Mining

Showing

308

Results

MINING | EnterpriseAM
Here’s what went down during day one of the Egypt Mining Forum
Recapping day one of the Egypt Mining Forum: Yesterday was day one of the Egypt Mining Forum, where local and global mining heavyweights came together to explore potential investments in the sector. Here’s everything that went down during the first day of the two-day event: (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)AGREEMENTS AND REGIONAL COOPERATION-#1- USD 658 mn phosphoric acid production plant moves forward: A consortium of local state-owned players and two Chinese state-owned contracting firms signed the final agreements and contracts for the USD 658 mn phosphoric acid production complex at the Abu Tartour plateau in New Valley governorate. The signing took place on the sidelines of the forum, between an Egyptian consortium — which included Abu Tartour for Phosphoric Acid, Abu Qir Fertilizers, East Gas, Mineral Resources Authority, Phosphate Misr, Petrojet, and Enppi — and a Chinese consortium, which consisted of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Company (ECEC).REMEMBER- The two consortiums inked an agreement in June to build the facility, which will produce 250k tons of high-concentration commercial phosphoric acid annually in its first phase using phosphate ore extracted from the Abu Tartour mines. Most of the output is expected to go toward fertilizer production.AND ANOTHER ONE? Elsewedy Electric is mulling plans to build a phosphoric acid plant in Egypt poised for export purposes, CEO Ahmed Elsewedy told Asharq Business on the sidelines of an event in Cairo. The firm aims to conduct feasibility studies and assess phosphate reserves in the Sibaiyyah area in Aswan in the upcoming period. The investment ticket of the plant and the markets destined for exports have not been disclosed. #2- Two new gold exploration agreements: The Oil Ministry signed two new agreements on the sidelines of the forum; a license agreement for the exploration of gold and associated minerals with Centamin and an initial framework agreement with global mining major Barrick Gold.#3- Exchanging data with Jordan: The Oil Ministry has signed a cooperation agreement with Jordan to exchange geological data and explore shared mineral-rich formations, Jordanian Energy and Mineral Resources Minister Saleh Al Kharabsheh said during the forum. He emphasized the importance of regional collaboration to fully tap into cross-border resources, and hinted at a potential for deeper integration across the region’s mining sectors.THE NEXT STAGE OF MINING REFORM-Four pillars defining the national mining agenda: Oil Minister Karim Badawi said that Egypt’s mining development strategy now hinges on four pillars; skilled geological talent, strong infrastructure, an attractive financial framework, and sufficient energy supplies. He added that the next stage includes launching nationwide geological surveys, reassessing and reprocessing existing datasets, and expanding sampling and lab analysis activities — all of which will be made available to investors.ICYMI- The government is looking to raise the mining sector’s share of GDP to 5-6% from less than 1% currently. To realize this goal, General Authority for Investment and Freezones Head Hossam Heiba said the plan includes expanding value chains for mineral-based industries, as well as providing better access to logistics services like shipping, storage, and supply chain management.CATCHING UP WITH SHALATEEN-State-owned Shalateen Mineral Resource has increased its gold production this year by 30% y-o-y, Chairman Hany Mostafa told Al Arabiya on the sidelines of the forum. The company has also launched geological studies at a new site in Marsa Alam. The three-year exploration program is expected to cost EGP 90-100 mn, according to MostafaNew updates on the Aswan mining complex: Mostafa said that the industrial mining complex in Aswan is expected to add 1.2-1.5 tons of gold to the country’s reserves once it's completed. Construction works on the complex — which spans 1.4k feddans — have reached “about 60-70%,” according to Mostafa, who confirmed its completion “by the end of the year.” An international tender in the works: Mostafa also said that Shalateen is “currently preparing an international tender, in cooperation with Egyptian Mineral Resources Authority (EMRA) and the Oil Ministry,” without disclosing the timing. REMEMBER-Unconfirmed reports out in January claimed the company will relaunch its gold exploration bid in the first half of 2025 after the offers for its four-times extended tender that came to a close in November did not meet the required criteria.

Wednesday, 16 July 2025

Philip Morris raises cigarette prices by up to 11%
RETAIL- US tobacco giant Philip Morris hiked prices by up to 10.5% for its cigarettes and heated tobacco products, effective 1 July, the company said in a statement to distributors seen by EnterpriseAM. The price of a pack of its higher-end Merit cigarettes was hiked 10.5% to EGP 105, Marlboro prices increased 9.0% for the standard pack to EGP 97, and the cheaper L&M brand will now go for EGP 76, up 10.1%. Its Terea heated tobacco products are up 10.1% at EGP 76 a pack.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REMEMBER- The news comes days after the House greenlit a government-drafted bill amending the VAT Law, which will raise the tax on local and imported cigarettes.TOURISM-Egypt earmarks EGP 2 bn for charter flight incentive: The Madbouly government is set to invest EGP 2 bn (USD 40 mn) in its charter flight incentive program this fiscal year, with the figure going toward subsidizing vacant seats on charter flights in a bid to boost tourism, Al Arabiya reports, citing a government document. The initiative is backed by the Tourism Ministry, which is looking to increase non-scheduled, or charter, flights to bolster inbound traffic to the country. The program covers most Red Sea airports, as well as those in Luxor, Aswan, Borg El Arab, and El Alamein.Over 85% of tourists arriving to Egypt travel via charter flights, former tourism minister Hisham Zaazou told the news outlet, underscoring the value of incentivizing charter flights.SOUND SMART- Charter flights are operated based on demand from clients, such as tour operators or hotel chains. The seats on chartered flights are usually sold as part of an all-inclusive holiday to passengers.DATA POINT- The country’s air traffic is forecast to increase to register over 190 aircraft per week in July, which is estimated to boost hotel occupancy rates during the month by 5 percentage points m-o-m to 90%. ENERGY- State-led JV Alexandria for Supply Chain Company is set to welcome another state entity to the liquefied ethane gas import initiative, with the Transport Ministry’s Holding Company for Maritime and Land Transport (HCMLT) bid to acquire 10% of the company approved by shareholders, Al Arabiya reports, citing an unnamed government official. The Egyptian Ethylene and Derivatives Company (Ethydco) will also join the company’s shareholders at a later date, acquiring a part of Egyptian Petrochemicals Holding’s (Echem) 37.5% stake, according to the source.REMEMBER- The Alexandria for Supply Chain Company is a USD 660 mn joint venture aimed at setting up a permanent offshore facility at the Dekheila Port in Alexandria that was launched in August last year. The company aims to import 1.1 mn tons of liquefied ethane gas a year, ensuring a steady supply of raw materials for the petrochemical industry in the region.What’s next? A general assembly will be held in the coming days to give the final green light, according to the source. Who owns what? Assuming HCMLT gets the go-ahead, Echem will hold a 37.5% stake, Sidi Kerir Petrochemicals will own 22.5%, the lone private sector partner Gamma Construction will have 20%, and each of the Egyptian Natural Gas Company and HCMLT will have 10%.MINING-Elsewedy Capital inked an MoU with the Egyptian Mineral Resources Authority (EMRA) to explore and produce phosphate ore at the Sebaeya mines in the Nile Valley, according to a statement. The agreement also allows for the possibility of Elsewedy Capital or its affiliated companies to enter future negotiations to set up joint ventures for exploration and production. The move is part of the government’s push to raise the mining sector’s share of GDP to 5-6% from less than 1% currently.A phosphate fertilizer plant could also be in the works, as the agreement includes a feasibility study for the facility.

Wednesday, 2 July 2025

Old rent law debate postponed amid parliamentary objections
Good afternoon, friends. We’re racing towards the final stretch of the week and into the long weekend. The news cycle appears to be taking a breather, and so should you. THE BIG STORY TODAY- Old rent act discussions postponed to tomorrow amid parliamentary pushback: House speaker Hanafy Gebaly adjourned the general assembly and postponed the debate on the controversial old rent law to tomorrow’s session, following objections from parliamentary blocs. “The government showed up unprepared and lacking key data and statistics,” Gebaly said in a statement, calling for full attendance by MPs and the press tomorrow.ElSewedy Capital inked an MoU with the Oil Ministry to explore and produce phosphate ore at the Sebaeya mines in the Nile Valley, according to a statement from the ministry. The agreement also allows for the possibility of ElSewedy Capital or its affiliated companies to enter future negotiations to set up joint ventures for exploration and production. The move is part of the government’s push to raise the mining sector’s share of GDP to 5-6% from less than 1% currently.A phosphate fertilizer plant could also be in the works — the agreement includes a feasibility study for the facility. Mark your calendar for the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterpriseadvisory.com to explore sponsorship opportunities.THE BIG STORY ABROADThe foreign press is still honing in on the Senate’s marathon vote on Trump’s tax bill: Senate Republicans worked through a nearly 19-hour marathon voting session that stretched into Tuesday morning in a push to pass US President Donald Trump’s sweeping tax and spending package, despite internal party divisions over its projected USD 3.3 tn addition to the national debt. Senators can only afford to lose three votes to pass the bill and two Republicans have already indicated they’re against it. The 940-page bill, which Trump wants passed before the 4 July holiday, includes controversial provisions such as cuts to Medicaid and expanded funding for immigration enforcement measures. (Reuters | Bloomberg | Washington Post | Associated Press)Elon Musk pledged to unseat lawmakers who back the bill, criticizing its projected hit to the US debt pile. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame,” he wrote on X. “And they will lose their primary next year if it is the last thing I do on this Earth,” he added. He also floated the idea of forming a new “America Party” if the bill passes.And, needless to say, Trump did not let it slide: Reviving his public feud with Musk, Trump suggested that the government review subsidies received by the Tesla chief as a way to rein in spending. “Elon may get more subsidy than any human being in history,” he said on Truth Social, adding that the country “would save a fortune” if these funds were cut. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ☀️ TOMORROW’S WEATHER- The capital will be seeing another sunny day tomorrow, with the mercury set to peak at 36°C before dropping to 23°C at night. The North Coast remains cool, with temperatures peaking at just 27°C before slightly cooling down to 24°C at night, according to our favorite weather app.

