Morsi gets death sentence. VAT coming in July / August. American Pharoah wins Preakness. S&P revises Egypt outlook to positive. EGX hits 5-month low. IMF + World Bank visiting in June. Nissan to grow Egypt investments. Ultras banned.
WHAT WE’RE TRACKING TODAY
The National Telecommunications Regulatory Authority is meeting today and is expected to make a decision on new ADSL prices and service improvements.
WHAT WE’RE TRACKING THIS WEEK
A U.S. healthcare industry delegation led by Deputy Under Secretary of Commerce for International Trade Ken Hyatt began its visit to Egypt, Jordan and Israel on Saturday, and will run until Thursday, 21 May, according to the ITA. According to the trade mission’s page on the ITA’s export.gov, “… Healthcare spending in 2013 was as follows: Egypt USD 9.5 bn, Jordan USD 1 bn and Israel USD 20 bn. The current state of healthcare infrastructure in the region is not adequate to satisfy existing demand. The healthcare equipment, services, and technologies expansion in the region is expected to grow at an annual rate of 5% – 8% in 2014.
The Forum on Egyptian-German relations will take place on Wednesday at the SIS Headquarters, Nasr City. 19:00-22:00 local Cairo time.
Egypreneur Forum will take place Friday through Saturday at Nile University, Cairo. Register online here.
THE MONTH AHEAD
A delegation of 300 Russian business executives led by Russia’s Minister of Industry and Trade Denis Manturov will visit Egypt from 25-26 May, as reported by Al Shorouk.
LAST NIGHT’S TALK SHOWS
News of the death sentence issued to Mohamed Morsi and 105 other defendants in the Wadi El Natroun jailbreak trial — and the murder of three judges in El-Arish a few hours after the verdict was announced — dominated the talk shows last night.
Lamees El Hadidy thanked Egypt’s judiciary for their bravery and their commitment to fighting terrorism. She aired a “best of Morsi El Ayaat” segment that included some of the former President’s most bizarre statements and speeches including the fingers, drinking and driving don’t mix, Foda and Ashour the thugs (baltageya) and his final legitimacy (Shar3ia) speech. “We have missed you Mori El 3ayat, we did some of our best work when you were around,” said El Hadidy.
Her studio guests were Ismail Hamdy (former head of the court of appeals), Hafez Abu Saada (Chairman of the Egyptian Organization for Human Rights) and Samir Ghattas (head of the Middle East Forum for Strategic Studies) for an analysis of the verdict and the latest developments in Sinai.
“I think 90% of the population thinks that Morsi has been sentenced to death for escaping from prison and that’s perhaps why people are shocked. It’s not about the prison break, its about conspiring with, Hamas, Hezbollah and the international arm of the brotherhood to murdering, looting, attack prisons to free convicted terrorists so that they may wreak havoc on Sinai,” said Ismail.
“It may be a bit early yet to discuss who will actually get the death sentence. The verdict must be blessed by the Mufti and then there will be an appeals process, there is still along way to do,” said Abu Saada.
“The response from Hamas is thus far a lot milder than expected. The statements are relatively milder than they have been in the past. This might be a calculated response so that the relationship with Egypt does not deteriorate further. They are in the midst of a severe economic crisis. Secondly, their secret negotiations with Israel have been exposed and they are trying to save face,” said Ghattas.
Osama Kamal interviewed Minister of Planning Ashraf El Araby on Cairo 360.
El Araby spoke about the financial and administrative problems that are currently confronting (Maspero), the Egyptian Radio and Television Union. “We will inject funds into the organization, as part of a turnaround program that will aim to restructure the organization both managerially and financially,” said El Araby.
He denied that the government has slowed down since the EEDC. “It has only been two months, but we are in the process to turning the MOU’s that were signed in Sharm El Sheikh into contracts. I do understand that people are impatient and want to see quick results, but I assure you that we are on track. This government is serious about reform. We are aware that there are problems. The people who are in the government today are killing themselves to achieve the required results and they are proud to serve Egypt during this critical time.”
