Kicking off the New Year with fresh price hikes

Tuesday, 2 Jan 2024

Kicking off the New Year with fresh price hikes

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Today at a glance

Economy

2024 is already shaping up to be an expensive year for Egyptians.

Manufacturing

Abou Hashima’s MAFI inks contracts for USD 300 mn agri-food industrial complex.

Commodities

Government sets market controls for 7 commodities in bid to tackle hoarding.

Economy

Egypt’s net foreign liabilities eased to USD 27 bn in November.

Logistics

More shipping lines are reluctant to return to Red Sea after a new Houthi attack.

Also on our Radar

Chinese company eyes USD 10 bn solar project in Egypt.

What We're Tracking Today

House to vote on green hydrogen incentives today.

PLANET FINANCE

Stock markets close the books on their best year since 2019.

Going Green

Meet the center bringing green energy to Egyptian university students and beyond.

What We're Tracking Today

2024 is already shaping up to be a busy year

Good morning, wonderful people. We have an issue packed with macro and business news for you this morning to start the year at a high note.

WE’RE KICKING OFF A NEW MONTH- Here are the key news triggers on which to your eyes on during the first few weeks of January as we ring in the new year:

PMI: S&P Global will publish Egypt’s PMI figures for December on Thursday.
Inflation: Capmas and the CBE will publish the latest inflation data on Wednesday, 10 January.
Foreign reserves: The central bank should release December’s foreign reserves figures this week.

** The CBE’s Monetary Policy Committee will not be meeting this month, with its first meeting of the year scheduled for 1 February.

PSA #1- We have a long weekend ahead: Sunday, 7 January, will be a public holiday for both the public and private sectors in observance of Coptic Christmas, Prime Minister Moustafa Madbouly said in a statement on Sunday. You can expect the central bank and the EGX to follow suit.

PSA #2- Your little ones now need official permission before leaving the country alone: Egyptian minors under the age of 18 are no longer allowed to leave the country without being accompanied by their guardians unless they obtain prior permission from the Interior Ministry’s Passports and Emigration Administration, EgyptAir said in a statement. The statement did not detail how the process of obtaining permission will work.

PSA #3- The government’s decision to raise the minimum wage went into effect yesterday: The national minimum wage has now risen 17% to EGP 3.5k a month from EGP 3k — a decision that was made official last month — to cushion the impact of soaring inflation on low-income households.

THE BIG STORIES HERE AT HOME-

#1- El Sisi holds economy-centered meeting:President Abdel Fattah El Sisi met with Prime Minister Moustafa Madbouly and CBE Governor Hassan Abdalla on Sunday to discuss the economy, the global economic situation, and the country’s banking sector, according to an Ittihadiya statement. The readout emphasized the state’s digital transformation and financial inclusion drive, but did not get into issues of foreign exchange, monetary, or fiscal policy.

#2- Egypt is now officially a member of Brics: Brics began the New Year by welcoming five new members to its ranks. Egypt along with Saudi Arabia, the UAE, Iran, and Ethiopia are now full members of the economic alliance after being invited to join during the groups annual conference last August.

** With five new members joining the group, Brics may need a new extended acronym and we’re open to your suggestions.

#3- InstaPay will remain available with no fees for a little bit longer: The central bank has pushed back the decision to impose fees on transactions made through its digital payment platform InstaPay, it said in a statement last week. The central bank has also exempt customers from “all fees and commissions related to bank transfer services executed via electronic channels in EGP.” The bank did not disclose when these exemptions would expire.

HAPPENING TODAY-

#1- The House is back in session: MPs will reconvene after a nearly two-week break to debate and vote on a set of green hydrogen incentives approved by the House Energy and Environment Committee last week that will give tax breaks and other incentives to investors. The House will also vote on amendments that could enable foreign investors to own desert land and own more than 51% of companies that invest in desert land development.

#2- The Transport Ministry is hosting a yacht-tourism centered conference, bringing together investors interested in yacht tourism or setting up marinas, as well as those with investments in areas overlooking the Mediterranean, Red Sea, or Gulf of Suez. The one-day conference kicks off at 10am at the Transport Ministry’s HQ in the new capital.

