Poland’s Hynfra to build USD 10.6 bn plant to produce, export green ammonia to Europe

Tuesday, 26 Nov 2024

Poland’s Hynfra to build USD 10.6 bn plant to produce, export green ammonia to Europe

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Today at a glance

Tax

Gov’t considers permanent property tax exemption for factories, residential tax reforms, and customs overhaul.

Energy

Poland’s Hynfra eyes USD 10.6 bn green ammonia plant in Egypt.

Startup watch

Watercycle Technologies raises USD 5.6 mn ahead of MENA expansion.

DEBT WATCH

Souhoola closes first EGP 478 mn securitized bond issuance.

Also on our Radar

Turkey’s Jade Textiles to invest USD 180 mn to build three new factories to double production capacity.

EGYPT IN THE NEWS

At least 16 missing after tourist boat capsizes in the Red Sea.

PLANET FINANCE

How will the incoming Trump administration affect the markets?

Going Green

How Big Scrappers is transforming Egypt’s recycling landscape.

What We're Tracking Today

It’s day one of Egypt Energy

Good morning, everyone. A big-ticket green energy investment is once again the main story of the day, this time with a multi bn green ammonia project. And there may be plenty more renewables investments to come this week with the start of Egypt Energy, set to kick off in a few hours.

PSA-

WEATHER- It’s another cool day in Cairo today, with a high of 20°C and a low of 13°C, according to our favorite weather app.

It’s a little cooler still in Alexandria, with a high of 19°C, a low of 15°C, and a chance of showers.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

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HAPPENING TODAY-

#1- This year’s Egypt Energy is kicking off today, and will run until Thursday. The event — promoted as North Africa’s largest energy gathering — will bring together local and international energy companies from the entire energy value chain from energy storage to transmission and renewable along with government officials from at home and the region. In addition to the 10k attendees and 180 exhibitors, 70 speakers are also booked to take part in the show’s conference.

#2- It’s day two of the World Investment Conference in Riyadh, with Investment Minister Hassan El Khatib in attendance to meet with a number of officials, business leaders, and company heads to push the case for investing in Egypt.

On day one of the conference, El Khatib met with his Saudi counterpart Khalid Al Falih, where the two ministers discussed the possibility of establishing joint investment projects in specific areas, according to a statement from the Investment Ministry. El Khatib emphasized the many advantages of investing in Egypt, including the availability of qualified labor and highly skilled engineers, competitive wages, advanced infrastructure, and energy availability, as well as its favorable trade agreements with countries around the world.

#3- It’s day two of the International Manufacturing Convention and Exhibition at Cairo’s Al Manara International Conference Center. The three-day Federation of Egyptian Industries-organized conference hosts local, regional, and international representatives from various manufacturing sectors.

HAPPENING TOMORROW-

Retail investors will soon get their chance to buy up a piece of United Bank in the offering’s retail placement set to begin tomorrow and run until 3 December. Retail investors will be able to pick up 5% of the offered up shares — totalling 16.5 mn shares — in the bank.

It looks like the bank’s private placement that wrapped yesterday was 6x oversubscribed, Al Mal reported just after the offering period came to a close. The placement offered up 95% of the offered shares — equivalent to 313.5 mn shares.

Remember: The total offering could see the bank raise up to EGP 5.1 bn by floating 330 mn of its shares — equivalent to a 30% stake.

HAPPENING NEXT WEEK-

This year’s Food Africa Expo is set to take place between 3-5 December, with the event set to take place at the Egypt International Exhibition Center. The three-day event will bring together wholesalers, distributors, and retailers in food and beverage industries from countries across the world. You can register on the event’s website.

DATA POINT-

Remittances from Egyptians working abroad more than doubled y-o-y in September to hit USD 2.7 bn, according to a statement (pdf) from the central bank. This brings total remittances during the first nine months of the year to USD 20.8 bn, up over 40% y-o-y from the USD 14.6 bn recorded during the same period last year.

