US ambassador summoned over Ikhwan visit to D.C. Are we finally serious about nuclear power? World Bank to revise Egypt growth projections. Wheat smuggling worsening. Gov’t to auction 4G spectrum? Cabinet shuffle in the cards? Apple Music unveiled.

WHAT WE’RE TRACKING TODAY

One of the more interesting stories of the day suggests that Egypt may finally be getting serious about nuclear power as part of our energy mix going forward. President Abdel Fattah El Sisi met yesterday with Sergei Kirienko, CEO of Rosatom, Russia’s state-owned atomic energy corporation. Per the readout from Ittihadiya: “Mr. Kirienko presented a proposal to build a nuclear power plant to generate electricity in Egypt using the latest technology. He noted that the plant would include four electricity generating units, meeting the highest standards of nuclear safety. He added that the project will provide 20,000 jobs in infrastructure and 6,000 jobs in the operation phase. In addition, 1,000 scholarships in the field of nuclear energy will be granted to Egyptian students to attend Russian universities.”

Why is this significant? For more than 15 years now, you could set your watch by the annual appearance of the “We’re going to be a nuclear power and build something at Dabaa” story. This was invariably followed by 12 months of radio silence and inactivity prior to the next announcement of the same. As we reported at the time, that began to change when El Sisi and Vladimir Putin shook hands on a deal during the Russian president’s visit this past February to have Rosatom drive the construction of the plant. A month later, Russia and Jordan reached a USD 10 bn nuclear agreement. Arab Contractors, the construction giant once headed by Prime Minister Ibrahim Mahlab, entered into a partnership with Rosatom to build a USD 8 bn nuclear power plant in Egypt back in March, and Orascom Construction signed onto the project last week, as we reported at the time.

Speaking of Russia: The first major drills of the joint naval exercises between Egypt and Russia begin today in the Mediterranean, Al Ahram said.

Also happening today: Many of our friends at listed companies will be out at the EGX Investor’s Summit (Arabic press release in pdf) this morning. The summit’s keynote session will be headlined by the ministers of housing, supply, transportation, and social solidarity for discussions of how listed companies and the ministries can work together on new projects.

WHAT WE’RE TRACKING THIS WEEK

The Central Bank of Egypt’s Monetary Policy Committee will meet on Thursday, 11 June. After a fall in inflation during the month of April, the CBE is “expected to keep interest rates on hold,” Reutersspeculates. Four of five economists Reuters surveyed expect the committee “would keep its overnight rates unchanged at 9.75 percent for lending and 8.75 percent for deposits at its meeting.”

The Egyptian Power & Electricity Summit takes place Wednesday and Thursday (10-11 June) at the Fairmont Towers, Heliopolis, Cairo.

LAST NIGHT’S TALK SHOWS

Talk show hosts joined the print press in rejoicing and gloating over the fate of Erdogan and the Justice and Development Party, which lost its parliamentary majority in the Turkish elections on Sunday. After a brief celebration, they all turned their attention back to their reviews of President Abdel Fattah El Sisi’s first year in office.

Amr Adeeb and Rania Badawi hosted economist Mahmoud Emara and businessman Mohamed Farrag Amer, the Chairman and CEO of Faragalla Group, one of Egypt’s leading food manufacturers, to get their insights on the president’s performance on the economic front.

According to Emara, “Security was the biggest achievement during Al Sisi’s first year in office and unemployment was the biggest problem that has remained unaddressed. Nothing whatsoever has been done to help the SME’s, who are going to create the job opportunities of tomorrow.”

Amer agreed that much has been done on both the security and energy fronts this year. “Our roads network has been improved and expanded with record speed. The President is very good at investment promotion. He set the tone for the EEDC and everyone followed. While we have succeeded in bringing in investment to the country in the real estate, energy and infrastructure sectors, we have not seen any major investment in industry. This is largely due to the fact that current legislation is not in favor of industry,” said Amer. “There is lots of talk about incentivizing SMEs, but the fact of the matter is that every large factory gives business to 600 smaller factories.”

