M&A spree: EFG Hermes buys Tanmeyah, Danone buys Halayeb

 

TL;DR

EFG Hermes acquires majority stake in Qalaa’s Tanmeyah, announces launch of EFG Hermes Finance (Speed Round)

Danone acquires dairy products player Halayeb. (Speed Round)

Highlights of El Sisi’s Vision 2030: more housing, infrastructure development; calls Metrojet crash terrorist attack. (Spotlight)

Mars recalls products in 55 countries, Egypt included. (Speed Round)

Tourism Ministry signs agreement with UNWTO to develop tourism sector plan + British EasyJet could resume flights to Sharm by May. (Speed Round)

Oil minister: No intention to raise fuel prices. (Energy)

GASC makes cooking oil buy after persistent suggestions of shortage in the market. (Basic Materials + Commodities)

Investors, business associations unanimously reject fourth draft of Labor Bill. (Legislation + Policy)

Israeli ambassador talks with Egyptian journos. (Speed Round)

By the Numbers

WHAT WE’RE TRACKING TODAY

We’ve got M&A fever this morning: First, EFG Hermes is acquiring Tanmeyah from Qalaa Holdings. Abandoning any pretense of objectivity: We couldn’t be happier for everyone involved — particularly Amro and Amr (who turned an idea and a passion for their business into the largest private-sector player in their field) and Wael (who becomes head of EFG Hermes Finance less than a year after launching EFG Hermes Leasing). By our count, it’s the first M&A transaction in the microfinance space in Egypt. Meanwhile, shareholders of century-old dairy producer Halayeb have sold to Danone in the latest transaction in the nation’s red-hot foods sector. More on both stories in Speed Round, below.

A challenging period for emerging markets is upon us with Brazil’s credit rating downgraded to junk status yesterday. “The downgrade was driven by the prospect of further deterioration in Brazil’s debt metrics in a low growth environment, with the government’s debt likely to exceed 80% of GDP within three years,” Moody’s says. Also potentially dropping to junk status is South Africa, which is set to record the lowest GDP growth rate this year since 2009, “reflecting the impact of a severe domestic drought and a depressed global economy.” The country just announced tax rises and spending cuts to try to avoid the same fate as Brazil, according to the Financial Times (paywall) — which also carries a blistering piece by columnist John Gapper this morning that notes “It is hard to find a business person or official in Johannesburg, though, who does not think that [President Jacob Zuma] has degraded the ANC and diminished the economy. He has built a patronage machine within his party rather than devoting himself to his nation’s challenges.”

ON THE HORIZON

President Abdel Fattah El Sisi kicks off an Asian tour on Sunday, 28 February that will see him visit Japan and South Korea.

The Emirates NBD / Markit Purchasing Managers’ Index for Egypt, the UAE, and Saudi Arabia are set to be released on Thursday, 3 March. Tap here to see the releases when they come out.

On 1 March the EBRD is holding the Rise of Women Journalists in the Arab World discussion at the EBRD Auditorium in London.

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LAST NIGHT’S TALK SHOWS

Talk shows are taking the day off, but we will be back to our regularly scheduled programming (literally) on Sunday.

SPEED ROUND

EFG Hermes has inked a binding agreement to acquire 76.7% of Tanmeyah Microenterprise Services, Egypt’s largest private-sector microfinance outfit, in an EGP 345 mn transaction. EFG Hermes is buying the 70% stake belonging to Qalaa Holdings in addition to acquiring a portion of the shares held by Tanmeyah’s management, representing an additional 6.7% of the company. “Upon completion of the transaction, Wael Ziada will be appointed chief executive officer of EFG Hermes Finance with a mandate to grow both the leasing business and Tanmeyah in addition to spearheading our future expansion into other, complementary fields … Wael will be responsible for streamlining operations and ensuring the creation of synergies between Tanmeyah and our future expansion into new finance product lines,” EFG Hermes Group CEO Karim Awad said. Watch this space: Awad noted that the Tanmeyah transaction is “the first of a number of strategic moves that EFG Hermes intends to undertake during the coming 12 months and that will put in place the foundation for the firm’s growth over the coming five years.”

