{"id":597624,"date":"2023-08-11T00:00:00","date_gmt":"2023-08-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/11\/inflation-numbers-have-come-in-the-national-dialogue-continues-next-week\/"},"modified":"2023-08-11T00:00:00","modified_gmt":"2023-08-11T00:00:00","slug":"inflation-numbers-have-come-in-the-national-dialogue-continues-next-week","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/11\/inflation-numbers-have-come-in-the-national-dialogue-continues-next-week\/","title":{"rendered":"Inflation numbers have come in + The national dialogue continues next week"},"content":{"rendered":"

Good morning, lovely people, and as always, happy FRIDAY. <\/strong>We hope you\u2019re enjoying these last summer weekends, whether by joining the weekly exodus to Sahel or getting some rest at home. <\/p>\n

\u2600\ufe0f <\/strong> THE WEATHER THIS WEEKEND- Surprise, surprise: this weekend will be hot <\/strong>, with today\u2019s highest set to hover around 39\u00b0C before dropping to a cooler 24\u00b0C at night. Saturday will climb to hotter 40\u00b0C and drop to 25\u00b0C in the evening, according to our favorite weather app. <\/p>\n

Whether you\u2019re in Sahel or heading towards the Red Sea coast, how about taking up <\/strong> some surfing or kitesurfing lessons? <\/strong>In our Enterprise Guide for the week, we break down everything you need to know about getting started with these watersports in Egypt. <\/p>\n

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

LAST WEEK IN 3 MINS- What was a pleasantly calm week ended with some disappointing inflation figures <\/strong>, as food and beverage prices continue to send consumer prices soaring. <\/p>\n

ON THE MACRO FRONT- <\/strong><\/p>\n

#1- New record for inflation: <\/strong> Annual urban inflation accelerated again in July, hitting a new record of 36.5% y-o-y during the month, up from 35.7% in June<\/a>, according to figures from statistics agency Capmas. July\u2019s inflation figures are a new record high, as food and beverage prices continued to underpin the price acceleration during the month, rising 68.4% y-o-y.<\/p>\n

#2- Moody\u2019s continues its review for a potential downgrade of Egypt\u2019s credit rating, <\/strong>the agency said yesterday<\/a>, adding that \u201cthe continuation of the review balances progress on the government\u2019s privatization, fiscal, and structural reform agenda against evidence of a further weakening in external liquidity.\u201d<\/p>\n

REMEMBER- Moody\u2019s said back in May that a lack of progress on the state privatization <\/strong> program could lead to a downgrade <\/strong> of our credit rating for the second time this year if our external position continues to deteriorate. <\/p>\n

Our progress so far: <\/strong> A number of local and Gulf investors have agreed in principle to acquire USD 1.9 bn of state-owned assets<\/a> under the state privatization program, USD 1.65 bn of which will be paid in FX. The government expects to finalize agreements this month<\/a> and receive the proceeds by September.<\/p>\n

#3- Egypt <\/strong>added another USD 69 mn<\/a><\/strong> to its foreign reserves in July <\/strong>: Reserves inched up to USD 34.88 bn in July from USD 34.81 bn in June, according to central bank figures. This is the tenth consecutive month that foreign reserves have seen a modest increase of this scale.<\/p>\n

ON THE PRIVATIZATION FRONT- <\/strong><\/p>\n

Heliopark could soon be looking at a new partner: <\/strong> Heliopolis Housing and Development (HHD) could wrap negotiations this month<\/a> to partner with an anonymous Gulf investor for its Heliopark project. This comes after the company\u2019s board received an offer last month from an unnamed real estate company to co-develop Heliopark. <\/p>\n

THERE WAS ALSO SOME DEBT NEWS- <\/strong><\/p>\n

#1- State entities are taking out loans to help patch up our power crisis: <\/strong>State utilities firm the Egyptian Electricity Holding Company (EEHC) and state oil company the Egyptian General Petroleum Corporation (EGPC) are each borrow<\/a> ing EGP 10 bn<\/a> from local banks to shore up our power infrastructure and fuel supplies amid our continuing power crisis. <\/p>\n