Tuesday, 1 July 2025

Aspire Capital to roll out money market, gold investment funds in 2025. PLUS: Modern Gas + Petromaint, Samco + Maurer
FINANCIAL SERVICES- Aspire Capital (FKA Pioneers Holding) is planning to launch five new investment funds over the next two years with a total value of EGP 3 bn, Asharq Business reports, citing the company’s Managing Director for Investment Abdel Moneim Omran. Aspire submitted license applications to the Financial Regulatory Authority to begin issuing the funds. The company aims to roll out two funds by year-end — a money market fund and a gold investment fund. Three additional funds, including a real estate fund, an FCY liquidity fund, and an equity fund, are expected in 2026.Aspire isn’t the only one trying to capitalize on the interest in gold funds, with local fintech startup Bokra Holding also looking to roll out an EGP 50-100 mn gold investment fund by 3Q, backed by shariah-compliant debt instruments. By the end of April, total investments in the only three gold funds in the domestic market reached EGP 2.1 bn. These include the AZ-Gold fund, Al Ahly Financial Investments Management's Dahab fund, and Beltone Holding's Sabaek fund.EXPANSION- Local energy players are eyeing the Iraqi market: State-owned Modern Gas and Petromaint are in talks with the Iraqi Oil Ministry over helping connect natural gas networks to power plants and brick and cement factories, according to an Oil Ministry statement. The talks, which took place on the sidelines of the Iraq Oil and Gas Technology Exhibition (Oigatech), also touched on the possibility of the Egyptian companies supplying gas to residential areas and hotels in Iraq.MANUFACTURING- #1- Gov’t to establish industrial complex for bridge, tunnel components: The government is in talks with local contractor Samco Egypt and German steel manufacturer Maurer to develop an integrated industrial complex to locally manufacture components for bridges and tunnels, according to an Industry Ministry statement. A joint technical committee will be formed to draft a roadmap and a timeline for the project’s implementation.#2- Korean investment in Egypt’s textile industry? South Korean textile manufacturer Global SAE-A Group is looking into potential investments in the local textiles sector, company representatives said during a meeting with Public Enterprises Minister Mohamed El Shimi.

Tuesday, 10 June 2025

Gold investment funds and policy coordination dominate the airwaves
Beware, unlicensed investment channels: In a refreshing break from the Old Rent Law, the nation’s talking heads shifted their attention to the Financial Regulatory Authority’s latest statement warning people against unlicensed investment schemes. Masa’a DMC interviewed FRA Head Mohamed Farid (watch, runtime: 11:39), who explained that there are only three licensed gold investment funds on the market with combined investments exceeding EGP 2.1 bn and over 200k investors. Farid said the numbers reflect growing public trust in regulated investment channels.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)AND- El Sisi calls for tighter fiscal-monetary coordination. DMC’s Al Youm covered President Abdel Fattah El Sisi’s meeting yesterday with Prime Minister Moustafa Madbouly, Central Bank Governor Hassan Abdalla, and Finance Minister Ahmed Kouchouk (watch, runtime: 1:13). During the meeting, El Sisi stressed the importance of aligning fiscal and monetary policies together and with the state’s economic vision, boosting FX reserves, and covering development financing needs — while sustainably lowering public and external debt levels.

Wednesday, 7 May 2025

MPs approve Criminal Procedures Law, green light changes to mining authority, NAT assets
The House of Representatives gave its final approval to several pieces of legislation yesterday, including the long-debated Criminal Procedures Law — concluding four months of extensive discussions on the 544-article legislation. The legislation lays out the framework for investigating, prosecuting, and trying criminal cases.New Criminal Procedures Law will soon be the law of the land: MPs cast their final vote on the landmark overhaul to the Criminal Procedures Law, following several months of back-and-forth in committee and plenary sessions. A sweeping glance: The law encompasses six chapters covering criminal prosecution, evidence collection, courts, appeals, enforcement, and international judicial cooperation.An expanded rulebook: The law, which initially consisted of 540 articles, recently gained four new articles during the review process. Two of these were proposed and approved in yesterday’s session — one giving the Justice Minister authority to issue executive orders for implementing the law and another reducing death penalties when reconciliation is accepted by victims’ families in accordance with shariah.A closer look- Here’s a rundown of some key provisions:#1- Pretrial detention: Article 123 limits pretrial detention to one-third of the maximum potential custodial sentence for the alleged offense. The provision — which faced pushback from the Press Syndicate and the National Dialogue — effectively reduces the maximum pretrial detention periods to:Four months for misdemeanors, down from six;12 months for felonies, down from 18;18 months for death penalties and life imprisonment, down from 24.#2- Compensation for wrongful detention: Article 523 mandates state compensation for wrongful pretrial detention, provided that the person seeking compensation has not been detained pretrial in other cases.#3- Surveillance: Articles 79, 80, and 82 grant prosecutors, with judicial approval, expanded surveillance powers in cases involving felonies or misdemeanors punishable by at least three months’ imprisonment. This includes the authority to monitor different communications — including letters, emails, text messages, and social media accounts — as well as to surveil electronic devices and record private conversations. These surveillance orders cannot exceed 30 days without renewal.ALSO FROM THE HOUSE-#1- A new structure for EMRA: MPs gave their final approval to amendments to the Mineral Resources Act that will restructure the Egyptian Mineral Resources Authority (EMRA) into an economic authority with an independent budget. The newly named Mineral Resources and Mining Industries Authority will retain 65% of its annual surplus and remit the remaining 35% to the state treasury. The changes aim to give the authority greater financial and administrative autonomy, while mandating it to localize mining industries, overhaul sector infrastructure, and attract more foreign investment into Egypt’s mining sector.#2- NAT non-operating assets could be up for grabs: The House also gave final approval to amendments to the law regulating the National Authority for Tunnels (NAT) that remove the “public utility” designation from the authority’s non-operating assets. The change will allow NAT — or any of its affiliated companies — to exploit these assets for investment purposes, including through potential partnerships or sales to private-sector players, as part of a broader effort to boost the authority’s revenue streams. The amendment only applies to assets not currently in operational use.#3- The House also referred two draft laws related to the old rent laws to a joint committee for review and public consultation. The first draft proposes general amendments to the framework governing rent agreements, while the second would revise the 1996 law that extended civil law provisions to properties whose lease contracts have expired and where tenants no longer hold legal right to remain. The bills were submitted by the government.Legacy rental contracts under the microscope: House Speaker Hanafi Gebali instructed the committee — comprising the housing, local administration, and legislative affairs committees — to launch an extensive dialogue involving relevant government bodies, legal experts, civil society organizations, and representatives from both landlords and tenants. Gebali stressed that the laws will not move forward without striking a legislative balance that “guarantees the rights of both parties in the rental relationship and ensures fairness.”#4- Final green light to the draft Property ID Act: MPs also gave approval to a draft law that would assign properties a unique digital ID on a centralized government database earlier this week. We have the full rundown of the bill below in our Hardhat section.

Wednesday, 30 April 2025

Chevron makes its Red Sea exit official. PLUS: Saudi Gold Refinery, Raya Holding, Ora Developers, Microsoft
ENERGY- Chevron’s Red Sea exit is now official, with statements from the US energy giant and the Oil Ministry confirming that it has withdrawn from its 45% stake in Red Sea Block 1, citing the lack of energy finds, according to Reuters. The announcements follow then-unconfirmed reports last week that the operator of the last active exploration block in the Red Sea was pulling back.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)But a Red Sea exit doesn’t mean an Egypt exit, with both the ministry and Chevron saying that its resources will instead go towards its interests in Egypt’s Mediterranean. “Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,” the newswire quotes Chevron Spokesperson Sally Jones as saying.TECHNOLOGY-The CIT Ministry inked a MoU with Microsoft Egypt to train 100k youth and public sector employees on artificial intelligence as part of second edition of the government’s National Artificial Intelligence Strategy, according to a ministry statement. The partnership aims to support Egypt’s digital transformation and advance responsible AI use, with Microsoft providing tailored content and practical training paths to targeted cohorts.The agreement also includes AI governance support and consultations on AI-driven solutions in key government sectors. Microsoft will help identify sector-specific use cases, co-organize workshops, and advise on policy frameworks aligned with the Egyptian Charter for Responsible AI. The two sides will also cooperate on establishing a multi-stakeholder dialogue on regulatory frameworks for AI governance.MINING-The World Mining Union — a Saudi Gold Refinery subsidiary — is seeking a mineral and gold prospecting license in the Eastern Desert within the concession area of Shalateen Mineral Resources Company, the parent company’s operations manager Yousif Abdulrahim told Asharq Business. Saudi Gold Refinery Group officials will visit Cairo in two weeks to discuss potential mining investments, Abdulrahim said.EXPANSION-#1- Raya Holding plans to launch a consumer finance company in Saudi Arabia through its Aman Holding, likely via acquisition rather than establishing a new entity, Group CFO Hossam Hussein told Al Arabiya. Raya — which already operates call centers in Saudi Arabia and Dubai — also set out a Gulf expansion strategy that involves launching new fintech companies and data centers, with a focus on Saudi Arabia, Hussein added.#2- Ora Developers has opened its regional headquarters at in Dubai, it said in a statement (pdf). The company plans to at least triple its workforce by the end of the year from its current 94 employees, as it accelerates development of large-scale projects in the UAE. ORA is preparing to launch a 4.8 mn sqm beachfront development in Ghantoot, located between Abu Dhabi and Dubai. The company’s chairman and CEO Naguib Sawiris previously said the project would require some USD 10 bn in investments, and would be completed in 10-15 years, though at the time it was estimated to be around 15 mn square meter in size. The firm is also building a family luxury community with US operator Discovery Land Company with a private 18-hole golf course, we reported previously. AGRICULTURE-The Finance Ministry will disburse EGP 3 bn next week to settle overdue payments owed to cotton farmers, according to a cabinet statement. The funds will cover the remainder of the value of cotton delivered by farmers to the state earlier this year.REMEMBER- A high guaranteed price of EGP 10-12k per quintar for the season — up 112% on the previous season — put prices out of step with global rates, which pushed private sector buyers out of the market. Private companies ended up skipping five out of eight state-held auctions this season, leaving the government on the hook for large volumes it hadn’t budgeted for.

