{"id":586076,"date":"2023-05-04T00:00:00","date_gmt":"2023-05-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/04\/private-sector-is-still-in-contraction-madbouly-to-hold-intl-presser-on-the-economy-within-days\/"},"modified":"2023-05-04T00:00:00","modified_gmt":"2023-05-04T00:00:00","slug":"private-sector-is-still-in-contraction-madbouly-to-hold-intl-presser-on-the-economy-within-days","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/04\/private-sector-is-still-in-contraction-madbouly-to-hold-intl-presser-on-the-economy-within-days\/","title":{"rendered":"Private sector is still in contraction + Madbouly to hold int\u2019l presser on the economy within days"},"content":{"rendered":"

Good morning, friends. <\/span>We hope you\u2019re having yet another wonderful long weekend \u2014 make the most of it: it\u2019s the last one we\u2019ll get until the end of June. <\/span><\/p>\n

We\u2019re also only one weekend away from\u2026<\/span><\/p>\n

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The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking <\/span>place on Monday, 15 May.<\/span> The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI). <\/span>The event will take place at<\/span>the Four Seasons, Nile Plaza. <\/span><\/p>\n

Why exports & FDI?<\/span> In the wake of successive floats of EGP, exports and FDI have never been more important to our economy \u2014 or our businesses. We\u2019re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. <\/span>Expect it to be heavy on lessons learned in Egypt and other global growth markets \u2014 and lots of success stories.<\/span>You can learn more on our conference website here<\/a><\/span>.<\/span><\/p>\n

ON THE AGENDA- We have seven panels where we discuss the steps these leaders and companies are taking to pull in FDI and to make their business export-driven.<\/span> There will be several \u201clessons-learned\u201d panels that include an Egyptian product focused one that looks at white goods, consumer electronics, fertilizers and garments. Another intends to extend the steps taken to create an export and FDI strategy through listening to the advice of other c-suite executives who have successfully made their business move in that direction. More panels include how to identify and pull in the right foreign partner, how to become part of a multinational\u2019s supply chain, how industrial clusters can offer a way for SMEs to be part of our export economy and what industries of tomorrow we can leapfrog into. <\/span>You can check out the full agenda <\/span>here<\/a><\/span>. <\/span><\/p>\n

Some of the biggest names in business and finance are on board:<\/span> The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:<\/span><\/p>\n

Banking partners:<\/span> Banque Misr | Al Baraka Bank | Emirates NBD | HSBC <\/span><\/p>\n

Lead partners:<\/span> DB Schenker | DP World | East Port Said Development | IDG | IFC | Madinat Masr<\/span><\/p>\n

Event partners: <\/span>Beyti | Concrete | Global Corp | Grant Thornton | Hassan Allam Utilities | Royal Ceramica <\/span><\/p>\n

WANT TO BECOME A COMMERCIAL PARTNER?<\/span> Ping a note to <\/span>Moustafa, our head of commercial, here<\/a><\/span>.<\/span><\/p>\n

HAVEN\u2019T REQUESTED AN INVITE YET?<\/span> If you\u2019re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please <\/span>fill out the form here<\/a><\/span> to signal your interest, letting us know your name, title and where you work.<\/span><\/p>\n

Enterprise Weekend comes out each Friday at 9:00am CLT.<\/span> We\u2019ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.<\/span><\/p>\n

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LAST WEEK IN 3 MINS-<\/span><\/p>\n

<\/span> The newsflow has been steadily picking up following the eid lull<\/span>, with news <\/span>on <\/span>everything from development finance and legislation to updates on the state privatization program.<\/span><\/p>\n

ECONOMY-<\/span><\/p>\n

#1- Our balance of payments turned a surplus for the first time in years in 1H FY 2022-2023<\/span>, rising 77.2% y-o-y to reach USD 1.8 bn, according to Central Bank of Egypt <\/span>figures (pdf)<\/a><\/span>.<\/span><\/p>\n

#2- S&P Global Ratings lowered its credit outlook on NBE, Banque Misr and CIB to negative. <\/span>The ratings agency <\/span>held the three banks\u2019 credit ratings at B<\/a><\/span>, the same as its rating of Egypt\u2019s sovereign credit, which it had also downgraded late last month. <\/span><\/p>\n

#3- Prime Minister Moustafa Madbouly <\/span>acted to reassure<\/a><\/span> foreign investors that our debt is under control, after a <\/span>sell-off<\/span>of Egypt\u2019s USD bonds, triggered by S&P Global\u2019s downgrade of Egypt\u2019s sovereign credit, accelerated.<\/span><\/p>\n

#4- PMI inches up, but remains in contraction:<\/span> Activity in Egypt\u2019s non-oil private sector remained in contraction territory in April as the depreciation of the EGP, high inflation, and import restrictions continued to weigh on inventories, according to <\/span>S&P Global\u2019s purchasing managers' index (pdf)<\/a><\/span>. April\u2019s PMI score inched up to 47.3, rising from <\/span>46.7 in March<\/a><\/span>. The reading means activity is still shrinking, but is the highest level the PMI has hit since last October. <\/span><\/p>\n

