Masdar-led consortium signs land deal for 10-GW wind farm in Sohag

Wednesday, 7 Jun 2023

Masdar-led consortium signs land deal for 10-GW wind farm in Sohag

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Today at a glance

Energy

Masdar-led consortium now has land for its 10-GW mega-wind farm.

Economy

World Bank cuts Egypt growth outlook.

Energy

EFG Holding-backed Ignis Energia prepares to sell 5 solar plants.

What We're Tracking Today

Egyptian bonds gain on privatization hopes.

What We're Tracking Today

Could Eastern sell a minority stake this month?

What We're Tracking Today

FX reserves inch up in May.

ALSO ON OUR RADAR

Evolve-Azimut gold fund sees strong investor demand.

PLANET FINANCE

US escalates crypto crackdown with Coinbase lawsuit.

HARDHAT

Five Egyptian ports named in World Bank port performance index.

What We're Tracking Today

Egyptian bonds gain on privatization hopes

Good morning, ladies and gents — and a very happy almost-Thursday: This morning we bring you big news for Egypt’s future renewables prospects as well as early indications that foreign investors are beginning to think we’re serious about the whole privatization thing.

HAPPENING TODAY-

El Sisi kicks off southern African tour: President Abdel Fattah El Sisi yesterday arrived inAngola to kick off a wider tour of the region that will take him to Zambia and Mozambique, according to an Ittihadiya statement. The visit aims to strengthen economic, trade, and investment ties between Egypt and the three African nations. El Sisi will also take part in the Common Market for Eastern and Southern Africa (Comesa) summit in Zambia on 8 June, where Egypt will hand the Comesa presidency to Zambia.

Africa Health Excon: The main program of the four-day health conference gets underway at the Egypt International Exhibition Center today after yesterday’s opening ceremony. Check out the agenda here.

ITU meeting: The International Telecommunication Union’s Global Symposium for Regulators continues in Sharm El Sheikh.

HAPPENING TOMORROW-

Inflation data to land: Capmas and the central bank will publish May’s inflation data on Thursday, 8 June.

What the analysts are saying: Consumer prices are expected to have resumed their upward trajectory last month, according to the median forecast in a Reuterspoll of 13 analysts which puts annual urban inflation at 31.4%, up from 30.6% in April. Inflation has soared to near-record highs this year on the back of a series of currency devaluations, the FX crunch and higher energy prices.

HAPPENING THIS MONTH-

Modi in Egypt: Indian prime minister Narandra Modi will visit Egypt for the first time since taking office almost a decade ago, Indian news channel WION reported yesterday.

The two countries have been working to strengthen ties in recent months: President Abdel Fattah El Sisi traveled to India in January to meet with the Indian PM and local business leaders.

Interest rates: The central bank will meet to review interest rates on 22 June.

THE BIG STORY ABROAD-

Yesterday’s destruction of a major dam in Ukraine is still everywhere in the foreign press this morning as thousands of people evacuate from the south of the country to escape the flooding. Ukraine and Russia are both accusing each other of blowing up the dam, which came as the Ukrainian military was preparing for its much-anticipated counter-offensive. (Reuters | Financial Times | New York Times | Washington Post | Wall Street Journal | CNBC)

This isn’t good news for food security: Wheat and corn prices surged on the news on bets that the disaster will put renewed pressure on food supply chains. The south of Ukraine — often referred to as the breadbasket of the world — is home to huge agricultural fields that are now in danger of being wiped out by the flooding.

Golf is dominating the headlines in the global business press after the PGA Tour agreed to a surprise merger with Saudi rival LIV Golf. The deal ends months of hostilities between the two sides, sparked by the Saudi upstart’s attempts to entice the world’s best players to defect from the US tournament. (Reuters | Bloomberg | Financial Times | New York Times | Wall Street Journal)

WATCH THESE SPACES-

#1- Could Eastern sell a minority stake this month? An Emirati state institution is interested in snapping a 25-30% stake in EGX-listed Eastern Company before the end of June, Al Mal reports, citing unnamed sources it says are in the know. The parties are currently negotiating the value and size of potential stake but no official offer has yet been made, according to the sources. Majority shareholder Holding Company for Chemical Industries — which owns a 50.5% stake in Eastern — could look to offload part of its stake to the unnamed UAE entity, Al Mal quotes its sources as saying.Shares in Eastern Company closed up 4.7% to EGP 19.00 at yesterday’s close.