Tuesday, 22 April 2025

PLANET FINANCE | EnterpriseAM
US stocks see historic “bull crash” amid recession, trade war fears, with investors shifting towards long-term bonds and gold
There are more signs than ever before that interest in US equities has peaked, with a Bank of America survey showing investors have slashed their allocations by the most ever in March, the Financial Times reports. Investors raised their cash allocation from 3.5% to 4.1%, with the speed of the sell-off “consistent with end of equity correction,” Reuters reports. Some 70% of investors said the “US exceptionalism” theme prevalent in the first few months of the year following US President Donald Trump's inauguration is long gone.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Tech stocks in particular are falling out of favor: The survey found that investors had moved to a net 12% underweight position on US tech stocks, the lowest allocation for more than two years. Shares in tech firms like Elon Musk’s Tesla continued to witness a sell-off yesterday, with the blue-chip S&P 500 closing yesterday 1.1% down, and the tech-heavy Nasdaq falling 1.7%. Tesla’s shares dipped more than 5%, while Nvidia’s shares fell 3.4%.In context: Investors have turned bearish towards US stocks after being raging bulls for months earlier this year due to concerns over stagflation, trade tensions, and a potential slowdown in economic growth. Global growth expectations recorded their second-largest decline on record, according to the survey. The US bond market is also seeing investors shift away from riskier assets amid recession fears and uncertainty over Trump’s tariff policies, Reuters reports separately. Investors have been extending bond duration for at least a month, positioning for lower yields. JP Morgan’s Treasury Client Survey revealed that long positions on treasuries are now at their highest level since 2010.On the other hand, gold is having a much better week, with investors’ shift towards safe-haven assets pushing its price past the USD 3k mark yesterday for the second time this week, Reuters reports. The rally was fueled by a weaker USD and ongoing tariff uncertainty, as well as renewed tensions in the Middle East after Israel broke the ceasefire in Gaza with airstrikes yesterday, killing more than 400 people. Trump’s inauguration has also given gold a new impetus, with the asset hitting record highs 14 times, reflecting strong demand.MARKETS THIS MORNING- Asian markets are mixed this morning, with Japan’s Nikkei and Topix both up, along with South Korea’s Kospi, while China’s CSI 300 opened flat, and Hong Kong’s Hang Seng is down 0.25%. Over on Wall Street, little has changed in futures markets following yesterday’s losses. EGX3031,609+0.5% (YTD: +6.3%)USD (CBE)Buy 50.41Sell 50.55USD (CIB)Buy 50.42Sell 50.52Interest rates (CBE)27.25% deposit28.25% lendingTadawul11,792-0.8% (YTD: -2.0%)ADX9,463+0.1% (YTD: +0.5%)DFM5,149-0.4% (YTD: -0.2%)S&P 5005,615-1.1% (YTD: -4.5%)FTSE 1008,705+0.3% (YTD: +6.5%)Euro Stoxx 505,485+0.7% (YTD: +12.0%)Brent crudeUSD 70.56-0.7%Natural gas (Nymex)USD 4.06+0.2%GoldUSD 3,0400.0%BTCUSD 82,342-2.1% (YTD: -12.1%)THE CLOSING BELL-The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 4.8 bn (37.9% above the 90-day average). Local investors were the sole net sellers. The index is up 6.3% YTD.In the green: Egypt Aluminium (+7.4%), Palm Hills Developments (+7.0%) and Ibnsina Pharma (+6.3%).In the red: Juhayna Food Industries (-2.7%), Alexandria Containers and Goods (-1.9%), and Emaar Misr (-1.7%).CORPORATE ACTIONS- Al Baraka Bank’s Ordinary General Assembly approved distributing EGP 620 mn in dividends to shareholders for its 2024 earnings at EGP 0.85 per share, according to a disclosure to the EGX (pdf).

Wednesday, 19 March 2025

MOVES | EnterpriseAM
Hoda Mansour tapped as managing director and vice chairman of AngloGold Ashanti’s Sukari Gold Mine
AngloGold Ashanti appointed Hoda Mansour (LinkedIn) as the managing director and vice chairman of Sukari Gold Mine — the operating company for its gold mine in Sukari, according to a statement (pdf) from the company. Mansour enters the role after serving as COO of AI-solutions provider IFS’ Asia-Pacific, Japan, the Middle East, and Africa division. She also serves as a non-executive board director at CIB, chairs its sustainability committee, is a member of the bank’s operations and technology committee, and has been listed on Forbes Middle East’s list of 100 Most Powerful Businesswomen since 2018.What they said: “Along with her deep business experience and understanding of the regional business environment, Hoda brings an understanding of our operations as well as a track record in leading teams to drive sustainable competitive advantage,” AngloGold Ashanti Senior Vice President Marcelo Pereira said.

Monday, 17 March 2025

Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024
Good morning, all. We have another packed issue to close out one particularly hectic week. Over the past 24 hours we saw Madbouly give us a timeline for the anticipated package of wage and pension hikes, the CBE and AMIC announce December’s net foreign reserves and auto sales data, respectively, and Elsewedy Electric launch the region’s biggest telecom cables factory. PSA- WEATHER- It’s another cold day in Cairo, with a high of 17°C and a low of 11°C, according to our favorite weather app.It’s just as cold in Alexandria, with a high of 17°C and a low of 12°C.And over the weekend, expect to see a high of 18°C and a low of 10°C in the capital.** DID YOU KNOW that we now cover Saudi Arabia and the UAE?** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.WATCH THIS SPACE- Aviation Minister talks investment with UK firms: Civil Aviation Minister Sameh Elhefny met with senior officials from British financial institutions, including HSBC UK, Standard Chartered, and UK Export Finance, to discuss cooperation and investments in Egypt’s aviation industry, according to a ministry statement. The talks focused on potential projects to enhance infrastructure, develop aircraft fleets, and expand airport capacity.CAPITAL MARKETS- The world’s largest sovereign wealth fund Norway’s Pension Fund Global held USD 100.3 mn worth of stocks in 11 EGX-listed companies as of 31 December 2024, according to our calculations based on the fund’s holdings of equities as of December 2024 report (pdf).This marks a 26% drop in value from USD 134.7 mn on 31 December 2023 (pdf), likely due to the depreciation of the EGP. The fund’s biggest equity position in Egypt is in fintech outfit Fawry at 4.1%, followed by CIRA Education at 3.1%, and Taaleem Management Services at 3.0%.HAPPENING TODAY- Egypt International Boat Show, ahoy: Boat and yacht companies from across the globe are in Cairo for the first day of the Egypt International Boat Show at the Cairo International Convention Centre. With both boating enthusiasts and those in the industry in mind, the event, which wraps up on Sunday, will host discussions about the industry and showcase the latest luxury yachts. You can register to attend the event on its website.DATA POINT- Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024, hitting 24 tons as savers increasingly looked away from the safe-haven asset, according to the World Gold Council’s gold demand trend report for last year. During the same period, Egyptian purchases of gold jewelry fell 2% y-o-y to 26.1 tons. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here THE BIG STORY ABROAD-For the second morning running, the foreign pages are all about Trump’s proposal for Gaza’s future, which was met with a strong stance from international leaders. Calls of permanently displacing Gazans sparked a strong international outcry, with UN Secretary General Antonio Guterres calling for adherence to international law and avoiding “any form of ethnic cleansing.” Meanwhile, German Foreign Minister Annalena Baerbock warned the plan would “lead to new suffering and new hatred.”Damage control: Trump’s aides scrambled to walk back the most controversial elements of his proposal, stating he did not commit to deploying US troops in Gaza and clarifying a resettlement would be temporary to pave the way for reconstruction efforts and that the US will not pay the bills. (Bloomberg | New York Times | FT)AND IN THE BUSINESS PAGES- Beijing filed a World Trade Organization complaint against “protectionist” 10% tariffs on Chinese imports. Trump had said earlier he was in “no hurry” to speak with President Xi Jinping.ALSO- It’s not looking good for Nissan + Honda: Negotiations over the USD 60 bn anticipated merger — that would have created the world’s third-biggest automaker — have reportedly hit a wall. One major sticking point was Honda wanting a bigger piece of the holding company, with Nissan becoming a subsidiary — a plan the latter rejected as it opted for a merger of equals. (Reuters | New York Times | WSJ)

Thursday, 6 February 2025

Budget supermarket chain Kazyon is set to fully acquire Minya’s Upper Egypt for Concentrates. PLUS: Tanmiya Capital Ventures + Vital Pharma, Bel Egypt, Pickalbatros, Bolt, Akh Gold, Erada Microfinance
M&As- #1- Budget supermarket chain Kazyon is set to fully acquire Minya’s Upper Egypt for Concentrates — the company behind condiment, paste, sauce maker Giardano — pending approval from the Egyptian Competition Authority, unnamed sources told Al Borsa. The acquisition will be financed via a capital increase of an unspecified size, with EFG Holding advising on the transaction.This isn’t Kazyon’s only expansion in the works, with the company — founded in 2014 by our friend Hassan Heikal, the former EFG Hermes CEO — planning to expand its portfolio to 5k stores across Egypt, Morocco, and Saudi Arabia within the next five years. This involves a USD 144 mn Morocco expansion over the next four years in addition to its entrance into through its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction. #2- Tanmiya Capital Ventures is set to acquire a 21% stake in Vital Pharma in a transaction expected to close within the next two months, Tanmiya Managing Partner Mohamed Mahgoub told Al Borsa. The acquisition, which has already received approval from the Egyptian Competition Authority, will include a convertible loan provided by Tanmiya to Vital Pharma. INVESTMENT-Dairy products producer Bel Egypt is set to inject EUR 5 mn this year to add new production lines and upgrade its machinery, boosting production capacity by 12%, Regional Director Hani Aram said, Al Borsa reports. Bel’s new target is a considerable jump from the EGP 150 mn it was said to be targeting in October over a two-year period. ENERGY-The General Petroleum Company plans to drill 41 new oil and gas wells and repair or recomplete 39 others as part of its FY 2025-2026 investment budget, according to an Oil Ministry statement. HOSPITALITY-Pickalbatros Hotels & Resorts plans to add 2k hotel rooms to its local portfolio this year, which would increase the company’s total stock of rooms to 16k, CEO Kamel Abou Aly told Al Arabiya. Some 900 rooms will open their doors next month and the remaining 1.1k will go online before the end of the year, he said, adding that the rooms will be added to its hotels in Sharm El Sheikh, Makadi Bay, and Hurghada. Abou Aly previously mentioned plans to invest EGP 5 bn in the local market throughout 2025. The hospitality player also plans to inaugurate two new hotels in Morocco in the coming months as it continues its expansion drive in the country.TRANSPORT-#1- Three European firms are eyeing the contract to manage and operate Egypt’s high-speed electric rail network, Al Mal reports, citing what it says are sources with knowledge of the matter. The companies — one Italian, one Spanish, and one French — put in their offers before the tender went live — the tender was set to launch later this month. The offers are being reviewed and the three firms are expected to submit their technical and financial offers before 2H 2025 and the selected firm will be announced late 2025 or early 2026. We have an idea who the Italian company might be, as Italian state-owned Italian State Railways last month discussed submitting an offer to manage and operate the network with Transport Minister Kamel El Wazir. This came as the ministry awaits Deutsche Bahn’s — initially tapped for the role in 2022 — financial offer.#2- Estonia-headquartered ride hailing app Bolt will invest EUR 15-20 mn in the local market over the coming three years as it works towards a nationwide expansion, country manager for Egypt and Saudi Arabia Haitham Mansour told Al Mal. Bolt launched in Cairo last March and plans to expand its services to Alexandria by the end of the year and to the rest of the country within three years. It also plans to expand its Cairo customer base of 700-800k to 2-3 mn by the end of the year. MINING-UK-based Akh Gold will invest some USD 5 mn in its Eastern Desert concession this year, the business development offer of the Naguib Sawiris-backed parent company In2Metals, Ahmed Khairy, told Hapi Journal. The investment will focus on completing exploration efforts, Khairy said, ruling out the possibility of acquiring any new mines in Egypt.MSMEs-The Micro, Small, and Medium Enterprises Development Agency has signed an EGP 60 mn contract with Erada Microfinance to provide technical and financial support to microenterprises, according to an agency statement. The agreement will finance 1.7k new and existing microfinance projects with a focus on production and agricultural projects and each project eligible for up to EGP 242k.EDUCATION-A campus for the UK’s Exeter University will be built in Ain Shams University’s international campus following an MoU signed by representatives of both institutions yesterday, according to a cabinet statement. The development falls under the government’s aims to internationalize education offerings.

