Tuesday, 11 August 2015

It’s called a “heat dome,” and it will last until 24 August

TL;DR

WHAT WE’RE TRACKING TODAY

There is still no news as to the fate of Croatian national Tomislav Salopek, a foreign resident of Egypt working in the petroleum sector who was abducted near Cairo by Daesh.

A joint study on the feasibility of a Cyprus-Egypt gas pipeline should be ready “within days,”according to Cypriot Energy Minister Giorgos Lakkotrypis.  The government-commissioned study is to determine the technical and financial viability of extending a pipeline from Cyprus’ Aphrodite field to Egypt. EGAS and Cyprus National Hydrocarbons Company (CNHC) are partnering on the study. Cyprus is also engaged in discussions on a corporate level for the sale of natural gas to Egypt with a number of companies, the Cyprus Mail reports.

The heat wave sweeping Egypt is set to last until at least 24 August. So far, 21 elderly  people have died and 66 others suffered from heat exhaustionEmirates News Agency reported, a figure since confirmed by the Ministry of Health. Temperatures in the high 40s and high humidity have proven particularly challenging for seniors in the Cairo area, accounting for 15 of the 21 deaths. “There is a big rise in temperature compared with previous years. But the problem is the humidity which is affecting people more,” Health Ministry spokesman Hossam Abdel Ghaffar is quoted by wire services as saying. “Long exposure under the sun is a killer.” Ahram Online explains why the temperatures we’re experiencing — and that our car thermometers report — differ so widely from those reported by the National Meteorological Service. The official forecast is for temperatures reaching 39ºC in Cairo and 47ºC in Upper Egypt on Tuesday, reports Al-Ahram. Forecasts show the heat wave lasting until 24 August.

In case you were curious, what we’re going through on the weather front has a name: A heat dome, defined as: “a high pressure ridge that develops in the upper atmosphere, forcing the air below it to sink and compress.”

Either way, it’s a great time to be a peddler of water or juice: Mineral water sales are reportedly up 25-40%, but industry players deny they’ve taken advantage of demand to pass along a price hike.

WHAT WE’RE TRACKING THIS WEEK

We continue to wait for news of President Abdel Fattah El Sisi’s anticipated speech to the nation to announce the details of a series of new national megaprojects and, similarly, await word from theHigher Elections Committee as to the nomination period and poll times for elections to the House of Representatives. Prevailing wisdom is that the elections will take place in two stages during October and November.

Oil prices rebounded more than 2% at one point yesterday; we’re waiting to see if that snaps the black stuff’s losing streak. Oil fell 7.1% last week and lost further ground on Sunday, heading toward lows last seen in March 2015.

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ON THE HORIZON

Russia has edged deeper into recession as the economy shrank 4.6% in the second quarter, the fastest contraction since 2009 — not great news for Egypt’s tourism industry.

Meanwhile, emerging markets investors — and issuers — the world over are taking note this morning ofremarks by the head of the Atlanta Fed suggesting the U.S. Federal Reserve should raise interest rates “soon,” noting he is “very disposed” to supporting a hike at next month’s policy meeting.

LAST NIGHT’S TALK SHOWS

Magdy El Galad, filling in for Lamees El Hadeed, kicked-off Hona El Asema with a discussion of entrepreneurship and microfinance in Egypt. The segment began with a short video on three women who successfully started businesses after taking out microloans. The women expounded on the unique circumstances of their respective stories and on how access to  finance was a decisive factor in their success.

After the video ended, El Galad introduced three guests, all of whom work for community microfinance organizations: Mamdouh Mortagy Wahba, a member of the Coptic-Anglican Community Service Organization; Ingy Essam, head of IT at Tadamon; and Mohamed Hamid Salah, general manager of the Microfinance Organization (SIKDA).

El Galad: How easy it to obtain a microloan?

Mohamed Hamid Salah: The steps are very easy to complete;  the paperwork required is simple to understand and can be easily completed. After receiving the applicant’s paperwork, the creditor conducts necessary due diligence on the applicant. The whole process should not take more than a week.

El Galad: “Would you say that you have had a positive experience issuing microloans?”