** We have the full rundown on the state’s efforts towards turning Egypt into a yacht tourism destination in our Hardhat here.

EGX WATCH-

EGX30 sees biggest annual gain since 2016: The Egyptian Stock Exchange’s blue-chip index advanced 0.8% on Sunday — the last day of trading of 2023 — extending the EGX30’s 2023 gains to 70.5%, as investors look to stocks as a hedge against high inflation and a weakening EGP, Reuters reports.

THE BIG STORY ABROAD-

Israel’s supreme court supreme court struck down a controversial law yesterday passed by Israeli PM Benjamin Netanyahu’s government to limit judicial authorities over the government. The court blocked the law with a slim 8-7 majority that argued that the proposed law posed a threat to Israel's “democratic” nature. Before Israel’s war on Gaza, Netanyahu had faced months of public protest calling on him to repeal the law and dissent from senior figures in the IDF because of the proposed law. (Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Associated Press)

Japan jolted by a mighty quake on day one of 2024: A 7.6 magnitude earthquake rattled central Japan yesterday, claiming four lives and destroying dozens of buildings on the country’s western coast.

WAR WATCH-

Israel wants full control of the Egypt-Gaza border, Prime Minister Benjamin Netenyahu said on Saturday, Reuters reported. “The Philadelphi Corridor — or to put it more correctly, the southern closing point (of Gaza) - must be in our hands. It must be shut. It is clear that any other arrangement would not ensure the demilitarization that we seek."

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at the center bringing renewable energy expertise to Egyptian university students

Tags:

Central Bank of Egypt green hydrogen InstaPay What We're Tracking Today

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Manufacturing

MAFI inks contracts for USD 300 mn agri-food industrial complex in Egypt’s Sadat City

The Middle East's largest agri-food industrial complex is coming to Sadat City: MAFI Agricultural Produce Industries (MAFI) founder Ahmed Abou Hashima signed contracts with several international companies to set up a USD 300 mn agri-food industrial complex run by MAFI in Sadat City, according to a cabinet statement last week.

The details: The complex in Elsewedy Industrial Development’s industrial park is slated to be the largest in the Middle East and could create as many as 7k direct and indirect jobs. The project will produce 100k tons of agri-food products annually in its first phase, with more than 80% of the production earmarked for export, the cabinet statement reads.

The complex will be home to five factories:

The largest factory in Egypt for tomato concentrates;
The largest plant in Egypt for citrus concentrates;
The first individual quick-freezing facility in Egypt;
The first factory for cloudy concentrates in the region;
A freeze-drying products plant.

All eyes are on exports: Beltone Investment Banking — MAFI’s sole financial advisor — and established industrial investor Abou Hashima explored several export-oriented industries, before settling on the fully-integrated food processing complex, Betlone’s group deputy CEO and head of investment banking, Mohamed Aboulfadl told Enterprise. The new complex will also help Egypt climb the value chain by exporting value-added food products in larger volumes, instead of just exporting raw produce, Aboulfadl added.

BACKGROUND- Before the relatively recent (and ongoing) buildout of logistics and cold-chain infrastructure, as much as half of all produce grown in Upper Egypt and some other parts of the country would spoil on the way to market in Cairo. On the value chain side: We are world-class exporters of citrus, strawberries, and other fruits, but have struggled to gain a foothold in value-added products. Abou Hashima rose to prominence as an entrepreneur with high-profile investments in Egyptian Cement and Egyptian Steel. Egypt’s agriculture and agrifoods businesses are notorious underperformers.

FDI incoming: The new complex is a partnership between Abou Hashima and a “foreign partner” who will bring the vast majority of equity contribution as a foreign direct investment. Beltone Investment Banking is currently working with MAFI to raise international and local debt financing, Aboulfadl added.

More to come: The complex is expected to be operational within 18 months, with a plan to expand the capacity of the five factories and add more factories in a second phase. The complex is targeting B2B clients mainly in Europe, the US, and GCC, Aboulfadl added.

