Talks with the IMF on an assistance package are set to continue “the first week of November” in Cairo, according to Jihad Azour, the IMF’s director for the Middle East and Central Asia. 

During the economic conference which kicked off on Sunday, Prime Minister affirmed that Egypt prioritizes curbing inflation over the issue of the exchange rate. 

CBE is about to launch an index for the Egyptian pound soon, which includes a basket of currencies besides gold. 

CBE is working to launch hedging instruments for the Egyptian currency after completing the futures contracts.  

CBE: Interest rates can be used to control inflation when the source of the problem is demand, but at the present time, it is a supply crisis.  

CBE: The main objective for the central bank is to control inflation, not to launch financing initiatives.  

The government is working to reverse the Central Bank of Egypt’s (CBE) decision requiring importers to issue letters of credit to buy goods soon, Prime Minister said. 

Minister of Finance said that the government aims to increase the primary surplus in FY2026-27 to 2.3%, up from 1.6% of GDP in the FY2022-23, and added that his ministry aims to reduce the debt-to-GDP ratio to 72 % of GDP over the next five years. 

The PM revealed an agreement with international creditors to drop more than USD43 billion of debt over the coming years, through several ways including debt-investment swaps. 

The Prime Minister stressed that Egypt was able to implement major national projects with investments estimated at about EGP7 trillion, more than 90% of which were implemented by the private sector.  

Egypt should focus to utilize EGP3 tn worth of unused resources and assets through establishing a new, dedicated fund for these assets under the purview of the Sovereign Fund of Egypt (SFE).  

Hani Berzi, Chairman of the Export Council for Food Industries, called for the continuation of the Central Egyptian initiative to finance the industrial sector at an interest rate of 8%, even if the dollar exchange rate was moved again to ensure that the wheel of industrial production is spinning. 

Emirati investments in Egypt, estimated at USD20 billion, are expected to grow by 75%, to reach about USD35 billion over the next five years.

The Saudi Investment Fund acquired a 4.7% stake in PHAR and plans to increase its ownership in the company going forward. PHAR is currently trading at 2023f P/E of 3.9x and EV/EBITDA of 3.5x.

ISPH signed an agreement to become the primary distributor of 'Omron Healthcare', a global leader in health monitoring and therapy, in pharmacies and medical shops.

IDHC is studying expansion in African and Asian countries, according to local press.

Ministry of Transportation to announce the winner of Abu Qir - Alexandria underground project bid next month. Among the bidding consortiums are SWDY- Siemens, ORAS- Colas Rails. 

SWDY denied the syndicated loan of EGP5 billion for 7 companies affiliated.

Maha Capital, the investment arm of Qatar Investment Authority, has visited Port Said container terminal and West Port Said port as it is placing Port Said Container and Cargo Handling company among its investment interests. 

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 5 November 2022.

MICH 1QFY22/23 Net profit after taxes amounted to EGP104 million, almost flattish QoQ (-0.2%) and up 107% YoY.  MICH is trading at FY21/22 P/E of 5.05x.

Contact Financial is looking to step into new markets next year including Uganda, and the GCC. Contact is also looking to launch green financing to cover solar power plants and modern irrigation systems.