Finally: Reem Maged’s new television program on women’s issues has been put on indefinite hiatus. ONTV station head Albert Shafiq suspended the show, Ahram Online claims. Maged called in to Mahmoud Saad’s program to discuss the suspension, saying she was unaware as to why her show was put on ice. (Watch in Arabic, running time: 14:23)
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SPEED ROUND
The VAT will be introduced in July or August after the government ensures tax rates are unified and registration is expanded, Amwal Al Ghad reports, quoting Finance Minister Hani Dimian. The minister added that amendments to the tax law have exempted stock dividends from tax, noting that this is set to encourage listed companies to limit cash dividends and instead expand their capital base.
Ahmed Zayat’s American Pharoah won the Preakness Stakes yesterday, giving Zayat and his crew a shot at the Triple Crown if American Pharoah can win the Belmont Stakes on 6 June. The two-year-old stallion won yesterday’s race in torrential rain. “I told everybody the real American Pharaoh will show up today, and he did,” Zayat said. “He’s the real deal. Let’s have another run at [the Triple Crown]. Let’s give it a shot at Belmont.” For more on Zayat’s backstory, the New York Times has a cute piece out this morning, covering a hectic week for the family in the run-up to yesterday’s win.
S&P revised its Outlook on Egypt to positive from stable, and affirmed its ‘B- / B’ long- and short-term foreign and local currency sovereign credit ratings, according to a release. “The rating action reflects our view of Egypt’s gradual economic recovery, supported by improving, albeit still fragile, political stability, alongside policymakers’ commitments since 2014 to embark on economic reforms.” The agency’s rating for Egypt remains constrained by “wide fiscal deficits, high domestic debt, low income levels, and institutional shortcomings,” it said. S&P is predicting average real GDP growth of 4.3% in 2015-18 against 2.1% on average in 2011-14.
The EGX dropped to a five-month low on Thursday following MSCI’s reduction of Egypt’s country weighting in its emerging markets’ index. “With only three Egyptian companies left in the MSCI index, some analysts have said the country risks eventually being excluded from the benchmark completely,” Reuters said. The repercussions from MSCI’s removal of Telecom Egypt from its country gauge continue with Bloomberg concerned that “Egypt’s dollar drought is driving last year’s best-performing Middle Eastern stocks toward a bear market.” The newswire quoted EFG Hermes’ Simon Kitchen as noting: “My big concern is the relative lack of liquidity in the market… related to tightness in the foreign-exchange market… There is further market downside if these issues are not addressed.” Al-Masry Al-Youm, meanwhile, reports that representatives of the capital markets industry met yesterday with EGX chief Mohamed Omran as part of their ongoing campaign to have the capital gains tax on EGX transactions repealed, amended or postponed.
The IMF’s next mission to Egypt will be a “staff visit… part of the regular process of surveillance that happens in all countries. That is going to be in June,” Gerry Rice, the IMF’s Communication Director, said on Thursday. Regarding Egypt’s FY2015/16 budget, Rice said the fund hopes Egypt, “will continue the important progress made on subsidy and tax reform begun last year.” Egypt needs a strong tax base and savings from subsidy cuts to contain public debt and to free up money to spend on health, education, and infrastructure.”
World Bank chief visiting, too: World Bank President Jim Yong Kim, the respected U.S. physician and anthropologist, will reportedly begin a multi-day visit Egypt on 9 June at the head of WB delegation. The news comes as the Bank has apparently approved increasing Egypt’s borrowing ceiling by USD 5 bn. We’ve yet to see confirmation from the World Bank of either development.