Who is involved: The project, on which Beltone Investment Banking is advisor, brings together some of the world’s big names in agri-food business processing solutions as technology providers, including Germany’s GEA, Chicago-based JBT, and Denmark’sCabinplant. Boston Consulting Group acted as the market advisor for MAFI.

Go deeper: Beltone has a statement (pdf) out on the project.

Tags:

Beltone Financial Beltone Investment Banking food investment watch MAFI Manufacturing

Economy

2024 is already shaping up to be an expensive year for Egyptians as Metro, railway, telecoms companies hike prices

The government is ringing in the New Year with a series of price hikes for several public and private services and utilities, as it tries to boost its public revenues without addressing the float/devaluation question just yet.

#1- Your mobile bill is going up: Mobile network operators are reportedly raising their prices between 10-16%, marking the first increase in mobile services since 2017, Asharq News reports. This came after the National Telecom Regulatory Authority (NTRA) greenlit the move, an unnamed NTRA official reportedly said.

Etisalat Egypt has increased its monthly subscription costs by 15% as of yesterday;
WE has raised the prices of its services 10-15%;
Orange is increasing the price of its monthly packages by about 16% starting next month;
Vodafone has notified its customers of an increase in prices starting February.

#2- Internet providers are in hot pursuit with price hikes of their own: WE has also hiked the prices of its internet subscription packages by 29% to 33%, according to Al Borsa. Expect other carriers to follow suit.

#3- Metro fares are also getting pricier after the Transport Ministry raised ticket prices by up to 20% on Monday. Tickets now run EGP 6-15 depending on how far your destination is, Al Borsa reports.

#4- Jumping on the train is also going to cost you considerably more: The National Railways Authority put in place ticket price hikes ranging between 10% to 25% starting yesterday, according to Veto.

#5- Car registration fees are also set for an increase: Owners and private vehicles and taxis will soon face new fees to register their vehicles, according to Cairo 24, citing an unnamed source at the Real Estate Registration and Documentation Authority.

Tags:

economy metro railways retail

New year, new regulations: Blended oil, fava beans, rice, milk,sugar, pasta, and white cheese are now designated as strategic commodities following a decision issued by Prime Minister Mostafa Madbouly, according to a cabinet statement on Saturday. It is now prohibited to withhold these commodities from the market in an effort to tackle hoarding and price gouging. The decision will be enforced for a 6-month period or until further notice, the statement read.

MRPs? The maximum retail price (MRP) will also be printed on the seven newly designated strategic commodities, according to a separate decree from the Supply Ministry issued on Sunday. Producers, importers, suppliers, and packaging companies are also now required to issue sales invoices when dealing in these commodities that state the MRP, factory price, quantity, and production date of the product.

Already paying off? Rice prices have started declining immediately after the Madbouly’s decision to stamp rice as a strategic commodity, with prices per ton reportedly seeing between EGP 200-700 drops, Al Borsa reports, citing several sources from the industry.

Remember: Commodities such as sugar and onions saw their prices soar amid supply shortages near the end of last year, which the government said was driven by the ongoing FX shortage and hoarding.

ALSO- GASC scraps wheat tender: GASC canceled an international wheat tender held on Thursday, Reuters reported. The state grain buyer gave no reason for the cancellation, but traders believe that the prices offered were too high. GASC also reportedly scrapped a rice tender it had awarded last month to an Indian company to buy 60k tonnes of Indian rice for USD 600 a ton because of the high price tag, a Supply Ministry source told Al Borsa.

Tags:

commodities food food prices GASC retail

Economy

Egypt’s net foreign liabilities improve slightly in November

Egypt’s net foreign liabilities eased slightly in November on the back of a turn around in the central bank’s net foreign assets. Our net foreign asset deficit narrowed to USD 27 bn from a record high of USD 27.2 bn in October, according to Enterprise calculations based on Central Bank of Egypt figures.

The CBE’s net foreign assets saw a marginal improvement to negative USD 11.2 bn last month from negative USD 11.3 bn in October, the figures showed. This marks a reversal from November when the central bank’s net foreign assets deficit widened on the previous month.

FX liquidity in the banking system continued to record improvements, with net foreign assets in commercial banks narrowing to negative USD 15.8 bn in November, compared to negative USD 15.9 bn in October, after having already dropped from negative USD 16.4 bn in September.