Amer noted that, “Exports will continue to decline and eventually disappear if the government doesn’t start supporting Egyptian exporters. The majority of factories today are losing money. Instead of focusing on 2,000 people and bleeding them with taxes, why don’t you look at the informal sector? For example, private tutors and underground factories don’t pay taxes. The government knows this and yet they are not going after them. Why don’t you make them pay taxes instead of focusing all your energy on us?”

After a long tirade, Amer conceded, “By the way, we still love President Al Sisi. A year ago, Borg El Arab [the industrial zone outside Alexandria where Amer’s factories are located] was called Kandahar. That’s not something we’re going to forget.”

Emara argued that subsidizing exports is not the issue. It’s about legislation. “If businessmen who were making 10 are now complaining because they’re making 5 or even 4, there are foreign investors who are willing to come in a the current profit margins. I think we need to persevere a bit.”

SPEED ROUND

U.S. ambassador summoned over Ikhwan delegation’s visit to Washington, DC: Citing an anonymous source, Reuters reports that U.S. Ambassador Stephen Beecroft was “recently” called in by the Ministry of Foreign Affairs, which vented Egypt’s displeasure over the Ikhwan delegation making the rounds of Washington, D.C., this week. U.S. officials have reportedly said they have no plans at the moment to meet with the Islamists. “State Department spokesman Jeff Rathke declined to say whether Beecroft was summoned by the Egyptian authorities or whether U.S. officials would meet Brotherhood figures visiting Washington, telling reporters he was aware of media reports of such a visit but that, ‘I don’t have any meetings to announce.’ He said it continued to be U.S. policy to engage with people from across the political spectrum in Egypt.” (Read)

The World Bank Group will submit next week its report on Egypt; the document will include amended economic projections, senior WBG economist Ahmed Kouchouk told Al Mal. The report is complete, Kouchouk said, and the Bank will make it available publicly for the first time. Kouchouk expects Egypt’s FY2014-15 deficit to overshoot the government’s target and register 11.3-11.5% of GDP. That projection comes as the upcoming FY2015-16 budget also seems set to outrun Finance Minister Hani Dimian’s 10% target.

Egypt inflation to fall to single digits in 2-3 years -Dimian: Finance Minister Hany Dimian on Monday said that he expects inflation to fall back down to single-digit numbers “in two to three years’ time … That will depend on the packaging of the reforms that we are undertaking or have to undertake, improvement in the efficiency in addition to resolving of the historically outstanding supply bottlenecks which induce an element of rigidity in inflation.” (Read)

Egypt’s record purchases of local wheat suggests chronic smuggling has worsened, Reuters says, following a report from AMAY which we mentioned on Sunday. The piece suggests the purchasing price, which is USD 168-200 above the market per tonne, as the main reason. “[T]he high price has led over the years to a smuggling business, where foreign wheat is sold to the government, mostly Russian, falsely labelled as Egyptian.” Traders told Reuters that as much as one mn tonnes of the five mn bought could be foreign with 400k tonnes possibly Egyptian wheat stored from the 2014 season.

4G auctions loom as unified telecoms license plan falters: The CIT Ministry is leaning towards cancelling the issuance of a unified telecommunications license and beginning 4G spectrum auctions. This would also entail a move away from granting Telecom Egypt a mobile virtual network operator (MVNO) license, sources told Al Borsa. The ministry expects the 4G bandwidths to drive up mobile internet speeds and expand the sector. Al Borsa reports that Arab telecom operators have expressed interest in entering the market, but the CIT Ministry is delaying issuing a fourth license and will focus on improving coverage instead.

Investment Minister Ashraf Salman has proposed a number of amendments to the law governing investor incentives and guarantees, reports Al Borsa. The amendments mainly pertain to the guidelines for establishing projects and importing and exporting good within Free Zones. Additionally, the minister has proposed changes to regulations pertaining to the purchase and sale of government-owned property. The report carries few additional details.

Cabinet shuffle in the cards? Without naming sources or specifics, Ahram Online notes that there are reports circulating concerning the possibility of another cabinet shuffle. The outlet offered no further details.

