We expect the MPC to maintain interest rates at the next meeting in light of the preceding interest rate raises taken in December and March (+500 bps) to attempt to control the then expected rise in inflation and to match the monetary tightening expected by the Fed. In addition, raising interest rates will be closely tied to the movement in the official exchange rate, which is not expected to happen before 4Q23.  

The Arab Monetary Fund (AMF) is lending Egypt USD 615.8 mn under its Structural Adjustment Facility to support the financial and banking sectors. 

Starting 14 August, Egyptian males living abroad will be able to settle any outstanding military service obligation by paying USD 5,000, the Foreign Ministry said. 

The government has sold some USD 2 bn worth of land to foreign companies in the six months ending 30 June. 

The government expects to sign the final contracts to sell the USD 1.9 bn of state-owned assets next month and receive the money by September. 

Switzerland-based energy investment firm Smartenergy is close to reaching an agreement with authorities to establish a USD 1 bn green hydrogen facility. 

The government approved the acquisition by Maersk Group of half of the electricity production plants from wind energy in the Zaafarana complex and demanded an official financial offer. 

The Finance Ministry will pay out the third batch of export subsidies under the sixth phase of the program on 16 and 17 August, instead of 2-3 August. 

Three oil and gas concession agreements worth USD 319.5 mn have been signed, whereby multinational energy companies would dig at least 13 oil and gas wells in the Mediterranean and Gulf of Suez. 

Egypt’s external debt climbed 5% YoY to USD 165.4 bn in 3Q FY22/23. 

El Sisi urged Russian President Vladimir Putin to renew the Black Sea grain pact on Friday.  

Egypt and Russia have agreed to boost energy cooperation and that Lada would resume assembly in Egypt. 

The Central Bank of Egypt called on local banks to list existing financing for companies over one billion pounds that need prior approval from the Central Bank. 

In an attempt to control power outage in Egypt, the government will import an extra USD 250-300 mn of mazut by the end of August.  

QIA expects to finalize acquiring a stake in Vodafone Egypt within two months, pending agreement on the size of the stake. Sources added that QIA is aiming to acquire the entire 45% stake while the government is looking to sell only a 25% stake. According to our estimates, the implied (FX adjusted) valuation of Vodafone Egypt stands between USD1.96 billion and USD2.23 billion using an FX rate of EGP35.00. This translates into a valuation of ETEL’s 44.95% stake in Vodafone Egypt of USD0.88-1.00 billion/EGP30.9-35.2 billion or EGP18.08-20.59 per ETEL share. Accordingly, this brings up the FV of ETEL to EGP40.08-42.60 per share.  

Emirates Global Aluminum Company is close to injecting investments into EGAL (FV: EGP53.58, OW) to rehabilitate its existing factory, noting that talks with the Saudi sovereign fund to acquire a stake in EGAL have stopped. 

OLFI (FV: EGP14.11, OW) plans to spend EUR2.5 million on its farm till the end of the current year. The first phase of the farm is expected to be finished by 1Q24. 

Orascom Pyramids (OIH) will invest EGP 1 bn to develop the area around the Giza Pyramids.