Post for Investment (PFI), a subsidiary of the state-run Egypt Post Authority, has unveiled plans to establish a new $5 billion subsidiary dedicated to asset management within the country by 2025, according to a statement released on April 3. The company has reportedly secured preliminary approvals for licensing, with final approvals anticipated during the second quarter of 2024, according to local media. The decision to establish a new asset-management arm aligns with the company’s strategy to enhance its activities and broaden its reach in asset management within Egypt, CEO Ahmed Ali has said. It also aims to manage financial portfolios…
Author: Doaa A.Moneim
In November, Visa, a digital payment solutions provider, and CIB, a leading private-sector bank, unveiled recipients of the She’s Next grant program in Egypt. Among the standout winners were Hadeer Shalaby, founder of Green Fashion; Salma Tammam, the innovative mind behind Reme-D; and Nihal Ali, the visionary founder of Fincart. Launched in Egypt in October, the program aims to empower women-owned small businesses nationwide through funding, personalized coaching, and mentorship. The top three winners receive $10,000 each, while the next five gain access to a year-long training program. Further, the first 20 applicants are granted enrollment in a one-year skills…
Egypt’s Purchasing Managers’ Index (PMI) for the non-oil private sector saw a slight improvement in March, rising to 47.6 from 47.1 in February, according to S&P Global’s monthly report. However, despite this uptick, the new reading indicates significant deterioration in the sector’s health, remaining below the average reading since April 2011. PMI serves as a composite gauge designed to provide a single-figure snapshot of operating conditions in the non-oil private sector economy. Egypt’s non-oil private sector continued to face worsening conditions in March, with both business activity and new orders volumes dropping at rates similar to those recorded in February.…
Interest rates in Egypt are expected to remain unchanged until the end of the current fiscal year 2023/2024, which concludes at the end of June. This follows the recent significant actions taken by the Central Bank of Egypt (CBE), including a notable increase in key interest rates and the nearly unrestricted flotation of the Egyptian pound, representing the largest policy adjustment by the CBE since initiating monetary tightening measures in response to the repercussions of the Russia-Ukraine conflict in March 2022. The Monetary Policy Committee (MPC) is set to convene for the final time in the current fiscal year on…
Egypt has taken several actions to address the significant economic imbalances it has faced over the past two years, including measures to curb activity in the currency parallel market, commonly known as the black market, by securing substantial amounts of finances in US dollars and floating the local currency. In discussions with Business Monthly, Ahmed Derbala, assistant professor at the School of Social Sciences at Heriot-Watt University Dubai, highlighted the significant risks that black markets pose to a nation’s economic progress. He noted that these markets often operate outside government oversight and regulations, facilitating tax avoidance and undermining economic stability.…
Egypt raised the price of a range of petroleum products on Friday in line with a pledge it made to the International Monetary Fund (IMF) under an $8 billion financial support package. Petrol prices up In a letter of intent signed in November 2022, Egypt promised the IMF that it would allow domestic fuel prices to rise to match international energy costs. The Automatic Pricing Committee for Petroleum Products raised petrol prices by 2 cents (EGP 1.00) per liter to 24 cents (EGP 11) for 80 octane grade, 27 cents (EGP 12.5) for 92 octane grade, and 29 cents (EGP…
The European Union (EU) and the World Bank Group (WBG) have allocated over $14 billion in finances to Egypt amid the country’s challenging economic situation over the past two years, separate statements showed. EU aid The EU announced a €7.4 billion ($8.1 billion) aid package to support Egypt’s economy, stabilize the conflicted region, and mitigate potential migration crises in Europe, particularly stemming from tensions in Gaza and Sudan. This aid is part of the three-year EU-Egypt strategic partnership, including €5 billion in soft loans for economic reforms, €1.8 billion to support private sector investments, and €600 million in grants, including…
State-owned major banks, the National Bank of Egypt (NBE) and Banque Misr have introduced new high-yield certificates of deposit (CDs) with a three-year tenor and a decreasing yield structure. These new CDs offer an initial annual yield of 30% for the first year, which decreases to 25% in the second year and further drops to 20% in the third year. Additionally, the NBE has adjusted the annual yield on its three-year Platinum CD to 26% for the first year, 22% for the second year, and 18% for the third year. It has also modified the yield on the three-year Platinum…
Egypt’s budget achieved a primary surplus of 3.9 billion (EGP 193 billion) in the past eight months of FY2023/2024, compared to $857 million (EGP 41.8 billion) in the same period of the previous fiscal year, representing a growth rate of over 4.5 times, Minister of Finance Mohamed Maait said in a press conference last week. Key figures General revenues rose by 34.6%, fueled by a 38.3% growth in tax revenues, reaching $18.3 billion (EGP 892 billion) compared to $13.2 billion (EGP 645 billion) in the corresponding period of the previous fiscal year. The overall deficit rate increased to 6.7% of…
Egypt’s annual headline inflation, which had declined for four consecutive months, reversed course in February, reaching 219.4 points with an annual rate of 36%, compared to 31.2% in the previous month, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS). Price hikes The significant increase was driven by soaring prices across various sectors, with notable price hikes observed in meat and poultry (25%), grains and bread (14.2%), fish and seafood (11.5%), dairy products, honey, and eggs (12.8%), oils and fats (14.1%), fruits (7.3%), vegetables (9.2%), and sugar and sweets (6.9%). Monthly inflation surged to 11% in…