It looks like the government should have an easy time hitting its remittances targets for the current fiscal year, with incoming funds surging 84.4% y-o-y to USD 8.3 bn during the first quarter of the fiscal year

Remember: Egyptians abroad have started sending more of their remittances through official channels after the float of the EGP put an end to the parallel market that had pushed remittance flows through unofficial channels. Remittances are an important source of FX for the country and the state is working to increase flows by 10% each year to reach USD 53 bn by 2030.

DEBT WATCH-

The CBE sold EGP 75.2 bn worth of t-bills with record average yields of 30.9% for three-month bills, 30.6% for six-month bills, 28.4% for nine-month bills, and 26.2% for year-long bills, according to data from the Central Bank of Egypt.

THE BIG STORY ABROAD-

Truce in Lebanon coming soon? Israel and Hezbollah are expected to clinch a ceasefire agreement “within days” following US and French-mediated negotiations, with the Israeli cabinet set to vote on an agreement later today. The agreement is likely to pass, officials say, particularly as Israeli Prime Minister Benjamin Netanyahu is “under pressure” from Washington to push through a ceasefire by the end of this week. The two sides made “significant progress” towards a pact despite some sticking points — including Israel looking to secure the right to strike southern Lebanon regardless of the ceasefire — and while Israel continued to hammer Beirut with more deadly attacks. (Reuters | New York Times | Bloomberg | Wall Street Journal)

ACROSS THE POND- The international press is also giving top billing to US president-elect Donald Trump’s vow to slap China, Mexico, and Canada with fresh tariffs once he’s in office. In two separate posts on his social media platform, Truth Social, Trump said he plans to impose an additional 25% tariff on goods coming in from Canada and Mexico and 10% for all imported Chinese goods as a punitive measure for illegal drug trading and immigration issues. (CNBC | Politico | Financial Times | WSJ | Reuters | Bloomberg | NYT)

*** 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 speak to Big Scrappers founder Moustafa El Kabbany to learn more about the company and its plans for the recycling sector.

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energy What We're Tracking Today

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Tax

Gov’t considers permanent property tax exemption for factories, residential tax reforms, and customs overhaul

Big reforms to the tax and customs systems are in the works: The government is mulling a permanent exemption for factories from property taxes and either raising the residential tax exemption cap or doing away with it altogether for first homes, Deputy Finance Minister for Taxes Sherif Al Kilani told EnterpriseAM. The measures are part of a broader plan to revamp the property tax law and resolve ongoing disputes.

Factories in the clear: While factories already enjoy a temporary three-year exemption introduced in 2022 and extended for key sectors until the end of 2026, Al Kilani said the government is now exploring a permanent exemption as part of its push to bolster local industry, reduce costs, and promote industrial growth. There are also other alternatives on the drawing board, with consultants set to be hired to undertake a thorough data-driven study.

There’s also some encouraging news for factories built on non-industrial land: The state is looking into legalizing the status of factories built on non-industrial land that kicked off operations before October 2023 and meet certain requirements, according to an Industry Ministry statement out earlier this week.

The tax man may also soon be taking a different approach to residential properties: The law currently sets an exemption limit of EGP 2 mn for residential properties, a threshold that Al Kilani says is outdated due to inflation and rising property prices. The ministry is considering either raising the cap or exempting private family residences entirely, while taxing additional properties. A phased rollout of the revised law is under consideration, starting with areas that have seen significant urban expansion, such as the North Coast, Sheikh Zayed, and the Fifth Settlement, before expanding nationwide, Al Kilani told us.

Property tax may soon undergo a digital transformation: The ministry plans to launch an automated platform to simplify property tax management. A consultancy firm will be hired to oversee its implementation and ensure it aligns with market realities, according to the deputy minister

Changes to customs procedures are also in the cards: The government is also revisiting customs procedures to align with global standards and improve efficiency. There is also a plan to create deterrences for those trying to cheat the system that do not rely on fines that some importers simply use as a way to circumvent customs procedures for a fee. Alongside this, Egypt plans to introduce a four-tier system — green, red, blue, and orange — for importers, allowing for faster clearance for compliant businesses. Currently, only the green and red pathways are used, leading to delays.