#2- Progress on the state ownership policy:The Justice Ministry has finalized the rules for implementing the government’s State Ownership Policy document, and will send them to the cabinet for approval, Minister Omar Marwan told Prime Minister Moustafa Madbouly yesterday, according to a cabinet statement.

Remember: The state ownership policy provides a roadmap for transitioning to a more private-sector-led economy over the next five years, outlining the sectors that the government intends to fully exit, those that it will phase out its involvement in, and those where it will increase its footprint. The strategy aims to more than double the private sector’s role in the economy to 65% and attract USD 40 bn in private investment by 2026.

MARKET WATCH-

A bout of optimism about Egypt’s privatization program is feeding through to the markets:Egyptian USD-denominated bonds have notched the biggest gains across emerging markets in the last two trading days as investors react positively to signs of progress in the government’s privatization program, Bloomberg reports. Recent moves by the government — including the Telecom Egypt stake sale and the appointment of advisorsfor the United Bank sale — are helping it regain the trust of some foreign investors, giving a lift to the country’s FX bonds and bringing the price of credit default swaps down.

What they’re saying: Gordon Bowers, an analyst at Columbia Threadneedle Investments who recently met with bankers and officials, told the news outlet that Moody’s recent threat to downgrade the country’s credit rating for the second time this year “seems to have lit a fire under key decision makers” to accelerate the process. “It really seems like the privatization agenda has been elevated to a national priority.”

FX reserves continue to rise: Net foreign reserves inched up to USD 34.66 bn in May fromUSD 34.55 bn in April, according tocentral bank figures released yesterday. Reserves have steadily but slowly increased over the past eight months, after falling 20% last year on the back of the war on Ukraine and rising global interest rates.

CIRCLE YOUR CALENDAR-

Egyptian-German trade conference: The Trade and Industry Ministry and the German Economic Affairs Ministry will hold a bilateral trade and investment conference in Cairo in September, Youm7 quotes German Ambassador Frank Hartmann as saying at a presser yesterday.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at how five Egyptian ports stack up in the new World Bank / S&P Global Container Port Performance Index.

Tags:

economy Financial Markets privatization watch WHAT WE’RE TRACKING TODAY

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Masdar-led consortium secures land for mega wind farm in Egypt: UAE’s Masdar, Infinity Power, and Hassan Allam Utilities signed a land allocation agreement with the Egyptian government for a 10-GW wind farm in Sohag, the companies said in a joint statement (pdf)yesterday. The agreement comes eight months after the companies signed an MoUfor the project on the sidelines of COP27.

What we know: At a cost of USD 10 bn, the wind farm is set to be one of the largest in the world. It is expected to produce 47.7k GWh of clean energy every year, saving the country about USD 5 bn annually by reducing natural gas consumption, according to the statement. The companies estimate that the plant will offset nearly 24 mn tons of CO2 emissions each year, equal to around 9% of the country’s total carbon footprint in 2021. The first phase of the project will be up and running within four years, Masdar CEO Mohamed Jameel Al Ramahi told Al Arabiya.

Feasibility studies + finance on the way: The developers will in the “coming period” carry out feasibility, investor onboarding and environmental studies to bring the project online, Ramahi said at a press conference yesterday (watch, runtime: 37:05). The developers expect the project will reach financial close within the next 15 months, and will receive 70-80% of the funding from international institutions, he told Al Arabiya.

Great news for Egypt’s renewables targets: Another 10 GW of wind capacity will help Egypt meet its target of sourcing 42% of its energy from renewables by 2030. The government recently announced a new longer-term goal targeting 60% by 2040.