Tanmeyah co-founders Amro Abouesh and Amr Abo Elazm have both committed to continue managing the company following the execution of the transaction, EFG Hermes said. Tanmeyah has issued loans of EGP 3.0 bn to more than 356,000 clients since its founding as a startup in 2009 and today employs more than 1,500 employees at 114 branches nationwide. Tanmeyah’s revenues surged 46% year-on-year in 2015 to EGP 133 million, while net profit advanced 29% to EGP 42 million during the same period. EFG Hermes Investment Banking acted as financial advisor to EFG Hermes on the transaction, while KPMG provided financial and tax due diligence and Arab Legal Consultants (ALC) were legal advisors. CI Capital was financial advisor to Qalaa Holdings. EFG Hermes’ statement on the transaction is here, Qalaa Holdings’ statement is here. You can also check out Tanmeyah’s website here. The transaction is the first of its kind in the microfinance sector.

Pharos Holding announced it has concluded advisor on the sale of 100% of Halayeb Company for Dairy & Juice Products to global dairy giant Danone. “This transaction further solidifies the attractiveness of the Egyptian dairy sector, driven by Egypt’s large population,” says Pharos Holding Chairman Mohamed Taymour. Halayeb was founded in 1910 in Damietta by the Katilo family and exports to the Gulf, North America and Europe. The company produces soft and hard cheese, processed cheese, and juice. Pharos Holding was the exclusive sell-side financial advisor to the shareholders of Halayeb, with Pharos Brokerage the sole broker and Shalakany Law Office the legal advisor. The law firm of Matouk Bassiouny alongside Freshfields Bruckhaus Deringer served as legal advisors to Danone. You can check out Halayeb’s website here.

Mars Chocolate issued a voluntary recall of some of its chocolate products in 55 countries, including Egypt. According to the company, “only certain products labeled on [the] pack as ‘Mars Netherlands’ are affected by this recall. Mars Netherlands exports to a number of countries … so the easiest way for consumers to determine whether they have a product that has been recalled is to look at the label. If it is not labeled ‘Mars Netherlands,’ it is not included in the recall.” The BBC says the recall comes “after a customer in Germany found bits of plastic in a Snickers bar in January. The plastic was traced back to the Mars factory in the southern town of Veghel in the Netherlands.” A Mars Netherlands spokesperson said: “We cannot be sure that this plastic was only in that particular Snickers. We do not want any products on the market that may not meet our quality requirements, so we decided to take them all back.”

…No need to worry if you are in Egypt: most of the imported chocolate products sold in Egypt are manufactured in plants in Dubai or Poland and very limited quantities are imported from the Netherlands, Mars-Egypt’s spokesperson tells Al Masry Al Youm. Only about 1% of Mars’ products in the domestic market will be recalled and “this is just a precautionary measure.”

Reuters caught up on news that foreign airlines are unable to repatriate USD-denominated revenues abroad, highlighting the specific case of Air France-KLM. The company has been unable to repatriate upward of EGP 100 mn in revenue since October and says “the delays were making it increasingly difficult to operate in the country.” “All the foreign carriers, they have the same problem,” Cees Ursem, the airline’s Egypt country manager says. Ursem complains, saying “all our revenues are blocked at the bank, but at the same time we do have all the same costs ongoing … which have to be paid in [USD].” He adds that the airline has a track record of “supporting Egypt throughout the past five very difficult years,” but says the inability to transfer funds is “not fair.”

Orascom Telecom Media And Technology and Act Financial have agreed to lend their subsidiary Beltone Financial Holding EGP 1 bn to be used in case “attractive investment opportunities” appear in Egypt or elsewhere in the Middle East, according to a bourse statement. Is this the cash for the CI Capital acquisition, folks, or…?

MNHD mulls GDR program: Madinet Nasr for Housing & Development is considering a global depositary receipt program, according to remarks by MNHD general manager Ahmed El Hitami. The plan was approved by the board last week, and talks are underway with Bank of New York Mellon. The issuance is unrelated to the FX crunch, the company told Al Mal, despite GDRs having essentially become a pseudo-currency for those needing to repatriate profits.

The CBE’s Monetary Policy Committee will decide to raise interest rates by over 50 basis points at its 17 March meeting, a research report from Beltone Financial predicts, according to Al Mal. Beltone posits that the CBE’s move to raise interest rates by 50 bps last December did little to alleviate the pressure on currency reserves, which would necessitate another interest rate hike. Beltone Financial is adamant that the CBE will depreciate the EGP, despite statements by the CBE governor to the contrary.