Edita Food Industry reports strong 1Q2015 results, with net profits up slightly to EGP 59.5 mn as revenues surged more than 17% to EGP 528.9 mn. Cakes and croissants together accounted for more than 80% of revenues. Revenues were boosted in part by a 1.6% rise in average selling price per SKU as the company continued re-engineering its portfolio mix and launched larger-sized SKU while discontinuing smaller packaging. Edita Chairman and CEO Hani Berzi said the company “used 1Q to lay the groundwork for our very-well received IPO, started-up the extension at our E07 Factory towards the end of March 2015, where two new lines came into production — one for Cakes and one for Croissants — added two new distribution centers, locked in favorable raw materials prices and launch a new SAP module.” (Read the earnings releasehere in pdf)
Renaissance Capital has initiated coverage of the Egyptian consumer sector, rating Edita a ‘buy’ and dairy products leader Juhayna a ‘hold’. The Cairo Post carries RenCap’s press release on the initiation, while a bootleg pdf of the full consumer report is also circulating, emphasizing once more the obsolescence of the pdf format.
1Q2015 results: TMGH, MNHD, HDBK, Beltone Financial, Bisco Misr all reported 1Q2015 results on Thursday:
- Talaat Moustafa Group Holding reported net profit of EGP 185 mn, up from EGP 158 mn from the same period last year (EGX statement). The company is one of just three left on the MSCI Egypt Index
- Medinet Nasr Housing (MNHD): Net profit of EGP 27 mn, down from EGP 55 mn from the same period last year. (EGX statement)
- Housing & Development Bank (HDBK): Net profit of EGP 177.9 mn, up from EGP 101 mn from the same period last year.(EGX statement)
- Beltone Financial Holding (BTFH): Net profit of EGP 5.7 mn, up from EGP 4.1 mn y-o-y. (EGX statement)
- Bisco Misr (BISM): Net profit of EGP 5.2 mn, down from a net profit of EGP 15 mn from the same period last year. (EGX statement)
The EBRD issued its latest Regional Economic Prospects forecast on Thursday. According to anemailed release, the report finds that: “Momentum has been strong in Egypt, which has benefited from policy reforms, some fiscal loosening supported by financing from the Gulf Cooperation Council (GCC), and a more stable political environment.” In other EBRD-related news, the Sokhna Alternative Fuels Plant was honored with the EBRD’s Sustainable Energy award during Bank’s annual meeting on Friday, according to a release.
The Russian government decided to lift a wheat export duty. Russia had had imposed the duty “to cool domestic prices and food inflation after the ruble tumbled late last year. But Russian wheat prices have been falling and buyers have been betting on an export tax removal,” Reuters said
Egypt Court of Urgent Matters bans ultras football fans following lawsuit filed by Mortada Mansour: “On Saturday, the state-run newspaper al-Ahram reported that the White Knights – followers of Mansour’s Zamalek – had rejected the court’s decision, which can be appealed. The paper quoted an unnamed member of the group as saying that security forces had arrested several members of the group. Police have not officially confirmed the claim.” (Read in DW)
Mohamed Abou Treika denies links to the Ikhwan: In an interview with Al Ahram translated by Ahram Online, Egyptian football player Mohamed Abou Treika denied any links to the Ikhwan, stating that the Ikhwan-linked partner Anas Mohamed Omar El-Kady left the company in 2013. He also pointed out that at this point, “the case so far has not gone beyond the investigations phase.” (Read)
MOVES- BP appointed the former head of MI6, John Sawers, as a non-executive board member. Sawers was head of MI6 until November 2014, having spent 36 years working for the British government in international affairs and security, including in Iraq, Egypt, South Africa and the U.S., Bloomberg reported. Apache Corporation announced on Thursday the appointment of Daniel W. Rabun to its board of directors. Rabun currently serves as the non-executive chairman of Ensco, plc following his retirement as president and chief executive officer of Ensco in June 2014.
Egypt is preparing an international conference in Cairo to attract funding for South Sudan’s Wau Dam project. The total cost of the dam is set to reach USD 1.2 bn and Egypt is already hosting a delegation of technical experts to assess the project, according to Al Shorouk.