Tags:

Central Bank of Egypt economy foreign exchange

Logistics

Maersk once again pauses Red Sea traffic after another Houthi attack

Houthi attacks continue to scare away shipping companies: AP Moller-Maersk — the world’s second-largest shipping line — has once again paused all transit through the Red Sea and Gulf of Aden after the Iran-backed Houthis launched attacks on one of its vessels, the company said in a statement on Sunday. US navy helicopters stepped in to retaliate, sinking three Houthi vessels and killing 10 militants, Reuters reported. The company is expected to issue a status update later today.

Remember: This comes just one week after Maersk said it would resume operations in the Red Sea under the protection of the US-led naval coalition, which promised to patrol the area. AP Moller-Maersk, Hapag-Lloyd, CMA CGM, and many other international shipping companies last month announced that they will be pausing transit through the Red Sea following repeated attacks from Yemen’s armed Houthi group on passing vessels.

Hapag-Lloyd remains reluctant to return to the Red Sea: The German shipping giant will continue to reroute its vessels away from the Red Sea, with a situation reassessment due today, Reuters reports. Japan’s two largest carriers — Mitsui OSK Lines and Nippon Yusen — have been rerouting vessels with ties to Israel away from the Red Sea.

But some shipping companies are looking to restart operations: Taiwan’s Evergreen is preparing to resume transit through the Suez Canal this week, according to the Arab World News Agency. While French shipping giant CMA CGM has reportedly notified the Suez Canal it will also be returning in the coming days, according to the regional news outlet.

Ships steaming away from the Suez Canal will deliver a hit to our FX position when we can least afford it. By some estimates, the Suez Canal Authority lost USD 15-20 mn every day that the canal was not navigable after the Ever Given ran aground.

Tags:

logistics Maersk Middle East politics Suez Canal

Manufacturing

Chinese luggage company inks agreement for USD 50 mn factory in Egypt’s West Qantara Industrial Zone

Samsonite bags made in Egypt? The Suez Canal Economic Zone (SCZone) signed an agreement with Chinese luggage manufacturer Hangzhou Henneway Travel Goods — whose client brands include Samsonite, Swissgear, Travelite, and Delsey — to build a USD 50 mn factory, according to a cabinet statement.

The details: The 120k-sqm factory will be located in the West Qantara Industrial Zone in Ismailia. The factory will create some 2k jobs and production is expected to kick off in 1Q 2025.

Investors have been loving the West Qantara Industrial Zone: The first phase of the zone has garnered around USD 1.1 bn in investments from 11 projects manufacturing a variety of products — textiles, medical devices, sportswear, and readymade garments, SCZone head Walid Gamal El Din said.

Especially Chinese investors: Back in October, the SCZone inked agreements with a number of Chinese companies to establish textile projects worth a combined USD 101.3 mn in investments in the West Qantara Industrial Zone.

Tags:

China Egypt-China relations Manufacturing Suez Canal Economic Zone West Qantara Industrial Zone

DEBT WATCH

Egypt’s market for securitized debt grew 2x in 2023 amid financial services boom

The end-of-year securitization rush has finally come to a close, with companies ringing out 2023 with another EGP 9.8 bn worth of securitized bond issuances before the New Year — courtesy of Corplease, Aman, GB Corp, Contact Financial Holding, Bedaya Mortgage Finance, Rawasi for Urban Development, and One Finance.

DATA POINT- The issuances bring the total value of securitized bonds issued in Egypt in 2023 to around EGP 96.1 bn — more than double the EGP 45.4 bn securitized bonds issued in 2022, according to data tracked by Enterprise.

CORPLEASE CLOSES EGP 3.2 BN ISSUANCE-

CI Capital’s leasing arm Corplease has raised EGP 3.2 bn via a securitized bond issuance, according to a statement (pdf) by Al Ahly Pharos Investment Banking, which was one of the financial advisors on the transaction. The issuance was backed by an EGP 5 bn portfolio of leasing contracts. It came in four tranches with tenors of 13, 37, 52, and 65 months and ratings of AA+, AA, and A from Middle East Rating Services (MERIS).