The Tourism Ministry signed an agreement with the World Tourism Organisation (UNWTO) to support and pen an development plan for the whole sector, Tourism Minister Hisham Zaazou tells Daily News Egypt. The ministry requested that UNWTO refer the government to experts on crises management. President Abdel Fattah El Sisi met with international tourism experts on Tuesday to agree on an initial strategy for the sector focused on security, historical tourism, the establishment of a new ministerial committee to put together a strategy to develop the sector with the help of international experts, and promoting Egypt as a tourist destination around the world. “Despite the crises in the Middle East, tourists are expected to continue visiting the region,” Secretary General of UNWTO Taleb D. Rifai says. “The flow might drop in one country but will be offset by an increase in another,” he adds, with UNWTO expected to draw up a study on the Chinese market to support the tourism industry in Egypt.

In related news: An official at the Tourism Ministry says that British EasyJet Airways is expected to resume its flights from England to Sharm El-Sheikh in May 2016 if Control Risks completes its evaluation of the Marsa Alam and Sharm El Sheikh airports on 28 April as expected, DNE reports.

The committee tasked with seizing and managing Muslim Brotherhood assets has frozen 7.2% of shares in Juhayna indirectly owned by Safwan Thabet through the Pharon Investment fund, Al Mal reports. Pharon is the largest shareholder in Juhayna with a 52% ownership stake. The move is part of a continued effort by the judicial committee to freeze Safwan Thabet’s personal assets that began last August.

Importers heavily criticized the Trade and Industry Ministry’s amendment of the Importers Registry Act. These amendments set for the first time a minimum import requirement of EGP 5 mn for individuals and EGP 10 mn for companies to be included in the import registry, in addition to imposing a minimum capital requirement of EGP 200k for individuals, EGP 500k for companies, and EGP 5 mn for joint-stock corporations. The new laws also raise ins. coverage requirements to EGP 100k for individuals and EGP 200k for companies. According to a Trade and Industry Ministry official, the legislation will come into effect as soon as it is ratified by the House of Representatives. The official reiterated statements by Trade and Industry Minister Tarek Kabil that the Federation of Egyptian Chambers of Commerce had been included in the drawing up the amendments. However, Importer Division member Sameh Zaky refutes this claim, saying they were not consulted, while the division’s head Hamdy Naggar called the measures “harsh,” Al Mal reports.

Crime or revenge could have been motives for the killer or killers of Italian graduate student Giulio Regeni in Cairo “as the Italian had many relationships with people near where he lives and where he studied” according to a statement from Egypt’s Interior Ministry. Reuters says the ministry’s statement did not mention the involvement of security forces as a possibility (and we note that it did not rule it out, either). This appears to have prompted Italy on Wednesday to ask Egyptian investigators to hand over the evidence they had uncovered in Regeni’s death. “Cooperation with our investigative team can be and must be more effective. It cannot be only formal,” Italian Foreign Minister Paolo Gentiloni said during parliament’s question and answer session.

In a rare move, Israeli Ambassador to Egypt Haim Koren gave an interview to Egyptian journalists at his residence in Cairo on Tuesday, with the transcript being published in its entirety in Arabic on the Israeli Embassy in Egypt’s Facebook page. “We respect the President of Egypt Abdel Fattah El Sisi because he is an open president who is interested in bringing stability to the region in general and Egypt in particular,” says Koren. “There are common interests between Egypt and Israel and the Arab world in general — be it Saudi Arabia, Jordan, or the other countries … We can’t only cooperate on the security level. We need to establish economic relations, cultural relations, and also relations relating to investing in Egyptian businesses.”

SPOTLIGHT ON the launch of Egypt Vision 2030

President Abdel Fattah El Sisi launched the government development program “Egypt Vision 2030” in Cairo’s Al Galaa Theatre yesterday. The event included a lengthy speech by the president and presented development plans by members of the Ismail cabinet and The central bank governor. In tone and delivery, it was very much a speech designed to appeal to the proverbial “man on the street,” including, for example, references to building water treatment plants “with a combined output equivalent to all those constructed in the last 20 years” and suggestions that the location of the two FSRUs is a secret to protect them from terrorists.