Monday, 20 January 2025

Raseedi eyes seven-figure investment in newly acquired nanocredit outfit Kashat. PLUS: Apache, Madinet Masr, Bank ABC + Eroglu Garment, Goldman Sachs
FINTECH- Fintech startup Raseedi is set to invest a seven-figure USD sum into Kashat and its subsidiary Pharos Microfinance, with aims to reach a combined portfolio size of EGP 500 mn this year, CEO Ahmed Atalla told Al Borsa. The move follows Raseedi’s acquisition of Kashat this month in an equity deal that will enable the startup to introduce instant microloans. Funding talks underway: Raseedi is negotiating with a VC firm and three banks for EGP 3 bn in financing over three years, EGP 500 mn of which will be for the current year.ENERGY- US oil producer Apache further strengthens presence by signing up for four additional Western Desert blocks totaling over 6.3k sqm, representing a 30% increase to the company’s overall concessions in Egypt, according to Mees. The expansion follows an earlier agreement with the Oil Ministry that saw it agree to pay the firm USD 4.25/mn BTU for gas from new discoveries and untapped assets, up from a price of USD 2.65/mn BTU for its existing onshore gas output — representing a 60% price hike, the report reads. REAL ESTATE- Madinet Masr has inked a EGP 263 mn agreement with Al Tawakol Group subsidiary GTCI Constructors to enhance the infrastructure of the real estate developer’s Taj City development, according to a statement (pdf). The new engineering, procurement, and construction partner will work on expanding water and irrigation tanks in Taj City, in addition to creating green spaces. Work is expected to start and wrap up in 2025. DEBT-Bank ABC has extended a USD 18 mn, seven-year loan to Eroglu Garment — a subsidiary of Turkish clothing manufacturer Eroglu Holding — to support the construction of its USD 40 mn factory in the Suez Canal Economic Zone, the bank said in a statement (pdf). The project, expected to create 3k jobs, is part of Eroglu’s plan to expand its operations and make Egypt a regional manufacturing hub. Eroglu has plenty more in its Egypt pipeline, with the clothing manufacturer breaking ground on a USD 51 mn garments factory in the Qantara West Industrial Zone in November, marking its third project in the area within four months. INVESTMENT- Goldman Sachs discussed investing in Egypt with Investment Minister Hassan El Khatib, during a delegation visit from the investment bank yesterday, according to a ministry statement. Goldman Sachs economist for MENA Farouk Soussa noted that the country’s competitive market and advanced infrastructure offer exceptional prospects for collaboration on initiatives with a sustainable economic impact. The meeting concluded with a commitment to fostering sustainable growth and empowering local businesses, alongside plans to establish a framework for actionable cooperation.

Thursday, 16 January 2025

Shalateen Mineral Resources Company eyes role as gold producer in 2025. PLUS: Plaza Premium Group + Egypt Aviation Services + Cairo Airport Company, Orascom Construction, International Monetary Fund
MINING- State-owned Shalateen Mineral Resource Company plans to redirect operations to the production of gold and minerals this year, two government officials told Asharq Business. The move would mark a shift for the company which currently acts as a bridge between the gold market and the Central Bank of Egypt, buying gold from individuals and selling it to the central bank. What’s the plan? The company will reportedly kick off exploration operations at its Eastern Desert concessions this year, they said.The unconfirmed report follows in the footsteps of news alleging that the company will relaunch its gold exploration bid in the first half of 2025 after the offers for its four-times extended tender that came to a close in November did not meet the required criteria. The requirements entail that the company should have at least ten years of experience in mining exploration and exploitation, a work team with over 100 cumulative years of experience in the field, and at least 10 mn ounces of existing gold reserves.AVIATION-Plaza Premium Group (PPG) will manage, operate and commercialize six lounges at Cairo International Airport under a strategic joint venture with Egypt Aviation Services and the Cairo Airport Company, the Hong Kong-head quartered aviation-focussed hospitality firm said in a statement (pdf). In addition to the six upmarket lounges that will be rebranded as Plaza Premium Lounge by CAC and EAS, the joint venture will also set up a new lounge in Terminal 3.Remember: The Madbouly government first revealed plans last November to invite private sector players — including foreign companies — to take over the management of airports in the country in order to improve services and increase revenues collected by the state coffers. The list of airports earmarked for the private management plan initially started with only five, but now includes all of Egypt’s airports after the government agreed last week with the International Finance Corporation to spearhead the airports privatization plan.CAPITAL MARKETS-Egyptian b’naire Naguib Sawiris has transferred his entire 5.8% stake in Orascom Construction to his brother Nassef Sawiris, as part of asset re-allocation among the family, and bringing the latter’s stake and entities held for his benefit in the firm up to 42.4%, the company said in a disclosure (pdf). Naguib inherited his shares in the company from his late father Onsi Sawiris in 2022 — the Sawiris family’s total ownership in Orascom Construction remained unchanged at 54.9%.INFRASTRUCTURE-Elsewedy Engineering Industries will carry out infrastructure for work for MBG Development’s Pukka project in the new administrative capital, the real estate developer said in a statement (pdf). Elsewedy will establish the project’s wastewater, water supply, rainwater drainage, irrigation, fire systems, and electricity networks under the agreement. The company did not disclose the financials of the agreement.LEGISLATION-Egypt will up its subscription to the IMF by 50% under a presidential decree issued by President Abdel Fattah El Sisi, according to the Middle East News Agency. The move, which was approved by the House of Representatives back in October, was then said to be worth some USD 1.4 bn and EGP 48 bn.COMMODITIES-The government has removed the export limit for cotton, allowing cotton producers to export the crop at full capacity, Al Arabiya reports, citing unnamed sources from a body representing cotton exporters. The government had previously set a 40% limit on exports for cotton exporters last year with the aim of securing larger quantities of the crop for local factories — a move that left local companies with a surplus of cotton by the end of last year.

Sunday, 12 January 2025

Shalateen to relaunch gold tender after original offers fail to meet required criteria. PLUS: Sidped + Korra Energi, Sidpec + Petrochemicals Holding Company + Draslovka, Jaz Hotel Group
MINING- The Shalateen Mining Company will relaunch its gold exploration bid in the first half of 2025 after the offers for its four-times extended tender that came to a close in November did not meet the required criteria, an Egyptian Mineral Resources Authority (EMRA) official told Al Borsa. According to the official, the requirements entail that the company should have at least ten years of experience in mining exploration and exploitation, a work team with over 100 cumulative years of experience in the field, and at least 10 mn ounces of existing gold reserves.ENERGY-#1- Sidi Kerir Petrochemicals is planning build a 14 MW hydrogen-fueled power plant with a capacity of 14 MW, with the company currently in negotiations with local firm Korra Energi to build the facility with investments of USD 16 mn, Al Arabiya reports, citing two unnamed sources. The new plant will utilize the hydrogen produced as a byproduct of Sidpec’s existing operations, with implementation set to kick off by the end of 2025. #2- Austria’s Petrochemicals Holding Company and Czechia-based Draslovka will develop a USD 160 mn sodium cyanide production plant within Sidi Kerir’s factory complex in Alexandria under a special freezones system, an unnamed source told Al Arabiya. The two companies inked a 25-year land lease agreement for the project — dubbed Draschem for Specialized Chemicals.Sidi Kerir wants in and is negotiating with the two companies that take up a 15% share of the project at a cost of up to USD 24 mn, according to the source.Sound smart: Sodium cyanide is the solution commonly used for gold extraction from low-grade ore, and can be used to extract other metals, including copper, zinc, and silver.The news clears up some confusion we had, as we originally thought that the two European companies’ project that came to light in April was a separate project from Sidi Kerir’s, which got the cabinet greenlight in October. Instead the project seems to be a JV between the three parties, with each party’s share yet to be determined.DEBT-Travco subsidiary Jaz Hotel Group is looking to secure EGP 1.8 bn in low-interest financing from the government to accelerate the launch of four new hotels in 2025, Al Arabiya reports, citing unnamed sources. The hotels — which will add 1.2k rooms in Cairo, Marsa Matrouh, and Marsa Alam — are part of a EGP 3 bn investment plan.Remember: To encourage investors to build more hotels and reach the targets set, the finance and tourism ministries last month launched a new EGP 50 bn subsidized loan program for the tourism sector, offering financing at 12% interest.EXPANSION-Egyptian companies plan to invest up to USD 200 mn in four industrial projects in Morocco in 2025, Egyptian-Moroccan Business Council head Nezar Abou Ismail told Asharq Business. The projects will focus on key sectors, including food, beverages, industrial zones, and oil and gas. Agreements for two or three of these projects are expected during 1Q 2025.

Thursday, 9 January 2025

Shalateen’s gold deliveries to the central bank to hit 1.25 tons next year
Good afternoon, friends, and congratulations on making it to the weekend. THE BIG STORY TODAY Shalateen looks to up its gold deliveries by 25% next year: State-owned Shalateen Mineral Resources Company is planning to deliver 1.25 tons of gold to the Central Bank of Egypt in 2025, up 25% from the 1 ton it expects to deliver this year, Asharq Business reports, citing an unnamed government source it says has knowledge of the matter. Shalateen delivered 720 kg of gold worth EGP 1.3 bn in 2023.THE BIG STORY ABROADTrump, Musk torpedo federal spending plan: The US government is two days away from a partial shutdown as Congress faces pressure from US President-elect Donald Trump to reject a temporary federal spending bill. The bipartisan bill — which would avoid a shutdown in the days before Christmas holidays — includes some USD 100 bn for hurricane relief and USD 10 bn for agricultural aid. Elon Musk also pressured Congress earlier this week to reject the bill. (New York Times | BBC | AP | The Guardian)ALSO GETTING INK- A French court sentenced Dominique Pélicot — who was found guilty of drugging and assaulting his wife with strangers for several years — to 20 years in prison. Another 46 defendants in the case were also found guilty of rape, while two were guilty of attempted rape. Two others were charged with [redacted] assault. The story got ink from Reuters and the Financial Times. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ** CATCH UP QUICK on the top stories from today’s EnterpriseAM:Fitch Solutions’ research unit BMI now expects the Egyptian economy to grow 5.1% in FY 2025-2026, up 0.4 percent points from its previous 4.7% projection.Hassan Allam secures another big port construction project: The Emirati, ADQ-owned port giant Abu Dhabi Ports has chosen local construction and contracting leader Hassan Allam Construction to build the infrastructure for its Noatum Ports at the Safaga terminal in the Red Sea.All gas, no brakes for plans to locally assemble MG-branded vehicles: Al Mansour Automotive and Chinese state-owned SAIC’s project to assemble traditional and electric cars for SAIC-owned brand MG in Egypt are moving along, with the government allocating a 21k sqm plot in Sixth of October for the project.☀️ TOMORROW’S WEATHER- The temperature is expected to drop even lower this weekend, with tomorrow’s mercury expected to reach a high of 21°C in the capital, and a low of 13°C at night, according to our favourite weather app.