The 5-page US State Department report on Egypt which we noted yesterday as having been submitted to the US Congress on 12 May is available online via Al Monitor. (Read)

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State Security Prosecution questions officers over Atito’s death: The Supreme State Security Prosecution Service will begin their questioning of police officers allegedly involved in the murder of Ain Shams engineering student Mohamed Atito. Prosecutors have also issued warrants for the arrest of six university students who, along with Atito, are suspected of having participated in the assassination of police officer Wael Tahoun. (Read in Arabic)

Indian healthcare mogul to build USD 2 bn medical city in Egypt: Indian healthcare pioneer B.R. Shetty announced that he plans to establish a new “medical city” in the governorate of Alexandria with a USD 2 bn investment. The city — to be built in collaboration with Pharmed Healthcare — would include a medical and pharmacy school, a training hospital, and other institutions to teach nursing and healthcare. Shetty added that he expects the project to be completed within three years upon receiving approvals from the governorate. (Read in Arabic)

Talks are ongoing between the EGPC and its French counterpart to help provide technical expertise in the field of deep water drilling in Egypt, according to Egyptian government sources at the 26th World Gas Conference in Paris. Sources also report that Gaz de France, which already operates in Egypt,plans to boost its investment in its Mediterranean gasfield. Speaking at the conference was Khaled Abu Bakr, the MENA region coordinator for the World LP Gas Association and Chairman of TAQA Arabia, who outlined the strides taken regionally to build up the gas industry. (Read in Arabic)

The World Bank’s Arab Voice’s blog covers “Shagara,” a project that started off with one Egyptian’s attempt offset his own carbon emissions. “The idea of Shagara is to act by planting trees and plants inside cities to offset problems, increase environmental awareness, and—last but not least—help the economically disadvantaged,” founder Mohamed Abdel Samad says. Their flagship project is “Shagara at School,” an attempt use large spaces, including rooftops, in public schools to grow indigenous species of plants.

Incidence of FGM decreasing among teenagers; Egypt to launch new anti-FGM campaign to mark National Anti-FGM day on 14 June: Titled “Stop FGM against Girls,” the launch of the campaign will be attended by the Head of the European Delegation to Egypt James Moran, Resident Representative for the United Nations programs in Egypt Anita Niordy and Minister of Health Adel al-Adawy, as reported by Youm7 and its English site The Cairo Post. On Sunday, UNDP Country Director for Egypt Ignacio Artaza published a piece in Ahram Online noting that according to a recent survey, 61% of girls aged between 15-17 underwent the procedure, as opposed to 74% in 2008. “To date, 10 villages in the governorate have declared their stance against FGM and are continuing to advocate for the end of this harmful practice … The National Strategy to Combat FGM, which is yet to be launched, shows the Egyptian government’s commitment to fighting FGM as a matter of national priority, recognizing the negative effects of this practice on society and people.” The anti-FGM campaign follows other initiatives to improve women’s rights in Egypt, including this brief video produced by HarassMap last month. (Watch in Arabic, running time: 1:01).

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Orange clarifies its stance on Israel after CEO’s remarks: As we reported, Orange CEO Stephane Richard, said in Cairo last week that the French telecommunications company plans to terminate its agreement with Israel’s Partner Communications — a move that was widely received as a boycott of Israel. Israeli Prime Minister Benjamin Netanyahu led a chorus of Israeli officials condemning the move, calling it “miserable” and attributing it to the global BDS (boycott, divestment and sanctions) campaign. Israeli officials claim BDS promotes anti-Semitism. Richard later released statements stressing that it was a “huge misunderstanding.” He added that “Orange does not support any form of boycott, in Israel or anywhere else in the world,” and “decision[s] on the use of the brand is motivated — as it is all over the world — solely by our brand strategy. Let me make it very clear that the Orange Group is in Israel to stay.” (Read) Stephane Richard has been invited to Israel to discuss the group’s future plans and business ties, Ahram Online adds.

