Central bank leaves rate unchanged at USD 500 mn exceptional auction; pound falls to 9.80 to the greenback on the parallel market

TL;DR

CBE keeps exchange rate unchanged in exceptional FX auction yesterday to sell USD 500 mn; USD advances to 9.80 on parallel market (Speed Round)

Italcementi says it could regional hub out of Egypt if FX shortage persists. (Speed Round)

From the EFG Hermes 1×1: What to expect this year and next in Egypt and the GCC (Spotlight)

Egypt gets good publicity, a rare enough event we note it here in the TL;DR. (Egypt in the News)

OC signs three projects in Algeria, Egypt worth USD 200 mn. (Speed Round)

Draft bill setting up new regulator for natural gas industry is heading to the House after Maglis El Dowla review. (Speed Round)

New head of Agriculture Quarantine Authority appointed after ergot debacle. (Speed Round)

MOI pins assassination of Hisham Barakat on Brotherhood, Hamas, arrests 14 in connection. (Speed Round)

Eximbank willing to finance US imports to Egypt, finance further trade. (Diplomacy + Foreign Trade)

Production requirement shortage resolved within six months – trade minister. (Manufacturing)

By the Numbers

WHAT WE’RE TRACKING TODAY

More than 455 fund managers and institutional investors are meeting with 117 regional issuers today at day one of the three-day EFG Hermes One on One 2016 at Atlantis, The Palm, Dubai. Want a peek at the crystal ball? See our special Spotlight, below, for a look at what CEO Karim Awad, co-head of brokerage Mohamed Ebeid and head of MENA strategy Simon Kitchen think will be shaping Egypt and the GCC in the year ahead.

The Retail Plus conference in Cairo begins today. With a focus on the country’s retail opportunities and developments, the conference will be attended by representatives of the European Bank for Reconstruction and Development and the Federation of Egyptian Industries, Al Mal reports. It’s taking place under the auspices of Supply Minister Khaled Hanafy and Planning Minister Ashraf Al Araby

El Sisi in Jakarta today: President Abdel Fattah El Sisi is expected to be at the Organization of Islamic Cooperation’s extraordinary summit on the Cause of Palestine and Al-Quds Al-Shareef in Jakarta today.

The EGX is participating in the first International Conference on Islamic Banking and Finance hosted by Saudi Arabia from 6-8 March. EGX Chairman Mohamed Omran presided over a session discussing the competitiveness and sustainability of Islamic banking.

WHAT WE’RE TRACKING THIS WEEK

Mobinil is expected to officially announce its transformation into Orange Egypt on Tuesday at a press conference, Al Mal reports.

ON THE HORIZON

The US Federal Reserve’s Federal Open Market Committee meets between 15-16 March. The Fed chair will hold a press conference after the gathering

Wamda’s Mix N’ Mentor Cairo 2016 – Marketplace Edition, will take place at The Greek Campus, Cairo on 17 March. Register here.

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LAST NIGHT’S TALK SHOWS

Our talk show roundup is on hiatus this week, back next week.

SPEED ROUND

The CBE held an exceptional FX auction yesterday, selling USD 500 mn at EGP 7.7301 against the USD, according to Reuters. The CBE said the exceptional auction would be used to clear a backlog of essential imports, according to Al Ahram, without giving further detail. “I think the sale could temporarily hold the decline [of the EGP on the parallel market] for a couple of days but the investors and importers are looking for a more sustainable solution because the shortage situation has not been tackled,” head of equities at Beltone Financial Hany Genena tells Reuters. Al Mal reports that the parallel market hit EGP 9.80 to the USD 1 on Sunday evening.

Italcementi may consider moving its regional hub away from Egypt if the FX shortage persists, Bloomberg says. The company has been unable to repatriate EUR 50 mn in profit from Egypt “for about a year” and is facing difficulties paying foreign suppliers, according to Bruno Carre, managing director of Suez Cement, Italcementi’s Egyptian unit. “It isn’t an urgent issue, but if currency availability remains tight, we will have to establish other channels to develop our activities in the region … At some point my foreign suppliers could say, ‘if you’re not paying I won’t continue supplying,’” Carre adds.

Naguib Sawiris believes his acquisition of two investment banks will allow him to challenge EFG-Hermes’ dominance in the industry, forming a company that controls about 25% of brokerage business in Egypt. He told Bloomberg on Sunday that said the acquisition of CI Capital is “purely a market opportunity because the investment, brokerage and asset management scene in Egypt was divided into one big player and lots of small and medium-sized fraction players.” In related news: Orascom Telecom and Media Technology Holding (OTMT) approved providing a debit current account with a maximum of EGP 924 mn to Beltone Financial to finance its acquisition of CI Capital, according to a bourse disclosure. The funding agreement will be settled in cash through Beltone’s “own financial resources or by issuing new shares through a capital increase.” For its part, Beltone Financial issued a statement confirming the terms presented in OTMT’s disclosure.

