{"id":636409,"date":"2024-07-31T00:00:00","date_gmt":"2024-07-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/07\/31\/the-third-usd-820-mn-from-the-imf-to-arrive-in-the-nations-coffers-within-days\/"},"modified":"2024-07-31T00:00:00","modified_gmt":"2024-07-31T00:00:00","slug":"the-third-usd-820-mn-from-the-imf-to-arrive-in-the-nations-coffers-within-days","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/07\/31\/the-third-usd-820-mn-from-the-imf-to-arrive-in-the-nations-coffers-within-days\/","title":{"rendered":"The third USD 820 mn from the IMF to arrive in the nation\u2019s coffers within days"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>It\u2019s shaping up to be another busy day here in Cairo as we gear up to welcome fresh funds from the IMF and for Act Financial to make its EGX debut. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- The recently approved USD 820 mn tranche from the IMF should arrive in the \u201ccoming <\/strong>days,\u201d <\/strong>Finance Minister Ahmed Kouchouk said in a ministry statement<\/a> released yesterday following the Fund concluding<\/a> the third review of our USD 8 bn loan program. Kouchouk described the decision as a \u201cvote of confidence\u201d in the government\u2019s economic policies and a \u201cmessage of reassurance.\u201d <\/p>\n

USD 1.2 bn in green financing next?<\/strong> Egypt will begin the process of applying for the USD 1.2<\/a>bn in green financing<\/a> from the IMF\u2019s Resilience and Sustainability Facility in August, Mubashar<\/a> reports, citing unnamed government officials. The completion of the third review opens the door for Egypt to apply for the additional climate financing.<\/p>\n

\n

\n

#2- Gov\u2019t eyes USD 1<\/strong>.2 bn worth of priva<\/strong>te investments for logistics projects: <\/strong>The Transport Ministry wants to attract some USD 1.2 bn in private investment to carry out seven strategic projects to build new dry ports, expand maritime capabilities, and improve logistics centers across the country, Al Mal<\/a> reports, citing a government document. The ministry aims to tap both domestic and international companies to implement these projects, which include a USD 530 mn logistics center and land port in Sixth of October City and a USD 160 mn dry port in Sadat City, as well as a port in New Fayoum, dry ports in South Sinai and New Sohag, and sea berths in Sokhna Port and Tewfik Port. <\/p>\n

Part of a bigger plan: <\/strong>The new Madbouly cabinet has big plans for the country\u2019s ports \u2014 it wants to set up 31 new dry ports and logistics zones during the coming three years. Check the new government\u2019s ambitions for transport and logistics infrastructure in our Hardhat here<\/a>. <\/p>\n

HAPPENING TODAY-<\/p>\n

<\/a> We welcome Act Financial to the EGX: <\/strong>Act Financial\u2019s will begin trading on the bourse at the start of today\u2019s trading session, according to an EGX bulletin (pdf)<\/a>. The company completed the first IPO Egypt has seen in a year last week \u2014 the retail tranche of the IPO was 54.8x covered<\/a>, while the institutional tranche was 20.2x oversubscribed.<\/p>\n

Remember: <\/strong>Act Financial offered some 32% of the company<\/a> \u2014 360 mn shares \u2014 at EGP 2.90 a pop. <\/p>\n

\n

DATA POINT- <\/p>\n

<\/a> #1- Suez Canal revenues have dropped to around USD 300 mn a month<\/strong>, down 64.7% from USD 850 mn previously, Prime Minister Mostafa Madbouly said<\/a> yesterday. Canal revenues continue to suffer due to Red Sea tension, Suez Canal Authority boss Osama Rabie said<\/a> earlier this month, adding that revenues have fallen 23% y-o-y during FY 2023-2024 to USD 7.2 bn. <\/p>\n

\n

\n

<\/a> #2- Egyptians are not investing in gold like they once were: <\/strong>Demand for gold bars and coins in Egypt dropped 27% y-o-y in 2Q 2024, data released by the World Gold Council<\/a> shows. The council argues that the decline in gold bars and coins sales in Egypt to 7.6 tons, down from 10.4 tons in the same period last year, was partly due to the EGP float undermining \u201cthe currency-hedge motive for investing in gold,\u201d in its report for the quarter.<\/p>\n

<\/a> <\/p>\n

Do you want to attend our 2024 Enterprise Finance Forum on 24 September? <\/strong>Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders. <\/p>\n

Why attend? <\/strong>We\u2019re in the early days of a generational realignment of power in our industry \u2014 in our region and beyond \u2014 and on the cusp of the biggest intergenerational transfer of wealth that the world has ever seen. With that as the backdrop, we\u2019re going to take stock of where we stand six months after the float of the EGP and ask what\u2019s next for finance in our country and the wider region. Among the questions we\u2019ll be asking:<\/p>\n