ROGUE STATE WATCH- Turkey ratifies military cooperation with Qatar: According to Turkey’s official gazette published on Monday and as reported by World Bulletin, Turkey and Qatar have ratified a joint military cooperation agreement. According to the terms of the agreement, Turkey will provide “deployment of joint forces if needed” as well as “operational training experiences,” while Qatar has pledged to provide the chips and dip.

Qatar may be stripped of its right to host the 2022 World Cup if evidence is uncovered of bribery, according to Domenico Scala, the independent chairman of FIFA’s audit and compliance committee, speaking to Swiss newspaper SonntagsZeitung on Sunday and as reported by Reuters. If this were to happen, theadorably simple-minded little boy in this photograph would likely have to return to its rightful owners the enormous piece of gold-foil wrapped chocolate he is pictured holding.

Keep it down, Egypt: An in-depth Reuters report notes that quieting down might save bns in heart disease costs. Findings from the American Journal of Preventative Medicine indicate that there is a correlation between noise level and high blood pressure (sam3a, ya Om Ahmed?). Senior author Richard L. Neitzel of the University of Michigan School of Public Health in Ann Arbor also mentions that, “High noise levels have been tied to poor health outcomes including heart disease, possibly because sleep disturbances cause stress and interrupt body cycles,” but we all already know that. The article highlights the major economic gains from decreasing noise levels claiming that it could save more than USD 3 bn annually in the U.S.

Apple announces streaming music service: You may soon have an alternative to streaming Spotify over VPN in Egypt: The company that changed everything in digital music with the iPod is back with a USD 10 per month all-you-can-listen-to service that will be available on iOS devices tethered to the U.S. store at the end of this month — and on Android devices this fall. Explore Apple Music on the official homepage, check out Apple’s press release, or delve deeper into Apple Music and streaming audio on the Verge.

***
A MESSAGE FROM PHAROS HOLDING

New power deal raises questions about Egypt’s ability to meet industrial demand for natural gas

In its latest publication, Pharos Holding voiced concerns over future availability and pricing of natural gas supplies in Egypt, after the Egyptian government announced a newly-inked deal with German engineering giant Siemens to build three natural gas-fired thermal and wind power plants, collectively at an investment cost of EUR 8 bn. Together the plants are meant to add 16.4 GW to Egypt’s power-generation capacity, of which only 2 GW would be wind-generated.

Calculations suggest that once the new natural gas-powered plants are operational, energy-intensive industries would have to seek out alternative means to acquire their fuel needs, which may prove difficult for most, and impossible for those that rely on natural gas as a feedstock. To find out more click here.
***

EGYPT IN THE NEWS

U.S. Senator praises President El Sisi to applause at advocacy event: New York Senator Charles Schumer (D) received applause for his laudatory remarks on President Abdel Fattah El Sisi last Wednesday, as recorded by Jewish Insider and reported by The Observer. “‘Sisi is very good, that is one of the very good things that’s happening. He’s so much better than Mubarak even was and certainly than Morsi,’ Mr. Schumer said of Egyptian President Abdel Fattah el-Sisi, comparing him to past Egyptian presidents.” (Watch, running time: 24 seconds)

On the other end of the political spectrum- Egypt is a nation of dead men walking: The University of Exeter’s Omar Ashour compares our government to that of Adolf Hitler in the opening two sentences of his piece for The Daily Star of Lebanon. Unfortunately, we are unable to tell you what the rest of the article says as we stopped reading at that point. (Read)

Egypt: Year of Abuses Under al-Sisi: Human Rights Watch provides its assessment of the President’s first year in office. (Read)

WORTH WATCHING

The top-trending YouTube video today worldwide is footage of American Pharoah winning the Triple Crown. (Watch, running time: 3:03)

Goonies is celebrating its 30-year anniversary. Some helpful internet nerd has put together a nice compilation of Sloth’s best moments. (Watch, running time: 3:40)