Advisors: Al Ahly Pharos Investment Banking acted as financial advisor, lead manager, and book-runner alongside CIB and CI Capital. CIB, NBE, Al Baraka Capital, Banque du Caire, and Suez Canal Bank were underwriters. CIB also acted as custodian, BdC as placement agent, Zaki Hashem & Partners as counsel, and Baker Tilly as auditor.

GB CORP WRAPS EGP 1.6 BN ISSUANCE-

GB Corp subsidiary GB Lease and Factoring has taken EGP 1.6 bn worth of securitized bonds to market, the company said (pdf) on Thursday. The issuance came in three tranches with tenors of 13, 36, and 56 months and ratings of AA+, AA, and A from MERIS.

Advisors:CIB, Al Ahly Pharos, and CI Capital acted as advisors, lead arrangers, and bookrunners. CIB acted as the custodian and placement agent — as well as an underwriter alongside the NBE, Al Ahly Pharos, and the Suez Canal Bank. Dreny & Partners provided counsel and KPMG was the auditor.

CONTACT RAISES EGP 1.4 BN-

Contact Financial Holding has closed an EGP 1.4 bn securitized bond issuance, the non-bank financial services provider said (pdf) last week. The issuance came in three tranches with maturities ranging from 13 to 60 months and ratings of AA+, AA, and A from MERIS.

In the pipeline for 2024: The company is looking to close a EGP 2 bn sukuk issuance during the first quarter of 2024, company CEO Said Zater said.

Advisors: Contact Financial Holding served as issuance manager and promoter. It also acted as underwriter alongside the Arab African International Bank (AAIB), Banque du Caire (BdC), Ahli United Bank, and Al Ahly Pharos — with ABC Bank acting as co-underwriter. AAIB served as custodian and BdC as placement agent, Alieldean Weshahi & Partners as legal advisor, and KPMG as financial auditor.

AMAN WRAPS EGP 1.1 BN ISSUANCE-

Raya Holding’s fintech subsidiary Aman has issued EGP 1.1 bn worth of securitized bonds, according to a statement (pdf) by Al Ahly Pharos Investment Banking. The issuance was backed by an EGP 1.3 bn portfolio of consumer finance contracts issued by Aman Financial Services and Aman for Consumer Finance and the four-tranche issuance carried tenors ranging between 9 to 24 months and received ratings of P1 and A from MERIS.

Advisors: Al Ahly Pharos, Arab African International Bank (AAIB), and CIB acted as financial advisors, lead managers, and book-runners. NBE served as custodian and placement agent, and also acted as an underwriter alongside AAIB. Zaki Hashem & Partners provided counsel and UHY Egypt was the auditor.

RAWASI ISSUES EGP 1 BN IN SECURITIZED BONDS-

Rawasi Urban Development has raised EGP 1 bn via a securitized bond issuance,

according to a statement (pdf) from Al Ahly Pharos Investment Banking. The issuance was backed by an EGP 1.9 bn portfolio of mortgage contracts. The three-tranche issuance carried tenors of 25, 49, and 74 months and received ratings of AA+, AA, and A from MERIS.

Advisors:Al Ahly Pharos, AAIB, and CI Capital were financial advisors, lead managers, and bookrunners. Al Ahly Pharos and AAIB were also transaction underwriters alongside the NBE. AAIB also acted as custodian placement agent, Dreny & Partners provided legal counsel, and RSM Egypt was the auditor.

AND-

Bedaya Mortgage Finance issued EGP 843 mn worth of securitized bonds as part of a wider EGP 3-bn program, according to a statement from Clyde & Co, which was the legal advisor on the transaction. CI Capital acted as issuance manager and financial advisor, while Clyde & Co. provided legal counsel through its associate office Barakat, Maher & Partners.

State-owned consumer finance outfit One Finance has wrapped its maiden securitized bond issuance worth EGP 616 mn as part of three-year c. EGP 3 bn program, Al Masdar reports, citing sources it says have knowledge of the matter. CIB reportedly acted as financial advisor and general coordinator for the transaction, while AAIB and Al Baraka Capital served as joint underwriters and custodians. Baker Tilly acted as auditor and Dreny & Partners as legal advisor.

