Good afternoon all you wonderful people, and happy Sunday. Read on for all the latest on a new EGP 30 bn initiative for local manufacturers, a deadly plane crash in South Korea, and all the recs you never knew you needed.

PSA-

Banks will be closed on Wednesday, 1 January, to mark the end of their fiscal year, and will return to work on Thursday, 2 January, the Central Bank of Egypt said in a statement today.

THE BIG STORY TODAY

#1- A new EGP 30 bn initiative for local manufacturers: As we wrap up the year and look back at the government efforts to support the local industries, the industry and finance ministries have announced the launch of the first phase of a new EGP 30 bn initiative to support companies in priority industrial sectors, according to an Industry Ministry statement.

The beneficiaries: The initiative targets the pharmaceutical, food, engineering, chemical, ready-made garment, spinning and weaving, mining, and building materials sectors, and gives priority to border governorates, Upper Egypt, southern Giza, Port Said, Ismailia, and Suez (east of the Suez Canal).

A slew of incentives: The initiative provides beneficiaries with a subsidized interest rate of 15% for five years from the start date of the initiative, with a maximum financing limit of EGP 75 mn per client or a total of EGP 100 mn for related entities. It also provides additional interest rate reductions as local value-added increases or when projects introduce industrial activities that are not available locally and can reduce imports.

** The news came as we dive in Inside Industry below into how the government has actively supported the industrial sector in 2024, aiming to turn Egypt into a regional industrial hub.

#2- Al Ahly Capital Holding now owns 97.6% of Easy Lease, after the National Bank of Egypt’s investment arm acquired an additional 93.1 mn shares — equivalent to a 46.6% stake — of the local financial leasing services provider from Elsewedy Capital for an undisclosed value, according to a statement (pdf). The share increase comes after the company acquired a 51% stake in Easy Lease back in April.

Behind the acquisition: NBE said the acquisition came under its strategy to develop Easy Lease’s finance portfolio and add new financial services, as it aims to strengthen the non-banking financial sector’s role in supporting businesses.

THE BIG STORY ABROAD

A South Korean passenger jet crashed this morning at Muan International Airport, leaving at least 174 dead in one of the country’s worst aviation disasters. The Jeju Air flight, en route from Bangkok with 181 onboard, was unable to deploy its landing gear, hitting a wall and erupting into fire. While two crew members made it out alive, the vast majority of passengers, mostly South Korean citizens, are feared to have died. The aircraft — a 15-year old Boeing 737-800 — was flown by a seasoned pilot and had a strong maintenance record, according to Jeju Air. (The Financial Times | Reuters)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • CBE keeps interest rates unchanged during the final meeting of the year: The Central Bank of Egypt’s Monetary Policy Committee (MPC) decided to keep interest rates unchanged during its last meeting of the year on Thursday.
  • The defining story of 2024 in Egypt was the USD flows, both into and out of the country. The year began with a grim outlook for the balance of payments but ended with a slow return to normalcy after March’s float prompted renewed FX inflows.
  • A look back at 2024 through the lens of tourism: Regional conflict raised questions about one of Egypt’s main sources of FX, tourism, with regional uncertainty ultimately leading the government to revise down its tourism target for the coming years.

enterprise

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

☀️ TOMORROW’S WEATHER- The chilly weekend is carrying over into the week with a high of 19°C in the capital but a chilling low of 11°C at night, according to our favorite weather app.

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