SPOTLIGHT ON the African Trade Zone Summit in Sharm El-Sheikh

As we noted on Sunday, members of the COMESA, EAC and SADC trade blocks are in Sharm for a tripartite summit to work toward the creation of an African Trade Zone (AFTZ). Delegates yesterday spent time outlining and reaffirming the goals of the agreement, with Egypt’s Trade and Industry Ministry releasing details of the negotiation framework, the objectives of which include:

• Consolidating the continent’s economic blocs
• Establishing a free trade zone between member countries
• Identifying the 26 member states

Negotiations appear set to take 3+ years and will happen in two phases. The first phase will seek an agreement on liberalization of tariffs, non-tariff barriers, consumer protections, obstacles to trade, a framework for mediation and dispute resolution, and easing travel restrictions on businessmen. This phase is expected to take anywhere between 24-36 months to implement. The second phase of the negotiations will address joint and institutional administration of the free zone, including hashing out the details of the committees in charge.

In both an official press release and at a press conference held yesterday, Trade and Industry Minister Mounir Fakhry Abdel Nour pushed the benefits of the agreement, pointing to its three pillars of market integration, infrastructure and industrial development. He added that the agreement will facilitate access to markets including the EU and strengthen the signatories’ positions in their dealings with international institutions and organizations. (OnTV interview with the minister, running time: 14:41)

Delegates appear bullish on the AFTZ. COMESA Secretary General Sindiso Ndema Ngwenya praised the Mahlab government for organizing the event, noting that AFTZ has the potential to more than double trade between member states to USD 3 tn from USD 1.3 tn upon implementation. His remarks were echoed by Zimbabwe’s Deputy Trade Minister, Michael Bimha, who chaired the ministerial meeting held yesterday. The only dissenting voice seemed to have come from Sudan’s Ambassador to Zambia, Mohamed Issa, who stated that the success of the agreement hinges on political stability in the region, pointing to the need for parliamentary elections in Egypt, the acceptance of 14 states which have yet to declare their intention to sign AFTZ, and the need to stabilize nations such as Libya and Burundi, Al Borsa reports.

WORTH READING

What Turkey’s Election Results Mean: Soner Cagaptay at The Washington Institute for Near East Policy writes on the impact and scenarios for Turkey for both the short and long term following the results of their general election held on Sunday. “No coalition or minority government in Turkey has ever finished its term, and the country usually witnesses political and economic crises when such governments fail as a result of bickering between coalition partners. Should Turkey enter a period of political or economic instability under a coalition government or during the forty-five-day formation process, the public may be swayed to support a single-party AKP government again in early elections. Conversely, the opposition could paint the AKP as the problem, increasing its own support in such elections.” (Read)

For more on how markets reacted to the results, hit up CNBC for ‘Market turmoil in Turkey after crushing election‘.

DIPLOMACY

PM Mahlab received Valentin Efimovich Kostyukov, the director of Russian Federal Nuclear Center – VNIIEF yesterday. The meeting came as part of the preparation to cooperate on building a nuclear power plant in Daba’a, Amwal Al Ghad reported.

Foreign Minister Sameh Shoukry received an official invitation from South Sudan’s President Salva Kiir for President El Sisi to attend the country’s celebrations of its independence day. The invitation was delivered by South Sudan’s Foreign Minister personally.

Libya at a crossroads -Libyan FM: Speaking to journalists in Cairo on Monday, the foreign minister of Libya’s internationally-recognized government, Mohammed al-Dairi, said that parties opposed to the UN-brokered peace talks scheduled to take place in Morocco are automatically allying themselves with Daesh. The negotiations aim to forge a power-sharing agreement between the legitimate government in the east with that of the Islamist Tripoli rebels. (Read)