Power mainly for local use -NREA:The plant will be connected to the national grid where it feed most of its power for local consumption, the CEO of the New and Renewable Energy Authority, Mohamed Al Khayyat, said in an interview on Al Hayah Al Youm last night (watch, runtime: 7:31). This will enable the government to export more natural gas, a key source of hard currency, he said.

But there is still export potential: The government is looking to export electricity to Libya, Sudan, and to the GCC through its planned link with Saudi Arabia, and to Europe via a number of proposed interconnectors. Infinity Power — part of the developers on the 10 GW wind farm — signed an MoU back in May with Greece-based Copelouzos Group to explore the feasibility of jointly developing renewable energy projects to supply the planned 3-GW Egypt-Greece interconnector.

Big FDI potential for Egypt: The consortium is expected to bring in an estimated USD 20 bn in direct investments into the country: USD 10 bn through the 10 GW wind plant, USD 4 bn for its planned green hydrogen plant, and USD 6 bn to bring online the 7 GW of clean energy that will power it, Al Ramahi said yesterday.

Tags:

Climate energy Infinity Power infrastructure renewables wind power

Economy

World Bank cuts Egypt growth outlook

The World Bank has downgraded its Egypt growth outlook for the coming fiscal year due to the country’s ongoing economic problems, according to figures in its Global Economic Prospects report (pdf). The lender now expects the economy to grow at a 4.0% clip in FY 2023-2024, down 0.8 percentage points from its last forecast in January, before accelerating to 4.7% the year after. This is roughly in line with the government’s expectation for 4.1% growth for the coming fiscal year.

This would mean flat growth: The Bank forecast in April that growth will slip to 4.0% this year from 6.6% in FY 2021-2022 as rising inflation, higher interest rates, the FX crunch and import disruptions weigh on the economy.

BUT- We’re still expected to be one of the top performers in the region: The only countries with stronger projected growth rates are Iraq (6.0%) and Djibouti (4.4%). Egypt is forecast to outperform all regional oil exporters, as weakening global oil demand hits GDP growth. The average growth rate amongst regional oil exporters stands at 2.0% for FY 2023-2024.

A GLOBAL DOWNGRADE-

Expect a sharp slowdown in the global economy this year: The lender now expects global growth to fall to 2.1% in 2023 from 3.1% last year as higher global interest rates and the fallout from the war in Ukraine squeeze economic activity.“[Expect] last year’s sharp and synchronized slowdown to continue this year into a sharp slowdown,” Indermit Gill, the bank’s chief economist, told reporters yesterday, according to the Associated Press.

On the bright side: The latest figure is a 0.4 percentage-point upgrade from the Bank’s previous forecast in January, which pinned global growth at just 1.7%.

Times are hard for emerging markets: Growth in emerging markets excluding China will “slow markedly” to 2.9% this year from 4.1% in 2022 due to tightening financial conditions, high inflation and slowing external demand. The Bank expects the first half of the 2020s to be one of the weakest half-decades in the past three decades for emerging- and developing economies.

Looking ahead: The World Bank expects the global economy to make a “tepid” recovery in 2024, with growth rising to 2.4%.

Tags:

economy emerging markets GDP global economy World Bank

Energy

EFG Holding-backed Ignis Energia prepares to sell 5 solar plants

Ignis to sell EUR 300 mn of its solar portfolio: Spanish renewables developer Ignis Energia is selling five solar power projects worth some EUR 300 mn, reports Spanish newspaper Expansionin a story picked up by Reuters, with the renewable energy firm hiring investment bank Lazard to work on the sale. The portfolio of projects up for sale has a combined electricity capacity of 380 MW that is expected to come online late 2024.

The Egypt connection: EFG Holding’s clean energy investment platform Vortex Energy signed an agreement in 2021 to invest EUR 625 mn in the company for what media reported was a 49% stake. Vortex is making incremental equity investments in the firm, announcing separate EUR 222 mn and EUR 46 mn commitments during 2022. The investment was made through the renewables-focused Vortex Energy IV Fund, which reached its first close of USD 200 mn in July 2021.