Tightened oversight is part of the plan: Temporary admission, duty drawbacks, and other customs exemptions are being restructured to close loopholes and ensure fair competition. The changes aim to address issues such as abuses in exemptions for disabled vehicle imports, while responding to the business community’s demands for transparency, Al Kilani told us.

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Energy

Poland’s Hynfra eyes USD 10.6 bn green ammonia plant in Egypt

There’s another USD multi bn ammonia plant in the works, with Polish renewables player Hynfra announcing its plans to set up a USD 10.6 bn green ammonia facility in Egypt with production capacity of 1 mn tons per year, according to a statement from the General Authority for Investment (GAFI).

The first phase of the project is set to be up and running by 2030, which will cost some USD 1.6 bn and have a production capacity of 100k tons of green ammonia per year, Hynfra CEO Tomoho Umeda said during a meeting with GAFI boss Hossam Heiba.

The plant is part of Hynfra’s plan to build five green ammonia facilities to supply Eastern and Central Europe with their green ammonia needs, but it appears that this will be the only based in Egypt.

The ammonia produced will all be headed to Europe, with long-term offtake agreements already having been inked between Hynfra and players in the continent. The EU plans to import 4 mn tons of green ammonia and 6 mn tons of green hydrogen annually by 2030 to help meet its decarbonization targets.

But we may be getting some of the surplus electricity produced by the project, with the solar and wind sources used to power the factory set to also feed into the national grid “most days of the year,” according to the statement.

Hynfra plans to transfer technical expertise to Egypt, focusing on renewable energy storage, electrolysis technologies, and water desalination. GAFI will also provide support with licensing and project execution.

Sound smart: Green ammonia and green hydrogen are often spoken about as if they’re the same thing — but while they are closely linked, they each have different purposes and place in the production chain. Green hydrogen is in essence hydrogen produced using renewables, while green ammonia is ammonia made using green hydrogen. Although green hydrogen is great for powering industry, power plants, and fuel cells, it’s difficult to store and transport. This is where green ammonia comes in, as it can be easily turned into a liquid at low pressures and transported using relatively standard bits of infrastructure — making it an ideal candidate for a way to export renewable energy.

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energy green ammonia renewables

Startup watch

Watercycle Technologies raises USD 5.6 mn ahead of MENA expansion

UK-based Watercycle Technologies closes Series A round ahead of MENA expansion: UK-based climate-tech startup Watercycle Technologies raised USD 5.6 mn in a series A round led by a syndicate of VC firm Par Equity and the Greater Manchester Combined Authority, business accelerator Aer Ventures, and the University of Manchester Innovation Factory, according to a company press release (pdf ).

Watercycle Technologies? The startup’s mission is to “provide secure and sustainable supplies of critical raw materials to support the net zero transition.” To do this, it is working to develop its mineral recovery systems and water treatment systems that extract saleable products from waste products like industrial wastewater and old batteries to lessen the need for further mineral extraction and its environmental cost.

Where are the funds going? The funds raised will help the company “scale up and commercially deploy its technology to deliver sustainable, low-cost, high-yield mineral recovery systems.” The funds will also help the startup develop new products, strengthen existing commercial relations and forge new ones.

The company is also eyeing expansion in the MENA region: Watercycle Technologies is “currently in negotiations with various entities within the MENA region to implement their latest innovations in seawater desalination. These efforts aim to eliminate the brine disposal problem that desalination faces by selectively recovering the minerals that the brine contains and selling them into a range of strategic industries.”

Egyptian DNA: The startup was founded by Egyptian water treatment technologies expert Ahmed Abdelkarim (LinkedIn) and Sebastian Leaper (LinkedIn).

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Startup watch startups

EARNINGS WATCH

Edita sees revenues rise 25.5% y-o-y in 3Q

Revenues up, incomes down for Edita in 3Q: Edita Food Industries saw its revenues rise by 25.5% y-o-y to EGP 3.9 bn during the third quarter of the year driven by a “price point migration strategy implemented to mitigate cost pressures” following the EGP float that saw average price per pack of its good sold rise around 50%, the local snackmaker said in its latest earnings release (pdf). Despite the rise in revenues, net income was down 15.9% y-o-y to EGP 357 mn during the same period.