Ingy Essam: “We have had a very positive experience with this program. Nevertheless, we do face challenges. Specifically, access to financing is very limited. Only 15% of our estimated market is able to obtain loans, due to limited [institutional] financing [available to microfinance enterprises]. It is imperative that we expand the financing pool so that a larger segment of the Egyptian population can benefit from these instruments.”

Meanwhile, Rania Badawi filled-in for Amr Adeeb, who’s still off on vacation. The program kicked-off with a short video, in which an unnamed Al Qahera Al Youm journalist roamed the streets of Cairo, asking citizens for their thoughts on the government’s recent decision to rename Rabaa Square to Hisham Barakat Square, in commemoration of the prosecutor general who was assassinated by terrorists in June. The video was followed by another short, this one showing the funeral of Walid Mahmoud, a police officer killed by terrorists in Suez City earlier this week.

Badawi capped the videos with a passionate monologue on what she called Egyptians’ “growing hatred” of the Ikhwan: “Their end is near. They were hit hard when we completed the construction of the Suez Canal. Now, they are holding on to their last breath! With every passing day, Egyptians hatred of them increases.”

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Tax Authority staffers walk out in in rare labor action: Hundreds of Tax Authority workers made good on their planned protest yesterday, changing the venue from the Cabinet’s office to the Press Syndicate’s HQ. This comes despite the march being forbidden by State Security. A top aide to Finance Minister Hany Kadry also had to deny that the minister had promised to sack anyone who participated in the protest. The protesting TA staff have called for the removal of the minister and the suspension of the Civil Service Law. They also want the Tax Authority turned into an independent government bodyoutside the purview of the Finance Ministry, a move that would put the nation’s revenue collectors on par with the Central Bank of Egypt and the Central Auditing Organization. Speaking to Al Mal, protestors initially claimed that “most” of the Authority’s 52,000 workers have gone on strike, with the exception of top management. Ahram Online has a video of the protests with an interview and puts the number in the hundreds, which seems reasonable based on their footage, while the Associated Press put the number at 2,000.

Tax Authority workers may be waiting a while for satisfaction: The Mahlab government has no intention of amending the Civil Service Act, says Planning Minister Ashraf Al Araby, describing the law as “simple” and “flexible.” His remarks were followed by a Cabinet statement that was even more blunt, saying, “The government is completely convinced that issuing the law will lead to the managerial reform plan which is a step in the direction of achieving social, economic and political reform” before going on to make clear what it sees as the advantages of the law to civil servants. The protesters disbanded their demonstration on Monday night, giving the government a one week deadline to repeal the Civil Service Act, reports Al Masry Al Youm. They’re also threatening to intensify their protests if their demands are not met within the one-week period.

Who isn’t on strike — yet: State-employed doctors, teachers and public transport workers, none of whom are covered by the Civil Service Act, cabinet said yesterday.

Mahlab not asked to shuffle cabinet, sources say: Amid continuing talk of an imminent cabinet shuffle, Al-Masry Al-Youm quotes government sources as saying that President Abdel Fattah El Sisi has not asked the PM to shake up his ministers. Other sources told the paper that Mahlab’s visit earlier this week to the Supreme Judicial Council was not to for consultations on the appointment of a new prosecutor general. (Read in Arabic)

The state has no intention of trying to find a pretext on which to skip interest payments on Suez Canal investment certificates sold to the Egyptian public, the media quoted officials at the Central Bank of Egypt and Suez Canal Authority as saying yesterday. The two agencies were responding to a public furor yesterday after the Salafi Al-Nour Party suggested scrapping the payment of 12% interest over five years to instead fast-track the expansion of the Suez Canal and the construction of tunnels linking the Sinai with the mainland, Al Borsa reports.

In related news, Suez Canal Authority chief Mohab Mameesh met with the heads of the Authority’s dredging and legal departments to begin work on the EGP 4 bn East Port Said Port development project. The meeting will determine whether dredging for the project will be handled in-house or through a consortium of contractors. Speaking to Al Ahram, Mameesh discussed upcoming projects for the Suez Canal Development Zone, such as a technology hub, which will include 12 high tech projects. Among these is a solar panel factory and other new and renewable energy projects. The projects will involve cooperation with the CIT and industry ministries.