As part of their effort to improve rider satisfaction, Cairo Metro has launched a Whatsapp services which allows passengers to instantly report grievance and suggestions to the transportation authority. Starting from Sunday, 17 May passengers will be able to contact Cairo Metro by sending a Whatsapp message to 01021778887, reports Al Borsa.
Cairo International Airport should be piloting ePassport gates at Terminal Three this morning, according to media reports.
Only 8% of Egyptians are opposed to “garbage men’s children” being employed as judges,according to a poll by Baseera. 85% of the population have no qualms, while 7% were undecided, according toAl Borsa.
If you’re in Oman you will now need a card like this in order to be allowed to buy alcohol,following newly imposed restrictions.
Nazi injustice righted as 103 year old woman becomes oldest person to ever receive PhD.Ingeborg Rapoport defended her doctoral dissertation last week, 77 years after completing it at the age of 25. The Wall Street Journal has a touching profile of Rapoport’s courage and tenacity
CORRECTION- In Thursday’s edition, we mentioned that three banks were interested in acquiring Piraeus Egypt but only listed three. The full list is: Attijariwafa, National Bank of Kuwait, and Lebanon’s Byblos Bank and Credit Libanais, with the first three having reportedly already received CBE approvals to begin due diligence.
IN FOCUS: REACTION TO PRELIMINARY MORSI VERDICT
As noted in our talk show review above, former president Mohamed Morsi was sentenced to death on Saturday for his role in the 2011 prison break from Wadi El Natroun prison. The decision is up for advisory review by the Grand Mufti before the potential confirmation of the verdict on 2 June, and Morsi may still appeal the verdict.
Three judges and their driver were killed and a fourth judge was injured in an attack on their vehicle in the North Sinai city of Al Arish on Saturday, just hours following the announcement of the verdict against Morsi, according to Al Ahram and as reported by Ahram Online. Ittihadiya issued a statement mourning the loss of the judges, and affirming that the President has “instructed to provide all necessary means to protect judges during the commission of their solemn duties, particularly those serving in areas affected by violence and terrorism.”
Before the verdict was announced, a police officer was shot dead as he was coming out of a youth center early Saturday morning in the Ikhwan-stronghold Kerdasa, Ahram Online reports.
Said Boumedouha, Deputy Director of Amnesty International’s Middle East and North Africa Programme, said in an Amnesty statement: “His trials were undermined even before he set foot in the courtroom. The fact that he was held for months incommunicado without judicial oversight and that he didn’t have a lawyer to represent him during the investigations makes these trials nothing but a charade based on null and void procedures,” (Read)
Along with Morsi, over 106 other individuals were sentenced to die, including former AUC professorEmad Shahin (who issued a statement regarding his verdict) along with Sondos Asem, one of the former moderators of Ikhwanweb’s twitter feed, who was tried and sentenced in absentia. Ikhwanweb have issued astatement on the verdict, sadly reaffirming their severe disconnect from reality.
“Egypt is turning into ancient Egypt. Sisi cannot be confronted. The West does not display a stance against Sisi the coup-maker,” Erdoğan was quoted as saying on Saturday in response to the verdict. Rather than get worked up about Erdoğan’s predictable tirade against Egypt and its leadership, instead it simply pleases us to once again point out that any suggestions that Turkey and Egypt can have a meaningful reconciliation are both asinine and dirt-ignorant.
The Economist questions the judiciary’s independence in their take ‘Victor’s justice’: “Mr Sisi insists that Egyptian justice is not politicised, but compare Mr Morsi’s treatment with that of Mr Mubarak, who may soon be released after four years in and out of detention. A corruption charge against him was upheld on May 9th, but most other cases against him have been dropped or overturned since Mr Sisi—in many ways a Mubarak clone—ousted Mr Morsi. Mr Sisi himself has overseen the killing of hundreds of protesters, mostly Muslim Brothers.” (Read)
Of all the reactions to Morsi’s verdict, the following tweet is a perhaps a bit cold, but offers the most intelligent commentary thus far:
@Mazloum: Morsi kind of reminds me of Camus’ The Stranger; a man driven into complicity by his own passivity and idiocy, with fatal consequences.