Non-Islamist Syrian opposition meet in Cairo: The two-day event, which closes out on Tuesday, aims to bring together an alliance against Bashar Al Assad’s government, and would serve as an alternative to the failed National Coalition grouping of Syrian opposition members. The conference “is just a starting point, we will work together to get your message and your vision for a political solution through to Syria and also to the world,” Foreign Minister Sameh Shoukry said in his address to the delegation. (Read)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Arab Ministerial Council for Electricity discusses far-reaching energy production developments
Al Borsa | 08 June 2015
Regional ministers attending the 31st Executive Meeting of the Arab Ministerial Council for Electricity discussed the pipeline of projects for regional power generation until 2030, especially the Arab grid connection project. In attendance was Egypt’s Electricity Minister, Mohamed Shaker, who addressed financing the first and second phase of the project through the Arab Fund for Economic & Social Development. The meeting also looked into the preparations for the Power and Electrical Equipment Exhibition which will be held in the UAE in July. (Read in Arabic)

OIL & GAS

Egyptian oil companies to participate in Sudanese E&P tenders
Al Mal | 08 June 2015
Egypt and Sudan agreed on having Egyptian oil companies participate in E&P tenders in Sudan. Egypt’s Oil Ministry had signed a cooperation protocol with Sudan to encourage Egyptian producers to expand southwards. The protocol also allow Egyptian services companies to provide services to operators in Sudan. Sources told Al Mal that the sector seeks to expand to a number of African countries including Ethiopia, Nigeria, Tanzania, Senegal, and Benin. (Read in Arabic)

USD 9.4 bn in petrochemicals projects currently underway -Oil minister
Amwal Al Ghad | 08 June 2015
USD 9.4 bn in petrochemicals’ investment projects are being implemented currently, according to Oil Minister Sherif Ismail. USD 3.8 bn worth of projects are expected to come on-stream before the year’s end. Ismail said the Ministry is prioritizing petrochemicals’ projects as they remain “a main pillar for expanding value-added industries.” (Read in Arabic)

EGPC supplies Gharbiya with additional gasoline and petroleum derivatives
Al Mal | 8 June 2015
EGPC, in partnership with Misr Petroleum and COOP Petroleum, will be supplying the Gharbiya Governorate with additional shipments of gasoline and other petroleum derivatives. The governorate’s gas stations are reportedly suffering from overcrowdedness, as false rumors of price hikes and gas shortages have spread throughout Gharbiya.(Read in Arabic)

BASIC MATERIALS & COMMODITIES

Agriculture Ministry commissions company to import fertilizer after tender fails
Al Borsa | 08 June 2015
The Agriculture Ministry commissioned Ain Al Rawya, a trading company, to import 150k tonnes of fertilizer by next week. This follows the Ministry’s inability to hold a successful fertilizer tender for the third time as hard currency problems remained an impediment. Companies had asked to be exempted from the restrictions on the USD deposits in order to be able to participate in the Ministry’s tenders. (Read in Arabic)

ITDA in talks with governorates to allocate land for logistics centers
Al Borsa | 08 June 2015
The Supplies Ministry Internal Trade Development Authority (ITDA) began negotiations with various governorates to allocate land nationwide for logistics centers. ITDA is prioritizing projects in Upper Egypt and has already allocated land in Luxor, Assiut, and Qena for its food items’ logistics centers projects. The Supplies Ministry hopes the logistics centers could improve the efficiency of the Supplies Ministry’s vendors in the governorates and create more jobs in the process. (Read in Arabic)

MANUFACTURING

EGAS to prioritize demand from producers selling fertilisers domestically
Al Borsa | 08 June 2015
Supplying natural gas demand from fertilizer factories that pump their production domestically will be prioritized in the summer, EGAS said. Fertilizer exporters will take a back seat in this arrangement, a source told Al Borsa. EGAS is supplying fertilizer manufacturers with 307 mcf of gas per day, while total demand is estimated to be 510 mcf. (Read in Arabic)

AUTOMOTIVE

India wants to increase car spare parts exports to Egypt
Al Shorouk | 08 June 2015
The Indian government will contact Cairo to facilitate its exports of car spare parts to Egypt, the Indian Embassy in Cairo’s Commercial Attaché said, according to Al Shorouk. The Commercial Attaché said that the volume of spare parts’ exports volume from India to Egypt of USD 17 mn should increase significantly. He added that Indian manufacturers see Egypt as a gateway to North Africa and West Asia. (Read in Arabic)