Thursday, 19 December 2024

Abu Qir Fertizers’ looks to green hydrogen to help power ammonia plant. PLUS: Exxon Mobil, Instapay, Egypt Post, Abu Auf, Ezz Elarab,
ENERGY- #1 Abu Qir Fertilizers looks to green hydrogen blending to secure supplies and improve green credentials ahead of CBAM: EGX-listed fertilizer manufacturing giant Abu Qir Fertilizers has decided to replace part of the natural gas used in its ammonia production facility with 50 tons a day of green hydrogen, according to an EGX disclosure (pdf). The 12-month project is also expected to up production 100 tons to 1.2k tons a day. The company’s board also greenlit a steam optimization system for the plant to reduce gas consumption 2-4% and stabilize energy input.Sound smart: Green hydrogen blending involves mixing hydrogen produced from clean energy sources — think wind, power, and hydro — with natural gas in mostly existing infrastructure to power individual projects or even an entire national grid. It presents an attractive way to diversify and greenify a company or country’s energy mix that is both gradual and with little up-front costs as it makes use of existing infrastructure. As a clean fuel source, the more green hydrogen sent through the pipes means less emissions as it reduces the amount of natural gas in the mix.**We did a deep dive into the promise and challenges of green hydrogen blending in a recent two-part Hardhat. You can check out part I here and part II here.#2- Exxon Mobil to begin drilling new exploration well in the Mediterranean: US energy giant Exxon Mobil will start drilling a new offshore gas exploration well in the North Marakia concession in the western Mediterranean on 15 December, according to a statement from the Oil Ministry. The company is looking to expand its presence in Egypt’s exploration and field development sectors. REMITTANCES-The CBE greenlights receiving remittances via Instapay: The CBE gave the green light to a number of banks to start accepting Egypt-bound remittances from abroad through the central bank’s payment platform Instapay, the bank said in a statement (pdf). The move comes as part of “efforts to strengthen the infrastructure of electronic financial services, promote digital transformation, and contribute to transitioning toward a less cash-dependent society,” the statement reads. Remember: Egyptians abroad have started sending more of their remittances through official channels after the float of the EGP put an end to the parallel market that had pushed remittance flows through unofficial channels. Total remittances during the first nine months of the year hit USD 20.8 bn, up over 40% y-o-y from the USD 14.6 bn recorded during the same period last year. Remittances are an important source of FX for the country and the state is working to increase flows by 10% each year to reach USD 53 bn by 2030.M&A-Egypt Post acquired EGP 8.9 bn in shares owned by the National Investment Bank in seven EGX-listed companies, Asharq Business reports citing an informed government source. The move comes as a part of disentanglement protocol that would see the bank and the postal authority resolve overlapping financial obligations and streamline operations. The companies: The shares were purchased from Eastern Tobacco, Abu Qir Fertilizers, Alexandria Container and Cargo Handelling, Mobaco, Egyptian Kuwaiti Holding, Alexandria Mineral Oils Company (AMOC), and Sidi Kerir Petrochemicals (Sidpec)HOSPITALITY-Egyptian hotel chain Sunrise Resorts & Cruises is out of the Samih Sawaris-led bid to acquire and revive Societe D'aménagement D'essaouira Mogador (SAEMOG), which owns a the Mogador resort in Morocco's Essaouira that has been earmarked for a AED 4 bn redevelopment by the consortium, according to a disclosure on the Moroccan Competition Authority ’s website announcing the purchase. Remaining in the consortium are Sawiris, along with Emirati investment company Al Nowais and Eastern Investment, with the purchase made through Orascom Investments.EXPANSION-Abu Auf eyes expansion into KSA and new domestic investments: Local food manufactured and chain Abu Auf is set to open its first two branches in Saudi Arabia by mid-2025 at a cost of USD 1 mn, CEO Ahmed Auf told EnterpriseAM. Domestically, the company plans to invest EGP 150 mn to expand to 410 branches and increase its coffee production capacity by 50% to 9k tons next year.Abu Auf is also weighing an entry into the snack market, either through acquisitions or new investments, Auf noted. On the export front, the company plans to triple annual revenues to USD 50 mn by 2028, with new market expansions into Libya, Oman, Qatar, and Kuwait next year.MINING-Oil Minister Karim Badawi called on gold mining companies to take part in upcoming exploration tenders penciled in for 1Q 2025 during his involvement in the British Egyptian Business Association's mission to the United Kingdom. One of these meetings with officials with Canadian mining company Barrick Gold saw the two sides ink an agreement for it to invest in and obtain areas to mine gold once it receives the necessary approvals. The Egyptian Mineral Resources Authority and AngloGold Ashanti also signed a draft gold exploration agreement with AngloGold Ashanti.Remember: Egypt had been reportedly planning to launch a global tender for gold mining and exploration at around 200 sites in the Eastern Desert by the end of the year, expected to kick off once the House approves the pending contract for Centamin and Barrick Gold’s mineral exploitation areas in the Eastern Desert. AUTOMOTIVE-Ezz Elarab launches new electric Volvo model and service center: Ezz Elarab Group has launched the Volvo EX30 electric SUV in Egypt, in addition to plans to inaugurate a USD 3.5 mn service center tailored for EVs and plans to open a certified used Volvo car showroom next year., Al Borsa reports.CUSTOMS-Egypt, Saudi Arabia sign customs agreement: Egyptian Customs Authority (ECA) and Saudi Zakat, Tax and Customs Authority signed a mutual recognition agreement for the Authorized Economic Operator (AEO) program, according to an ECA statement. The program is set to enhance economic cooperation with countries trading with Egypt. The agreement will streamline customs procedures, reduce costs, and boost trade with Saudi Arabia, by granting certified operators benefits like priority customs clearance and lower fees.There’s more to come: The ECA will sign a similar agreement with Bahrain’s customs authority soon. There are also other discussions ongoing with international trade partners to implement the AEO program in international markets.

Sunday, 8 December 2024

Gov’t and World Bank collaborate on building our FDI strategy until 2030. PLUS: Madinet Masr + ASEC Automation, Mountain View, Saudi Egyptian Developers, Sokna, e&
INVESTMENT- Gov’t and World Bank collaborate on FDI strategy for 2025-30: The General Authority for Investment and Freezones (GAFI) is working with the World Bank and relevant ministries to develop a national strategy for foreign direct investment from 2025-30, with the complete strategy to be announced in “the coming months,” according to an authority statement. What we know: The strategy breaks down targeted sectors into two categories based on the World Bank’s sectoral survey methodology: those that will provide significant benefits for the state and offer high returns for investors, and those that require reforms to enhance their attractiveness. GAFI Vice President Dalia El Hawary noted that the strategy will focus on “several key pillars, including fostering linkages with complementary industries and activities, improving the business environment, and promoting investment effectively.”REAL ESTATE- #1- Madinet Masr to partner with ASEC Automation on second phase of its Sarai project: Real estate player Madinet Masr has partnered with Qalaa Holding subsidiary ASEC Automation to invest over EGP 580 mn in the second phase of infrastructure development for its Sarai project in New Cairo, according to a press release (pdf). The second phase of the project will cover road networks and infrastructure over 4.2 mn sqm set to house 14 residential neighborhoods, with delivery targeted by 2026.ICYMI: Madinet Masr and ASEC signed an MoU in September for the construction of an EGP 100 mn infrastructure and road network for the Cavana project at Sarai.DATA POINT- Madinet Masr’s Sarai project accounted for 77.7% of the company’s total sales in 3Q 2024.#2- Mountain View contracts Consolidated Contractors Company to build final EGP 2.5 bn phase of iCity: Mountain View has partnered with Consolidated Contractors Company (CCC) to construct the remainder of its iCity project in New Cairo with investments of EGP 2.5 bn, according to a statement seen by EnterpriseAM. CCC will construct 19 buildings as part of the EGP 10 bn project’s final phase.Remember: iCity is a partnership between the New Urban Communities Authority, Mountain View, Saudi’s SISBAN, and the Housing Ministry.#3- Saudi Egyptian Developers delivers first phase of EGP 8.7 bn Bleu Vert project: Real estate company Saudi Egyptian Developers (SED) has completed the first phase of its EGP 8.7 bn Bleu Vert project in the new administrative capital, according to a company press release (pdf). The company plans to hand over 300 apartments and 104 villas as part of the first phase, with the 70-feddan project set to house some 1.4k units once completed.STARTUPS- Housing Ministry mulls partnering with Sokna on modern cemetery development: Housing Minister Sherif El Sherbiny and officials from funeral services provider Sokna met to discuss possible collaboration on modernizing cemetery infrastructure in Egypt, according to a ministry statement. The meeting saw El Sherbiny welcome possible cooperation in developing existing cemetery sites and allocating areas for new cemeteries in Egypt’s new cities.MANUFACTURING- #1- Locally manufactured 4.5G routers are here: The Egyptian arm of UAE state-owned telecom company e& has announced the launch of the country’s first locally manufactured 4.5G routers, according to a statement seen by EnterpriseAM. The new routers were produced in partnership with Sico Egypt and designed in collaboration with Chinese router manufacturer Tozed. **We ran an Inside Industry in October that breaks down current efforts to expand Egypt’s local router manufacturing industry. Check out the story here.#2- EGFCO launches new polyethylene pipe plant: EGFCO — a joint venture between the Swiss GF Piping Systems, Egypt Gas, and the UAE’s GF Corys — has launched its new polyethylene pipe factory in the Tenth of Ramadan City, according to an EGX disclosure (pdf) from Egypt Gas. The 25k sqm facility will manufacture piping systems for water, gas, and energy infrastructure, with an annual production capacity of up to 25k tons.FOOD- Egypt's Food Safety Authority partners with FEDIS to digitize food monitoring system: The National Food Safety Authority announced a strategic partnership with Fixed Egypt for Digital Solutions and Information Security (FEDIS) to modernize and digitize the monitoring system for food production and distribution in the local market, according to an authority statement. This initiative aims to streamline inspections, certifications, and compliance processes through an integrated digital platform that is expected to enhance workflow efficiency, increase transparency in food safety operations, and support decision-making with advanced analytics.Remember: The government announced in October that food products will require food safety and validity certificates from the National Food Safety Authority starting January 2025.MINING- Hamash to restart gold mining operations: Hamash Company, a JV between the state and Cyprus’ Matz Holding, is looking to restart its gold production and development operations in 2025, following significant challenges with company structure, assets and public funds, company chairman Assem Seddik told the Middle East News Agency.