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A MESSAGE FROM PHAROS HOLDING
The Future May Not Be So Sweet for Delta Sugar
Pharos Research reiterated its call for Delta Sugar Company (DSC) stocks in a recent publication, recommending investors sell their stakes after the company sustained losses of EGP 1.1 mn in the first quarter of 2015. This recommendation is largely based on a bleak outlook for international sugar prices as well as anticipated cost-driven margin erosion at DSC—due to the surging costs of energy and raw materials. Moreover, the company’s unwillingness to compromise on its cash dividend policy despite the absence of funds—which saw them borrow EGP 221.8 mn in 1Q15—raises concerns about Delta Sugar’s financial position.
Echoing Pharos’ views, Egypt’s Central Audit Agency issued a separate report shortly after expressing similar concerns.
For more details click here.
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WORTH READING
The Guardian’s Patrick Kingsley is at his best when digging into investigative pieces, and “Libya’s people smugglers: inside the trade that sells refugees hopes of a better life“ is no exception. The story looks at smugglers’ “shady profits, refugees’ dangerous treks across the Sahara, how migrants often steer the boats — and even how Europe could put them out of business.”
“What on earth would military options look like against such a tangled, complex trade?” Kingsley asks. “A trade deeply rooted in not just the coastal economy, but in dozens of way stations across the northern half of Africa. And one that is now reliant not just on a few experienced individuals but – thanks to the ongoing unrest sparked by Libya’s 2011 revolution – on overlapping and informal networks that emerge, morph and fade by the week.”
DIPLOMACY
Egypt, Libya, Sudan, and the GCC minus Qatar and Bahrain issued The Cairo Declaration on Thursday, outlining steps to protect the region’s cultural heritage in the face of widespread looting and threats from Islamist extremists. (Read) President Abdelfattah El Sisi met with Director-General of UNESCO Irina Bokova during her visit to Cairo, according to an SIS release on Saturday.
The United States and representatives of the GCC issued a joint statement following their recent summit at Camp David last week. The statement contains no mention or specifics of tangible improvement of Arab security, other than commitments to non-interference and “stressed the need for Iran to engage the region according to the principles of good neighborliness.” (Read) The New York Times Editorial board provides theexpected apologia.
EGYPT IN THE NEWS
Cairo blasts strain Egypt’s bomb squad: The AFP quotes an unnamed explosives expert working in the Middle East who states: “I don’t think Egypt has well-trained bomb disposal experts… Even standard operating practises have not percolated down the cadre.” Regarding the death of two officers in the attempt to dismantle two bombs near the presidential palace in June 2014, an unnamed security advisor for a foreign embassy in Egypt is quoted as saying that the incident demonstrated the “need for a complete overhaul in the mentality of the squad, the way it thinks, the way it functions,” (Read)
Thobegate: Saudi daily Arab News picked up on a story of a Saudi tourist in Egypt who was denied entrance into a restaurant on account of his thobe not being permitted under the restaurant’s dress code. The incident was filmed and has been widely watched (Watch in Arabic, running time: 2:53). Tourism Minister Khaled Ramy received Ghaleb Hazzaa, the Saudi tourist in question, at his office on Thursday to offer a formal apology, Ahram Online reports. The restaurant has also reportedly been ordered to shut down.