Leading automotive distributor GB Auto reported a 4.0% uptick in revenues to EGP 3.2 bn and a 26% rise in net income to EGP 50.3 mn despite the impact of foreign currency shortages and “difficult operating environments” in expansion markets including Iraq. Said GB Auto CEO Raouf Ghabbour in the company’s earnings release (pdf download):  ”As I’ve noted before, bumps in the road are nothing new to GB Auto, whether in our home or regional expansion markets. We, as always, are pressing ahead with the successful model that has allowed us to thrive during trying times — a model has seen us continuously expand our product portfolio and seek further integration in our expansion markets … [while] allowing us to weather the less than favorable market conditions.” Standout performers in the quarter included motorcycles and three-wheelers, commercial vehicles and the company’s financing businesses.

TE grows profit 55% y-o-y in 2Q2015: The fixed-line monopoly’s after tax profits rose to EGP 378 mn despite a drop in revenues to EGP 3.025 bn from EGP 3.868 bn in 2Q2014; last year’s top line was inflated by non-recurring revenue, Reuters reported, noting that analysts expect TE will be allowed to acquire a 4G mobile license in 2015. (Read)

Rockhopper Exploration announced its acquisition of Beach Energy’s portfolio of non-operated production and exploration interests in Egypt for a headline consideration of USD 22.0 mn, according to a company statement. Of the USD 22.0 mn, USD 11.5 mn will be paid in cash and the remainder in fully-paid Rockhopper shares. Upon the deal’s completion, Rockhopper will hold a 22% interest in the Abu Sennan concession and a 25% interest in the El Qa’a Plain concession.

President El Sisi met with BG Group CEO Helge Lund yesterday with Oil Minister Sherif Ismail also in attendance, Al Shorouk reported. El Sisi welcomed BG’s expansion plans in Egypt and stressed the country’s commitment to repay its IOC partners’ dues, noting that Egypt has paid past due invoices of USD 3 bn in the last two years, according to a statement from Ittihadiya. Lund also congratulated El Sisi on the inauguration of the New Suez Canal. BG has invested a total of USD 14 bn over the last 25 years in Egypt and USD 4.5 bn since 2011. At the meeting, President El-Sisi encouraged BG to continue investing in more projects in the country and vowed that Egypt will continue to repay its debts to international E&P outfits.

The National Railways Authority is negotiating the terms under which the China Railways Construction Corporation (CRCC) will participate in the Robeky-Tibeen supply railway linethrough a build-operate-transfer agreement. The Chinese company had preliminarily agreed to participate in the EGP 800 mn project on a finance + EPC basis, but terms have since changed, according to Al Borsa. The NRA had offered the project to CRCC as part of Egypt’s burgeoning rapprochement with China.

Headline inflation in Egypt dropped to its lowest level so far this year in July, coming in at 8.4% compared with 11.4% in June, Reuters reported. According to CAPMAS, the decrease in inflation rates is attributable to drops in the prices of meat, poultry, and fruit as demand fell following Ramadan, concerns about red meats’ safety waned, and lemon supplies were restored. Following new mandated price increase, electricity price inflation grew 21.3% y-o-y. A breakdown of rural vs. urban indicators is here (pdf).

And, finally, Google is taking a page out of Prince’s playbook. The company, writes CEO Larry Page, is “creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.” Google will apparently continue to be the brand that operates its core web and mobile services, but everything from its venture into meatless hamburgers, life extension and glucose-sensing contact lenses will apparently fall under the Alphabet holding company umbrella.” Sundar Pichai, the high-profile senior VP at Google responsible for Chrome, Android and Google Apps, will become CEO of Google. Your starting point is Larry Page’s post on Google’s blog. Others with quick takes out include the FT, the NYT, WSJ and Bloomberg.

CORRECTION: One of the two links we included to the Future of Energy conference website yesterday included a spurious character (a “/r” at the end). The correct link is here, while the contact link was correct for the many of you who checked it out. H/t Rady F.