The country’s sweet tooth helped drive the company’s topline, with the company’s cake segment revenues rising 27.6% y-o-y to EGP 1.9 bn and accounting for 48.9% of total revenues, which the company attributed to higher prices. In second place was the company’s bakery segment that brought in EGP 1.3 bn, up 11.3% y-o-y and accounting for 33.0% of total sales.

The company’s smaller segments grew the most during the period, with its biscuits segment rising 126.4% y-o-y in the quarter to EGP 34.6 mn in the quarter, alongside wafers that rose 50.9% y-o-y to EFP 353.7 mn and rusks that increased 52.0% y-o-y to EGP 198.8 mn.

On a 9M basis, Edita's revenues grew by 36.0% y-o-y to EGP 11.9 bn, which the firm said was driven by its “diversification strategy, focus on high-value propositions, and expansion into smaller segments,” the company said in an accompanying press release (pdf). The company’s net income fell by 6.4% during the period.

Exports are becoming increasingly important to the snackmaker, with export sales rising 71.9% in the quarter to EGP 533.1 mn on the back of strong demand in Palestine, Libya, Iraq, and Jordan, which collectively account for 87% of the company’s exports. Exports accounted for 13.8% of total revenues, a 3.8 percentage point increase from the same period last year.

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earnings earnings watch Edita

DEBT WATCH

Souhoola closes first EGP 478 mn securitized bond issuance

Souhoola has made its securitization debut: Banque Misr’s consumer finance firm Souhoola raised EGP 478 mn in its first securitized bond issuance, according to a statement (pdf ). The issuance came in three tranches with tenors ranging from 6 and 20 months, rated Prime 1 and A- by MERIS.

Part of a EGP 3.5 bn three-year program: The issuance is the first in a three-year, EGP 3.5 bn securitization program, which is among the firm’s efforts to expand its financing base, continue offering financial solutions, strengthening its market position, and supporting future expansion plans, Souhoola said in a separate statement (pdf).

Advisors: CI Capital acted as the financial advisor, issuance manager, bookrunner and lead arranger of the issuance. Russell Bedford was auditor and Alieldean Weshahi & Partners acted as legal advisor.

What they said: “This step directly contributes to expanding the company's market share in line with Souhoola 's expansion strategy for the coming period. This achievement is part of the company's commitment to its active role in enhancing financial inclusion, according to Egypt Vision 2030,” Managing Director Ahmed El Shanawany said.

DATA POINT: The transaction brings the total value of securitized bonds issued in Egypt so far this year to EGP 29.7 bn — 51.7% less than the amount raised in the same period last year — according to data tracked by EnterpriseAM.

Editor's note: The story was amended on 26 November 2024 to note that Suhoola is owned by Banque Misr and not a subsidiary of CI Capital.

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debt debt watch securitization Souhoola

Moves

New leadership for Egypt’s media authorities. PLUS: Sanofi taps new managing director

Fresh faces to lead Egypt’s media authorities: President Abdel Fattah El Sisi has issued decrees changing up the leadership of the country’s media regulators — the Supreme Council for Media Regulation (SCMR), the National Press Authority (NPA), and the National Media Authority (NMA).

The new line-up: The SCMR will now be headed by Khaled Abdel Aziz, former youth and sports minister, who will take over from Karam Gabr. Journalist Ahmed El Moslemany was appointed as the chairman of the NMA and Abdel Sadeq El Shorbagi’s time as head of the NPA was renewed for another four-year term.

AND- Sanofi has a new managing director for its Egypt arm: Healthcare company Sanofi has appointed Adrien Delamare-Deboutteville (LinkedIn) as managing director of Sanofi Egypt and general manager of Africa pharma, the company said in a press release (pdf). Delamare-Deboutteville had previously been leading Sanofi's operations in the region following his appointment as head of Africa back in February, and holds an 11 year career in the pharma industry across several multinational companies, including in GE Healthcare and PwC.

