The depreciation of local currencies in African markets poses a significant barrier to attracting venture capital (VC) and other types of investments, further complicating the investment climate in Africa, including Egypt, with particular consequences for small and medium-sized enterprises (SMEs) and startups. A panel of experts and government officials shared these insights with Business Monthly during the inaugural SuperBridge Summit, which ran alongside the 43rd edition of the world’s largest tech and startups exhibition, GITEX GLOBAL 2023, held from October 16 to 20 in Dubai. The SuperBridge Summit is introduced as a novel platform aimed at fostering strong connections among…
Author: Doaa A.Moneim
In the face of economic headwinds, the Egyptian Pound (EGP) has been on a downward slope. Its depreciation, now at its lowest ebb in years, reverberates across the entire economic spectrum. This freefall not only affects the day-to-day purchasing power of Egyptians but also creates ripple effects, impacting imports, exports, and foreign investor confidence. Fourth devaluation Egypt finds itself at a pivotal juncture in its economic journey, poised to embark on a fourth wave of EGP depreciation against the US dollar. This decision comes as the nation remains steadfast in fulfilling its obligations under the $3 billion loan program with…
As the government ramps up its efforts to tackle the US dollar crunch, the Central Bank of Egypt (CBE) and the Central Bank of the UAE (CBUAE) inked a currency swap agreement in September. The deal, which is worth $1.3 billion, allows the two countries to conduct bilateral trade exchanges in their local currencies. A currency swap is an agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency. Currency swaps are used to obtain foreign currency loans at a better interest rate than…
Egypt’s monthly headline inflation hit a new record in September, rising by 2% to over 40%, according to the latest figures published by the state-owned Central Agency for Public Mobilization and Statistics (CAPMAS). Yet, compared to the level seen in August, the country’s annual headline inflation slowed in September to 38%, down from 39.7% recorded in August. “While CAPMAS figures suggest a slowdown in inflation, we remain cautious about proclaiming that the inflationary surge has truly subsided, for several reasons. Inflation is still primarily driven by rising food prices,” Ali Metwally, director of Economic Intelligence at ITI Consulting, told Business…
Several local banks suspended or lowered foreign currency cash withdrawals and purchases made inside and outside Egypt using debit cards on October 9, following instructions from the Central Bank of Egypt (CBE) to alleviate pressure on foreign currency reserves, a source familiar with the matter explained to Business Monthly. Banks including HSBC and the Arab African Bank have informed their clients of new measures regarding hard currency withdrawals, while the Commercial International Bank (CIB), the National Bank of Egypt (NBE), and Banque Misr have halted withdrawals in foreign currencies made abroad using debit cards altogether. “The aim is to prevent…
Egypt’s Head of the General Authority for Investments and Free Zones (GAFI), Hossam Heiba, announced plans on October 1 to introduce a “silver license” for startups in the local market to support businesses amid ongoing economic challenges. While specific details were not provided during Heiba’s statement last week, Business Monthly reached out to GAFI to understand the terms and conditions of this license. According to GAFI, the silver license will be similar to the golden license provided to investors. Its primary purpose will be to offer startups a streamlined process for handling all paperwork related to their businesses through a…
Egypt and Maersk’s C2X inked Wednesday a framework agreement to produce green fuel and its derivatives in the Suez Canal economic zone (SCZONE) with investments worth up to $3 billion for the first phase. According to the deal, C2X will establish a green fuel production facility for ship bunkering services and decarbonization. Egypt is currently ramping up its actions in terms of fulfilling its obligations of green transition, mainly in the energy sector. In line with its Vision 2030, Egypt has expanded in constructing clean energy projects that aim to produce and use green methanol and green ammonia, especially in…
Egypt’s non-oil private sector Purchasing Managers’ Index (PMI) fell to 48.7 in September from the previous month’s 49.2, marking a four-month low, according to the latest reading published by S&P Global. S&P’s assessment indicates a continued deterioration in operating conditions within Egypt’s non-oil private sector businesses. The report further highlights that Egyptian non-oil companies faced significant challenges in September, primarily stemming from supply chain issues and rising inflation as the third quarter of 2023 drew to a close. “Weighing on the headline figure were sharper drops in output and new orders, as Egyptian non-oil businesses continued to signal a depressed…
In Egypt, women entrepreneurs confront a challenging business environment, with 77% resorting to personal savings and 45% depending on friends and family for financial support, according to a recent survey by global e-payment solutions provider Visa. This survey coincides with the third iteration of Visa’s global She’s Next grant program in Egypt, launched in collaboration with the Commercial International Bank Egypt (CIB). “Women entrepreneurs face unique challenges such as limited access to capital, lack of mentorship, and dealing with gender stereotyping concerns where they are considered less capable of handling high-pressure situations. Access to these factors, along with a robust…
US-based tech giant Intel has introduced “Siliconomy” as an emerging trend that positions artificial intelligence (AI) as the driving force behind daily life, particularly within the business landscape, in a bid to revolutionize the global technology landscape “Fueled by AI and the convergence of ubiquitous computing, connectivity, infrastructure, and sensing, the Siliconomy represents a new era, demanding an exponential advancement in computing technology,” Intel CEO Patrick P. Gelsinger said at the third edition of its flagship event, “Intel Innovation 2023,” in San Francisco, California, which Business Monthly attended. This gathering brought together leaders and developers from the tech industry to explore…