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A MESSAGE FROM PHAROS HOLDING

Egypt’s CIB to Represent Africa in China’s “One Belt, One Road” Initiative

CIB, Egypt’s largest private bank, signed a memorandum of understanding with the Bank of China this week, becoming the only bank to represent the African continent on the lender’s “One Belt, One Road” initiative, a project meant to boost trade and infrastructure development along the ancient ‘Silk Road,’ which connects China, Europe, and Africa. The details of the MoU are yet undisclosed, but CIB announced that the total trading volume between those countries is expected to exceed USD 2.5 tn over the next 10 years. What’s more, the plan will focus on developing infrastructure in countries that China views as strategically important — Egypt being among them, as made evident by the warming of Egyptian Chinese-relations lately.

Although the announcement might bear good news for Egypt, its impact on CIB’s valuation remains to be seen. We’re keeping a close eye on the details, incorporating them into our model as they come in to measure their effect on the bank’s FV estimate and market share, especially as competition grows stiffer. CIB’s FV estimate is based on a projected annual average gross loan growth rate of 21.6%, a growth in CIB’s lending market share to 9.5% by 2020 from 8.4% at the end of 2014, and a projected 19.2% annual average loan growth rate for the entire banking system. For more information on China’s initiative, click here.
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EGYPT IN THE NEWS

Whatever is the matter with Egypt?’: Al Arabiya’s Washington bureau chief, Hisham Melhem, pens an op-ed on Egypt’s declining regional role in comparison with Iran, Turkey and Israel, while reminiscing on a time when Egypt was in its cultural and artistic prime during the period between the two world wars. He traces the decline from the end of Nasserism to the rise of Islamism. He adds that restoration of strategic dialogue with the US and a new Suez Canal are just ways for Egypt to reassure itself that it is relevant. (Read)

In another Al Arabiya opinion piece, humanitarian activist Yara Al Wazir writes about the recent increase in veil-free zones in Egypt, where several restaurants and resorts have turned away veiled women. She ponders on the reason veiled women are shunned in their home countries while they fight for acceptance in the Western world as well as why veiled women choose to be in an alcohol serving venue. She concludes that a “A hijab is … a statement that a hairstyle can be hidden, veiled, and covered.” (Read: What’s the deal with Egypt and the veil?)

Jeremiah Bowden and Zeyad El Kelani provide an in depth analysis of last week’s renewal of the US-Egypt strategic relations for the Huffington Post. They focused on three key points: security threats, the Iran nuclear deal, and foreign aid. While recognizing the strategic importance of the talks, it also signals a shift in US foreign policy towards “proxy-engagement” rather than direct involvement. The analysis goes on to claim while both rely on each other as forces of stability, the US is finding it hard to juggle its strategic need of a stable Egypt with Egypt’s human rights record. (Read: Prospects of US-Egypt strategic relations)

Euronews aired a TV report on European media’s different perspectives on the unveiling of the new Suez Canal. The eight-minute video gives reports from TV channels from Switzerland, France and Spain, with the former crediting President El-Sisi’s push for its one year completion schedule, and utilizing the accomplishment as a political instrument of national pride. France 3 took a historical angle that dates back to Napoleon Bonaparte’s failed attempts at building the canal, while Spanish TVE warned of the over-optimism of Egypt when it comes to the project’s economic projections. (Watch)

WORTH READING

So emerging markets aren’t irrelevant? Nouriel Roubini’s EconoMonitor reprints a story arguing that while the world was losing its collective mind over Greece, pundits missed a key summit of BRIC nations. Wait, you ask, aren’t the BRICs passé? No less than the World Bank says a broad-based slowdown in emerging markets will make them less important to the global economy. Yes, says the author — this year. But: “From now through 2030, the world will need to spend at least USD 57 tn to build the ports, power plants, rails, roads, telecoms, water systems, and other infrastructure that the global economy needs.” The lion’s share of that spending will be in emerging economies, making markets including Egypt’s the engines of global growth for the next 15 years.

WORTH WATCHING

Wamda’s Rachel Williamson asked a number of Egyptian “maker” entrepreneurs about the biggest challenges they face domestically given how different their operations are from those of app and software developers. The obstacles facing them boil down to four major issues: outreach challenges, lack of awareness, inadequate educational background, and legal restrictions. You can watch the Egyptian entrepreneurs’ comments here. (Watching time 01:28)

DIPLOMACY

We imagine the good folks at MoFA aren’t getting much vacation time this Sa7el season,between the Croatian hostage crisis and President Abdel Fattah El Sisi’s upcoming visits to Russia and China. It seems now they can add Egyptian fishermen to their list of those conspiring to keep them chained to their desks: MOFA has issued a warning to Egyptian fishermen against illegally fishing in the territorial waters of neighboring countries — and in the waters of war-torn nations such as Yemen and Libya, where border security forces are on high alert and have direct shoot-to-kill orders.