HEALTHCARE

Chambers of commerce look to clean up Egypt’s pharmaceutical industry
Al Borsa | 08 June 2015
The Pharmaceuticals division of the Federation of Egyptian Chambers of Commerce estimates that EGP 2.5 bn of the pharmaceuticals sold in Egypt are unsuitable for consumption, comprising 12% of total sales. Consequently, the Federation, in partnership with the Pharmacists Union, is in the process of planning a country-wide “clean-up” of the drug industry aimed at eliminating sales of counterfeit and expired drugs. Pharmaceutical sales in 2014 amounted to EGP 26 bn. (Read in Arabic)

Mahlab and Salman meet with JICA representative in Cairo
Al Ahram | 08 June 2015
Prime Minister Ibrahim Mahlab and Investment Minister Ashraf Salman met with the vice president of JICA and Japan’s ambassador to Egypt on Monday. During their meeting, Prime Minister Mahlab discussed the possibility of increasing Japan’s role in financing mega-projects in Egypt. For his part, the JICA representatives expressed his organization’s willingness to offer Egypt soft loans for the financing of future projects. (Read in Arabic)

TOURISM

Red Sea hotels took in 358,000 tourists in May
Al Borsa | 09 June 2015
Hotels in the Red Sea governorate managed to attract over 358,000 tourists of varying nationalities during the month of May alone, according to a report by governorate’s Tourism Board. The report also states that year-to-date tourism numbers for that month reached 528,000 of mostly Russian tourists, who occupied 256 hotels and resorts. (Read in Arabic)

Tourism sector awaits the renewal of the CBE’s supporting initiative
Amwal Al Ghad | 08 June 2015
The tourism sector is waiting to see whether the CBE will renew its initiative to support the sector for the third time in a row or not, Amwal Al Ghad reported. The initiative provides CBE-facilitated credit to the sector’s operators. Sources said that extending the initiative would also benefit the banks as it would preserve the quality of their credit portfolios. They added that the tourism sector is rebounding steadily is expected to show signs of health from next October. (Read in Arabic)

Government increases Grand Egyptian Museum funding by EGP 284 mn, only EGP 125 mn disbursed
Al Mal | 08 June 2015
The Antiquities Ministry said that although the government has agreed to increase funding for the Grand Egyptian Museum project by EGP 284 mn, only EGP 125 mn have been disbursed so far. The Ministry has contacted the Japan International Cooperation Agency (JICA) to borrow USD 450 mn, but says there are no concrete pledges yet. The cost of the project has increased to USD 1.1 bn, requiring USD 800 mn in extra funding, the Antiquities Minister noted. He added that 80% of the concrete works are complete. (Read in Arabic)

TELECOMS & ICT

OTMT waiting on North Korean profit repatriation to submit results to EGX
EGX Press Release | 08 June 2015
Orascom Telecom Media and Technology (OTMT) says delays in submitting financials to EGX are due to problems with profit repatriation from its North Korean subsidiary, Koryolink, according to a statement sent to the bourse. OTMT said it has contacted North Korean regulators to agree on an exchange rate and allow for the profits to be repatriated. The company said it has refrained from sending its financials to the EGX due to the material weight of Koryolink on OTMT’s consolidated results. (Read in Arabic)

EBA calls on the CIT Minister to showcase his plans for the sector
Al Borsa | 08 June 2015
The Information Technology Committee of the Egyptian Businessmen Association (EBA) called on CIT Minister Khaled Negm to present his vision for the sector. The committee seeks the Minister’s plans in order to be in tune with it. The EBA also urged Negm to expand the usage of technology in the provision of government services to the public. (Read in Arabic)

BANKING & FINANCE

EDA explores investment options in Africa with financiers
Al Mal | 07 June 2015
The Egyptian Development Agency announced that it plans to host an investment forum for Africa by year’s end in collaboration with the regional directorate for COMESA investment authorities. The forum will aim to promote investment opportunities in the continent, establishing an information center and database to facilitate African market intelligence, and seeking out mechanisms to guard investments from political instability. The move comes as part of its plan to draw financiers to the region and other Islamic Commonwealth countries. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