WHAT YOU CLICKED ON LAST WEEK
The most-clicked links of last week were::
- Profile of Ahmed Zayat, whose American Pharoah won the Kentucky Derby (New York Post)
- Housing Minister Moustafa Madbouly says the government has signed an unnamed international law firm as its advisor for the new capital. (Read in Arabic in Al Borsa)
- Arqaam Capital plans to open an investment bank in Egypt by year’s end (Read in Arabic in Al Borsa)
- President Abdelfattah El Sisi’s third televised address to the nation. (Watch in Arabic, running time: 1 hour, 6 minutes)
- EFG Hermes to launch leasing business within a month’s time. (Official website here)
OIL & GAS
Oil ministry to launch second tender to import LNG
Daily News Egypt | 13 May 2015
The oil ministry will launch a second tender to import 500 mcf of LNG, DNE reported. The Oil Minister said the companies that were awarded the first tender to supply LNG had offered additional amounts. Khaled Abdel Badie said “[EGAS] settled a full schedule to award the bid and obtain the [FSRU] by August,” according to DNE. EGAS is targeting the importing of 1 bcf of gas per day to meet growing demand by producers and power plants. (Read)
BASIC MATERIALS & COMMODITIES
No collusion in tomato, potato markets -gov’t watchdog
Egyptian Competition Authority press release | 14 May 2015
The Egyptian Competition Authority (ECA) could not find any proof of collusive behavior in the tomato and potato market, according to a press release from the watchdog entity on Thursday. The data shows an increase in the number of people dealing in the market, which makes it harder to establish a strong monopolistic influence. The ECA’s inquiry also uncovered wide variation of food prices across cities and throughout the week, another piece of evidence pointing towards the absence of a controlled price fixing scheme, the ECA said. (Read in Arabic)
MANUFACTURING
Samsung Beni Suef plant exports products to 15 countries
Al Mal | 14 May 2015
Samsung’s plant in Beni Suef is now exporting its products to 15 countries regionally, the company said. Samsung began operating its Beni Suef plant in Egypt two years ago with a capital investment of EGP 1.8 bn. The plant employs over 1,400 people and began production in 2014. (Read in Arabic)
Nissan to increase investments in Egypt
Al Borsa | 16 May 2015
Egyptian Ambassador to Japan Ismail Khairat met with the vice president of Nissan in Tokyo on Saturday to discuss the possibility of expanding the Japanese automaker’s presence in Egypt. Nissan’s vice president affirmed his company’s willingness to increase its investments in the country, saying the company hopes to use its Egypt-based operations as a launch-pad for its expansion plan across African markets. (Read in Arabic)
REAL ESTATE & HOUSING
MAF wins government approval on land for Maadi City Center expansion
Al Mal | 14 May 2015
MAF’s request to have a land allocated for an investment project was approved by the government, Al Mal reports. MAF will inject EGP 3.9 bn over two years to expand its Maadi City Centre project, creating 42,000 job opportunities. The project was agreed to and signed into an MoU at the EEDC. (Read in Arabic)
Government to begin distribution of 169 apartments in Khanka
Al Borsa | 16 May 2015
The government will complete its work on 29 residential buildings in Khanka imminently, said Najwa El Asheiry, a high-ranking city official. The buildings’ 169 apartments will be distributed to individuals with limited incomes or those who suffer from health-related issues, as well as young couples who intend to marry in the near future. The distribution of the apartments will be undertaken in coordination with the Ministry of Housing. (Read in Arabic)
Government mulls financing offers for 4 mn acre reclamation project
Aswat Masriya | 15 May 2015
PM Ibrahim Mahlab announced that Phase 1 of the government’s 4 mn acre reclamation project will begin in Sahl Minya El Gharbi. The government is currently studying financing offers for the project from the World Bank and CBRC. The CBRC has offered to finance 80% of the EGP 55 bn project and would also be responsible for constructing the infrastructure of the project in partnership with Egyptian contractors. Meanwhile, the World Bank announced it willingness to provide Egypt with a USD 500 for the project. (Read in Arabic)
TOURISM
Marsa Matrouh Airport fully operational -EAC
Al Borsa | 15 May 2015
Marsa Matrouh Airport is now fully operational and ready to receive flights, the head of the Egyptian Airports Company (EAC) said. The airport had undergone a series of operations to improve its runway and is now set to receive charter flights. EgyptAir Express will be running two flights a week to Marsa Matrouh from Cairo. (Read in Arabic)
Government aims for 30% increase in Arab tourist in 2015
Al Mal | 16 May 2015
The Egyptian government hopes to achieve a 30% y-o-y increase in the number of Arab tourists visiting the country during the current fiscal year. The tourism ministry has recently launched several promotional campaigns, including the “Masr Orayaba” music video, in order to attract Arab tourists back to Egypt. According to tourism ministry representative, Egypt has witnessed an increase in the number of Arab tourist arrivals in recent months. That said, the official did not to provide any statistical information to back-up his claim. (Read in Arabic)
