{"id":546041,"date":"2022-04-26T04:06:17","date_gmt":"2022-04-26T04:06:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/26\/this-morning-a-brief-workweek-before-another-long-holiday-big-pressures-on-the-worlds-palm-oil\/"},"modified":"2022-04-26T04:06:17","modified_gmt":"2022-04-26T04:06:17","slug":"this-morning-a-brief-workweek-before-another-long-holiday-big-pressures-on-the-worlds-palm-oil","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/26\/this-morning-a-brief-workweek-before-another-long-holiday-big-pressures-on-the-worlds-palm-oil\/","title":{"rendered":"THIS MORNING: A brief workweek before another long holiday + Big pressures on the world\u2019s palm oil"},"content":{"rendered":"

Good morning, wonderful people, and welcome to a very short workweek. <\/strong>We hope your Easter \/ Sham El Nessim \/ Sinai Liberation long weekend was fantastic \u2014 and that you, like us, are looking forward to Eid.<\/p>\n

Where did we leave things off last week? <\/strong>We took a publication holiday last Thursday to sleep in after celebrating our company iftar (as is our tradition each year). When we last had the privilege of writing you, the IMF had downgraded its global growth expectations<\/a> (but thought Egypt would be okay-ish), CIB\u2019s new Emirati shareholder<\/a> had given management the thumbs-up, and Vodafone Egypt had bought 10%<\/a> of e-payments platforms Bee and Masary.<\/p>\n

Where are we now in time and space? <\/strong>Let\u2019s start with some things you need to keep your eye on this week:<\/p>\n

WATCH THIS SPACE #1- The IMF \/ World Bank Spring Meetings came to an end on <\/strong>Sunday \u2060\u2014 and there has been no <\/strong>word on how Egypt\u2019s <\/strong>talks with the Fund<\/a><\/strong> for a new programme are progressing.<\/strong> The Finance Ministry issued a boilerplate statement<\/a> following talks between Mohamed Maait and IMF head Kristalina Georgieva last week that gave little away. Georgieva said ahead of the meetings<\/a> that the Fund would discuss the problem of Egypt\u2019s rising debt levels.<\/p>\n

WATCH THIS SPACE #2- Details on the state privatization program to be announced <\/strong>after Eid: <\/strong>The government is set to announce its strategy to privatize state-owned firms and boost private-sector participation in the economy at a press conference after the Eid Al Fitr holiday, Prime Minister Moustafa Madbouly said at last week\u2019s cabinet meeting, according to a statement<\/a>. The \u201cstate ownership policy document<\/strong>\u201d \u2014 which will act as a roadmap<\/a> to reduce the state\u2019s involvement in the economy \u2014 will \u201cempower the private sector and regulate the state's presence in economic activity to complement the governmental reforms adopted by the Egyptian state,\u201d Madbouly said. The government has previously signaled it will bring new assets to market, including fresh IPOs; sales of additional stakes in already-listed, state-controlled companies; and shares in military-owned companies.<\/p>\n

Military firms up first?<\/strong> It should come as no surprise that two of these companies could be bottled-water maker Safi<\/a><\/strong> and filling station operator Wataniya<\/a><\/strong>, Sovereign Fund of Egypt chief Ayman Soliman told Bloomberg Asharq<\/a>. Steps have been taken to prepare the two military-owned companies for public or private offerings before summer, he said.<\/p>\n

WATCH THIS SPACE #3- It\u2019s bad news if you like fried foods \u2014 and for mns around the <\/strong>world who rely on seed oils for a big portion of their daily calories. <\/strong>Indonesia shocked markets on Friday when it announced a ban on palm oil exports<\/a>. The country accounts for more than half of the world\u2019s palm oil, which is used in everything from chocolate to cosmetics.<\/p>\n

Egypt is among the world\u2019s top buyers of palm oil:<\/strong> Indonesia supplied almost 90% of Egypt\u2019s palm oil in 2020, according to UN figures. Egypt had been forecast (pdf)<\/a> to import nearly 1.3 mn metric tons of the stuff from October 2022 through September 2023.<\/p>\n

The timing couldn\u2019t be worse: <\/strong>The edible oils market is already reeling from the war in Ukraine, which prior to Russia\u2019s invasion was the world\u2019s top exporter of seed oils and the global number one producer of sunflower oil. Expect Indonesia\u2019s ban to further fuel food price inflation globally, Bloomberg<\/a> writes.<\/p>\n

WATCH THIS SPACE #4- We could soon get news on which companies have been <\/strong>exempted from <\/strong>the new private-sector minimum wage. <\/strong>The National Wage Council has agreed on a mechanism to notify companies of the result of their exemption requests and will next week make one form available online to streamline the application process, according to a statement<\/a>. Some 3k companies have so far submitted requests to be exempted from the EGP 2.4k minimum wage requirement that came into effect at the start of the year, the statement read. Nearly 40% of those applications have been reviewed. Firms requesting exemptions are required to present proof<\/a> that they will incur losses or other evidence that their industry has faced disruptions.<\/p>\n

We think any exemptions given should be time-limited <\/strong>and ideally non-renewable. If you can\u2019t pay your people a living wage (and EGP 2.4k falls short of that mark), does your business really deserve to exist?<\/p>\n

WATCH THIS SPACE #5-7: <\/strong><\/p>\n