“Our aim is to protect Egypt … the country was the target of many conspiracies,” El Sisi said in his speech. Maintaining the country’s unity is integral, he said, and is his primary aim. The president reiterated his sense of responsibility toward the people of Egypt and vowed to fight whoever “attacks” the country. El Sisi also asked those not willing to join him in “supporting the country” to remain silent. And in a first for an Egyptian official, he referred to the Russian plane crash in Sinai as a terrorist attack. “Has terrorism ended? No it has not. But it will if we unite. Whoever downed the Russian plane, what did he mean? He meant to hit tourism and to hit relations with Russia,” he said. The comment was not lost on the press, with the BBC, Bloomberg, and Reuters picking up the statement. The BBC reminds readers that the president had previously dismissed the terrorism claim as propaganda.

El Sisi also suggested that terrorism was responsible for an attempt to damage Egypt’s relations with Italy; the president didn’t go into detail, but we’re taking this as a reference to the Regeni case. The discovery of the murdered graduate student’s tortured body prompted a high-profile Italian trade delegation to depart Egypt well ahead of schedule.

The government is focused on building up the country’s infrastructure, with El Sisi taking note of the progress on roadworks and the expansion of national electricity generation capacity. He said that Egypt has generation capacity sufficient to meet growth in demand through 2017 and took note of the two FSRUs that are regasifying imported LNG.

In the works now are plans to upgrade a number of ports and airports as well as to build new water treatment plants. Concerns over a shortage in water supply are valid, he added, but talking about an “[Ethiopian] dam” is not “suitable” at the moment from a national security perspective. He said Ittihadiya will not leave “farmers’ lands” in short supply of water.

The government is also working on building new homes, providing over 600k units a year. And not just in Cairo, El Sisi said, but through Upper Egypt. He reiterated that it’s important to move away from agricultural land and to provide public and suitable amenities. “I am looking to provide social justice,” he added.

If people gave the state EGP 1 a day, we could have almost EGP 300 mn a month to be used in projects to cure hepatitis C and build new housing. El Sisi went on to say, “If I could sell myself, I would,” presumably meaning he’s done everything in his power to bolster the economy, prompting the expected reaction online.

El Sisi specifically thanked Arab countries for their support of Egypt since the events of 30 June. Financial assistance aside, they provided Egypt with much-needed fuel products. The president said Egyptian consumed EGP 533 bn worth of fuel products over the past two years, EGP 51 bn worth of which came from the GCC. However, he noted that GCC fuel shipments were not part of grants, but were part of trade agreements. You can watch the speech in full here (run time 01:30:18).

The government’s program:

Ahram Gate has obtained what it says is a full copy of the Egypt Vision 2030 programme, which was put together by the cabinet’s think tank The Information and Decision Support Center. It aims to formulate a vision of sustainable development based on the country’s youth that will be implemented regardless of any changes of government or leadership.

Egypt’s Vision 2030 revolves around five main axes:

• An efficient and self-sustaining economy
• A knowledge-based society that enjoys a high quality of life and social justice
• A healthy environment that protects its natural resources
• A democratic state with good governance
• A secure state that plays a pivotal role regionally and internationally

The guidelines and benchmarks for the vision come from the Organization for Economic Cooperation and Development, the Global Competitiveness Index, and the Sustainable Society Index, in addition to smaller indexes for human resources, environmental performance, democracy, and governance.

The report also cites several challenges facing the implementation of the vision, including population growth, climate change, uneven geographical distribution of the populace, regional geopolitics, and values and cultural shackles.

THE MACRO PICTURE

Global market turbulence is starting to hurt the real economy, the International Monetary Fund (IMF) warned G20 participants on Wednesday, adding that the situation is already worse than expected, according to both Bloomberg and the FT (paywall). “The global economy needs bold multilateral actions to boost growth and contain risk,” it added. “The G20 must plan now for co-ordinated demand support using available fiscal space to boost public investment and complement structural reforms.”

The GBP fell to a seven-year low on Brexit fears as economists feel it would be so “devastating” that “29 out of 34 economists in a Bloomberg survey see it sinking to [USD]1.35 or below within a week of a vote to leave — levels last seen in 1985.” The FT (paywall) also has coverage on the drop.