TELECOMS & ICT
CIT ministry to amend regulations regarding its unified license
Al Borsa | 14 May 2015
The CIT ministry is reconsidering the terms and timing of issuing the unified telecoms licenses, Al Borsa was informed. The license will allow Telecom Egypt to become a mobile operator and grant the incumbents the licenses to provide landline services. The Ministry is also considering allowing ISPs to be able to rent their infrastructure to telecom operators and bypass TE altogether. Differences between the incumbent telecom operators and TE remain a major impediment to having the license ready. (Read in Arabic)
Vodafone invests EGP 120 mn to improve network’s energy efficiency
Al Mal | 15 May 2015
Vodafone has invested EGP 120 mn in order to improve the energy efficiency of its network in Egypt, reports Al Mal. The company has reportedly raised the number of solar powered cell phone towers from 150 to 280, adds the source. Additionally, the company has equipped cell towers with 50,000 backup batteries. This recent investment is part of EGP 9.4 bn investment package that Vodafone has planned for Egypt over the next three years. (Read in Arabic)
BANKING & FINANCE
NBE had extended 556 mortgage finance loans so far
Amwal Al Ghad | 14 May 2015
The National Bank of Egypt (NBE) extended 556 mortgage finance loans as part of the CBE’s initiative to expand mortgage financing. The average loan size is EGP 300,000, the bank said. NBE has granted preliminary approvals to 1,250 new requests and is awaiting further steps in order to disburse the funds, according to Amwal Al Ghad. The CBE had announced a reduction of the interest rates to lower income borrowers to 7% and to 8% for middle-income borrowers. (Read in Arabic)
OTHER BUSINESS NEWS OF NOTE
Planning ministry amends ERTU law
Al Borsa | 14 May 2015
Amendments to the law governing the Egyptian Radio and Television Union were completed by the planning ministry, which passed were then passed on to the cabinet. The amendments, according to Minister Ashraf El Araby, will allow the ERTU to use some of its locked funds and resources in order to lower its indebtedness. The amendments would also allow the ERTU to engage in PPP projects. All of the aforementioned changes required amendments to law number 13 of 1979 that still governs the sector. (Read in Arabic)
Government to amend law governing National Tunnels Authority
Al Borsa | 14 May 2015
The cabinet is assessing the possibility of amending the law governing the National Authority for Tunnels (NAT), government sources told Al Borsa. The amendments will look into the financial regulations of the authority and allow it to fulfill the requirements needed to get approved for loans. They will also give NAT the freedom to contract local and foreign business to design and implement its projects. (Read in Arabic)
Qalyub city to complete EGP 80 mn in water and sewage projects
Al Borsa | 16 May 2015
Qalyub city has allocated EGP 80 mn for the execution and completion of several water and sewage system projects, announced the Abdelhakeem Alqadi, a high-ranking city official. The water and sewage system projects aim to improve the living standards of several nearby villages, adds the source. (Read in Arabic)
Amendments to the income tax law could raise prices of food staples -consumer advocacy group
Al Mal | 16 May 2015
The National Center for the Protection of Consumers and Markets has warned that the Mahlab government’s recent amendments to the Income Tax law could force small to medium sized fūl and ta’amiya restaurants to raise their prices, resulting in public discontent. According to the center, the amendments will raise the prices of fūl and ta’amiya sandwiches, a mainstay for most Egyptians, by EGP 0.5, a significant increase. Restaurants that generate more than EGP 1 mn in annual revenues will not be affected by the aforementioned amendments. (Read in Arabic)
Customs Authority undertakes major crackdown on counterfeit cigarettes in March-April
Al Mal | 15 May 2015
The Egyptian Customs Authority seized 73.9 mn counterfeit cigarettes from the 15 March to the 31 April, reports Al Mal. The vast majority of the counterfeit cigarettes were (fake) Cleopatra cigarettes (48.8 mn), while the remainder were a hodgepodge of local and international brands. (Read in Arabic)
EGYPT POLITICS + ECONOMICS
Sweden to grant EGP 18 mn for women’s empowerment project in Egypt
Al Mal | 14 May 2015
Sweden will grant EGP 18 mn to fund a project to improve social services and expand financing and job opportunities for Egyptian women. Sweden is partnering with UNDP on implementation. (Read in Arabic)
ON YOUR WAY OUT
The future of Downtown Cairo’s storied Café Riche is in question after the death of manager and co-owner Magdy Abdel-Malak on 2 May. The iconic café, opened some time in the 20th century just before the First World War, is the subject of an epic love letter from Ahram Online this morning worth reading if you’re either encountering Riche for the first time or nostalgic for the first time you set foot in the place.