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media moves pharma Sanofi

LAST NIGHT’S TALK SHOWS

The state’s decision to remove 716 names from terrorist lists continued to get airtime

Amr Adib continued to voice his displeasure over the state’s decision to remove 716 names from the lists of terrorist entities and individuals, arguing that “99.9% of Egyptians oppose this decision” on his show El Hekaya (watch, runtime: 18:29).

“What happened yesterday and today is a test of this nation’s awareness. The state has its priorities, but the people have their loyalties,” Adib said. The host argued that the population as a whole kicked out the Muslim Brotherhood in the June 30 Revolution and that “it’s either us or them in this country.”

ALSO- The search for 16 missing people in the Red Sea received wall-to-wall coverage across the channels, with Red Sea Governor Amr Hanafi telling Amr Adib that "immediately after the incident, we coordinated with the Egyptian navy and air force to launch rescue efforts and search for survivors” (watch, runtime: 15:26). Hanafi was also keen to state that “the boat was equipped with all safety measures, underwent inspection last March, and had a valid license for a year with no technical faults.”

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LAST NIGHT’S TALK SHOWS politics

EGYPT IN THE NEWS

At least 16 missing after tourist boat capsizes in the Red Sea

Egyptian authorities are searching for 16 missing passengers after a tourist yacht carrying 45 people — 31 tourists and 14 crew members — went down in the Red Sea, just south of Marsa Alam. The vessel took off on Sunday from Porto Ghalib as part of a multi-day diving trip, before sinking after the boat was hit by a large wave that capsized the vessel. The Egyptian Meteorological Authority had warned of turbulence and high waves on the Red Sea on Sunday and Monday.

The Tourism Ministry is following up on the latest developments, having set up two control rooms — one in the new capital and another in the Red Sea governorate — to follow up on the rescue and search operations, according to a statement from the ministry.

PLUS- Cairo Airport feud catches the international press’ attention: The New York Times is out with a piece detailing Egypt’s 1.1k-word rebuttal to travel blogger Ben Schlappig’s critique of Cairo International Airport. Schlappig’s blog post titled Cairo Airport: Is There A Worse Major Airport?, which called the airport disorganized and its staff “actively hostile,” prompted the Civil Aviation Ministry to release a step-by-step account based on security footage, disputing his claims and questioning his motives. The ministry defended the airport’s nearly four-star rating and accused Schlappig of attempting to undermine the airport.

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aviation tourism

Also on our Radar

Jade Textile eyes three new factories for USD 180 mn. PLUS: Giza Spinning and Weaving, DHL, Ebda, Ashry Steel, Ecole Ducasse, Shell, SIAC, E-finance

INVESTMENT-

#1- Turkey’s Jade Textile plans to invest USD 180 mn to expand its presence in Egypt, with the aim of doubling its production capacity, Supply Chain Manager Ahmed Ibrahim told Amwal Al Ghad. The expansion includes a USD 65 mn smart green factory in Tenth of Ramadan to kick off operations in December 2025, a USD 35 mn facility in Borg El Arab to come online next summer, and a USD 80 mn expansion to its plant in Ismailia.

#2- Giza Spinning and Weaving plans to set up five new factories over the coming five years with combined investments of USD 15 mn, CEO Fadel Marzouk told Al Borsa. The company will establish one factory every year through 2029 in Upper Egypt, he said, adding that the move will double the company’s production capacity.

#3- Delivery service company DHL plans to invest up to EGP 500 mn in Egypt in 2025 as it looks to expand into new industrial zones and tap into the growing demand across different governorates, Egypt Country Manager Amr Tantawy told Al Borsa. The company plans to open five new branches and introduce new services like transit shipments and break bulk and is targeting expansion into newly established areas such as the new capital.

#4- Ebda to invest EGP 17 bn in eight industrial projects: The National Initiative for Developing Egyptian Industry (Ebda) has selected eight industrial projects to invest EGP 17 bn into as part of the Nile Fund for Industrial Development, Ebda head Amani Eid said yesterday, according to Al Mal.

#5- Ashry Steel is gearing up to launch its new EGP 1.5 bn galvanization and lighting poles factory in Sixth of October next month, Al Borsa quotes Ashry Steel Sales Manager Mohamed Ali Gad as saying. The factory, which is being built on an area of 45k sqm, is expected to see its production reach 1 mn tons annually.