EGYPT IN THE NEWS

No two ways about it folks, coverage of Egypt this morning is focused squarely on an almost offhand statement made by President Abdel Fattah El Sisi during a speech on Egypt Vision 2030 that the Metrojet crash in Sinai was an act of terrorism (watch just that part of the speech, run time 0:43). The Guardian, the WSJ, the Times of Israel, and even Vice in an aptly titled “Egypt Finally Comes Clean: Terrorists Downed That Russian Plane” all have coverage. The New York Times picks up on it too, although the lede is thoroughly buried in a piece more focused on El Sisi’s statements in the same speech that criticism threatens Egypt, saying he would “remove from the face of the Earth” anyone plotting to bring down the state.

As it’s been one month since the disappearance of Italian student Giulio Regeni, a few outlets are picking up the story again. While the BBC carries a piece on new statements from the MOI suggesting Regeni’s murder was motivated by crime or revenge, Italy’s Il Manifesto says the statements are red herrings and goes on to report that a sit-in will be held at the Egyptian embassy in Rome today. The Guardian penned a piece looking more into the possible reasons for his death, “Experts remain confounded by the circumstances of his death. Was it the result of a bizarre and careless mistake of a lowly henchman? Was Regeni caught up in a roundup of people who were considered generally suspicious? Or was he specifically targeted? And if so, why?”

CNN reports that family members of four-year-old Ahmed Karni, who was sentenced last week to life in prison, say they “feel relieved after receiving assurances from officials that neither the boy nor his father will be arrested,” in what we hope will now be an end to coverage on the matter.

‘The President’s Men’: An alleged and previously undisclosed Egyptian intelligence agency, the Technical Research Department (TRD), allegedly purchased mns of euros worth of cutting-edge technology from Italian, German and Finnish technology companies with mass surveillance uses, according to an investigation (pdf) published by Privacy International, and noted by both foreign and domestic media. ‘The President’s Men’ claims “the TRD was created under President Hosni Mubarak as a unit within the GIS [General Intelligence Service] that would be accountable directly to him only.” Reportedly run by a female engineer, “The TRD appears to recruit individuals with doctorates in Electronics and Engineering or Computer Science,” according to the report.

Okasha to save Egypt by inviting the Israeli ambassador over for dinner to talk GERD: Israel’s ambassador to Cairo Haim Koren appears to be at a bit of a loss with regard to an invitation to Tawfiq Okasha’s house for dinner to discuss the Grand Ethiopian Renaissance Dam (GERD). Okasha delivered the invitation on television, as noted by the Jerusalem Post, with a muted, subtitled video of the segment in question embedded here. Koren responded on Israel’s Army Radio on Wednesday, where he reportedly said he was surprised by the invitation, but “When an Egyptian MP is interested in promoting the shared interest of Israel and Egypt, of course we welcome the initiative and try to figure out what it is about.”

… Either Koren is doing his job and is being diplomatic, or he simply needs to watch more Tawfiq Okasha — a prescription that applies to all of you out there as well, as Okasha on television is a tress reliever. Okasha here seems to be implicitly invoking the widely held belief in Egypt that the GERD is largely funded by Israel to destroy Egypt. As noted in a report we often cite around here at Enterprise: the 2014 MIT Amicus brief (amicus as in its authors have no stake in the outcome, pdf): “As far as we know, Ethiopia is financing the construction of the GERD without international funds. The Ethiopian people are thus making substantial sacrifices to implement this project from domestic financing sources.” The idea of a country raising funds for national projects from the donations of its citizens should not seem so far-fetched to some of our readers.

WORTH WATCHING

Springboarding from the above: Tawfiq Okasha describes some of the rooms within Mortada Mansour’s house, via the Glocal. (Watch in Arabic, running time: 1 minute)

WORTH READING

Tear down Africa’s trade walls: The Economist briefly dissects the main obstacles preventing Africa’s three regional trade blocs (as well as the trade partnership meant to bind them together) from functioning properly. “East Africa does better, but Karim Sadek, the director of Rift Valley Railways in Kenya and Uganda, says that what would make his life easier would be not having to stop at the border. ‘You get used to the inefficiencies.’” (Read)

DIPLOMACY + FOREIGN TRADE

President Abdel Fattah El Sisi met with the Secretary-General of the World Tourism Organization Taleb Rifai on Tuesday, according to a statement from Ittihadiya. “The Secretary-General of the World Tourism Organization commended the security measures undertaken by Egypt in record time so as to ensure more security and safety for tourists in Egyptian airports, ports and various tourist destinations,” according to the statement.

