{"id":563687,"date":"2021-07-13T04:00:49","date_gmt":"2021-07-13T04:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/tobacco-license-tender-to-be-rolled-out-on-1-august\/"},"modified":"2021-07-13T04:00:49","modified_gmt":"2021-07-13T04:00:49","slug":"tobacco-license-tender-to-be-rolled-out-on-1-august","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/tobacco-license-tender-to-be-rolled-out-on-1-august\/","title":{"rendered":"Tobacco license tender to be rolled out on 1 August"},"content":{"rendered":"

<\/a> Tobacco license tender goes live in August<\/strong>: Tobacco players will be able to bid for a license to establish Egypt\u2019s second major tobacco company from 1 August in the second iteration of a tender that was pulled earlier this year after attracting criticism for containing unfair terms, Al Shorouk<\/a> reports. The Industrial Development Authority (IDA) has now revised the conditions booklet and plans to open the tender for bidding at the beginning of next month, Federation of Egyptian Industries\u2019 (FEI) tobacco division Ibrahim Imbaby told the newspaper.<\/p>\n

Take one:<\/strong> The conditions booklet has been redrafted by the government more than two months after several tobacco players filed a couple of complaints<\/a> with the FEI, the IDA and the Egyptian Competition Authority (ECA), alleging that the license would provide preferential treatment to current tobacco monopoly Eastern Company and would set up a new monopoly over e-cigarettes and heated tobacco. Under the first tender, the new market entrant would have had to price its products 50% higher than Eastern<\/a>, and allow the state company to own a 24% stake.<\/p>\n

Take two:<\/strong> The new terms slash the number of cigarettes the company will have to produce to 1 bn each year, down from 15 bn in the original tender. The government has also agreed to issue more licenses following the tender, scrapping a rule that would have prevented new licenses in the decade following the tender.<\/p>\n

One controversial condition doesn\u2019t seem to have changed:<\/strong> Eastern Company will still own 24% of the new market entrant, according to Al Shorouk.<\/p>\n

And we\u2019re still none the wiser about the others:<\/strong> We don\u2019t know whether the new company would still be required to effectively price itself out of the market, nor is it clear how the new conditions would prevent an emerging e-cigarettes monopoly.<\/p>\n

The potential bidders:<\/strong> JTI-Nakhla Tobacco, British American Tobacco Egypt, Imperial Tobacco and Al Mansour International Distribution Company were all invited to bid in March<\/a> but it's unclear which will submit bids under the new conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tobacco license tender goes live in August: Tobacco players will be able to bid for a license to establish Egypt\u2019s second major tobacco company from 1 August in the second iteration of a tender that was pulled earlier this year after attracting criticism for containing unfair terms, Al Shorouk reports. The Industrial Development Authority (IDA) […]<\/p>\n","protected":false},"author":1,"featured_media":563688,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8787],"tags":[1978,72,7401],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-competition-watch","tag-competition-watch","tag-enterpriseam","tag-tobacco","wpautop","entry"],"acf":{"mongo_id":"58e0ff61-73f6-4b98-9954-bb740998c8bd","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/7\/182.jpg","photo_position":"above","related_issue":[563683],"teaser":"","voice_url":""},"yoast_head":"\nTobacco license tender to be rolled out on 1 August - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/tobacco-license-tender-to-be-rolled-out-on-1-august\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tobacco license tender to be rolled out on 1 August\" \/>\n<meta property=\"og:description\" content=\"Tobacco license tender goes live in August: Tobacco players will be able to bid for a license to establish Egypt\u2019s second major tobacco company from 1 August in the second iteration of a tender that was pulled earlier this year after attracting criticism for containing unfair terms, Al Shorouk reports. 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The license would allow for the establishment of Egypt\u2019s second major tobacco company, entering\u2026","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/243.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":554088,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/20\/tobacco-tender-boycott-take-two\/","url_meta":{"origin":563687,"position":1},"title":"Tobacco tender boycott, take two?","author":"enterpriseam admin","date":"20 December 2021","format":false,"excerpt":"Three major tobacco companies have reportedly chosen not to bid for a license to manufacture cigarettes: International tobacco producers JTI-Nakhla Tobacco, British American Tobacco Egypt and Al Mansour International Distribution Company will not be taking part in the renewed tender from the Industrial Development Authority (IDA), Akhbar El Youm reports.\u2026","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/399.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":558237,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/good-news-for-fdi-watchers\/","url_meta":{"origin":563687,"position":2},"title":"Good news for FDI watchers","author":"enterpriseam admin","date":"2 August 2021","format":false,"excerpt":"Tobacco giant Philip Morris is among several tobacco companies with local operations that are said to be interested in bidding for a license to set up Egypt\u2019s second tobacco company, Federation of Egyptian Industries\u2019 (FEI) cigarettes division Head Ibrahim Embaby told Al Mal. The period during which companies could submit\u2026","rel":"","context":"In "Investment Watch"","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/51.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561186,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/29\/the-latest-on-eastern-co\/","url_meta":{"origin":563687,"position":3},"title":"The latest on Eastern Co.","author":"enterpriseam admin","date":"29 March 2021","format":false,"excerpt":"New, more competitive terms for the license to establish Egypt\u2019s second major tobacco company could be introduced after several tobacco players filed a formal complaint with the Federation of Egyptian Industries\u2019 tobacco division. The complaint looks to scrap the conditions booklet the Industrial Development Authority (IDA) had issued for the\u2026","rel":"","context":"In "COMPETITION WATCH"","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":565392,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/06\/whats-up-with-the-tobacco-license-tender\/","url_meta":{"origin":563687,"position":4},"title":"What\u2019s up with the tobacco license tender?","author":"enterpriseam admin","date":"6 April 2021","format":false,"excerpt":"The tender for a license to set up Egypt\u2019s second tobacco company appears to be scheduled to go ahead later this month, after the Industrial Development Authority (IDA) decided over the weekend to shelve the tender, the local press reported, citing an unnamed IDA source. Two industry sources who spoke\u2026","rel":"","context":"In "SPEED ROUND: COMPETITION WATCH"","block_context":{"text":"SPEED ROUND: COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/350.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561906,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/26\/smoke-em-if-youve-got-em\/","url_meta":{"origin":563687,"position":5},"title":"Smoke \u2018em if you\u2019ve got \u2018em","author":"enterpriseam admin","date":"26 April 2021","format":false,"excerpt":"New rules for the license to establish Egypt\u2019s second major tobacco company are now officially being drawn up by the government, a month after several tobacco players filed a formal complaint asking the state to rewrite the conditions booklet, the local press reports, citing anonymous government sources. 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