African Development Bank (AfDB) approved in November a loan worth $131 million to promote private sector development and economic diversification in Egypt under the bank’s Private Sector Development and Economic Diversification Support Program – Phase I (PSD-EDSP I). This program supports the Egyptian government’s efforts through a robust public reform matrix to facilitate increased private sector development by improving the business environment and diversifying sources of green growth. The bank said on its official website that Egypt has made substantial efforts to mitigate the impacts of the COVID-19 pandemic and Russia’s invasion of Ukraine on the domestic economy and preserve…
Author: Doaa A.Moneim
The severe US dollar shortage in Egypt has prompted major international credit rating agencies to downgrade the country’s long-term sovereign credit rating. Despite the downgrade, the agencies maintain a stable outlook, signaling optimism for Egypt’s investment climate. Finance Minister Mohamed Maait attributes the stable outlook to government efforts in accelerating structural reforms to encourage investment and empower the private sector. Egypt is currently grappling with an unprecedented US dollar shortage, leading to significant disparities between official and parallel market exchange rates. Credit downgrades According to financial and equity market analyst Hanin El-Mahdy, the ongoing global debt crisis has led major…
UAE-based Global Investment Holding (GIH) company has acquired 30% of Egypt’s major tobacco producer Eastern Company for $530.86 million (EGP 16.4 billion). The deal was executed on 669 million of the company’s shares for EGP 24.52 per share, according to the Egyptian Stock Exchange. With this transaction, GIH became the largest shareholder in Egypt’s major tobacco manufacturer. State-owned Chemical Industries Holding Company (CIHC) became the former majority shareholder of Eastern company after selling the 30% stake, lowering its ownership to 20.95%. The Allan Gray Africa ex-SA equity fund owns a 7.21% stake in the company, the Egyptian Trade Union Federation…
In the midst of daunting economic challenges, Egypt is at a crucial juncture, prompting experts to call for a rethink of the nation’s economic priorities. As difficulties persist, a recalibration of the economic agenda is seen as vital to not only offset losses but also to foster long-term resilience. The ripple effects of the Russian-Ukrainian conflict reverberate in Egypt, causing a decline in international net reserves (NIRs) and a shortage of US dollars in local markets. Global disruptions in the supply chain further exacerbate the situation, leading to an uptick in inflation, particularly in essential sectors like food, beverages, and…
New spikes in fuel prices will not negatively affect the private sector or inflation rates in Egypt, Head of the General Division of Petroleum Materials at the Federation of the Egyptian Chambers of Commerce, Hossam Arafat, told Business Monthly. “The recent price increases are mainly applied for fuel, while maintained for diesel. Therefore, it will impact only the owners of private cars and will have no impact on either the commodity prices or the inflation,” Arafat said. Fuel hikes For the second time in 2023, Egypt’s Ministry of Petroleum and Mineral Resources hiked fuel prices for various octanes by over…
The Central Bank of Egypt (CBE) has doubled the daily and monthly transaction limits for financial inclusion accounts, prepaid cards, and mobile banking, according to a circular issued by the bank on Wednesday. The initiative targets individuals, micro-enterprises, and the self-employed. For individuals, daily withdrawal, transfer, and purchase limits have been elevated from EGP 30,000 to EGP 60,000, while monthly limits increased from EGP 100,000 to EGP 200,000. As for licensed micro-enterprises, daily transaction limits for financial inclusion accounts, prepaid cards, and mobile banking have been raised to EGP 80,000 from the previous limit. Additionally, monthly limits have been adjusted…
Savings holders in Egypt are looking for a haven to protect their finances from the economic fluctuations that are being caused by various factors such as the war in Ukraine, the ongoing impacts of COVID-19, and the recent Israel-Palestine conflict in Gaza. Egypt is grappling with a challenging economic situation marked by the Egyptian pound’s lowest performance, a moderation in foreign direct investments (FDIs), a significant US dollar shortage in the local market, and escalating inflation. These challenges are compounded by the vulnerability of individuals’ purchasing power and the elevated costs for businesses. “During such times, I believe investment diversification…
The British multinational Standard Chartered (StanChart) bank is poised to commence full-fledged banking operations in Egypt by the end of 2023, Egypt’s Minister of Planning and Economic Development Hala El-Said announced. Last week, the bank appointed Mohammed Gad as CEO of its office in the country effective immediately. StanChart is already operating in the Egyptian market through a representative office, which will be replaced by an official office in the market. In January, Standard Chartered obtained the in-principal approval from the Central Bank of Egypt (CBE) in November 2022, being the first bank to secure such a license to operate…
Fawry, a prominent e-payment solutions provider in Egypt, refuted reports suggesting that any of its platforms or online services had been subjected to cyber attacks, according to a bourse filing on Thursday. The company said it checked the servers for clients and banks and found no trace of the alleged attacks nor any leakage of data. Fawry’s shares plunged by over 4% on the Egyptian stock market Thursday following the news. Cyber attack reports As Fawry partners with almost all government and public bodies, the payment solutions provider has become an essential player in the local market for individuals, companies,…
Middle Eastern countries mainly Egypt, Lebanon, and Jordan, are expected to be impacted severely by the escalation of the Israel-Palestine war, with Egypt projected to lose up to 30% of its tourism receipts, S&P Global said in a report. As immediate neighbors of Israel and Gaza, Egypt, Jordan, and Lebanon are more vulnerable to a slowdown in tourism, given concerns about security risks, social unrest, and high external vulnerabilities, according to the report. Egypt’s tourism Loss of tourism revenue of 10%-30% could cost Egypt 4%-11% of foreign exchange reserves if the Central Bank of Egypt (CBE) were to intervene in…