Investment Minister Ashraf Salman met with a South Korean embassy and business delegation on Wednesday to discuss expanding investments by Korean companies in Egypt and to talk about preparations for President Abdel Fattah El Sisi’s trip to Seoul next week, Al Masry Al Youm reports.

ENERGY

No intention to raise fuel prices now, El Molla says
There is no intention to raise fuel prices at present, Oil Minister Tarek El Molla tells Amwal Al Ghad. “Even if the price changes,” El Molla qualified his statement, “this does not mean fuel subsidies will be lifted completely.” The government is working on expanding, diversifying, and making Egypt energy sources more efficient, he adds. (Read in Arabic)

No agreement on pricing electricity generated from Dairut power station reached, say anonymous sources
The Electricity Ministry has not reached an agreement with ACWA Power on pricing the electricity generated from the Dairut power plant, sources within the ministry tell Al Mal. The ministry refused ACWA Power’s proposed EGP 0.87 per kWh, the source adds, noting that power generated from wind farms costs EGP 0.83 per kWh, and the average price of electricity is EGP 0.28 per kWh. The ministry also refused that ACWA Power receive natural gas at USD 10 per 1 mn Btu, on the grounds that it buys natural gas at USD 13 per 1 mn Btu. Out of 10 consortiums that applied to build the USD 2.5 bn Dairut power station, ACWA Power is the only company that submitted its technical and financial proposals. (Read in Arabic)

Oil Ministry forms committee to study Western Desert gas pipeline upgrades
A committee made up of the Oil Ministry, EGPC, and IOCs has been formed to conduct studies on the importance of upgrading natural gas pipelines in the Western Desert, according to a senior executive at EGPC. The results of the studies will be available soon, he adds. Additionally, a gas regulatory authority has been formed between EGPC, EGAS, and the ministry to regulate market prices for gas importers based on quantities and countries of origin. (Read in Arabic)

Solar energy association wants regulator to re-work feed-in-tariff for hotel industry
The solar power industry wants its regulator to rework the feed-in tariff system to allow it to better serve the hotel industry. Khaled Gaser, head of the Solar Energy Development Association (SEDA), an industry body, also wants the New and Renewable Energy Authority (NREA) and the central bank to work together to make USD available for solar power producers, classifying solar power inputs as essential goods. Gaser also said there’s room for cooperation between SEDA and the NREA in setting standards and best-practices for the industry. (Read in Arabic)

Petrojet opens Iraq’s largest oil and gas equipment workshop
Petrojet CEO Mohamed El Sheemy opened Iraq’s largest oil and gas equipment workshop, Al Ahram reports. The 70,000 sqm facility will supply the company’s four major operations in Iraq, worth a total of EGP 3.4 bn, and will be rented out to other oil and gas companies operating there. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

GASC buys 89,000 tons of cooking oil
The General Authority for Supply Commodities (GASC) purchased 89,000 tons of cooking oil from the Black Sea region at USD 741-USD 807 per ton, says GASC vice president Mamdouh Abdel Fattah. The move follows reports this week of shortages of edible oils under the supply smart card system. (Read in Arabic)

FEI wants Finance Ministry to eliminate 10% tariffs on white rice
The Rice Division of the Federation of Egyptian Industries called on the Finance Ministry to eliminate a 10% tariff on imported rice, AMAY reports. The Division’s head Ragab Shahata states that the move contributed to a EGP 1,500 increase in the price of one ton of white rice in the local market to EGP 3,000. (Read in Arabic)

HEALTH + EDUCATION

Health Ministry asks CBE to open letters of credit to import anti-Rh injections
The Health Ministry has requested that the CBE provide the necessary USD to open letters of credit to import a two-month supply of anti-Rh injections, according to Health Ministry spokesperson Khalid Mujahid. The request comes as importers face difficulty importing the medication due to foreign currency shortages, he adds. (Read in Arabic)

Middle East Healthcare Company to build Saudi German Hospital in Sixth of October
The New Urban Communities Authority has agreed to allocate 45,400 sqm in Sixth of October to the Middle East Healthcare Company to build a branch of the Saudi German Hospital, in addition to another 40,800 sqm plot in New Tiba. The project will be presented to the pricing committee to estimate the fair price of the land. (Read in Arabic)