AGRICULTURE-

The planned 1 mn feddan integrated farming zone in the New Valley Governorate courtesy of Chinese companies will require investments totaling USD 7 bn, Egyptian-Chinese Businessmen Association Secretary General Mohamed Alaa El Din told Asharq Business. The first phase, covering 1k feddans, is expected to be completed by September 2025, with additional phases under discussion. Some of the strategic crops planned for cultivation include wheat, corn, soybeans, and sunflower, Alaa El Din said.

HOSPITALITY-

Ecole Ducasse is set open one of its culinary and pastry schools in Cairo by the end of 2025 under a partnership with Reliance Egypt, the international culinary school network announced in a press release (pdf). The school will offer a range of courses that include everything from “short cooking and pastry classes to intensive programs and masterclasses targeting both local and regional students who are passionate about mastering the art of cooking.”

MINING-

The Mineral Resources Authority is looking into the possibility of establishing a gold refinery in the Red Sea governorate, with the authority currently in the process of identifying the most suitable location near Marsa Alam for the refinery, Al Borsa reports, citing an unnamed source from the authority. The refinery — which will process locally mined gold — could cost anywhere between USD 20-40 mn to build, the source said, adding that work on the project could begin in mid-2025.

ENERGY-

Shell to up gas production: UK oil and gas giant Shell will boost its natural gas production by 170 mn cubic feet per day by the end of December, an anonymous government official told Asharq Business. The firm will up its production from three fields in the West Delta region.

IPO WATCH-

SIAC Holding plans to IPO within the coming two years and is in negotiations with a number of advisors to manage the offering, SAIC Developments CEO Nahla Elebiary told Mubasher.

FINTECH-

Saudi Arabia’s National Security Services Company (SAFE) will provide EGX-listed fintech giant E-finance with “comprehensive and secure security system for digital payments” under an MoU inked between two sides during Cairo ICT. Under the MoU, e-Finance will provide cloud hosting, expertise, and marketing services, while SAFE will supply the necessary equipment and technical experts. The two companies will also collaborate on international money transfer services between Saudi Arabia and Egypt, according to Al Mal.

ENVIRONMENT-

The government is working to contain an oil spill after a cargo ship ran aground off the coast of El Qusier, according to a statement by the Environment Ministry. The vessel lost control due to a technical malfunction.

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ALSO ON OUR RADAR e-finance Ebda energy Fintech Giza Spinning and Weaving hospitality Manufacturing mining Shell textiles

PLANET FINANCE

How will the incoming Trump administration affect the markets?

A Trump presidency is likely to bring with it big changes in geopolitics and the global economy, so investors need to take a close look at how the incoming Trump administration will affect the markets — and what to do protect and strengthen their portfolios, Swiss investment bank UBS writes in its Year Ahead 2025 report (pdf).

One winner under the Trump administration will be US stock markets, thinks UBS, which it has backed up with its forecast that the S&P 500 should reach 6.6k points by the end of 2025 — a roughly 10% jump from where the index stands now. In addition to expectations of decent growth, the Fed continuing to cut rates, and the rise of AI — which had all been priced in before the election — the approaching Trump presidency brings with it pledged tax cuts and deregulation that UBS thinks will help support US stocks.

But stock markets elsewhere may not be so fortunate, with Trump’s proposed tariffs — particularly on China — potentially making a big dent in investor confidence. With the president elect already floating a 60% tariff on Chinese goods and a 10% tariff on imports from elsewhere, the bank forecasts the likelihood of market volatility over the pond in Europe and in the world’s second largest economy.

US Bonds are also likely to soon lose their shine, after having seen their yield rise on the announcement of Trump winning the White House earlier this month. The bank is telling investors to lock in return now before more interest rate cuts from the Fed and Trump’s desire to relax fiscal policy facing likely hurdles in Congress sends yields down.

An increasingly strong greenback is also set for a reckoning, according to the bank, with the USD’s post-election honeymoon forecast to be a short-term thing as it becomes apparent that is both overvalued and overstretched.

