The IMF forecasts Egypt’s real GDP to slow to 3.7% in 2023, from 6.6% in 2022, but to recover to 4.1% in 2024, in light of the current FX crunch. The fund is now projecting inflation in Egypt to average 24.4% in 2023 and to rise further to 32% in 2024.

The National Bank of Egypt and Banque Misr will today launch two new USD certificates of deposit, one with a 9% annual percentage rate that pays out interest in EGP upfront and another with a 7% rate that pays out in USD quarterly.  

Egypt’s current account deficit narrowed by 40% y-o-y to USD 3.5 bn in 3QFY22/23, where:

• Oil and gas exports fell almost 40% y-o-y to USD 3.2 bn during the quarter.  
• Non-oil exports declined to USD 6.4 bn compared to USD 6.6 bn.  
• Tourism revenues rose 25% y-o-y to USD 3 bn. 
• Suez Canal revenues saw a 29% increase to USD 2.2 bn. 
• FDI halved y-o-y, falling to USD 2.2 bn. 
• Remittances fell more than 30% y-o-y to USD 5.5 bn. 

Subsidies for petroleum products in Egypt decreased by 2% YoY to EGP58 billion in FY22/23, double the subsidy targeted in the budget.  

Egypt’s holdings of US Treasury bonds reached USD1.1 billion in May 2023, down from USD24.4 billion in February 2020.

The Ministries of Petroleum and Electricity have agreed to import fuel oil in order to replenish the reserves used to produce electricity. 

Bloomberg reported that the Egyptian government asked urea producers to reduce production output considering the need for conserving gas in light of the heat wave. We contacted with producers who noted that the stoppage was for 1-4 days only last week during July and that production levels are back to normal this week. However, prices are now above USD400 per ton.

Silverstone Capital Investments, an entity controlled by Qalaa Holdings (CCAP), transferred 270.5 million shares worth EGP1.6 billion and representing 20% of TAQA to one of its creditors, namely the military’s National Service Projects Organization.

Dubai-based National Paints Holding (NPH) acquired the 20% of EGX-listed Paint and Chemical Industries (Pachin) that it didn’t already own for EGP9.21 million.

Zamil Steel - Egypt is in negotiations with the Ministry of Supply and ORAS to establish 10 strategic storage facilities for pharmaceuticals and food commodities.

FWRY announced evaluating Saudi expansion through preliminary discussions with Saudi Payments. Additionally, FWRY confirmed evaluating potentially applying for a digital bank license.