Pre-Trading Thoughts

Al Ahly Pharos

At the end of the two-day Egypt-EU Investment conference, Prime Minister said that 29 agreements and MoUs had been signed over the event totaling EUR49 billion with EU-affiliated entities. On top of this, a further six agreements and MoUs with non-EU-affiliated entities that export to the EU inked a further EUR18.7 billion.

Egypt is looking to raise its target for the renewable share of energy generation to 58% by 2040 in an updated strategy for expanding green power.

The government has decided to postpone any hikes to electricity prices until September, a source from the Electricity Ministry said. The government has put off implementing the hikes until the electricity crisis is resolved, the source said.

State IPO program is to ramp up again in October.

Egypt received seven local and international offers to exploit eight government headquarters in the downtown Cairo area, Minister of Planning said.

The new government lineup could be sworn in within a few days.

Egypt’s net foreign assets recorded their first surplus in over two years.

The IMF has scheduled Egypt's third review under the EFF to be discussed by the Fund's executive board on 10 July. Subject to the Board's approval, Egypt will access USD820 million.

The current account (CA) deficit inched up to USD7.46 billion in 3QFY2023/24, the highest on record for a single quarter, up from USD6.8 billion in 2Q, bringing up the total CA deficit for 9MFY2023/24 to c.USD17 billion.

Remittances from Egyptians working abroad inched up to USD5 billion in 1Q2024 from USD4.91 billion in 4Q2023.

Egyptian external debt decreased by the end of 1Q2024 by USD7.427 billion to reach USD160.607 billion, compared to USD168.034 billion in December.

The Egyptian Mercantile Exchange (EMX) could begin offering wheat and sugar before the end of the year.

The independent financial advisor finalized the study on SWDY’s share fair value on 26 June 2024, and concluded that the fair value is EGP52.38/share.

SWDY is setting up a copper factory in Saudi Arabia that will go live in six months’ time.

Steel rebar prices are stable in July at most of local steel manufacturers.

The SFE inked a binding offtake agreement with ORAS, Scatec, and Fertiglobe to produce 100 MW of green hydrogen from its Ain Sokhna plant.

The Ministry of Finance’s Private Sector Partnership Unit is preparing to launch desalination plant projects worth USD2 billion in 4 to 6 plants as a first phase.

SKPC started receiving feed gasses and gradually resumed operations in its factories on Thursday.

A consortium of TAQA and France’s Voltalia will build a USD3.5 billion green ammonia project in Ain Sokhna, under an agreement inked with SFE.

The Egyptian Petrochemical Holding Company and MFPC, along with Norwegian firms Scatec and Yara International, will produce green ammonia in Damietta with initial investments of around USD890 million.

ETEL inked an MoU with Hungarian telecom company 4iG Group to develop and operate a joint venture for building and managing fiber-to-the-home (FTTH) and fiber-to-the-tower (FTTT) networks, with total investments of at least USD600 million.

EBRD will provide COMI with USD60 million for on-lending to local women-led businesses and green investments.

HRHO’s Corp-Solutions issued EGP433 million of short-term notes.

The Ministry of Trade and Industry has extended the sugar export ban for the third time in a row, starting from July until the end of September, to maintain the supply in the markets and support price stability at current levels.

All accumulated cars at Egyptian ports until 25 June 2024 will be released in a week, according to a government official.