Saudi Fund for Development to provide USD 4.5 mn for avian flu vaccine project
The Saudi Fund for Development has agreed to provide USD 4.5 mn for an avian flu vaccine project set to be built at the Vacsera Industrial Complex in Sixth October as part of a grant provided to Egypt by the fund, according to Health Ministry spokesperson Khaled Mujahid. The loan will be used to complete the project’s infrastructure and pharmaceutical preparations, he adds. The Islamic Development Bank had previously provided USD 5.78 mn to finance equipment and production lines. (Read in Arabic)

REAL ESTATE + HOUSING

Capital Properties Group pays EGP 800 mn to begin real estate project in Shorouk
UAE-based real estate developer Capital Properties Group has paid the New Urban Communities Authority around EGP 800 mn as a first installment for fees and infrastructure costs related to its real estate project in Shorouk, says Assistant Housing Minister Khaled Abbas. The estimated investment cost of the project, which is located off the Cairo-Ismailia Desert Road, is EGP 40 bn. (Read in Arabic)

NUCA to sell remaining assets in Rehab and Madinaty to expatriates in USD
The New Urban Communities Authority (NUCA) decided to sell off its remaining 10,680 homes in El Rehab Extension and Madinaty in USD to expatriate Egyptians. Egyptians living in the country can purchase these homes in EGP, Al Borsa reports. Land per sqm for locals will be priced at 7,500 in Rehab, and 5,500 in Madinaty, while the price for expatriates will reach USD 960 per sqm in Rehab and USD 750 per sqm in Madinaty. Homes in the Beit Al Wattan program also require expatriates to purchase property in USD. (Read in Arabic)

TELECOMS + ICT

Egypt Big Data Hackathon teaches next generation of data crunchers
The three-day Egypt Big Data Hackathon saw 65 students, fresh graduates, and industry players dig deep into big data. “This year’s event was about providing big data on five main tracks in Egypt: social networks for telecommunication companies, airlines and stock markets from the private sector, water and agricultural land from the public sector,” said head of Egypt’s Information Technology Institute Heba Saleh. The event dovetailed with growing interest in big data in Egypt and the realization of the importance in organizing, processing, and curating big data. (Read)

BANKING + FINANCE

Arab Bank inks final agreement for EGP 775 mn loan to Egyptian Electricity Transmission Company
Arab Bank signed an EGP 775 mn loan agreement with the Egyptian Electricity Transmission Company (EETC) to finance national grid expansions, sources tell Al Mal. The loan consists of a USD 35 mn portion that will be arranged by a foreign bank and an EGP 500 mn portion that has been issued to the State Grid Corporation of China, the project’s main contractor, with EETC paying back the loan over five years. (Read in Arabic)

LEGISLATION + POLICY

Investors, business associations unanimously reject fourth draft of Labor Bill
The saga surrounding the Labor Bill continues as investor and business associations have unanimously declared their rejection of the latest (fourth) draft, calling for the formation of a committee to draft alternate legislation, Al Masry Al Youm reports. Organizations declaring their opposition to the bill include the Federation of Egypt Industries, the Egyptian Businessmen’s Association, and the Federation of Egyptian Chambers of Commerce, with the latter two issuing a joint statement calling the bill a government tool that could unnecessarily open the door for more instability. As we noted earlier this month, Manpower Minister Gamal Sorour announced that the latest draft would be introduced to the House of Representatives in March.

EGYPT POLITICS + ECONOMICS

Mohamed El Erian speaks on Egyptian economy at AmCham gathering
While Egypt is going through trying economic times, they are not as bad as other regional countries, said Allianz’s chief economic advisor Mohamed El Erian. The CBE is the leading actor when it comes to the economy at this time, but, unfortunately, it does not have the means to propel Egypt out of its current predicament, El Erian said at an AmCham meeting. Monetary and foreign exchange policy should be made without political interference, but must take into account other policies, including the government of the day’s reform agenda. El Erian’s recommendations to the nation include controlling the balance of payment deficit, further cooperation with the international community, and ensuring the citizen is satisfied with progress in providing services such as health and education, Al Borsa reports. (Read in Arabic)