SCA signs MoUs with international companies to promote new canal’s opening
Daily News Egypt | 07 June 2015
The Suez Canal Authority (SCA) signed MoUs with two French companies as well as two companies from Egypt and the U.S. to promote the opening of the New Suez Canal, Chairman Mohab Mamish said. The news about the promotional campaign, as well as the international coalition responsible for it, were announced in a press conference, DNE said. Mamish, who does not want to burden the budget further, is in discussions with PM Mahlab and CBE Governor Hisham Ramez over opening a bank account to collect donations to sponsor the event. (Read)

Federation of Industries Drumming Up Investment
Al-Borsa | 8 June 2015
15 Arab and European countries have expressed interest in investing in Egypt at a meeting between the Federation of Egyptian Industries and the Association of Arab and European Businessmen, said FEI representative Ahmed Kamal. The meeting, which took place for the first time in Cairo on Monday, will sought to minimize regional trade obstacles in addition to promoting industry related investments in the country. The meeting also looked into investments in the Egypt’s infrastructure development and SMEs. (Read in Arabic)

El Kholy: Shareholders, not board, wanted to sell El Watany Bank’s shares
Al Borsa | 08 June 2015
The decision to sell El-Watany Bank to the National Bank of Kuwait was not taken by the Egyptian company’s board but rather by its shareholders, said lawyer Tarek El Kholy at the case hearing on Monday. The lawyer also requested that the judge not consider the case a violation of public funds due to the fact that the El Watany Bank shares that were sold to NBK were all privately owned at the time of the transaction. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Industry Ministry seeks to expand earmark for export promotion fund
Al Borsa | 08 June 2015
The Trade and Industry Ministry is asking for more financing for its export-promotion fund in the upcoming FY2015-16 budget. In FY2014/15, the fund had its financing reduced by EGP 500 mn to EGP 2.6 bn. Trade and Industry Minister Mounir Abdelnour is asking for more funding in the upcoming budget year, saying exports to Africa will grow going ahead and noting that exporters need assistance in the face of persistent transport, infrastructure, and energy issues that are currently impeding growth. (Read in Arabic)

Government to make final decision on Amlak Fund on Thursday
Al Shorouk | 09 June 2015
The cabinet’s Economic Committee has agreed in principle to establish the Amlak Fund, reports Shorouk. The fund will be responsible for managing the state’s assets, adds the source. The ministers will make a final decision on whether to establish the fund during their meeting on Thursday. (Read in Arabic)

ON YOUR WAY OUT

The New Suez Canal is now connected to the power grid in a project that saw power cables embedded underneath the canal connecting both banks. In an interview with Al Borsa, Mohamed El Sayed, the head of the Canal co. for Electricity Distribution, announced that this EGP 40 mn endeavor will facilitate projects on either side of the new Canal, adding that a EGP 25 mn project to supply the new cities on either side is underway.

The Federation of Egyptian Industries met with the Finnish business delegation visiting Egypt yesterday, according to Amwal Al Ghad. The delegation, which comprises 20 Finnish companies involved in a wide range of activities, including energy, textiles and engineering, aims to learn more about investment opportunities in Egypt.

EFG Hermes releases its first Sustainability Report, outlining its sustainable development strategy: EFG Hermes issued its first sustainability report, which a company statement says comes after the investment bank moved to implement sustainable business practices across all lines of business. Read the EFG Hermes Sustainability Report in English or Al-Borsa‘s coverage in Arabic.

BY THE NUMBERS

USD CBE auction (Sunday, 07 June): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Sunday, 07 June): 7.67 (+0.02 from Saturday, 06 June)

EGX30 (Monday): 8,672.33 (-0.65%)
Turnover: EGP 383.6 mn (22% below the 90-day average)

WTI: USD 58.39 (+0.43%)
Brent: USD 62.89 (+0.32%)

TASI: 9,532.5 (-0.6%)
ADX: 4,563.9 (+0.2%)
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MSM: 6,464.4 (+0.2%)