The next round of investment is expected soon: Vortex said last year that it would invest another EUR 176 mn in the company in 1Q 2023, with the remaining EUR 181 mn coming after.

Ignis is one of the largest solar energy companies in Spain: The company has 20 GW of projects under development and 4.5 GW of assets under management.

Tags:

EFG Holding energy Ignis Energia renewables Vortex Energy

WAR WATCH

Sudanese factions agree to resume indirect talks -Al Arabiya

Indirect talks resume in Sudan: Sudan’s warring military factions have resumed indirect ceasefire talks in Jeddah, Al Arabiya reported yesterday, citing a joint statement from Saudi Arabia and the US, which are attempting to mediate an end to the conflict. The army walked away from talks last week, blaming the paramilitary Rapid Support Forces for failing to respect the terms of the ceasefire.

The warring sides have not agreed to direct talks: General Abdel Fattah Al Burhan, the head of the army and the country’s de facto leader, told Saudi Foreign Minister Faisal Farhan that in order for the talks to succeed the RSF must exit hospitals, public facilities and homes and to open safe pathways, the army said in astatement. RSF leader Mohamed Hamdan Dagalo expressed his support for peace talks during a conversation with Farhan on Sunday but didn’t mention returning to the negotiating table.

Sudan army envoy in Cairo: Deputy Foreign Minister Hamdy Loza discussed bringing an end to the conflict with Al Burhan’s envoy in Cairo yesterday, the Egyptian Foreign Ministry said.

Tags:

2023 Sudan conflict DIPLOMACY war watch

LAST NIGHT’S TALK SHOWS

Africa Health Excon, tuition fees and the Red Sea fishing ban get attention on Egypt’s talk shows

It was a busy night on the airwaves, with the nation’s talking heads focusing on the Masdar-led consortium’s 10-GW wind farm (more on that in the news well, above), the opening day of Africa Health Excon, school fee hikes, and the Red Sea fishing ban.

What parents can do if schools hike fees beyond the cap: With the likelihood of private and international schools increasing tuition fees this year, Education Ministry spokesperson Shadi Zalta presented procedures that parents can take if they are notified of a tuition fee increase above the 7% cap during appearances on Kelma Akhira (watch, runtime: 9:17) and Masa’a DMC (watch, runtime: 9:28). The ministry has received a raft of complaints after some schools raised fees by as much as 35%, prompting the ministry to issue a circular this week warning schools not to breach the cap.

A black market for electrical appliances? The rising prices of electrical appliances has pushed the market into a phase of stagnation amid declining demand, Ala Masouleety’s Ahmed Moussa said. An electrical appliance “black market” has appeared, monopolized by sellers as producers' stock levels dwindle, he said (watch, runtime: 3:34).

Red Sea fishing ban: The decision to ban fishing in the Red Sea and Suez governorates aims to preserve stocks of young fish, General Authority for Fish Resources and Development head Salah El Din said in an interview with Al Hayah Al Youm (watch, runtime: 6:55). The government will pay compensation to fishermen who are being deprived of income, he said.

Also on the airwaves last night:

Saudi industry minister on the airwaves: Saudi Industry and Mineral Resources Minister Bandar Alkhorayef joined AlQahera News to discuss the agreements with Egypt this week and deepening the two countries’ economic relationship (watch, runtime: 6:52 | 3:56 | 6:49 | 6:04).
Africa Health Excon: Several of the nation’s talk shows covered the health conference which was opened by President Abdel Fattah El Sisi yesterday: Al Hayah Al Youm (watch, runtime: 3:38), Ala Mas’ouleety (watch, runtime: 17:06) and Masa’a DMC (watch, runtime: 2:26).
Egypt’s first gold fund sees strong demand: The CEO of Evolve Holding Sameh El Torgoman appeared on Al Hayah Al Youm to discuss the closing of the fund’s first tranche (watch, runtime: 8:11). We have more on this in this morning’s Also on our Radar, below.
The rise in FX reserves got coverage from Masa’a DMC (watch, runtime: 14:38) and Ala Mas’ouleety (watch, runtime: 21:23).