Monday, 2 December 2024

Jade Textile eyes three new factories for USD 180 mn. PLUS: Giza Spinning and Weaving, DHL, Ebda, Ashry Steel, Ecole Ducasse, Shell, SIAC, E-finance
INVESTMENT- #1- Turkey’s Jade Textile plans to invest USD 180 mn to expand its presence in Egypt, with the aim of doubling its production capacity, Supply Chain Manager Ahmed Ibrahim told Amwal Al Ghad. The expansion includes a USD 65 mn smart green factory in Tenth of Ramadan to kick off operations in December 2025, a USD 35 mn facility in Borg El Arab to come online next summer, and a USD 80 mn expansion to its plant in Ismailia.#2- Giza Spinning and Weaving plans to set up five new factories over the coming five years with combined investments of USD 15 mn, CEO Fadel Marzouk told Al Borsa. The company will establish one factory every year through 2029 in Upper Egypt, he said, adding that the move will double the company’s production capacity. #3- Delivery service company DHL plans to invest up to EGP 500 mn in Egypt in 2025 as it looks to expand into new industrial zones and tap into the growing demand across different governorates, Egypt Country Manager Amr Tantawy told Al Borsa. The company plans to open five new branches and introduce new services like transit shipments and break bulk and is targeting expansion into newly established areas such as the new capital. #4- Ebda to invest EGP 17 bn in eight industrial projects: The National Initiative for Developing Egyptian Industry (Ebda) has selected eight industrial projects to invest EGP 17 bn into as part of the Nile Fund for Industrial Development, Ebda head Amani Eid said yesterday, according to Al Mal. #5- Ashry Steel is gearing up to launch its new EGP 1.5 bn galvanization and lighting poles factory in Sixth of October next month, Al Borsa quotes Ashry Steel Sales Manager Mohamed Ali Gad as saying. The factory, which is being built on an area of 45k sqm, is expected to see its production reach 1 mn tons annually.AGRICULTURE-The planned 1 mn feddan integrated farming zone in the New Valley Governorate courtesy of Chinese companies will require investments totaling USD 7 bn, Egyptian-Chinese Businessmen Association Secretary General Mohamed Alaa El Din told Asharq Business. The first phase, covering 1k feddans, is expected to be completed by September 2025, with additional phases under discussion. Some of the strategic crops planned for cultivation include wheat, corn, soybeans, and sunflower, Alaa El Din said. HOSPITALITY-Ecole Ducasse is set open one of its culinary and pastry schools in Cairo by the end of 2025 under a partnership with Reliance Egypt, the international culinary school network announced in a press release (pdf). The school will offer a range of courses that include everything from “short cooking and pastry classes to intensive programs and masterclasses targeting both local and regional students who are passionate about mastering the art of cooking.”MINING-The Mineral Resources Authority is looking into the possibility of establishing a gold refinery in the Red Sea governorate, with the authority currently in the process of identifying the most suitable location near Marsa Alam for the refinery, Al Borsa reports, citing an unnamed source from the authority. The refinery — which will process locally mined gold — could cost anywhere between USD 20-40 mn to build, the source said, adding that work on the project could begin in mid-2025.ENERGY-Shell to up gas production: UK oil and gas giant Shell will boost its natural gas production by 170 mn cubic feet per day by the end of December, an anonymous government official told Asharq Business. The firm will up its production from three fields in the West Delta region. IPO WATCH-SIAC Holding plans to IPO within the coming two years and is in negotiations with a number of advisors to manage the offering, SAIC Developments CEO Nahla Elebiary told Mubasher. FINTECH-Saudi Arabia’s National Security Services Company (SAFE) will provide EGX-listed fintech giant E-finance with “comprehensive and secure security system for digital payments” under an MoU inked between two sides during Cairo ICT. Under the MoU, e-Finance will provide cloud hosting, expertise, and marketing services, while SAFE will supply the necessary equipment and technical experts. The two companies will also collaborate on international money transfer services between Saudi Arabia and Egypt, according to Al Mal.ENVIRONMENT-The government is working to contain an oil spill after a cargo ship ran aground off the coast of El Qusier, according to a statement by the Environment Ministry. The vessel lost control due to a technical malfunction.

Tuesday, 26 November 2024

IFC eyes mining collaboration with the state
Good morning, everyone. IPOs have become a bit of a rarity for us over in Egypt, so it’s not often that we get to kick off an issue with news that the EGX will soon be welcoming a new addition. We’ve got the latest on United Bank’s private placement set to kick off this morning and much more in the issue today. As with the last few issues, it’s another busy news day, so let’s jump right in. PSA-WEATHER- It’s another cool day in Cairo today, with a high of 25°C and a low of 17°C, according to our favorite weather app.There’s a chance of thunder and rain up in Alexandria, with a high of 23°C and a low of 15°C.** DID YOU KNOW that we now cover Saudi Arabia and the UAE?** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here HAPPENING TOMORROW- It’s nearly Interest rate decision time for the CBE: The Central Bank of Egypt’s Monetary Policy Committee will meet tomorrow to review interest rates. The committee has left rates unchanged for four consecutive meetings this year, since the committee delivered a 600 bps rate hike following a surprise monetary policy meeting in March in conjunction with the float of the EGP and a larger loan package from the IMF being approved soon after.The polls are in: The MPC is expected to leave interest rates unchanged amid persisting inflationary pressures and continuing geopolitical tensions in the region, as unanimously forecasted in our interest rate poll of nine analysts and economists.DATA POINT- Gas production increased by 200 mn cubic feet per day and crude oil by 39k barrels per day between July and October, which Oil Minister Karim Badawi pointed to as proof that the ministry’s strategy to up production is achieving results, according to a ministry statement. WATCH THIS SPACE- IFC wants to collaborate on mining materials it thinks will aid local manufacturing: Mining is one of the key targets that International Financial Cooperation wants to work with the government on and is “exploring ways to leverage these natural resources to boost local manufacturing,” according to a statement from the Planning and International Cooperation Ministry. The financial institution’s global industry director for energy, metals and mining, and sustainable infrastructure advisory, Valerie Levkov, namechecked zinc, phosphate, gold, and fertilizers as sectors that the IFC is studying.CIRCLE YOUR CALENDAR- Latvian tech innovations under the spotlight: The Latvian Embassy is hosting a networking and seminar event inviting companies and professionals in the ICT sector to explore Excellence in Latvian Tech on Wednesday, 27 November at Downtown’s Consoleya. The event will see Latvian tech players showcase their latest tech innovations and bring together industry leaders for workshops and discussions on the 5G ecosystem, sustainable transport solutions, and ICT innovation. You can check out the agenda here (pdf) and register for the event here.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.THE BIG STORY ABROAD-After securing approval from US President Joe Biden earlier this week, Ukraine hit Russia with long-range US missiles, striking an ammunition storage facility without causing any casualties. Moscow views the move as an “escalation” from the West, particularly as Ukraine would be unable to launch the missiles without the US providing “direct operational support.” The attack comes on the 1,000th day of the war. (Bloomberg | Reuters | Wall Street Journal | Financial Times)Meanwhile in Rio, the G20 issued a statement (pdf) with what’s being described as weak language, further throwing a wrench in stalled negotiations at COP29. The shortcoming is made all the more concerning as world leaders are in “disarray” before Donald Trump — who is expected to bring yet more chaos and uncertainty — enters office, Bloomberg says. The Financial Times also has the story.AND- Tennis legend Rafael Nadal stepped off the court for the last time in his 23-year career to retire at age 38. The “king of clay” lost his last singles match 4-6, 4-6 against the Netherlands’ Botic Van De Zandschulp at the Davis Cup yesterday. (Sports Illustrated | New York Times | CNN | Vogue | Reuters)*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education. In today’s issue: We take a look at Oil Minister Karim Badawi’s roadmap to making Egypt a regional gas hub after sector setbacks.

Wednesday, 20 November 2024

Al Safy to invest USD 80 mn to develop its television, smartphone production lines. PLUS: Exeed, Mineral Resources Authority, Raya Holding + Helios, ICT Misr, Orange Egypt
MANUFACTURING- Al Safy invests USD 80 mn in local tech manufacturing factory: Al Safy Group — Xiaomi’s local distributor — is set to invest USD 80 mn in its factory for the production of television units and smartphones, the company said in a press release (pdf). The firm plans to expand the factory’s product range to include smartwatches, routers, advanced cameras, and speakers moving forwards, the statement reads.AUTOMOTIVE- Chinese automaker Exeed kicks off local assembly: Premium SUV-focussed Chery subsidy Exeed has officially launched local assembly at the Egyptian German Automotive Company’s facilities, according to a statement from the Industry Ministry. The factory has an annual capacity of 3k Exeed vehicles, alongside 1.2k Mercedes that are also assembled at the plant.AGRICULTURE-Cotton industry calls for EGP 4 bn in government support: Egyptian cotton exporters and private companies are calling for EGP 4 bn in government subsidies to help farmers market their crops at a competitive price point, Al Arabiya reports, citing a letter sent to finance and investment ministries from a professional body representing cotton exporters. A rise in ins. costs and dip in export prices has led to 325 companies shutting their doors this season as they were losing EGP 2k per quintal.MINING-Mineral Resources Authority could soon see a shakeup: The House Industry Committee has given its initial approval for a draft law that aims to regulate the Egyptian Mineral Resources Authority (EMRA) and turn it into an economic body, Al Mal reports. The decision would help the authority in “utilizing untapped mineral resources, maximizing the authority's revenues, and supporting and localizing the Egyptian industry,” MP Mohamed El Sallab said, according to the outlet. M&A- Raya Holding taps advisors for Helios acquisition: Raya Holding has tapped Attijariwafa Bank as its financial advisor and Baker McKenzie as its legal counsel for the transaction that will see Africa-focussed and London-based PE outfit Helios Investment Partners acquire 49% of subsidiary Raya Foods, Al Mal reports citing informed sources. Remember: Raya Holding approved and initially accepted Helios’ USD 40 mn bid last month. At the time, Raya's board also appointed FACT as the independent financial advisor to assess the fair value of Raya Foods’ shares.DEBT- The National Authority for Tunnels secured a EGP 4.5 bn syndicated loan from Abu Dhabi Commercial Bank Egypt (ADCB) and Arab Bank to develop metro and railway lines, its light rail transit, monorail, and electric train projects, ADCB said in a statement. ADCB contributed EGP 3 bn to the loan, while Arab Bank contributed the remaining EGP 1.5 bn. EXPANSION-ICT Misr to expand in Saudi Arabia: Tech consulting firm ICT Misr is planning to expand its business to Saudi Arabia in 1Q 2025, with a particular focus on the kingdom’s cybersecurity sector, Hapi Journal reports, citing CEO Mohamed El Mofty. The Saudi debut is part of the company’s wider plans to expand in several Gulf markets and within Egypt.TELECOMS-Orange Egypt pencils in early 2025 for 5G launch: Orange Egypt’ 5G services are set to go online at the beginning of next year after, Orange Egypt Deputy CEO Hisham Mehrem told CNBC Arabia. The company plans to spend some EGP 10 bn next year to upgrade its networks to accommodate 5G services, he added.

