Egypt’s PMI climbed from 46.4 in July to 47.6 in August, its highest reading since February. The latest rise in input costs was much softer than in July, supporting a slower uplift in output prices that should ease the burden on consumers over the coming months. Subsequently, new orders decreased at the softest rate since April, leading to a slower, but still sharp fall in output levels. Employment rose at the quickest rate since October 2019. Monetary policy uncertainty, a weakening exchange rate, and the continued war in Ukraine mean there are still high levels of risk for the economy over the rest of 2022.

Inflation figures for August will be released by CAPMAS on Thursday 8 September. We expect annual urban inflation to hover around 14.5% YoY on continuous increase in food items as well as base effect.

Manufacturers will need to keep records on the volume and purpose of their imports so they can qualify for customs breaks on some production inputs.

Minister of Finance issued a decision reducing the category of import duties on more than 150 types of production inputs and supplies.

A consortium led by Alpha Capital is reportedly among companies planning to submit an offer in October to establish, operate and manage the dry port at Borg El Arab at an investment cost of USD 180 mn.

A delegation of Danish companies discussed investment opportunities with officials at the Suez Canal Economic Zone.

ADQ is in negotiations with Helios Partners and Lorax Capital to acquire a majority stake in the Misr Hi-Tech International Seed Company. 

Egypt’s sovereign fund postponed the sale of stakes it owns in Siemens power stations, despite receiving attractive offers, due to financial and technical issues.

Bank boards will now have to meet at least six times a year, down from eight times previously. 

EFG Hermes’ valU and PayTabs Egypt are working with chatbot startup Notchnco to build out WhatsApp shopping services on valU.

OPEC+ meets to set output policy amid a wave of uncertainty in the markets that has resulted in the longest streak of monthly drops in crude prices since the pandemic. Brent crude futures are trading at USD 93 a barrel. 

Four companies are working on building 4 solar power plants in South Sinai, with capacities of up to 20 megawatts, and with investments exceeding EGP300 million, including Hassan Allam and Taqa Arabia (CCAP). 

Pachin is in negotiations with Sipes and Saybad, to increase the tender offer acquisition price, to take into account the Qobba land value (50 sq km).

The court date regarding the lawsuits filed by EGTS against two board members to oblige them to pay USD14.3 million (translating into EGP0.26/share) owed to EGTS is postponed to 5 November 2022.

EgyptAir is operating daily flights between Moscow and Sharm El Sheikh and between Moscow and Hurghada.

El Nasr Automotive expects to sign final contracts to produce electric vehicles with an unnamed Chinese company in mid-October.

Around 20 consortia have expressed interest to invest in the 1000 schools projects to be established by FY2030 under Public-Private Partnership.

Supermarket chain Bim Egypt plans to invest USD 25 mn to open as many as 200 branches during the first half of 2023. 

The Chinese mobile brand “Remily” is studying to locally manufacture its mobile devices in Egypt. It's worthy to note that “Remily” held a mobile market share of 5% in May 2022.