Tags:

Egypt-Saudi relations LAST NIGHT’S TALK SHOWS

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EGYPT IN THE NEWS

Egypt’s debt problem in focus

This morning in the foreign press: Reuters is raising the alarm on the country’s ability to service its high external debt. With levels of foreign borrowing having risen fourfold over the last eight years, higher global interest rates and an FX crunch are raising concerns about the government’s ability to meet repayments. Reform is needed to help right the external imbalance, Abu Dhabi Commercial Bank’s Monica Malik told the newswire: “Egypt is waiting for capital flows, and no one I speak to is ready to put that in again until they see the reform.”

Also making headlines:

Birdwatching: Detailed images of kingfishers, pigeons, turtle doves and wagtails in a 3.3k-year-old ancient Egyptian palace were recently identified by British researchers. (New York Times).
Tattooed mummies: We’ve been inking our skin for over 5k years but Ancient Egyptians may have been the earliest to do so in Africa, potentially using the images as a mark of status and in ritual practices. (National Geographic)

Tags:

debt economy foreign exchange

ALSO ON OUR RADAR

Egypt’s first gold fund sees strong investor demand. PLUS: DHL, Maire Tecnimont x Kima,

CAPITAL MARKETS-

Gold rush: The first tranche of Egypt’s first gold fund was more than 15x oversubscribed, raising EGP 153 mn from over 7k primarily local investors, Evolve Holding founder and CEO Sameh El Torgoman was quoted as telling Bloomberg Asharq. Fund managers Evolve and Azimut could look to open the gold fund to investors for a second round after 3Q 2023 “with a different mechanism,” Torgoman added, without providing details. The two companies launched the fund last month

REMEMBER- The strong demand for the fund comes amid soaring appetite for the precious metal due to the current economic uncertainty. The price of 21-carat gold has risen 40% to EGP 2,350 per gram since the beginning of the year as savers look for safe havens to hedge against the weaker EGP.

LOGISTICS-

DHL wants to make Egypt its springboard for Africa: DHL plans to expand its operations here to form a logistics hub for the African continent, DHL Express CEO John Pearson told Moustafa Madbouly during a meeting, according to a cabinet statement. The firm aims to increase the number of its cargo flights to Egypt, Pearson said, adding that DHL has already invested more than EGP 1 bn in the local market.

NBFS-

Contact Financial subsidiary Contact Credit has introduced a new motorcycle financing product, according to a press release (pdf). The product allows Contact customers to finance motorcycles, scooters, golf carts, beach buggies, and motorsport equipment worth up to EGP 2 mn in installments over periods of up to five years.

AUTOMOTIVE-

The African Association of Automotive Manufacturers (AAAM) is set to provide the Trade Ministry’s automotive industry unit with technical support to help it carry out the government’s automotive strategy, according to a cabinet statement. An MoU inked on Sunday will see the organization structure the automotive industry unit, work on a system to automate its operations, create a guide for production incentives, and draft information memos for investors.

REFRESHER- The strategy — known as the Automotive Industry Development Program — seeks to incentivize local assembly and component manufacturing and boost export volumes. AAAM expects Egypt’s automotive industry to become the largest market in the continent by the middle of the next decade, representatives previously told Enterprise.

PETROCHEMICALS-

Maire Tecnimont to take on Kima’s nitric acid project: EGX-listed, state-controlled Egyptian Chemical Industries (Kima) approved an offer from Italian contractor Maire Tecnimont to take the reins on its nitric acid and ammonium nitrate project, the company said in an EGX disclosure (pdf). The project will cost some USD 297 mn, down from the USD 323 mn Maire Tecnimont originally requested, per the disclosure. It will produce some600 tons of nitric acid and 665 tons of ammonium nitrate a day once operational, with construction expected to take two years. The two companies late last year settled a dispute over former projects.