PM inaugurates East Port Said side channel
The East Port Said side channel’s official launch took place yesterday and was inaugurated by Prime Minister Sherif Ismail. This is a crucial step toward developing the entire Suez Canal region, which will include expanding and upgrading the ports Ain Sokhna, West Port Said, Toor, and Al Adbiya, in addition to developing high-speed logistics networks linking the northern and southern points of the canal, says Ismail, according to an email statement. Suez Canal Authority head Mohab Mamish and Transportation Minister Saad El Geyoushy were also in attendance, Al Mal reports. (Read in Arabic)

Finance Ministry forms new anti-corruption committee
The Finance Ministry formed a new anti-corruption committee to come up with legal and administrative procedures to investigate and root out corruption across all the ministry’s functions, Al Mal reports. The committee will coordinate and share information with other anti-corruption regulatory bodies including the National Coordinating Committee for Combating Corruption. (Read in Arabic)

License violation behind El Nadeem Center closure, says Health Ministry spokesperson
The decision to shut down the El Nadeem Center was a result of the center changing the activity it was licensed to practise, says Health Ministry spokesperson Khaled Mujahid. The center was originally licensed as a psychiatric and neurological clinic, but changed its activity to a rehabilitation center of victims of violence and torture without informing the ministry, making it in violation of Article 13 of Law 153 of 2004, he adds. The center has two pending issues, explains Mujahid, changing its name from a clinic to a center and changing its activity. The center was warned and given time to correct its legal standing but was shut down when it did not comply, he says. (Read in Arabic)

ON YOUR WAY OUT

In the U.S., Republican presidential hopeful Donald Trump won a commanding victory in Nevada’s caucus, collecting a third straight victory in early state voting that makes him the front-runner heading into the decisive “Super Tuesday” voting on 1 March. The New York Times has a pretty half-hearted, vanilla look at what could make Trump stumble and lose his nomination bid.

Saudi Arabia’s Crown Prince Mohammed bin Nayef has taken “a conspicuously low profile” since accession to his post, Brookings’ Bruce Riedel suggests. Unlike King Salman, who traveled extensively to represent the kingdom, and Deputy Crown Prince Mohammed bin Salman, who made a number of high-profile visits, bin Nayef “has mostly stayed at home.” Riedel asks if this presages changes to come, with a more expanded role for Mohammed bin Salman.

Ahram Online profiled artist Hisham El Zeiny’s exhibition ‘Interferences with a Journal.’ El Zeiny uses a collage of different sections of Al Masry Al Youm newspaper to start a dialogue with his spectators, the press, and his fellow artists. “Searching for a spot of missed communication, El Zeiny sees that ‘the artists, perhaps out of disappointment or a feeling of defeat, started to hide in a shell of individualism. They started to go back to themselves retreating from all what is going on around. I believe this is a moment where the artists should find the connection with people.”

CALENDAR

24-25 February (Wednesday-Thursday): First conference of Arab parliamentary chairpersons in coordination with the Arab League, Arab Parliamentary Union, Arab League headquarters, Cairo.

28 February-02 March (Sunday-Wednesday): President Abdel Fattah El Sisi visits Japan.

01 March (Tuesday): The EBRD hosts The Rise of Women Journalists in the Arab World discussion, EBRD Auditorium, London, UK.

02-04 March (Wednesday-Friday): President Abdel Fattah El Sisi visits Korea.

07-09 March 2016 (Monday-Wednesday): The EFG Hermes 12th Annual One on One Conference 2016, Atlantis, The Palm, Dubai.

15-16 March 2016 (Tuesday-Wednesday): U.S. Federal Reserve’s Federal Open Market Committee meets. Fed chair will hold press conference.

17 March (Thursday): Wamda’s Mix N’ Mentor Cairo 2016 – Marketplace Edition, The Greek Campus, Cairo. Register here.

23-24 March 2016 (Wednesday-Thursday): Microfinance Egypt, Nile Ritz-Carlton, Cairo.

29-31 March 2016 (Tuesday-Thursday): Future Rail and Metro Egypt, Cairo.

13-16 April 2016 (Wednesday-Saturday): Cafex, Cairo.

25 April 2016 (Monday): Sinai Liberation Day (national holiday)

01 May (Sunday): Easter Holiday / Labour Day (national holiday)

02 May (Monday): Sham El Nessim (national holiday)

06 October (Thursday): Armed Forces Day (national holiday)

27 November 2016 (Sunday): 2016 Cairo ICT Conference