Gold prices should be back on the up in 2025, allowing the safe-haven asset once again to take its place as an important hedge for investors against inflation, geopolitics, and other concerns. The bank — which advises that investors keep 5% of their investments in gold — sees the previous metal rising to USD 2.9k per oz, a nearly 10% increase from current prices.

MARKETS THIS MORNING-

Asian markets are mostly starting the day off in the red despite US stocks hitting new records the day before, with Japan’s Nikkei leading the pack in the red at -1.3% and Korea’s Kospi at -0.7%. China’s Shanghai index is in the green by 0.3% and Hong Kong’s Hang Seng is up 0.4%.

EGX30	30,271	-0.4% (YTD: +21.6%)
USD (CBE)	Buy 49.55	Sell 49.68
USD (CIB)	Buy 49.57	Sell 49.67
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,788	-0.7% (YTD: -1.2%)
ADX	9232	0.0% (YTD: -3.6%)
DFM	4768	+1.0% (YTD: +17.5%)
S&P 500	5987	+0.3% (YTD: +25.5%)
FTSE 100	8292	+0.4% (YTD: +7.2%)
Euro Stoxx 50	4800	+0.2% (YTD: +6.2%)
Brent crude	USD 73.15	-2.7%
Natural gas (Nymex)	USD 3.37	+7.7%
Gold	USD 2,642.60	-3.5%
BTC	USD 93,749.90	-4.3% (YTD: +122.3%)

THE CLOSING BELL-

The EGX30 fell 0.4% at yesterday’s close on turnover of EGP 3.7 bn (12.4% below the 90-day average). International investors were the sole net buyers. The index is up 21.6% YTD.

In the green: Ezz Steel (+2.8%), TMG Holding (+2.4%), and Abu Dhabi Islamic Bank (+0.6%).

In the red: Faisal Islamic Bank -EGP (-5.7%), EFG Holding (-2.7%), and Juhayna (-2.2%).

CORPORATE ACTIONS-

Concrete Fashion Group will convert all its shares in subsidiaries Swiss Garments and Cristall for Making Shirts into indirect ownership, according to a decision from the company’s board detailed in an EGX disclosure (pdf). The move is pending the necessary approvals from the Financial Regulatory Authority and other relevant entities.

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Financial Markets interest rates Planet Finance

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Going Green

How Big Scrappers is transforming Egypt’s recycling landscape

Meet Big Scrappers, the tech-driven solution revolutionizing Egypt’s recycling industry: App-based recycling delivery service Big Scrappers is the recycling industry’s answer to Talabat, with the company combining digital convenience and reliable recycling services in a bid to transform Egypt’s circular economy. EnterpriseAM sat down with Big Scrappers founder Moustafa El Kabbany to learn more about the company and its plans for the sector.

It's a simple concept: All users need to do is download the app, snap a photo of their recyclables, and Big Scrappers will handle the rest. The app matches users with nearby pickup routes, sends a truck to weigh and pick up the items, and rewards customers with cash or redeemable points — the latter of which can be used on Big Scrappers' e-commerce platform to buy items ranging from electronics to beauty products and even gold. Customers can also drop off recyclables at any of Big Scrappers’ five local stores.

Remember: The government has been doubling down on waste management of late, with several recent offerings announced for private sector investment in wastewater treatment and recycling facilities and an ambitious plan to set up USD 1.2 bn worth of waste-to-energy projects in the coming period.

Big Scrappers runs on a B2B and B2C business model, with the company collecting a minimum of 2 kg of sorted plastics, glass, cans, and paper from households, restaurants, cafes and factories and delivering them to recycling centers.

This marks a departure from your bread-and-butter recycling practices: Egypt last year ranked first regionally and fourteenth globally with regard to recycling rates, with Cairo’s Zabaleen (informal waste recyclers) standing to take much of the credit. Despite this, the recycling process itself remains fragmented and generally doesn’t include the immediate consumer. With solid waste production set to double in the MENA region by 2050, a more comprehensive solution is needed.

