industries & Medical Appliances Corp. (Spimaco) plans to expand its operations in Egypt and transform its local subsidiary into an export base for African, GCC, and — at a later stage — European markets, Managing Director Ahmed Aljedai said during a press conference attended by EnterpriseAM. The move follows the resumption of commercial production at Spimaco Egypt last week — after a two-year hiatus — marking a reversal of an earlier board decision to exit the market following pandemic-related losses. The Saudi parent, which holds a 91% stake in its Egyptian arm, is now studying a full acquisition of the remaining shares.

TELECOMS-

The National Telecommunications Regulatory Authority will offer new frequency bands to Egypt’s four mobile network operators in January, authority head Mohamed Shamroukh told Hapi Journal.

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