The warning appears to have been prompted by Turkey’s arrest yesterday of 15 Egyptian fishermenthey claim violated our pal Erdogan’s bathwaters. The fishermen were fined an equivalent of USD 37k as well as the confiscation of 234 boxes of catch and fishing equipment. The Turkish Coast Guard will deport the fishermen after the completion of legal proceedings, according to media reports.

Meanwhile: MoFA spokesman Ahmed Abu Zeid reached out to Croatia in an interview with that nation’s most-read newspaper, Jutarnji list, which is running wall-to-wall coverage of the kidnapping of Tomislav Salopek.

Also yesterday: Foreign Minister Sameh Shoukry had calls with his Russian and U.S. counterparts on the crises in Syria and Yemen, and the ministry has drawn the nation’s attention to Fortune magazine’s largely positive take on the New Suez Canal: “Success can’t be measured through ships and revenue alone. The new canal is also meant to inspire confidence in Egypt’s return to democracy,” the story begins.

ENERGY

UAE to supply Egypt with USD 1.6 bn in petroleum products
Al Masry Al Youm | 10 Aug 2015
The Abu Dhabi National Oil Company (ADNOC) agreed in principle to send Egyptian General Petroleum Corporation (EGPC) fuel and petroleum products worth EGP 1.6 bn for a period of three months, a source in the UAE petroleum sector told Al Masry Al Youm. As per agreement, Egypt will receive petroleum derivatives and products during the months of September, October and November.  The contract is expected to be signed by the end of August. Last year, ADNOC agreed to send petroleum products to Egypt for a one-year period at USD 9 bn, but the contract was terminated after five months. According to EGPC statistics, Egypt imports petroleum products worth nearly USD 1.3 bn per month. The news comes just one day after we reported that Saudi Arabia had agreed to supply USD 1.4 bn in petroleum products. (Read in Arabic)

Developing the third phase of PhPC’s Ras El Bar concession to cost USD 265 mn
Al Mal | 09 Aug 2015
The cost of developing Pharaonic Petroleum Company’s (PhPC)’s third phase of its Ras El Bar concession is estimated at USD 265 mn, Al Mal reported. PhPC is a subsidiary of BP and it controls 25% of the concession along with a 25% controlled by IEOC and the rest under EGPC’s direct control. PhPC aims to have the project completed in 2016, but has refused to specify the details of the third phase, which was delayed due to technical considerations and on-site changes. The project is set to have a gas output of 210 mcf per day. (Read in Arabic)

Trial run of first solar plant in Sadat City
Al Mal | 10 Aug 2015
Minister of Housing Mostafa Madbouly announced the trial run of an EGP 1.5 mn, 65 kw solar plant in Sadat City as part of the state’s plan to focus on renewable energy, currently adopted by the New Urban Communities Authority in all new cities. (Read in Arabic)

INFRASTRUCTURE

Housing Ministry to inaugurate two Suez Canal bridges in October and April
Daily News Egypt | 10 Aug 2015
The Housing Ministry is set to inaugurate two bridges linked to the Suez Canal Development project in October 2015 and April 2016, according to Housing Minister Moustafa Madbouli. Named the Azmy and the Contact Channel bridges, the two are “considered vital projects and are currently being executed to support the development axis with a total cost of EGP 120 mn,” DNE reports. The Azmy Bridge will allow for the transport of trucks directly from Port Said Port to El Raswa Ferry then to East Port Said Port. The inaugurations are set to coincide with 6 of October celebrations and Sinai Liberation Day. (Read)

EGP 50 mn first phase of Western Plateau project, Assiut Governor
Amwal Al Ghad | 08 Aug 2015
The first phase of the Western Plateau Road project, a 12-km stretch, has begun, according to Assiut Governor Yasser El Dessouky. The project is set to cost EGP 50 mn and will tie the Eastern and Western Upper Egypt Desert Roads. Ultimately, the project is going to cut the distance needed to reach the Western Desert Road by 15 km, Governor El Dessouky said. (Read in Arabic)