#5-<\/span>Our net foreign reserves also inched up to USD 34.56 bn in April<\/span> from<\/span>USD 34.45 bn in March<\/a><\/span>, according to <\/span>central bank data<\/a><\/span>. Reserves have been on a gentle upward slope the past seven months, after falling <\/span>20%<\/a><\/span>last year on the back of the war on Ukraine and tougher financial conditions.<\/span><\/p>\n

^^ We\u2019ll have more on the above in Sunday\u2019s EnterpriseAM.<\/span><\/p>\n

PLUS- Reuters has a gloomier forecast for GDP growth: <\/span>Egypt\u2019s economy is expected to grow 4.0% this year, according to <\/span>a Reuters poll<\/a><\/span> conducted in April. The forecast marks a downward revision of the newswire\u2019s January forecast \u2014 which predicted 4.8% growth this year \u2014 and falls in line with expectations from the government, the World Bank and S&P Global Ratings. <\/span><\/p>\n

PRIVATIZATION WATCH-<\/span><\/p>\n

#1- Pachin finally has new owners: <\/span>Dubai-based National Paints Holding (NPH) <\/span>has acquired<\/a><\/span> over 80% of EGX-listed Paint and Chemical Industries (Pachin) for around EGP 770.5 mn in its mandatory tender offer that wrapped, following a heated bidding war between NPH and Eagle Chemicals that saw back-and-forth of bids and counter-bids saw Pachin\u2019s value more than double to EGP 955.2 mn. The government offloaded its 19.36 mn shares to the Emirati company, which had offered to purchase up to 100% of the firm at <\/span>EGP 39.80 apiece<\/a><\/span>.<\/span><\/p>\n

#2- Secondary stake sales in Abu Qir Fertilizers, Sidpec next? <\/span>State-owned and EGX-listed companies Abu Qir Fertilizers and Sidi Kerir Petrochemicals (Sidpec) <\/span>could be next in line<\/a><\/span> for a sale in the Madbouly government\u2019s privatization drive. <\/span><\/p>\n

Prime Minister Moustafa Madbouly <\/span>said<\/a><\/span> we can expect more asset sales before the end of June<\/span>, as he moved to reassure foreign investors about Egypt\u2019s economic reforms.<\/span><\/p>\n

DEVELOPMENT FINANCE-<\/span><\/p>\n

We\u2019re getting some USD 733 mn from Japan for Cairo Metro Line 4: <\/span>The Japanese International Corporation Agency (JICA) <\/span>agreed to lend Egypt USD 733 mn<\/a><\/span> to finance the construction of Cairo Metro Line 4 during Japanese PM Fumio Kishida's visit to Cairo last week. <\/span><\/p>\n

INFRASTRUCTURE-<\/span><\/p>\n

SFE shortlists firms to bid for desalination plants: <\/span>The Sovereign Fund of Egypt (SFE) has <\/span>shortlisted<\/a><\/span> some 17 consortiums that have pre-qualified to bid for upcoming renewables-powered desalination projects up for tender in 3Q2023. Among the many consortiums shortlisted by the SFE were heavy hitters like Hassan Allam Holding and Engie; Orascom Construction, Scatec, Toyota Tsusho Corp, Acciona Agua, and Metito Utilities; ACWA Power; and Infinity Energy, GS Inima, and China Energy Engineering Corporation.<\/span><\/p>\n

LEGISLATION-<\/span><\/p>\n

A<\/span>controversial labor legislation<\/a><\/span> withdrawn from the House of Representatives last year is making its way back from the dead<\/span>, with the government planning to restudy it. The bill had gotten backlash from the business community, which argued that new labor rights it would introduce \u2014 including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things \u2014 were lopsided to workers.<\/span><\/p>\n

Meanwhile, some five bills got their final approval and have been forwarded to Ittihadiya<\/span>, including amendments to the Citizenship Act will make it easier for some <\/span>foreigners to become Egyptian citizens<\/a><\/span> and new, <\/span>stricter rules on dog ownership<\/a><\/span>. <\/span><\/p>\n

WHAT\u2019S HAPPENING NEXT WEEK-<\/span><\/p>\n

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<\/span>Keep your eyes peeled for PM Madbouly\u2019s international presser: <\/span>Prime <\/span>Minister Moustafa Madbouly said he plans to hold an international press conference with both local and foreign news outlets in the coming days to address questions around the current economic situation, according to a cabinet <\/span>statement<\/a><\/span>. <\/span><\/p>\n

April\u2019s inflation figures should be coming out next week. <\/span>Inflation jumped 32.7% y-o-y in<\/a><\/span>March<\/a><\/span>, up from 31.9% the month before, as prices continued to accelerate on the back of the series of currency devaluations, the foreign-currency crunch, and higher fuel prices. Inflation figures from March were at its highest levels since July 2017, when we hit a record high of almost 33%.<\/span><\/p>\n

The Senate will be back in session on Tuesday 9 May <\/span>after a three-week break. In its final session before the break in April, the upper legislative chamber <\/span>discussed the government\u2019s<\/a><\/span>water management strategy, <\/span>changing the state\u2019s fiscal year<\/a><\/span>, which runs from July-June, to begin at the start of January and the impact of the real estate tax on industry and investments.<\/span><\/p>\n

Check out our full calendar on the web<\/a><\/span> for a comprehensive listing of upcoming news events, national holidays and news triggers.<\/span><\/p>\n

YOUR MOST CLICKED LINKS-<\/span><\/p>\n