Monday, 18 November 2024

PLANET FINANCE | EnterpriseAM
Gold sees worst weekly drop in over three years amid post-US election market reset
As good as gold? The safe haven asset has seen prices face their worst drop in more than three years following the election of Donald Trump in the US election on 5 November. Traders were quick to react to what a Trump victory could mean for the asset class, with gold pieces falling 2.7% on the day that the Republican contender for the White House declared victory. Throughout the whole month, gold prices are now down 6.6% to USD 2,570.10 per ounce.The prospect of high interest rates for longer is helping drive the fall, with the US Federal Reserve signaling that its rate cut cycle may play out slower than initially forecasted — a problem for gold as a non-interest paying asset. Traders are also pricing in an uptick of inflation on the back of Trump’s proposed tariffs, draconian migration policies, and tax cuts, which could potentially persuade the Fed to hold back on rate cuts for even longer.A stronger USD is likewise partly to blame, as a stronger greenback racks up the price of the precious metal for many international buyers as the metal is usually priced in USD.The move towards Trump trades is also contributing to the sell-off, as investors flock to the likes of BTC and Tesla shares, “attracting money from typical safe havens like gold,” the Financial Times quotes MKS Pamp’s Nicky Shiels as saying.Despite the recent dip, the metal is still up 29.2% over the last 12-month period — a decent notch above all of the world’s main indexes. And some think that the gold rally still has a lot of gas left in the tank, including Shiels, who think that the recent fall in value “is not a reversal of the bullish trend, gold simply rose too quickly, and now it is reverting to a less bullish trajectory.” StoneX’s Rhona O’Connell even expects the asset to soon recover and pass the USD 3k at some point next year.EGX3031,462+0.1% (YTD: +26.4%)USD (CBE)Buy 49.31Sell 49.45USD (CIB)Buy 49.30Sell 49.40Interest rates (CBE)27.25% deposit28.25% lendingTadawul11,791-1.2% (YTD: -1.5%)ADX9,443+0.5% (YTD: -1.4%)DFM4,740+0.2% (YTD: +16.8%)S&P 5005,871-1.3% (YTD: +23.1%)FTSE 1008,064-0.1% (YTD: +4.3%)Euro Stoxx 504,795-0.8% (YTD: +6.1%)Brent crudeUSD 71.04-2.01%Natural gas (Nymex)USD 2.82+1.4%GoldUSD 2,570-0.1%BTCUSD 90,881.60-0.4% (YTD: +115.1%)THE CLOSING BELL-The EGX30 rose 0.2% at Thursday’s close on turnover of EGP 3.4 bn (19.9% above the 90-day average). Local investors were the sole net buyers. The index is up 26.5% YTD.In the green: B Investments Holding (+2.4%), Ezz Steel (+2.0%) and Alexandria Containers and Cargo Handling (+2.0%).In the red: Telecom Egypt (-2.9%), Faisal Islamic Bank -EGP (-2.6%) and Egypt Kuwaiti Holding (-1.9%).

Sunday, 17 November 2024

Aton Resources to launch gold extracting and processing facility in 2026. PLUS: BP to drill two new wells, Sabbour Consulting expands to KSA, British Council promotes inclusion
MINING- New gold extracting and processing factory in the works: Canadian gold miner Aton Resources will set up a gold extracting and processing facility to process finds from its Abu Marwat concession in the Eastern Desert, according to an Oil Ministry statement. The company is planning to launch the facility in 1Q 2026, the president of Aton subsidiary Abu Marwat Gold Mines, Ayman Ibrahim, told Al Borsa.The details: The facility will feature advanced and environmentally friendly technologies that will maximize the extraction of gold and accompanying minerals from the concession’s Hamama and West Rodruin sites. Remember: Aton and the Egyptian Mineral Resources Authority’s JV Abu Marawat Gold Mines Ltd inked an agreement with LSE-listed Capital Drilling earlier this week to drill up at least 5k meters in the Abu Marawat concession. The concession is slated to begin producing gold in 2026, after operations were delayed a year.EDUCATION-Education Ministry, British Council team up to promote inclusion for special educational needs students: The Education Ministry and British Council have launched a new initiative in collaboration with UNICEF to support the further integration of students with special educational needs into Egyptian schools, according to an Education Ministry statement. The campaign, dubbed Making Schools a Place for All Students, will see the British Council collaborate with education sector stakeholders and policymakers to develop action plans for inclusive schools and build capacity among local leaders and within school communities.ENERGY- BP to drill two more exploratory wells in January: Global energy giant BP is set to begin drilling two USD 160 mn exploratory natural gas wells in Egypt's West Delta in January 2025, Asharq Business reports, citing an anonymous government source. The news follows BP’s announcement that it will invest USD 400 mn to drill two new wells at the Raven natural gas field in its North Alexandria concession during the current fiscal year.EXPANSIONS-Sabbour Consulting expands to KSA: Engineering consulting firm Sabbour Consulting signed an agreement with Nasser Nassif Engineering Consultancy to set up a consultancy firm in Saudi Arabia — dubbed Sabbour KSA, it said in an online post. Sabbour Consulting has been eyeing four potential projects totalling SAR 3 bn in KSA, including a residential compound, residential towers, a tourist resort, and a residential project in the Neom development.DEBT-Fresh details emerge about Misr Petroleum’s newly confirmed multi EGP bn syndicated loan: State-owned Misr Petroleum inked a syndicated loan agreement with nine banks for EGP 10 bn, according to a statement (pdf) from the National Bank of Egypt that confirmed earlier unconfirmed reports — and added some fresh details. The breakdown:The National Bank of Egypt led the syndicate, acted as arranger, coverage guarantor, marketer, financing agent, and contributed EGP 750 mn;CIB acted as arranger, coverage guarantor, marketer, debt service account bank, and added EGP 2 bn;QNB was arranger, coverage guarantor, financial marketer, document bank, and put forwards EGP 3 bn;The Arab African International Bank played the role as arranger coverage guarantor, financing marketer, security agent, and added EGP 2 bn;Banque du Caire was arranger, coverage guarantor, and contributed EGP 750 mn;The National Bank of Kuwait was a coverage guarantor and EGP 500 mn;Midbank was a coverage guarantor and put forwards EGP 400 mn;EG Bank was a coverage guarantor and added EGP 300 mn;And the Agricultural Bank of Egypt was a coverage guarantor and put EGP 300 mn in the pot.What’s the money for? The fresh funds will help support the petroleum sector through current headwinds and help make it more competitive, according to the statement.AVIATION-Saudi’s Flyadeal adds flights to two Egyptian cities: Flyadeal launched two new routes — one connecting Madinah to Cairo and another connecting Jeddah to Sohag — the Saudi budget airline said (here and here). This raises the airline’s weekly flights between the kingdom and Egypt to 44, up from 39. The statement didn’t clarify the flights’ frequency on each of the new routes.

Thursday, 14 November 2024

Electricity Ministry sets offtake prices for stored solar energy. PLUS: Knauf + Hassan Allam Construction, Siemens, Dynamic Distribution, Aton
RENEWABLES- Egypt sets tariffs for stored solar energy: The Electricity Ministry has put a price tag on energy produced from solar and battery storage projects — USD 0.023/kwh for projects set up by private investors under a build-own-operate (BOO) contract and USD 0.014/kwh for projects where the government owns the solar plants while investors provide storage, unnamed Electricity Ministry sources told Al Mal. We’ve been hearing a lot about stored solar energy projects recently: Egypt currently has a few solar and battery storage projects in the works, most notably Emirati AMEA Power’s 1 GW solar power plant with 600 MWh battery storage system in Benban — expected to be the continent’s largest. UAE’s Masdar, Hassan Allam Utilities, and Infinity Power are also working on a solar project, which will have a capacity of 1.2 GW of energy and 240 MW/hour of storage batteries. CONSTRUCTION-Knauf to supply Hassan Allam with building materials: Building materials manufacturer Knauf will provide our friends at Hassan Allam Construction with building materials and solutions under a newly-announced strategic partnership, according to a joint press release (pdf). The partnership will see Knauf supplying Hassan Allam Construction with gypsum boards, cement boards, metal profiles, and more.ICYMI: Knauf is expected to increase its Egypt investments to EUR 120 mn by 2026, up from EUR 50 mn in June, to expand operations and add new production lines at its Suez gypsum board factory.INVESTMENT- Could Egypt and Japan host their own investment conference? The Egyptian-Japanese Business Council proposed hosting an Egypt-Japan investment conference next year, modeled on June’s Egypt-EU Investment conference, Al Mal reports. TECH-Around 1k factories are set to go digital: The Chamber of Information Technology and Telecommunication in partnership with the Industrial Modernization Center has launched an initiative to digitize 1k factories, according to a statement. The initiative aims to support and fund local factories with their digital transformation to help enhance their production efficiency and help reduce operation costs. INFRASTRUCTURE-Siemens completes EGP 385 mn power station in Sadat City: Germany’s Siemens has completed construction of a power transformer station that will feed the eighth industrial zone expansion in Sadat City, according to a Housing Ministry statement. The 220/66/22 kV station will power the 1.5k-feddan industrial expansion area, as well as electricity networks in the southern and western extensions.AUTOMOTIVE-Dynamic to open Fiat's largest regional service center: Egypt’s Fiat distributor Dynamic Distribution plans to invest EGP 350 mn to establish what will be the Italian brand's largest service center and showroom in the region, chairman Emad Helmy told Al Borsa. The facility will offer after-sales services, maintenance, and spare parts, alongside a showroom displaying various models. The company also plans to launch a new competitively-priced Fiat model in 1Q 2025, according to Helmy.Remember: Helmy said in September that the distributor plans to distribute new Fiat models — including EVs — in Egypt next year.MINING-A new Aton drilling venture in Abu Marawat: Canadian gold miner Aton Resources revealed that Abu Marawat Gold Mines Ltd — a joint venture between Aton and the Egyptian Mineral Resources Authority — has inked an agreement with LSE-listed Capital Drilling to drill up at least 5k meters in the Abu Marawat concession, according to a company statement.