EUR 150 mn Italian loan for Railroads Project
Al Mal | 10 Aug 2015
Egyptian Railroads Authority inked a final agreement with Siemens over the development of railroad traffic lights, according to Ministry of Transportation consultant Mahmoud Gamal El Din. The preliminary costs of the projects undertaken by Siemens are estimated at EUR 800 mn, he added. The Ministry had previously received offers from Italy to invest EUR 150 mn in the railroad development projects following improved economic conditions, he said. (Read in Arabic)

Cabinet approves financing plan for agricultural waste management project
Al Borsa | 10 August 2015
Cabinet has approved an agricultural waste management project by which the Environment Ministry would finance youth to collect and deliver agricultural waste to disposal and recycling facilities run by a LaFarge-Orascom Telecom consortium. (The refuse would presumably be used to produce refuse derived fuel.) The Ministry received EGP 30 mn from the Social Fund for Development to develop the project. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

EMRA affiliate seeks phosphate and quartz exploration licenses
Al Mal | 10 Aug 2015
The Egyptian Company for Mineral Resources (ECMR), an affiliate of Egypt’s Mineral Resources Authority (EMRA), is asking the government to grant it three exploration licenses. ECMR want to expand operations to look for phosphate and quartz in Idfu and Qusayr under the new mineral resources regulations. ECMR’s Chairman expects the company’s phosphate production will increase to 40-50k tons and its quartz production to increase to 3k tons, if the licenses are granted. (Read in Arabic)

State-owned Masria Market to pump additional EGP 78 mn in investment this year
Amwal Al Ghad | 10 Aug 2015
The Egyptian Company for Wholesale Trade (Masria Market), a subsidiary of the Food Industries Holding Company, announced it plans on investing an additional EGP 78 mn in the current fiscal year. The company’s investment plan involves completing commercial complexes in Sheikh Zayed and 6th of October, as well as a bottling plant in 6th of October, according to Aiman Salem, president of Masria Market. Five commercial complexes are set to be constructed in Sheik Zayed, 6th of October and Assiut, in addition to completed the complexes in Qena and El Menya. (Read in Arabic)

MANUFACTURING

Egyptian Steel pumps EGP 600 mn additional investments
Al Borsa | 10 Aug 2015
Egyptian Steel raised their paid-in capital by EGP 600 mn from EGP 1.7 bn to EGP 2.3 bn as part of their plan to expand and increase investment, currently at EGP 7 bn, in the Egyptian market. Egyptian Steel own four steel factories in Alexandria, Port Said, Beni Suef and Ain El Sokhna with a total output of 2.2 mn tons annually. (Read in Arabic)

HEALTH & EDUCATION

State moves to regulate Sovaldi imports
Official Gazette (print edition) | 10 August 2015
The Health Minister issued new regulations governing the distribution and sale of anti-Hepatitis C drug Sovaldi. Pharmaceutical companies have been forbidden from importing or distributing direct-acting antivirals such as Sovaldi without reporting their stock levels to the Central Administration Of Pharmaceutical Affairs (CAPA). Importers will only be allowed to distribute the medications through licensed and designated vendors who are part of the Pharmaceuticals Importers and Distributors Association and will be required to provide the CAPA with weekly reports on sales and distribution data.

Dollar shortage blamed for Anti-Rh vaccine shortage, presumed to cause foetus deaths
Egypt Independent | 09 Aug 2015
Anti-Rh (Rhesus isoimmunisation) vaccines are in short supply, Dr. Adel Abdel Maksoud, head of the Pharmacists’ Division of the Cairo Chamber of Commerce, said. The shortage could be blamed for the death of 4,000 foetuses since the start of 2015. Pharmacists tell Egypt Independent that some medications have disappeared completely from the market. The dollar shortage domestically coupled by the CBE’s restriction foreign currency deposits and prioritization of food and energy imports is to blame, pharmacists say. (Read)