Tags:

Aman Financial Services Bedaya Mortgage Finance CI Capital Contact Financial Corplease debt debt watch GB Corp GB Lease One Finance Rawasi Raya Holding securitization

Capital markets

EFG Hermes tops EGX brokerage league table in December

EFG Hermes topped the EGX’s brokerage league table again in December, with a market share of 26.5%, according to EGX figures (pdf). Al Ahly Pharos Securities Brokerage came in second (8.3%), followed by CI Capital (5.5%), Thndr Securities (5.3%), and Mubasher Securities (4.5%). EFG had a monopoly over the top spot every month but one in 2023.

Tags:

Al Ahly Pharos brokerage league capital markets CI Capital EFG Holding Mubasher Capital Holding Thndr

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Also on our Radar

Chinese state-owned company eyes USD 10 bn solar project in Egypt. PLUS: Abu Dhabi Ports, cabinet news, CBE Treasury bills, KfW development finance, Giza Systems, ADQ x Pyramids FC

INFRASTRUCTURE-

A 10-GW solar project could be in the works:China Electric Power Equipment and Technology has signed an MoU with the Madbouly government to begin studies to develop a 10-GW solar project, according to a cabinet statement. The project is expected to reduce carbon emissions by 14 mn tons when completed and will save some USD 1 bn in gas-powered energy costs per year. The Chinese power company is mulling investing USD 10 bn in the build-own-operate solar project in Upper Egypt and will sell the electricity produced on to the Egyptian Electricity Transmission Company, according to unnamed senior Electricity Ministry officials cited by Al Mal.

Abu Dhabi Ports has inked the final contract to develop and operate a container terminal at Safaga Port, according to a cabinet statem ent. Under the USD 200 mn, 30-year concession agreement, the Safaga 2 terminal is expected to kick off operations in 2Q 2025, handling some 5 mn tons of dry bulk, 1 mn tons of liquid bulk, 450k TEUs of containerized cargo, and 50k car-equivalent units (CEUs) of roll-on, roll-off cargo, the Emirati port developer said when it signed the initial agreement in March.

CABINET WATCH-

The cabinet greenlit several projects and decisions on Wednesday, including the establishment of a new free zone at Damietta Furniture City and a USD 379.6 mn container terminal project at Ain Sokhna port, according to a cabinet statement. Cabinet also gave the go-ahead to the Transport Ministry to start contracting procedures for a green hydrogen project in Gargoub Port.

DEBT-

The Central Bank of Egypt (CBE) has sold USD 850 mn of USD-denominated one-year treasury bills at an average yield of 5.149% in an auction on Sunday to refinance existing debt, according to CBE figures.

KfW gives our energy sector an EUR 76 mn lift: German development bank KfW will provide the Electricity Ministry with EUR 76 mn in soft financing and grants under agreements it inked with the International Cooperation Ministry on Sunday, a statement from the ministry said. The funds include EUR 53 mn for the development of a smart grid project in Abu Qir, EUR 15 mn for hydroelectric stations at the Aswan High Dam, and EUR 8 mn for energy efficiency projects, according to the State Information Service.

INVESTMENT-

Giza Systems plans to funnel 70% of its 2024 investments into the Saudi market, which would account for USD 140 mn out of the USD 200 mn slated for the year, the company’s CEO Osama Sorour told Asharq Business. The company will also expand into Oman and Kuwait in 2024, Sorour added.

SMART POLICY-

Digital design and development services are in the pipeline for export support: In a potential indication that the Export Development Fund may be starting to focus more on services — and not just goods — the fund’s board agreed in principle to add digital design and development services to its export subsidy payout program, according to a Trade Ministry statement.

STARTUPS-

Beltone unit CFYE to support underprivileged entrepreneurs with EGP 60 mn financing and training program: Beltone Financial Holding’s recently acquired microfinance subsidiary Cash and Challenge Fund for Youth Employment (CFYE) — a Dutch youth employment fund focused on Sub-Saharan Africa and the Middle East — are set to launch an EGP 60 mn financing and training program for entrepreneurs, according to a statement (pdf) from Beltone. The Underprivileged Entrepreneurs Reach Project will see Cash provide entrepreneurs with incremental loans, training programs to help them run and promote their businesses, and financial support.