Kima shares soared on the news: Kima’s stock price rose over 10% during yesterday’s trading to close at EGP 8.68, prompting the EGX (pdf) to temporarily suspend trading on its shares.

SMES-

Support for MSMEs in East Port Said: The Micro, Small and Medium Enterprise Development Agency (MSMEDA) inked an MoU with East Port Said Development to support MSMEs in the East Port Said Industrial Zone, cabinet said. The agreement aims to provide small enterprises with infrastructure, industrial space, services, finance, training, and other technical support in a bid to increase investment in the area and create jobs.

FINANCE-

CIB x Noon: CIB has launched a new credit card in collaboration with online shopping platform Noon, according to a joint statement (pdf). Card holders will be entitled to a range of offers and discounts when using the card on Noon’s platform and will be able to pay for items in installments of up to 15 months.

Tags:

African Association of Automotive Manufacturers ALSO ON OUR RADAR automotive Azimut Egypt Asset Management capital markets CIB consumer finance Contact Financial DHL Evolve Investment Holding Finance gold Kima logistics Maire Tecnimont Manufacturing non-banking financial services Noon petrochemicals SMEs

PLANET FINANCE

US escalates crypto crackdown with Coinbase lawsuit

First Binance, now Coinbase: US regulators have filed a lawsuit against Coinbase in an escalating crackdown on the crypto industry. The Securities and Exchange Commission alleged that Coinbase, the country’s largest crypto trading platform, had breached regulations by failing to register as an exchange.

This was the second lawsuit filed by the SEC against the crypto industry in two days: The regulator hit the world’s largest crypto exchange Binance with a civil suit on Monday, filing 13 charges against the company and its enigmatic owner Changpeng Zhao for alleged market manipulation, misuse of funds and misrepresentation. Investors have since withdrawn more than USD 1.4 bn from the exchange, according to Reuters.

EGX30	17,491	+0.8% (YTD: +19.8%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,317	+0.2% (YTD: +8.0%)
ADX	9,357	-0.2% (YTD: -8.4%)
DFM	3,678	+0.7% (YTD: +10.3%)
S&P 500	4,283	+0.2% (YTD: +11.6%)
FTSE 100	7,628	+0.4% (YTD: +2.4%)
Euro Stoxx 50	4,295	+0.1% (YTD: +13.2%)
Brent crude	USD 76.00	-0.9%
Natural gas (Nymex)	USD 2.26	+0.7%
Gold	USD 1,979.30	+0.3%
BTC	USD 26,994	+5.4% (YTD: +63.3%)

THE CLOSING BELL-

The EGX30 rose 0.8% at yesterday’s close on turnover of EGP 3.28 bn. Local investors were net buyers. The index is up 19.8% YTD.

In the green: Qalaa Holdings (+7.3%), Heliopolis Housing (+6.8%), and Ibnsina Pharma (+6.2%).

In the red: Orascom Construction (-3.9%), Mopco (-3.3%), and Egypt Kuwait Holding- EGP (-3.2%).

Tags:

Binance cryptocurrency Financial Markets Planet Finance

Diplomacy

Egypt to cooperate on border shooting probe, El Sisi tells Israeli PM

Egypt, Israel to cooperate on investigation of deadly border shooting:President Abdel Fattah El Sisi and Israeli Prime Minister Benjamin Netanyahu agreed to “coordinate fully” to investigate the circumstances behind the shooting at the Egypt-Israel border at the weekend, according to an Ittihadiya statement. The Egyptian president offered his condolences about the incident to Netanyahu, who thanked him for agreeing to work with Israel on the investigation, the Israeli PM’s office said.

Background:The Israeli military has said that three of its soldiers were shot dead on Saturday by an Egyptian officer, who media reports have named as Mohamed Salah, a 22-year-old from Ain Shams.

Tags:

Abdel Fattah El Sisi Benjamin Netanyahu DIPLOMACY Egypt-Israel relations

AROUND THE WORLD

Could the IMF’s MENA chief become Lebanon’s next president?