Monday, 11 November 2024

Global firms are interested in Egypt’s oil sector. PLUS: News from Bonya, Alex Container, Telecom Egypt
ENERGY- Global firms want a piece of Egypt’s oil sector: China’s Anton Oilfield Services Group and the UAE’s Mubadala Energy are looking to explore investments and collaboration in Egypt’s oil sector, according to Oil Ministry statements. Anton expressed interest in learning more about potential investments in Egypt, while Mubadala said that it was considering participating in the Egyptian Natural Gas Holding Company’s tender launched in August. Discussions with the companies took place on the sidelines of the ADIPEC 2024 conference in Abu Dhabi.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)PLUS- Energean’s USD 945 mn asset sale to Carlyle set to go through by year end: LSE-listed Energean confirmed in a meeting with Oil Minister Karim Badawi that the USD 945 mn sale of its Egyptian, Croatian, and Italian assets to global investment firm Carlyle is set to go through by the end of the year.MINING- New global mining tender to launch before year end: Egypt is set to launch a global tender for gold mining and exploration at approximately 200 sites in the Eastern Desert by the end of the year, Asharq Business reports, citing an anonymous government official. The tender will kick off once the House approves the pending contract for Centamin and Canadian company Barrick Gold’s mineral exploitation areas in the Eastern Desert, initially awarded in 2021.Remember: We first heard about the tender back in August, with unnamed officials telling Al Mal that the government was preparing to launch an international tender for mineral exploration in Sinai, the Eastern Desert, and the Western Desert before the end of the year. The move comes amid a broader push to develop our mining sector, with Oil Minister Karim Badawi saying last month that the government is preparing a new mining strategy that it plans to unveil next month at the Mining World Conference 2024 in London. This follows July’s Egypt Mining Forum, which saw a number of protocols signed to explore and develop our potential mineral resources. REAL ESTATE-Bonyan plans to acquire additional office spaces next year: Compass Capital real estate subsidiary Bonyan is planning on purchasing new administrative buildings next year and acquiring warehouses to lease to companies across different sectors at an undisclosed timeline, CEO Shamel Aboul Fadl told Al Borsa. The company will fund the purchases using funds acquired from its recent capital increase.M&A WATCH-An offer for OFH’s fintech arm Klivvr: Orascom Financial Holding (OFH) has received an offer for its entire 98.99% stake in fintech player Klivvr, according to an EGX disclosure (pdf). The offer came from a company dubbed Klivvr Holding, which offered to buy OFH’s 59.4 mn shares at EGP 11.1 apiece, putting the total transaction value at EGP 658.7 mn. ICYMI- Selling off OFH’s stake in Klivvr has been on the agenda since B Investments acquired 70% of the holding company earlier this year in a share swap agreement. EARNINGS-Alex Container and Cargo Handling saw its net income rise 88% y-o-y to EGP 1.8 bn during the first quarter of FY 2024-2025, according to the company’s earnings release (pdf). The EGX-listed company’s revenues grew 75% y-o-y during the same period to EGP 1.9 bn.ALSO WORTH NOTING- #1- Medical Packaging Company is looking to invest up to EGP 140 mn to add three new production lines to its operations. The company is in advanced talks with three banks to secure the necessary funds for the new lines. #2- Telecom Egypt and Alcatel Submarine Networks have completed the landing of the Africa-1 subsea cable system at the Ras Ghareb cable landing station. The second landing will be on Egypt’s Mediterranean and will “enhance global connectivity by providing diversity and resiliency while significantly bolstering broadband traffic capacity.”#3- Helping KSA with its localization push: Elsewedy Electric partnered with KSA’s Abunayyan Holding to produce high and extra-high voltage power transformers in the Saudi market. The company also launched a procurement tender with Saudi Electricity Company for the domestic production of medium-voltage cable accessories.

Thursday, 7 November 2024

Eastern Company hikes cigarette prices for the fourth time this year. PLUS: News from Palm Hills, Misr Petroleum, GASC
RETAIL- Eastern Company hikes prices for the fourth time this year: EGX-listed tobacco giant Eastern Company on Tuesday hiked prices of its cigarettes by up to EGP 5, after the company’s board approved the decision, according to a statement seen by EnterpriseAM. The price of all its 20-cigarette packs, including Cleopatra, now stands at EGP 38.75, while its higher-end Viceroy and Pall Mall now sell for EGP 60 a pack. The Box 10 — the pack including 10 cigarettes — now costs EGP 27. This marks the fourth hike the company imposed in 2024, following the latest hike implemented in July to comply with the Universal Health Ins. Law, and two other hikes in April and February.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The reason: The increase came in response to the Finance Ministry enacting the law that allows companies to raise prices by 12% annually without moving into a higher per-pack tax bracket, the head of the Federation of Egyptian Industries’ tobacco division, Ibrahim Imbaby, told EnterpriseAM. Eastern attributed the increase to a weakening EGP, higher input costs, and higher transport costs.M&A-#1- PHD purchases stake in Makor Hotels + Taaleem: Property development giant Palm Hills Developments’ (PHD) general assembly has approved the purchase of a 9.5% stake in Makor Hotels from Mansour-Maghraby Investment and Development Company in a transaction valued at just under EGP 175.6 mn, the company said in an EGX disclosure (pdf). The transaction brings PHD’s total share in Makor Hotels to 69.5%. PHD also approved a decision to purchase Palm Hills chairman and group CEO Yasseen Mansour’s entire stake in higher education outfit Taaleem in an EGP 1.9 bn transaction, the statement read. The transaction gives Palm Hills a 29.6% stake in Taaleem.#2- Al Areej International Investment further reduces stake in Eastern Company: Al Areej International Investment sold another 20 mn shares in tobacco giant Eastern Company on Monday to an undisclosed Emirati buyer at EGP 25 a pop, bringing the total transaction value to EGP 500 mn, Al Mal reports, citing sources in the know. This brings down the company’s share in Eastern Company to 2.3% from 2.99% previously, by our math.Remember: Al Areej announced on Sunday that it had sold some 9 mn shares of its stake in Eastern Company to an undisclosed buyer in an EGP 225 mn transaction, bringing the company’s stake in Eastern to 2.99% from 3.29%. The company holds another 30% stake in Eastern Company through its Global Investments Holding.ENERGY-The gov’t is looking to work with Emirati IRH to transport LNG overseas: The Oil Ministry and Emirati mining firm International Resources Holding (IRH) are in talks over the possibility of collaborating on liquefied natural gas trade and distribution in a bid to transport gas to foreign markets, according to a ministry statement. The talks, which came on the sidelines of the ADIPEC 2024 conference in Abu Dhabi, also saw the two parties exploring areas of cooperation in the mining sector.Gov’t to launch mining tender, portal: The Oil Ministry is gearing up to launch a tender for mineral exploration in several areas in the Western Desert, Oil Minister Karim Badawi said. The ministry also plans to officially launch a mining portal before the end of the year to stimulate investment in the sector following the portal’s trial launch in July.ICYMI- It was reported back in July that the government would launch an international tender for mineral exploration in Sinai, the Eastern Desert, and the Western Desert before the end of the year.MANUFACTURING-Minority stakes in two ACDIMA plants up for grabs: State-owned Arab Company for Drug Industries and Medical Appliances (ACDIMA) will offer investors stakes of up to 49% in a pharma raw materials plant with investments estimated at USD 150 mn and a glass production project with investments of at least USD 135 mn, Al Mal reports. What we know about the pharma project: First announced in September 2023, the plant will produce 28 active substances used in the pharma industry. The first phase of the project will see Acdima set up production lines for 21 pharma raw materials and is set to start operations in 2026. The second is scheduled to come online in 2030.One step closer to pharma industry localization: The company aims to dedicate 45% of production from the pharma materials plant to ACDIMA subsidiaries and 25% to local companies as part of the government’s wider drug industry localization project, ACDIMA chairperson Olfat Ghorab told Al Mal. The remainder of the plant’s production is set to be exported to neighboring countries, which Ghorab noted will assure the plant’s future profitability.LOGISTICS-Egypt’s planned ro-ro shipping line with Italy is almost here: The new ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste will begin operations on 29 November, according to a statement. The new line is part of the state’s plan to transform Egypt into a regional hub for transportation, logistics, and transit trade, as well as to open new export markets for Egyptian agricultural commodities in Italy and Europe.The government has offered a number of incentives to support the project, including an 88% reduction in port fees and lowering road tolls to a flat rate of USD 100 per truck — in lieu of USD 300 per imported truck and USD 350 per exported truck.AGRICULTURE-Phase II of the Egyptian Cotton Project: The Madbouly government and the United Nations Industrial Development Organization (UNIDO) launched the second phase of the Italian Agency for Development Cooperation-funded Egyptian Cotton Project which aims to boost sustainability across the local cotton value chain, according to a statement. The second phase of the project aims to introduce young cotton farmers to sustainable practices and employ the youth across the cotton value chain. The first phase of the project ran from 2018 to 2021.DEBT-Misr Petroleum secures EGP 10 bn syndicated loan: State-owned oil company Misr Petroleum secured an EGP 10 bn syndicated loan from nine banks, sources familiar with the matter told Al Mal. The syndicate includes the National Bank of Egypt, CIB, QNB Alahli, Arab African International Bank (AAIB), Al Ahli Bank of Kuwait, Midbank, Banque du Caire, EG Bank, and the Agricultural Bank of Egypt.ALSO WORTH NOTING- #1- El Attal is inching closer to its KSA debut: Real estate player El Attal Holding is poised to start setting up a new mixed-use project in Saudi Arabia in 1Q 2025 and is set to ink the project’s contracts this month. The project, which will span over a thousand units, is set to encompass commercial, administrative, and entertainment activities. #2- Teradix secures USD 140k to fuel Saudi expansion: Disruptech-backed eProcurement solutions startup Teradix has secured a USD 140k grant to fuel its expansion into Saudi Arabia. (Press release | pdf)#3- GASC secures 290k tons of wheat to shore up reserves: State grain buyer GASC has purchased 290k tons of Romanian, Ukrainian, and Bulgarian wheat for delivery between next month.

Wednesday, 6 November 2024