{"id":557889,"date":"2021-09-09T13:18:27","date_gmt":"2021-09-09T13:18:27","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/09\/tonight-august-inflation-figures-up-slightly-dates-set-for-exporters-to-receive-subsidy-arrears-also-egypt-officially-a-member-state-of-africa-finance-corporation\/"},"modified":"2021-09-09T13:18:27","modified_gmt":"2021-09-09T13:18:27","slug":"tonight-august-inflation-figures-up-slightly-dates-set-for-exporters-to-receive-subsidy-arrears-also-egypt-officially-a-member-state-of-africa-finance-corporation","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/09\/tonight-august-inflation-figures-up-slightly-dates-set-for-exporters-to-receive-subsidy-arrears-also-egypt-officially-a-member-state-of-africa-finance-corporation\/","title":{"rendered":"TONIGHT: August inflation figures up slightly. + Dates set for exporters to receive subsidy arrears. ALSO: Egypt officially a member state of Africa Finance Corporation."},"content":{"rendered":"

Are we the only ones who feel as if the whole country woke up this week<\/strong> and tried to cram about two months\u2019 worth of business into the past five or so workdays? Not that we\u2019re complaining. As The Colonel used to tell us: It beats the alternative.<\/strong> Think on that as you enjoy one last weekend of relaxation before the kiddies head back to class on Sunday. That\u2019s when international schools regulated by the Ministry of Education open their doors for the 2021-2022 school year \u2014 and our Blessed Summer of Good Commutes comes to an end.<\/p>\n

<\/a> THE BIG STORIES SO FAR TODAY-<\/strong><\/p>\n

#1- Annual urban inflation accelerated in August on the back of rising food prices and <\/strong>transportation costs<\/strong>. Headline urban inflation rose slightly to 5.7% in August, up from 5.4% in July<\/a>. Although on a monthly basis, headline inflation fell to 0.1% in August, according to state statistics body Capmas<\/a>, it is the highest headline inflation rate recorded since November 2020<\/a>. Reuters also has the story<\/a>.<\/p>\n

Inflation (both global and domestic) will undoubtedly weigh in on the Central Bank\u2019s <\/strong>Monetary Policy Committee meeting on Thursday, 16 September<\/strong>. That said, inflation is still within the CBE\u2019s target range of 7% (\u00b12%), and we have the carry trade plus the US Fed\u2019s tapering of stimulus to keep in mind. Look to our poll of analysts this coming Sunday for their take on what the CBE is likely to do when it meets at the end of next week.<\/p>\n

#2-<\/strong> Egypt can handle any tapering by the US Federal Reserve, Finance Minister Mohamed Maait said<\/strong> in an interview with Bloomberg out today<\/a>. \u201cWe are closely monitoring\u201d how the Fed\u2019s decision could affect the cost of borrowing, Mohamed Maait said, adding that \u201cwe are taking into consideration our experience with such a situation. We have to be ready, always.\u201d.<\/p>\n

#3- Banque Misr will not be selling its 15% stake in Fawry Plus to Fawry, <\/strong>as it sees value in its stake in the company, sources from the bank told Enterprise this morning. The move comes a few days after Fawry announced in a bourse filing<\/a> that it will buy Banque Misr\u2019s 15% stake and CIB\u2019s 15% stake in Fawy Plus at EGP 1.15 per share, for a total of EGP 16.2 mn per acquisition.<\/p>\n

^^ We\u2019ll have chapter and verse<\/strong> on all three stories in Sunday\u2019s edition of EnterpriseAM<\/strong>.<\/p>\n

Exporters awaiting overdue subsidy payouts, rejoice. <\/strong>You\u2019ll be collecting this month and next, Finance Minister Mohamed Maait said in a statement<\/a> this morning. Exporters who are eligible for overdue subsidy payments under the latest incarnation of the subsidy program that launched in July will receive payouts on 30 September<\/strong> and on 28 October<\/strong>. Maait notes that the new program has been popular, with 1,650 companies signing on.<\/p>\n

Background: <\/strong>Following years of complaints of delayed payouts, the government launched last<\/a>year<\/a> a new program which allowed companies to receive overdue subsidies in bulk instead of in installments over several years, provided that they agree to take a 15% haircut. The current third stage<\/a> of the program will include exporters in the automotive, ceramics, pharma, electronics, and chemicals industries as well as featuring specific incentives to trade with other African countries.<\/p>\n

The government has so far doled out EGP 28 bn since the program was launched <\/strong>last year<\/strong>, Maait notes, with EGP 4.6 bn<\/a> in arrears paid out in the second stage.<\/p>\n

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<\/a> MEANWHILE- Egypt has officially become the newest member state of the Africa Finance <\/strong>Corporation (AFC)<\/strong>, Prime Minister Moustafa Madbouly said in a press release (pdf)<\/a> this morning. The move may help Egypt unlock some USD 1 bn in investments, Madbouly added. (We have background<\/a> and an interview<\/a> this past July with AFC chief Samaila Zubairu.)<\/p>\n

Tahya Misr w Afriqia:<\/strong> \u201cWe are already in discussions with AFC on a pipeline of projects, some of which includes supporting covid-19 vaccine manufacture, working closely with the Ministry of Transportation to fund the high speed train and the Cairo Monorail projects, as well as a collaboration with the Sovereign Fund of Egypt to fund renewable projects, and we look forward to executing these projects in line with the country\u2019s Vision 2030.\u201d<\/p>\n

Private sector firms hail int\u2019l investments, green initiatives in Egypt ICF: <\/strong>Egyptian firms\u2019 growing ability to obtain finance from international institutions was hailed by speakers in a session titled \u201cDialogue with the Private Sector\u201d at the inaugural Egypt-International Cooperation Forum (ICF) which wrapped up today, according to a cabinet statement<\/a>. Other achievements cited include green initiatives and infrastructure projects being undertaken by the government and private sector as well as the opening of new universities nationwide.<\/p>\n

Who presented?<\/strong> A number of Egypt\u2019s top companies took part in the forum, including our friends Orascom Construction, Hassan Allam, Elsewedy, TAQA Arabia. Participating development finance institutions included EBRD, IFC, and AfDB.<\/p>\n

President Abdel Fattah El Sisi used the form to call on the international community to <\/strong>support a global green recovery<\/strong>, saying it would entail governments, private sector firms, and financial institutions to work together multilaterally to ensure that the green recovery process happens quickly and equitably post-pandemic, according to the State Information Service<\/a>.<\/p>\n

On the sidelines: Nigeria\u2019s Finance Minister Zainab Ahmed revealed that Nigeria would sell USD 3 bn in eurobonds in October<\/strong> in a Bloomberg TV interview today (watch, runtime: 5:54<\/a>).<\/p>\n

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<\/a> HAPPENING NOW- Climate change was at the top of the agenda for Prime Minister <\/strong>Mostafa Madbouly<\/strong> as he met with top UNDP official Khalida Bouzar, according to a cabinet statement<\/a>. Madbouly pressed Egypt\u2019s case for hosting the UN Climate Change Conference (COP 27) <\/strong>in 2022.<\/p>\n

Egypt, Jordan, and Palestine hold tripartite meeting to discuss Palestine-Israel peace <\/strong>talks: <\/strong>Foreign Minister Sameh Shoukry met with his counterparts, Jordan\u2019s Ayman Safadi and Palestine\u2019s Riyad Al Maliki, to discuss restarting peace talks with Israel, and Gaza reconstruction, according to a cabinet statement<\/a>.<\/p>\n

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