Financial technology firm, Valu, announced a strategic partnership with KarmSolar, a pioneer in renewable energy solutions, to launch a new Electric Vehicle (EV) charging network in District 5, Cairo. This initiative, spearheaded by KarmSolar’s newly formed subsidiary, Karm, aims to enhance the sustainability of Egypt’s transportation infrastructure. EV charging stations The new network will feature EV charging stations within District 5, including its residential areas, where users will benefit from Valu’s seamless payment solutions via the Karm application. Karm, KarmSolar’s latest venture, focuses on developing and managing EV charging infrastructure nationwide, supporting the shift towards green transportation. “Valu is dedicated…
Author: Doaa A.Moneim
Egypt’s Minister of Finance, Ahmed Kouchouk, presented in August key financial performance metrics and achievements for Fiscal Year (FY) 2023/2024, which concluded on June 30, 2024. During a press conference, Kouchouk noted that improving public services will be a top priority for the upcoming year. Current IMF Engagement Egypt is engaged in a 46-month loan agreement with the International Monetary Fund (IMF), which is set to guide the country’s economic strategy until September 2026. Major Goals and Objectives Resource Optimization: Enhancing financial space to boost spending on human development. Fiscal Priorities: Adjusting public spending to address social needs and support…
Inflation rates in Egypt have continued to decline over the past five months. However, the recent government decision to raise fuel prices by up to 15% raises questions about the future inflation trend, particularly amid ongoing global and regional geopolitical challenges. As of July 2024, Egypt’s annual headline inflation rate fell to 25.2% from 27.1% in June. The annual urban inflation rate also decreased to 25.7% in July, down from 27.5% in June, according to the latest data from the Central Agency for Public Mobilization and Statistics (CAPMAS). CAPMAS data revealed that the Consumer Price Index (CPI) for urban areas…
Saudi Arabia has announced plans to convert its deposits at the Central Bank of Egypt (CBE) into investments as part of a strategic initiative to enhance economic relations between the two nations, an official statement showed in August. Converting deposits into investments This development was confirmed by Saudi Minister of Investment Khalid Al-Falih during his visit to Egypt earlier this month. During the visit, Al-Falih met with the Egyptian Prime Minister, as well as officials from the ministries of Transport, Industry, Planning, and International Cooperation, and the Chairman of the General Authority for Free Zones and Investment. In his meeting…
English investment firm Shard Capital has unveiled plans to develop a $7 billion petrochemical complex in Egypt’s New Alamein Industrial Zone, according to a statement from the Ministry of Petroleum and Mineral Resources on August 1. Petrochemical complex The announcement followed a high-level meeting this month, which included Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources; a delegation from Shard Capital; Gehan Saleh, Prime Minister’s Advisor for Economic Affairs; and Ibrahim Mekki, President and Chairman of the Egyptian Petrochemicals Holding Company (ECHEM). This project is a cornerstone of ECHEM’s strategy to enhance the nation’s petrochemical industry. During the meeting,…
In a major regulatory update, the Central Bank of Egypt (CBE) has directed Egyptian banks to allow foreign individuals who are not residents of Egypt to open accounts. This new policy, outlined in a circular letter dated August 7, is designed to improve access to banking services for non-resident foreigners, overcoming previous limitations that restricted their financial interactions in the country. CBE decision This update addresses issues highlighted in a previous circular from April 2016, which noted that some banks were refusing account services to non-resident foreigners. This led to a rise in complaints from foreign clients who found it…
In the wake of the Central Bank of Egypt’s(CBE) foreign exchange rate unification five months ago, the real estate market, particularly in Greater Cairo, is anticipated to see reduced demand in the short and medium term, according to insights from key developers shared with Business Monthly. In March, the CBE decided to allow the local currency to be determined by supply and demand, in line with its commitment to the International Monetary Fund (IMF) for a flexible exchange rate regime. Since then, the Egyptian pound has depreciated by over 60% against the US dollar, and the gap between the official…
The International Monetary Fund (IMF) has completed the third review of Egypt’s $8 billion Extended Fund Facility (EFF) loan program, paving the way for the country to receive an $820 million tranche. The 46-month EFF arrangement, approved in December 2022, is expected to conclude in September 2026. The IMF’s Executive Board approval on the third review came after assessing Egypt’s progress in meeting its obligations and commitments under the program, particularly in the areas of monetary and fiscal policy, as well as the government’s efforts to increase the private sector’s role in the economy. Macroeconomic reforms According to the IMF,…
Amid Egypt’s government reshuffle, setting priorities becomes imperative, particularly in navigating the challenging global and regional landscapes that impact the country’s economy. Underlining these efforts is Egypt’s commitment to enhancing its business and investment environment, crucially bolstered by its $8 billion loan program with the International Monetary Fund (IMF). This initiative aims to elevate the private sector’s role in driving economic growth and job creation. Rebuilding private sector confidence The House of Representatives has expressed confidence in the new Cabinet, which includes a restructured economic cluster led by the Prime Minister. Notably, the cluster comprises key figures such as Central…
Egypt’s non-oil sector is finally showing signs of recovery after enduring years of contraction exacerbated by inflation and foreign exchange shortages. In June, the country’s non-oil private sector saw a notable increase in sales volumes, marking its first expansion since August 2021, according to the latest S&P Global Egypt Purchasing Managers’ Index (PMI) report. The report reveals that Egypt’s headline PMI for the non-oil private sector climbed to 49.9 in June, up from 49.6 in May, marking the highest reading in three years. This indicates that operating conditions within the non-oil economy were generally stable by the end of the…