IMF’s Azour for president? Lebanon’s two largest Christian political parties — the Lebanese Forces and the Free Patriotic Movement — are lobbying for Jihad Azour, the IMF director for the Middle East, North Africa, and Central Asia, to become the country’s next president, reports Bloomberg. Azour declined Bloomberg’s request for comment on the matter. Lebanon is in the midst of a financial and political crisis and has been without a president since October when Michel Aoun’s term ended.

Tags:

Around the World IMF Jihad Azour Lebanon

HARDHAT

Five Egyptian ports named in World Bank port performance index

How Egypt’s ports are measuring up in terms of efficiency + operational performance: Five major Egyptian ports — Port Said, Dekheila, Damietta, Alexandria, and Sokhna ports — earned mixed results in the World Bank and S&P Global’s Container Port Performance Index (CPPI) 2022 (pdf). Port Said stood out as the highest-ranking Egyptian port, securing the 10th spot out of 348 ports worldwide, according to the report. While the rankings brought a mixed bag of results, there’s room to improve the overall competitiveness of Egypt’s ports in the global market.

How the index ranking works: The last index in 2021 (pdf) ranked the ports with two different methodologies — statistical and administrative — while the 2022 index includes an aggregate score of both.

Some ports are performing better than others: Port Said Port landed in the 10th spot of the overall ranking in 2022, while its administrative rank rose to 11 from 15 in the 2021 index. The port was ranked 10th in the statistical approach, up from 13th in the 2021 CPPI. Alexandria Port ranked 268th overall, with its statistical rank remaining unchanged y-o-y at 266 and its administrative ranking rising to 270 from 277. Coming in at #269 is Sokhna Port, which saw its statistical rank soar to 258 from 352 and its administrative ranking jump to 277 from 353 in the 2021 report.

Meanwhile, there’s room for improvement at the Dekheila + Damietta ports: Dekheila came in at #172 in the aggregate ranking, followed by the Damietta Port in 173rd place. Dekheila’s statistical score plummeted to 198 in 2022, down from 133 in the previous year, and its administrative score also dipped to 144, down from 139. Damietta’s statistical score fell to 195, down from 56 in the previous year, and its administrative score also dipped to 154, down from 58.

Increased business activity in our ports: The total number of ships that have stopped by our ports increased 10% y-o-y to 12.7k in 2022, the number of containers rose 6% y-o-y to 7.6 mn TEUs, and the volume of cargo increased 8% y-o-y to 176 mn tons, according to a 2022 Transport Ministry report (pdf).

Our ports face fierce competition from over 15 ports in the region, including Haifa, Ashdod, Beirut, Limassol, Larnaca, Mersin, Izmir, and Piraeus, Egytrans CEO Abir Leheta told Enterprise. Our competition also includes ports along the Red Sea such as Port Sudan, Massawa, Djibouti, Aden, Eilat, Jeddah, and Aqaba, according to Leheta. “It’s important that we learn from the success stories of our competitors who have deployed effective policies to gain competitive advantages — an example could be the ports of Singapore,” Leheta added.

Streamlining operations and processes: The potential establishment of a holding company to oversee the development and improvement of seven of our ports (Alexandria, Damietta, East and West Port Said, Adabiya, Sokhna, and Safaga) is part of the government’s push to streamline and optimize the processes involved in enhancing the ports’ efficiency and competitiveness, according to Leheta. “By consolidating the management and operations of these ports under a single entity, the government aims to centralize decision-making and resource allocation, thereby eliminating bureaucratic obstacles that hinder progress and inhibit effective development,” said Leheta. Through strategic investments, streamlined processes, and a focus on profitability, the holding company can drive significant improvements in the performance and these ports, enhancing their competitiveness on the global stage, she added.

One thing we can do to improve efficiency: Stop searching the cargo of transit ships: “We must reconsider our current practice of searching the cargo of transit ships bound to other countries, as this adds unnecessary burdens and delays which drives them some of them away from our ports,” Ibrahim El Desouky, member of the Cargo Manufacturing Chamber at the Egyptian Federation for Industries, told Enterprise.