SPORTS-

ADQ to sponsor Pyramids FC: Abu Dhabi’s sovereign wealth fund ADQ will be the official partner of Egypt’s Pyramids FC under a multi-year sponsorship agreement signed last week, according to a statement from the fund.

Tags:

Abu Dhabi Ports ADQ ALSO ON OUR RADAR Aswan High Dam Damietta Furniture City Egypt-China relations energy Giza Systems green hydrogen Information and Communications Technology Ministry Kfw logistics oil and gas Pyramids FC renewables Saudi Arabia Suez Canal Economic Zone

PLANET FINANCE

Global stock markets close the books on their best year since 2019

2023 — A stellar year for global stocks: Last year saw global stock markets soaring to their best year since 2019, writes the Financial Times. Investor confidence that most of the world’s major central banks have ended the cycle of rate hikes helped drive a two-month rally that saw the MSCI World index jumping 16% since October, pushing the index up 22% y-o-y.

The S&P 500 had a particularly good year, soaring 24% throughout the year, and 14% since only October, stopping just short of its 2022 peak before the start of 2024.

Bonds are rebounding: Bonds markets also rallied alongside equities, with the US 10-year Treasury yield falling 3.87% by year’s end, down from over 5% in October, as inflation in the US continued to decline closer to the Fed’s 2% target.

US tech companies saw bumper gains over the year, with the tech-dominated Nasdaq Composite surging 43% y-o-y.

Also worth knowing about this morning:

Foreign investors are pulling back from China: China lost 87% of its net foreign investments in the country over the last four months of 2023, falling to USD 4.3 bn from USD 33 bn in August. (Financial Times).

HSBC subsidiary completes full sale of its French retail banking business to CCF: HSBC Continental Europe (HBCE) has completed the sale of its retail banking business in France to CCF, a subsidiary of My Money Group. (HSBC)

EGX30	24,894	+0.8% (YTD: +70.5%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	12,037	+0.6% (YTD: +0.6%)
ADX	9,578	+0.2% (YTD: 0.0%)
DFM	4,060	+0.3% (YTD: 0.0%)
S&P 500	4,770	-0.3% (YTD: 0.00%)
FTSE 100	7,733	+0.1% (YTD: 0.00%)
Euro Stoxx 50	4,522	+0.2% (YTD: 0.0%)
Brent crude	USD 77.04	-0.1%
Natural gas (Nymex)	USD 2.51	-1.7%
Gold	USD 2,071.80	-0.6%
BTC	USD 43,640.33	+2.7% (YTD: +3.2%)

THE CLOSING BELL-

The EGX30 rose 0.8% on Sunday on turnover of EGP 2.8 bn (15.3% below the 90-day average). Regional investors were net sellers. The index is up 70.5% YTD.

In the green: Mopco (+6.6%), Credit Agricole Egypt (+6.0%) and Alexandria Container and Cargo Handling (+4.9%).

In the red: GB Corp (-2.7%), Orascom Development (-2.2%) and EFG Holding (-2.1%).

Asian markets are mixed on this first trading day of the new year, while shares in Europe and North America look set to post gains at the opening bell.

Tags:

capital markets Financial Markets Planet Finance Wall Street

Our weekly deep dive into the green economy and ESG issue in Egypt.

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Read going Green

Going Green

Meet the center bringing green energy to Egyptian university students and beyond

PROJECT PROFILE- The center bringing renewable energy expertise to Egyptian university students and beyond: Against the backdrop of the government’s goal to achieve 42% renewable energy utilization by 2035, the US Agency for International Development (USAID) has funded a 5-year project aiming to bring technology and expertise to the Egyptian renewable energy field — starting on university campuses.