Minister of Civic Development and Underprivileged Areas Laila Iskander toured Sohag this weekend in what media said was a bid to temper the backlash against remarks attributed to her in which she allegedly said Upper Egyptians were responsible for the increase in slums in Cairo. Iskander stressed she did not said that and that her remarks had been taken out of context by the media. (Read in Arabic)
Egypt: upsurge in H5N1 human and poultry cases but no change in transmission pattern of infection -WHO: “The recent increase in the number of people affected by the avian influenza virus H5N1 in Egypt is not related to virus mutations but rather to more people becoming exposed to infected poultry, according to a recent mission of six organizations assessing the H5N1 situation in the country. Since November 2014 to 30 April 2015, the period analyzed by the international mission, a total of 165 cases, including 48 deaths were reported. This is by far the highest number of human cases ever reported by a country over a similar period. There are indications that H5N1 is circulating in all sectors of poultry production and in all parts of Egypt.” (Read)
Beltone and Ahli are out of the bidding for the National Investment Bank’s EGP 2 bn portfolio management job, according to Al-Borsa, which says that three of 13 companies that submitted proposals have so far been disqualified. Of the remaining bidders, the newspaper tips Alpha, Prime, and Rassmala, noting the institution is looking to work with “only six companies.” (Read in Arabic)
Beltone Financial will create a mortgage finance subsidiary with EGP 50 mn in capital, according to a board meeting on Wednesday as reported by Zawya. (Read)
Mohamed el-Shorbagy, the world’s number one squash player, reached the British Open semifinals after beating Germany’s Simon Rosner on Friday, Ahram Online reports.
Former Deputy PM Ziad Bahaa El Din confirmed he will not run in the upcoming parliamentary elections, Al Mal reported.
The Central Bank, the Egyptian Financial Supervisory Authority and Egypt Post have launched a financial education programme to promote financial inclusion. (DNE)
Egypt experienced 112 terror attacks during April, according to TIMEP’s Egypt Security Watch (in PDF). Attacks in Northern Sinai double m-o-m, but the Ajnad Misr’s founder and leader was killed, according to the report.
The Health Ministry approved increases in the price of 42 pharmaceuticals. Al Borsa has the full list.
BY THE NUMBERS
USD CBE auction (last sale Thursday, 14 May): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Tuesday, 12 May): 7.68 (unchanged from Saturday, 09 May)
EGX30 (Thursday): 8,303.37 (-2.62%)
Turnover: EGP 601.1 mn (7% above the 90-day average)
WTI: USD 59.69 (-0.32%)
Brent: USD 66.81 (+0.16%)
TASI: 9,731.5 (+0.6%)
ADX: 4,630.0 (+0.3%)
DFM: 4,072.7 (+0.1%)
KSE Weighted Index: 429.4 (-0.3%)
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