On this day, December 16, we commemorate the first anniversary of the International Monetary Fund’s (IMF) approval of the Extended Fund Facility (EFF) program with Egypt over 46 months with a loan amounting to $3 billion. Following the green light from the IMF, Egypt swiftly received the inaugural tranche of the loan, totaling $347 million, marking the beginning of an eight-tranche disbursement plan. However, the journey hasn’t been without its challenges. The IMF’s first and second reviews, originally slated for March and September, have yet to be completed. As we reflect on this significant financial arrangement, the business community watches…
Author: Doaa A.Moneim
Egypt launched its first automated teller machine (ATM) for real-time purchase of bullion in November in partnership between local gold manufacturer Master Gold, local e-payment technology firm Finway, and state-owned Banque Misr. The action aligns with other initiatives undertaken by gold manufacturers in Egypt, aiming to encourage individuals to invest in gold as a haven amid ongoing economic challenges and soaring inflation. The new ATM is also in line with Egypt’s financial inclusion and digital transformation efforts, according to Minister of Supply and Internal Trade Ali Moselhi. On the significance of such an action at present, Fady Kamel, co-founder and…
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…
Hadeer Shalaby, founder of Green Fashion, Salma Tammam, founder of Reme-D, and Nihal Ali, founder of Fincart, have been announced as the winners of Visa’s second She’s Next grant program in Egypt. The program, conducted in collaboration with Egypt’s leading private-sector bank Commercial International Bank (CIB), aims to support and recognize women entrepreneurs in the region. Selected from over 4,000 applicants across Egypt, the winning women-owned small businesses each received grants worth $10,000 along with a year of business coaching from the United States Agency for International Development (USAID). The winners were chosen from a pool of applicants representing a…
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…
Egypt’s General Authority of the Suez Canal Economic Zone (SCZONE) has inked a Memorandum of Understanding (MoU) with Norwegian company Scatec. The MoU grants Scatec a license for ships’ bunkering with green fuel in East Port Said, marking an investment of approximately $1.1 billion. The deal was signed by Walid Gamal El-Dien, the chairman of SCZONE, Alaa Hagar, Head of Egypt’s Minister of Petroleum’s Technical Office, and Terje Pilskog, CEO of Scatec ASA. The signing ceremony occurred at the Conference of Partners on Climate Change (COP28) in the UAE. It was attended by Egypt’s Minister of Petroleum and Mineral Resources,…
UAE-based Dana Gas plans to pump around $43 million in investments in the Egyptian market in 2024, according to the company’s CEO Richard Hall during a meeting with Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla held in late November. Hall explained that the planned investments come as part of the company’s drilling program for next year in the country, under which it plans to drill 11 development wells and three discovery ones. The program aims to boost Dana Gas’ production in Egypt by about 30 million cubic feet of natural gas per day. Hall also stressed his company’s keenness…
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…