The loans will help support mazut imports and finance power plant maintenance <\/strong>, and come as the country remains in the grip of a power crisis, with the government implementing a schedule of rolling blackouts<\/a> and other power-saving measures after a heatwave triggered a surge in electricity demand.<\/p>\n

#2- Also worth noting: CI Capital <\/strong>closed an EGP 700 mn<\/a><\/strong> securitized bond issuance for its <\/strong> micro-financing arm Reefy Microfinance <\/strong>, backed by a portfolio of the micro-lender\u2019s receivables.<\/p>\n

AND M&A NEWS- <\/strong><\/p>\n

#1- Beltone is one step closer to acquiring a microfinance player: <\/strong> Beltone Financial received the greenlight<\/a> from the Financial Regulatory Authority (FRA) to proceed with its acquisition of Minya-based microfinance provider Cash, and is now cleared to begin due diligence. <\/p>\n

#2 <\/strong> Egytrans will finalize its NOSCO acquisition in 4Q 2023: <\/strong>The Egyptian Company for Transport Services\u2019 (Egytrans) will finalize<\/a> its acquisition of 99.9% of the National Transport and Overseas Services Company (NOSCO) through a share swap in 4Q 2023. The acquisition will leave Egytrans shareholders holding a majority 70.17% stake in the merged entity, which will be known as Egytrans NOSCO. The remaining 29.83% stake will be held by NOSCO shareholders.<\/p>\n

AND INVESTMENT NEWS- <\/strong><\/p>\n

#1- SCZone is well on its way towards launching an investment arm <\/strong>: The Suez Canal Economic Zone (SCZone) received cabinet approval<\/a> to set up a joint-stock investment company named SCZone Istithmar. The company will manage the authority\u2019s investments and help establish industrial development and utilities companies that serve the SCZone.<\/p>\n

#2- Turkish investors are looking at Egypt: <\/strong> Turkey\u2019s largest state-owned bank and a number of Turkish manufacturers expressed their interest<\/a> in expanding into the local market. Among the interested parties are Turkish home appliances manufacturer Vestel and conglomerate Zorlu who will soon visit Egypt to explore plans to build a home appliances factory worth at least some USD 70 mn. Other interested parties include Ziraat Bank<\/a>, Fortune Global 500 investment group KOC Holding<\/a>, Milat Carpet<\/a> and Berdan Civata<\/a>.<\/p>\n

#3- Chinese home appliances giant Midea Group launched its <\/strong>USD 25 mn washing<\/a><\/strong>machine factory<\/a><\/strong>in China\u2019s TEDA industrial zone in Ain Sokhna. The Fortune Global 500 company expects to annually produce some 1.5 mn washing machines for export to the Middle East, Africa, the EU, and the US.<\/p>\n

O <\/strong> N THE GR <\/strong> EEN ENERGY FRONT- <\/strong>India\u2019s Ocior Energy<\/a> inked<\/a> preliminary contracts with the government to set up a USD 4 bn green hydrogen plant in the Suez Canal Economic Zone (SCZone), Yehia El Wathek Bellah, head of the Trade Ministry\u2019s Commercial Representation Authority, told Enterprise. The land for the project has already been allocated, El Wathek Bellah added.<\/p>\n

AND FINALLY, IN REAL ESTATE LAND- Cabinet <\/strong>approved draft decisions<\/a><\/strong> to give properties unique digital IDs <\/strong>, as well as to help public enterprises more efficiently cut their losses by selling unprofitable assets.<\/p>\n

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

The National Dialogue is scheduled to resume its public sessions on Sunday <\/strong>, as decided by the Board of Trustees, Gouda Abdel-Khalek, member of the National Dialogue\u2019s Board of Trustees, said, according to Al Masry Al Youm<\/a>.<\/p>\n

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

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