Healthy Group targets EGP 100 mn in sales this year
Al Borsa | 10 August 2015
Egyptian medical supplies manufacturer, Healthy Group, announced that it is targeting EGP 100 mn in sales by FY 2015, or a 25% year on year growth from last year’s EGP 75 mn.  According to the group’s GM Ahmed Ibrahim, the group plans to increase its capex and has plans to pursue an IPO in the coming two years. The company is looking to complete an EGP 12 mn biomedical tissue manufacturing plant and to construct logistics hubs in export markets including South Africa, Nigeria, and Ethiopia. (Read in Arabic)

18 mn students could benefit from enriched arts and culture curriculum, access to Culture Ministry facilities
Al Mal | 10 August 2015
The Ministers of Education and Culture met on Monday to plan a coordinated strategy to develop cultural programs in schools across all governorates (with special focus on outlying ones) that could affect 18 mn students. The program could see the Culture Ministry’s more than 1,000 theaters, museums, and observatories open to students for cultural activities and supply school libraries with 20,000 new books. (Read in Arabic)

REAL ESTATE & HOUSING

Total companies registered under EFCBC expected to rise to 20k by end of 2015
Amwal Al Ghad | 09 Aug 2015
The Egyptian Federation for Construction and Building Contractors (EFCBC) Chairman Hassan Abdel Aziz predicts the number of contracting companies registered under the EFCBC will increase to 20K by the end of this year. The rapid growth on the domestic market has pushed several companies who had withdrawn from the federation back in, said Abdel Aziz, noting that the companies are back to competing over state issued projects. (Read in Arabic)

TOURISM

Ministry of Tourism ‘donates’ EGP 250 mn to Antiquities Ministry
Al Mal | 09 Aug 2015
Prime Minister Ibrahim Mahlab agreed to allow the Tourism Ministry to donate EGP 250 mn to the Ministry of State for Antiquities to enhance security at tourist attractions, according to Antiquities Minister Mamdouh El Damaty. The Ministry is securing the finances from the national tourism fund and will channel the funds to improve security in museums and in Old Cairo for the most part. According to Al Mal, El Damaty had already sent the Prime Minister’s office a draft budget to enhance security in tourist sites. (Read in Arabic)

TELECOMS & ICT

Jovi Tronix EGP 500 mn targeted sales in 2015
Amwal Al Ghad | 10 Aug 2015
Jovi Tronix, the official distributor of brands including HTC and Lenovo, is targeting EGP 450-500 mn in sales by the end of this year. The numbers might be affected by USD availability, said head of marketing Tarek Abdel Mohsen, which reflects on the number of phones supplied. The HTC 816 and 820 models are the company’s most popular at the moment, Abdel Mohsen added, saying Jovi Tronix moves 10-15k handsets into the market every month. (Read in Arabic)

Fawry pumps EGP 15 mn additional investments over nine months to better services
Al Borsa | 08 Aug 2015
E-payments gateway Fawry is planning on pumping an additional investment of EGP 15 mn between the fourth quarter of this year and mid-2016 to expand its the current electronic payment services. Fawry is currently in negotiations with the Arab African International Bank to use their ATM machines as Fawry service portals, according to company CEO Ashraf Sabry. (Read in Arabic)

Misr Information Services and Trading prepares for Emirati market
Al Mal | 09 Aug 2015
Stock market data provider MIST is preparing to penetrate the Emirati market in the last quarter of this year through partnership with foreign companies, said General Manager Mahmoud Ramadan, noting that they also plan on spreading in the Saudi Arabian market in 2016. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Banks face surging demand for used-car loans
Al Mal  | 10 Aug 2015
Bankers expect credit policies will be amended to accommodate used cars in the case of continued falling car imports, saying the process of financing used-car purchases needs to be made easier. Car imports are down due to shortages in USD needed for letters of credit. Car market experts expect sales to drop lower than the recorded total sales for last year if current circumstances continue. 28 banks offer new car loans, while only seven offer loans to purchase used vehicles, a niche that belongs primarily to Faisal Islamic Bank and Banque du Caire. (Read in Arabic)