Meet the Center of Excellence for Energy: The C enter of Excellence for Energy (COE/E) is operated by Arizona State University (ASU) and was established two years ago in partnership with Ain Shams University, Mansoura University, and Aswan University. The project received USD 22 mn funding from USAID and aims to provide current and future professionals in the energy sector with the means to meet the market’s dynamic and ever-developing expectations.

How does the COE/E plan to do that? Enterprise sat down with the project’s director and professor at ASU, Sayfe Kiaei, and the COE/E’s technical advisor and professor at Ain Shams University, Tamer Elnady, to understand the concrete ways in which the CEO/E plans make a sustainable mark on Egypt’s energy industry — and capacity building in its various forms is at the heart of it.

That means skills as well as facilities: Building capacity starts with training, workshops, as well as exchange opportunities to ASU for undergraduate students, postgraduate students, and faculty to engage further with the energy field and gain advanced knowledge and experience. It also entails the establishment of fully-equipped labs and training in additional skills such as writing proposals and generating funding for their research from national and international entities, Kiaei explained.

University curricula are also getting a facelift: Another significant contribution of the COE/E is making strategic changes to the curricula of energy-related specializations at the partner universities. Starting at Ain Shams, seven courses have already been added to the curriculum and they are on track to be added at Mansoura University next.

The technological center as the project’s legacy: Among the tangible marks the COE/E means to leave on the industry is the technological center it is establishing, which is set to be up and running halfway into 2024. Elnady told Enterprise that one of the main objectives of this center is to serve the industry by acquiring the certification to meet the expectations of a standardized market. This certification is a final step to be taken after the center’s equipment is purchased and installed.

Advancement through research: “No country will advance or achieve its technological goals without scientific research, without close collaboration with academia,” Elnady said. “And this technology center will provide a means to have this collaboration between academia and industry.”

Post-funding sustainability: The center also holds the key to sustaining the center after the funding period has passed. Once it begins to operate, the center is set to offer a variety of workshops and training opportunities, both for current students and working professionals, during whose studies new technologies were not yet embedded in the curriculum. These offerings are expected to provide the COE/E with the income needed to keep its model sustainable.

Aligning with Egypt’s national goals: To ensure that the efforts of this project don’t miss their mark, Kiaei explained that it is among the center’s priorities to cooperate with the Egyptian government and work with the country’s renewable energy priorities in mind. This means prioritizing green hydrogen and the reduction of fossil fuel burning, as well as cooperating with the Higher Education Ministry to develop curricula and funding research focusing on renewable energy.

“If you solve the energy issue, you solve the climate issue,” Kiaei said, adding that the students’ motivation and passion for the subject matter portends a thriving energy field.

A peek into the project’s potential future: After Kiaei’s success at a similar center in Pakistan that continues to run effectively after the end of the project, he was determined to replicate the best practices in Egypt — and he expects to see similar results. Critical to this, in his view, is a continued strong relationship between the partnering universities, a process that is already steadily underway. “I think once you build a relationship, that will be a very long lasting opportunity,” he said. I think that's going to really set the roadmap for going forward and having a lot more technical impact.”

Tags:

Center of Excellence for Energy going green renewable energy USAID

CALENDAR

2024

JANUARY

7 January (Sunday): Coptic Christmas (national holiday).

9 January (Tuesday): B Investments’ general assembly (pdf) to look into capital increase ahead of Orascom Financial Holding (OFH) acquisition.

17 January (Wednesday): A delegation of Egyptian companies to visit Istanbul.

25 January (Thursday): Revolution Day / Police Day (national holiday).

FEBRUARY

1 February (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

11 February (Sunday): Deadline to apply for the Chicago Booth Executive Programin El Gouna.

25 February 2024 (Sunday): Deadline to bid for 23 blocks in an international oil and gas tender.

MARCH

20 March (Wednesday): End of sugar export ban.

28 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

APRIL

9 April (Tuesday): Eid El Fitr (TBC) (national holiday).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC) (national holiday).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC) (national holiday).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

23 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC) (national holiday).

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

NOVEMBER

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Q1 2024: Opening of the newly developed Pyramids Plateau in Giza.

February-May: The Grand Egyptian Museum could officially open to visitors.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2024: Standard Chartered Bank to open a branch in Egypt.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

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