{"id":554784,"date":"2021-11-11T13:51:54","date_gmt":"2021-11-11T13:51:54","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/tonight-traders-give-thumbs-up-to-new-egx-tax-cuts-el-sisi-in-paris-for-libya-conference-our-ev-assembly-plans-with-dongfeng-just-hit-a-wall\/"},"modified":"2021-11-11T13:51:54","modified_gmt":"2021-11-11T13:51:54","slug":"tonight-traders-give-thumbs-up-to-new-egx-tax-cuts-el-sisi-in-paris-for-libya-conference-our-ev-assembly-plans-with-dongfeng-just-hit-a-wall","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/tonight-traders-give-thumbs-up-to-new-egx-tax-cuts-el-sisi-in-paris-for-libya-conference-our-ev-assembly-plans-with-dongfeng-just-hit-a-wall\/","title":{"rendered":"TONIGHT: Traders give thumbs up to new EGX tax cuts + El Sisi in Paris for Libya conference + our EV assembly plans with Dongfeng just hit a wall"},"content":{"rendered":"

We\u2019ve come to the end of one busy week, <\/strong>ladies and gentlemen, where a number of major M&As, potential IPOs, major regulatory changes to the EGX and more are keeping us busy. Tomorrow is also the final day of COP26 where Egypt signed on to a number of climate change agreements and targets. Before we close out the week with today\u2019s main headlines, we have updates\u2026<\/strong><\/p>\n

<\/a> MARKET WATCH- The market appears to have taken kindly to the package of EGX tax cuts and fee<\/strong> reductions<\/strong> the Madbouly cabinet rolled out yesterday<\/a>, closing the trading day today up 0.8% after a mixed week. The EGX30 is now up 6.7% YTD.<\/p>\n

What\u2019s in the package, again?<\/strong> The new measures were unveiled in a bid to encourage trading on the bourse ahead of the introduction of the (so far not-popular) capital gains tax on resident investors at the beginning of next year. Investors are set to pay reduced trading and clearance fees, all of which will be tax-deductible, while taxes on share swap transactions will be slashed by more than half and new measures will be put in place to mitigate the tax implications of capital increases, among a raft of other incentives.<\/p>\n

<\/a> Further afield, Anghami now has until 11 February, 2022 to pull the trigger on its merger with<\/strong> blank-check firm Vistas Media Acquisition Company<\/strong> and list on the Nasdaq<\/a>, after Vistas\u2019 sponsor made a USD 1 mn extension payment, according to an SEC filing<\/a>. This is the second time the streaming platform\u2019s SPAC merger deadline has been extended, after the company previously pushed the deadline from August<\/a>.<\/p>\n

Tuk-tuk parts import ban is now the law of the land: <\/strong>The import ban on basic components for the local assembly of tuk-tuks came into effect today, as Trade Minister Nevine Gamea\u2019s decision<\/a> was published in the Official Gazette (pdf<\/a>). Local auto player GB Auto, whose larger motorcycles and three-wheelers segment made up roughly 16% of its revenue, told us that they have seen the writing on the wall and are actively exploring alternatives. You can catch the highlights of what they told us here<\/a>.<\/p>\n

THE BIG STORIES TODAY<\/strong><\/p>\n

<\/a> Our EV assembly plans with Dongfeng just hit a wall:<\/strong> Talks with China\u2019s Dongfeng to locally assemble its E70 electric vehicles have come to a halt due to an import pricing dispute with the automaker, as per a Public Enterprises Ministry statement (pdf)<\/a> today. State-owned El Nasr Automotive had signed an agreement<\/a> with Dongfeng in January to locally assemble electric vehicles in El Nasr\u2019s factory through one of the Chinese group\u2019s subsidiaries. Dongfeng and El Nasr were unable to agree on a suitable price point for imported materials, causing negotiations to falter, the ministry said.<\/p>\n

El Nasr is currently seeking out another partner for the project<\/strong>, and is expected to reach a decision before the end of November, the statement says.<\/p>\n

Another EV missed chance?<\/strong> Egypt did not sign on to a new COP26 agreement<\/a> between 24 governments and leading car manufacturers committing them to selling only zero-emission new vehicles by 2040 \u201cor earlier.\u201d Some of the world\u2019s largest auto players and biggest markets were also strikingly absent from the agreement, notes the FT<\/a>. These include China, the US and Germany, and four out of the five largest global carmakers \u2014 Volkswagen, Toyota, the Renault-Nissan alliance, and Hyundai-Kia.<\/p>\n

Our regional auto rivals, including Morocco and Turkey,<\/strong> were among the nine EMs committed to accelerating the adoption of zero-emission vehicles. Just saying, it\u2019s not a good look.<\/p>\n

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Naguib Sawiris is having a press field day<\/strong>, talking about everything from his outlook on Egypt\u2019s gold prospects<\/a> and \u201cgreen\u201d mining<\/a> to BTC, Ora Developers\u2019 expansion<\/a> and a possible exit from Euronews. Key takeaways so far: Sawiris is looking to diversify his La Mancha gold fund to also look at battery materials (such as nickel and lithium), run his gold concession sites on solar energy and set Ora Developers on a USD 1 bn path to expand in Africa.<\/p>\n

^^ We\u2019ll have these stories and more in Sunday\u2019s edition of EnterpriseAM.<\/strong><\/p>\n

<\/a> HAPPENING NOW- <\/strong>President Abdel Fattah El Sisi is in Paris ahead of tomorrow\u2019s conference on<\/strong> Libya, where he\u2019s set to chat with French President Emmanuel Macron<\/strong>, according to an Ittihadiya statement<\/a>. The UN-sponsored conference will be paving way for Libya\u2019s planned elections on December 24. El Sisi spoke with the chair of Libya\u2019s presidential council Mohamed El Menfi earlier this week<\/a> ahead of the conference, which is meant to lay the groundwork for next month\u2019s crucial presidential elections. El Sisi is also scheduled to hold meetings with senior French officials to discuss economic, commercial, investment and security cooperation, says the statement.<\/p>\n

OBITUARY<\/strong>- Iconic Egyptian painter Gazbia Sirry<\/strong> died<\/a><\/strong> last night at the age of 96<\/strong>.<\/strong> Sirry, who was a professor at Helwan University\u2019s Faculty of Arts and at AUC, led a 50-year career in art that was featured paintings characterized by strong female unity, polygamy and fertility and the reproductive power of women.<\/p>\n

** CATCH UP QUICK <\/strong>on the top stories from today\u2019s EnterpriseAM:<\/strong><\/p>\n