New airports for East Sinai, East Cairo, West Cairo
Al Mal | 10 Aug 2015
The Ministry of Civil Aviation will announce a plan to build a new airport in East Sinai, in cooperation with the Armed Forces Engineering Department, according to Civil Aviation Minister Hossam Kamal. There are preparations for inaugurating two new airports in the Greater Cairo Area: One in West Cairo and one on the Katameyya road, he added. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Council of Ministers agrees to repay Orascom, calling on EGP 525 mn loan
Al Mal | 10 Aug 2015
A meeting held by the Council of Ministers’ Economic Committee on 10 August, headed by Prime Minister Ibrahim Mehleb, agreed in principle to a EGP 525 mn loan from a consortium of banks to pay Orascom Construction dues as part of the Urgent Plan for Electricity. In attendance were the Governor of the Central Bank and the Ministers of Commerce and Industry, Planning, Petroleum, Electricity, Finance and International Cooperation and Investment. (Read in Arabic)

EGP 208 bn in total wages in last year’s budget, Planning Minister says
Youm7 | 10 Aug 2015
Total expenditures on wages in last year’s state budget amounted to EGP 208 bn, Minister of Planning Ashraf Al Araby said in a phone interview with television channel CBC on 10 August. Al Araby stated that no salary cuts occurred during the past year, stressing that the new civil service law will apply to all public entities and bodies, including the Central Agency for Organization and Administration (CAOA), to ensure transparency. (Read in Arabic)

LAW

Trademark registration could be revoked if not used, court says
Ahram Gate | 10 Aug 2015
The Cairo Economic Court has ruled that trademarks that are not being used commercially could have their registration revoked. The ruling came in a case filed against a U.S.-headquartered company that registered three trademarks in Egypt in 2010, when it planned to enter the local market. The company has since decided not to venture into Egypt, and the court found that for trademark protection to be enforceable, the trademark must be used commercially. Given that the company had no active operations in Egypt, it rescinded the trademark’s registration. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

North Cairo Criminal Court declines Ezz’s appeal on frozen assets
Al Shorouk | 10 Aug 2015
The North Cairo Criminal Court turned down appeal filed by business tycoon and former NDP member Ahmed Ezz asking the court to rescind a 2011 decision by prosecutors to freeze his assets. (Read in Arabic)

NATIONAL SECURITY

Three policemen were wounded yesterday morning after a bomb exploded under a traffic sentry post near a Heliopolis courthouse in Cairo, Reuters reported. Whilst searching the area following the initial blast, bomb squads found and defused a second device hidden inside a black bag. This follows an attack on Suez police station, which led to the death of its deputy head on Sunday. The second in command of a police station in Salam City was also gunned down in the market by two assailants, one of whom was killed by security forces, Ahram Online reports.

ON YOUR WAY OUT

President El-Sisi has signed off on plans for phase two of the national highway development program, a project aimed at reducing congestion, maximizing passenger and commercial vehicle traffic, and connecting hubs and cities across Egypt’s governorates. According to Al Ahram, the president stressed the importance of railway crossings and intersections being built to the highest standards, pointing to frequent accidents and derailments. The project is being developed by the Engineering Authority of the Armed Forces.

Ministries of Environment, Agriculture ink cooperation protocol to recycle rice straw: The agreement involves cooperating on collecting and recycling rice straw in six governorates including Qalyubiya, Sharqiya, Daqahlia, Gharbiya, Kafr El Sheikh, and El Behira. A total of 300 tons of rice straw will be recycled into organic fertilizers and non-traditional feed, Amwal Al Ghad reported. The agreement comes after Prime Minister Ibrahim Mahlab met with Environment Minister Khaled Fahmy to discuss the ministry’s plan to tackle air pollution. For some extra reading, Ahram Online ran an article last year right before the black smog titled Up in smoke: Why does Egypt keep burning its farm waste? which considers outsourcing agricultural waste management to the private sector.

11K participating in ‘Balaha Lahma’ campaign, says Aswan Governor: Mostafa Yousry, the Governor of Aswan, announced he and 11k more people are participating in the Balaha Lahma (Who needs meat?) campaign recently launched on facebook. The campaign is meant to condemn the rising meat prices, currently at EGP 80 per kilo. Yousry assured the government plays no part in rising prices, adding that, “We don’t work for one side against the other, what we care about is the public well being,” Al Mal reported.

BY THE NUMBERS

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