Big Scrappers is giving people a reason to recycle: With the company’s cash-and-points incentive system and competitive pricing of EGP 90 per kg, Big Scrappers is now prompting people who are not necessarily environmentally conscious to recycle. “Not only are people throwing away money, but not sorting and recycling garbage then becomes an expensive problem for the government,” El Kabbany explained.

Few competitors, widespread digital savviness, and minimal barriers to entry have enabled Big Scrappers to grow into Egypt’s largest recycling service, currently operating in Cairo, Giza, Alexandria, and Mansoura governorates. With a targeted expansion rate of two governorates a month, the company expects to cover the entirety of Egypt within a year. Big Scrappers has also struck out internationally, with recycling operations in Bosnia and plans to enter the UAE this year.

The industry is a lucrative one: Globally, the recycling industry is worth some USD 62 bn, with profit margins reaching up to 30%, depending on the material. Egypt is no different, with the existence of standalone recycling facilities enabling companies like Big Scrappers to scale up and make sustainable profits with minimal overhead.

The key is keeping things simple: While some recycling companies eventually turn toward manufacturing with recycled products, Big Scrappers is keeping its focus on transportation, sorting, and streamlined logistics. “Our business doesn’t get bogged down by manufacturing, instead, we add value through fast, organized collection,” El Kabbany said.

Egypt’s solid digital infrastructure also helps: While Egyptians may not have an existing recycling culture, they do respond well to cash incentives and have sufficient digital literacy to use the app, which has enabled the company to easily grow in the market, El Kabbany explained. High mobile penetration in the country also supports growth in the digital recycling sector, which is now accessible to Egyptians from many walks of life.

It’s not just about business, though: As part of the company’s mission to effect a shift in cultural norms around recycling, Big Scrappers has launched what it calls the Green Scouts initiative, which teaches waste sorting and storage in an effort to spread greater environmental consciousness. The outreach program — currently operating in twelve schools and four universities — emphasizes practical education, teaching students how to manage different materials like aluminum and glass.

Looking forward, Big Scrappers aims to add some 30 stores across Egypt in the coming period, with long-term plans of expanding operations to 30 countries over the next five years. In the meantime, the company is focused on maintaining a simple business model and scaling its operations as it seeks to improve waste management and introduce the circular economy to homes and businesses across the world.

Your top green economy stories for the week:

The Ins. Federation of Egypt has purchased 350 carbon certificates in the Egyptian Biodynamic Association’s Minya Complex. The certificates will offset emissions from flights transporting guests to the ins. conference in Sharm El Sheikh. (Statement)
Egypt will purchase 180 electric public buses funded by a World Bank-funded project to improve air quality and noise protection.
Agribusiness firm Orange Be Global plans to set up an agricultural, industrial, and educational complex in Egypt, which is currently in the land allocation phase. (Statement)

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CALENDAR

2024

NOVEMBER

23-26 November (Saturday-Tuesday): Moscow delegation visit to Cairo and Alexandria.

25-27 November (Monday-Wednesday): Annual Digital Nation Conference, Cairo, Egypt.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

27 November-3 December (Wednesday-Tuesday): United Bank IPO retail placement

28-30 November (Thursday-Saturday): Cairo International Wood and Wood Machinery Show, Cairo, Egypt

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste.

29 November (Friday): Startup Sync, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

7 December (Saturday): The Scientific Society for Tax Legislation will hold its annual conference.

12-21 December (Thursday-Saturday): Turathna handicrafts and heritage exhibition, Egypt International Exhibitions Center, Cairo

15-17 December (Sunday-Tuesday): Nebu Expo for Gold & Jewelry, Cairo, Egypt.

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK.

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

EVENTS WITH NO SET DATE

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

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

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.

22 December (Sunday): The Nahda University Economic Forum’s third edition is set to take place.

2025

January: Civil Society Support Fund to launch digital platform

January: CBE to launch InstaPay remittances for Egyptians abroad

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja.

7-10 April 2025 (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE.

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1Q 2025: Eipico’s biopharma plant to begin operations .

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2Q 2025: Safaga Terminal 2 to start operations.

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

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

September 2028: First unit of the Dabaa nuclear power plant begins operations.

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