Coming up with a pricing strategy that is competitive with our competitor ports like Cyprus and Greece could give us a significant advantage leading transit ships to favor us over the competition, said El Desouky. “By aligning our prices with industry standards, we can regain market share and attract more transit ships to our ports,” El Desouky explained.

Optimizing the use of a unified digitized system to streamline processes: Streamlining all the administrative processes of our ports into a unified digital system is crucial for enhancing the efficiency of these ports, according to El Desouky. “With timely data insights, we can promptly devise effective solutions, mitigating potential disruptions and optimization port operations,” El Desouky explained. This system is available in some ports such as Port Said, but its use still needs to be optimized, while in other ports it is completely absent, El Desouky added. Some of the existing digital operating systems include the THETIS MED system used for inspection processes, the Oracle OGG Gate Golden tool used for data transfer processes and the Automatic Identification System (AIS) tracking system for ships in 13 ports, according to the ministry’s report.

Deploying high-tech infrastructure: Upgrading container terminals, improving cargo handling equipment and facilities, and implementing advanced technology systems for streamlined operation could help us go a long way with improving the performance of our ports, said El Desouky.

REMEMBER- Some of our port operators are up for investment: The Financial Regulatory Authority (FRA) completed the fair value studies of the state-owned Damietta and Port Said terminal operators ahead of stake sales in the two firms. Both companies — subsidiaries of the Holding Company for Maritime Transport — were named in Madbouly’s list of 32 state-owned companies geared for privatization.

Your top infrastructure stories for the week:

NewMed and partners to build Egypt-Cyprus gas pipeline: The developers of Cyprus’ Aphrodite field plan to build a subsea pipeline linking the offshore gas reservoir to an Egyptian LNG processing facility.

Tags:

Hardhat Ibrahim El Desouky logistics ports

CALENDAR

JUNE

June: Suez Canal Economic Zone India roadshow.

June: Egyptian-Saudi business forum.

June: Indian Prime Minister Narandra Modi to visit Egypt.

5-8 June (Monday-Thursday): The International Telecommunication Union’s General Symposium for Regulators, Sharm El Sheikh.

7-10 (Wednesday-Saturday): Africa Health Excon, Egypt International Exhibition Center.

6-8 June (Tuesday-Thursday): Association for Iron and Steel Technology (AIST) MENA, Royal Maxim Palace Kempinski Hotel.

10 June (Saturday): Thanaweya Amma examinations begin.

11 June (Sunday): House reconvenes.

11 June (Sunday): National Dialogue.

12 June - 15 July (Monday-Saturday): Thanaweya Amma exams.

13-14 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

13 June (Tuesday): National Dialogue.

15 June (Thursday): National Dialogue.

18 June (Sunday): Senate reconvenes.

19-20 June (Monday-Tuesday): The forum for insolvency reforms and corporate restructuring in the Middle East and North Africa.

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo, Egypt International Exhibition Center.

19-21 June (Monday-Wednesday): Big 5 Construct, Egypt International Exhibition Center.

20 June (Tuesday):Capital Markets Annual Summit, Nile Ritz-Carlton Hotel.

22 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Egypt to exit Grains Trade Convention.

JULY

1 July: House of Representatives deadline to approve the FY 2023-2024 budget.

1 July: GAFI to launch the country’s first integrated electronic platform to facilitate setting up a business.

5 - 6 July (Monday - Tuesday): Gov’t to pay out subsidies to first wave of applicants under its sixth export subsidy program.

15 July (Saturday): Deadline for bids in EGPC’s mature oil fields tender.

18 July (Tuesday): Islamic New Year.

19 - 20 July (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

27 July (Thursday): National holiday in observance of Revolution Day.

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

2 - 3 August (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

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

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

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

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

November: Cairo to hostIntra-African Trade Fair.

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

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

DECEMBER

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

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

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

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

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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