Orascom Construction (OC) has landed three industrial and infrastructure projects in Algeria and Egypt worth a combined USD 200 mn, according to a company statement. The combined value of the projects in Algeria is USD 180 mn, the first of which is part of a greenfield cement plant with a daily capacity of 6,000 tons for a private sector client. The second comprises of infrastructure work for an industrial complex. In Egypt, OC’s subsidiary National Steel Fabrication received a USD 20 mn order to manufacture and supply all structural steel for the West Nile Delta gas development project.

Bill to deregulate natural gas market heading to House of Reps: Al-Borsa breaks important news as it says a draft bill that would create a new regulator for the natural gas market has cleared the State Council (Maglis El Dowla) and is on its way to the House of Representatives for discussion. If it’s still in the form we were promised last year, the bill would make peer-to-peer gas sales possible and effectively see the regulatory agency become a standard-form regulator and grid manager rather than the de facto market monopoly EGPC and EGAS are today. The legislation was first mentioned at the EEDC just about a year ago and was one of two cornerstones of the then-Mahlab government’s energy policy.

Egypt appoints Ibrahim Ahmed as the new head of its Agriculture Quarantine Authority, the Agriculture Ministry said on Sunday, replacing Saad Moussa, the controversial figure at the center of Egypt’s wheat import requirements issue, reports Reuters. The appointment is part of a plan to “restructure the ministry of agriculture and its various sectors, to develop and improve its performance,” the statement said. One source with knowledge of the matter, who asked not be named, said Moussa was relieved of his post due to the controversy he caused over ergot.

MOVES- Tamer Gadallah was named chairman of TE Data, replacing Tarek Abu Alam, company sources tell Al Mal. Ahmed Osama will stay on as managing director. ICT Minister Yasser El Kady reduced the size of the board of directors to five seats from 11 back in February.

The Muslim Brotherhood and Hamas assassinated Prosecutor General Hisham Barakat, Interior Minister Magdy Abdel Ghaffar says. Fourteen people were arrested in connection with last year’s assassination of Hisham Barakat out of a total of 48 Muslim Brotherhood supporters arrested across Egypt in connection with various plots to attack government targets, Reuters reports. The prosecution ordered the detention of the individuals, a judicial source says. Speaking at a press conference, Abdel Ghaffar said the Ikhwan planned and executed the assassination with help from Hamas, which provided training and equipment, according to Al Ahram. Abdel Ghaffar added that those arrested have given full confessions. The ministry issued a statement to that effect, saying they managed to “uncover a conspiracy … led by terrorist Muslim Brotherhood elements in Turkey … in coordination with elements from the Palestinian movement Hamas.”

Meanwhile, Hamas and the Muslim Brotherhood have denied the accusations, with Hamas spokesperson Sami Abu Zuhri saying Abdel Ghaffar’s comments are “baseless and are not in harmony with the efforts being exerted to develop the relationship between Hamas and Cairo,” according to the AP. “You are the real the conspiracy against Egypt. You are the murderers. Look amongst you for the killers of your public prosecutor you infidels and murderers,” Muslim Brotherhood spokesman Mohamed Montaser said in a statement. Hamas rival Fatah congratulated Egypt for the arrests through a phone interview with its spokesperson Osama Al Qawasmy on Ahmed Moussa’s Ala Mas’ooleety talk show, Al Masry Al Youm reports.

The story is making headlines in the international press, with the WSJ, New York Times, and BBC all having coverage.

On a related note: Abdel Ghaffar said at the same press conference that the investigation into the Metrojet explosion is still ongoing. He also addressed the issue of forced disappearances in Egypt, denying that anyone was being held without due process. All those being held have been sentenced or are being held under orders from the prosecution, he said.

SPOTLIGHT on what you can expect from Egypt and the GCC in the coming year or so

The EFG Hermes One on One 2016 gets underway this morning with a panel debate on whether MENA can escape the boom and bust cycle of oil. The debate will also include an instant audience poll on more than a dozen regional questions. On stage will be Hedi Ben Mlouka (CEO of Duet MENA), Bishoy Azmi (CEO, Al-Shafar General Contracting), Ashraf El Ansary (CIO, Exante), and Catherine Bolgar (former managing editor of Wall Street Journal Europe).

In the regional crystal ball… At a press conference last night, EFG Hermes CEO Karim Awad, co-head of brokerage Mohamed Ebeid and head of MENA strategy Simon Kitchen took the region’s ink-and-pixel-stained wretches (ourselves included) to school on what to expect of the region in 2016 and beyond. Among the highlights of their remarks and a Q&A that followed a brief presentation from Kitchen teasing tomorrow’s debate:

• 2016 will be a challenging year for MENA markets: Low oil prices, volatility in capital markets, divergent monetary policy between the U.S., the European Union and Asia, and the slowdown of growth in China mean we’re in for a bumpy ride.
• Much of the fall in oil prices was priced in by MENA markets during the second half of 2015 and the first month of this year.
• In fact, MENA equities are now at post-Lehman levels on a price-to-book basis; EFG Hermes says price-to-book is the way to go right now because earnings are becoming harder to estimate given all that’s going on, making PE ratios less useful. Either way you cut it: Returns are going to be lower in the GCC on the back of subsidy cuts, rising cost of debt, austerity and slower payment cycles by state payers.
• What should investors be looking for? Defensive plays and payers of dividends with strong cash flows, robust balance sheets and outstanding management teams, “of which the reason has quite a number,” said Awad/
• The IPO pipeline will be less robust in 2016 than in years past and it would be difficult to take to market something in the USD 500-600 mn range now, but the market could improve as the year passes. Investor demand for defensive sectors, particularly in consumer, is very durable. But will we be seeing USD 1 bn-plus IPOs this year? Unlikely given liquidity today, but you will see mid-sized offerings.
• It could be a better year for M&A on a regional basis after a 2015 in which Egypt was the regional bright spot and activity fell on a MENA-wide basis despite last year having been the best year for global M&A since the pre-crisis peak.
• Volatility is being driven by the first contraction of the world’s monetary base in 30 years. Factors including the end of quantitative easing in the U.S. and the sell-off of financial assets by GCC countries is helping drive volatility in equities, currencies and oil.
• Oil is cheaper than you think. When you see headlines about USD 30 oil, know that some governments are selling at a steep discount to retain market share, particularly as Iran is returning to the global market and Iraq is producing more.
• We’re looking at a slow recovery this year and next, and you should take a skeptical view of returns in 2016-17 as a result.
• The opening of Iran gives the UAE market in particular uncorrelated to global markets and uncorrelated to oil prices. Beyond the strength of the banking system and the diversity of the economy, the UAE has a trade relationship with Iran that could be very interesting.
• Privatization could become a feature of the landscape again as governments shore-up their coffers by selling minority stakes to the public. As it was in 2003-04, Saudi Arabia will likely be at the forefront of the movement.
• The GCC is under-leveraged and can use a mixture of international loans, IPOs, bond markets and private funding for energy projects to defend the peg while continuing to invest in public spending of higher value.
• The ongoing oil rally probably doesn’t suggest we’re returning to pre-fall levels. EFG Hermes echoed the Bloomberg piece we ran yesterday in places — and noted that new producers and new technologies are changing market dynamics at the same time as demand changes thanks to electric cars and renewables. It will take a long time for oil to recover to USD 60-80 per barrel: As oil rises, U.S. producers will start operations, driving prices back down. In the long term, there will be less boom and bust, more stability. But it means that the government will need to find revenues — hence the need to look at taxation.
• Yes, taxation: Broaden the revenue base — don’t rely on rents, EFG Hermes says, noting that nearly the entire planet has a VAT except for the GCC, basically. Governments need to look at VATs, corporate taxes, income taxes, sin and carbon taxes. More stable revenues, lower cost of borrowing, etc.

This year’s conference will see more than 455 international fund managers and institutional investors from 221 Institutions with aggregate assets under management in excess of USD 10 trillion hold face-to-face meetings with more than 117 leading issuers from the MENA region. Presenting companies are drawn from 14 sectors, including consumer staples, consumer discretionary, real estate, energy, healthcare, banks and financial services.

THE MACRO PICTURE

China is making headlines again after Xu Shaoshi, chairman of the National Development and Reform Commission, denied that its slowdown was stunting global growth, Reuters writes. “China’s economy absolutely will not have a hard landing, the so called hard-landing predictions are bound to fall through,” he said. The WSJ (paywall) also has coverage.

Meanwhile, markets are showing all signs that their faith in central banks is waning, according to a report from Bank for International Settlements (pdf), which warned that negative rates could backfire the longer banks venture into the territory. “World growth remains subdued, overall debt continues to rise and negative interest rates in large parts of Europe and Japan suggest that some leading central banks are running low on ammunition to quell market volatility that could pose a threat to the global economy,” Reuters writes.

Could Germany have to start looking at exiting the euro region? Former Bank of England Governor Mervyn King thinks so. “I worry that this is now going to be a battle between the political will of an elite that created this who daren’t now admit that it was a mistake, and economic arithmetic,” King said on the BBC’s “Andrew Marr Show” on Sunday. King argues that the single currency has driven nations apart — the exact opposite of what Germany’s membership in the eurozone sought to achieve.

EGYPT IN THE NEWS

“Why is Egypt viewed by the world only through the pessimistic prism of negative events?” Hannah Burns asks in The Hill blog after having attended a panel discussion The Atlantic Council in Washington on Economic Recovery and Revitalization in the Middle East (watch, run time 1:48:45). “The world is unaware of the positive, transformative developments occurring across the private, not-for-profit and government sectors, ones that are destined to provide the framework and opportunity for Egypt to flourish. These developments are fueling another kind of uprising,” Burns explains. The panel was based on a report co-authored by Sherif Kamel, vice president for Information Management and former dean of the Business School at The American University of Cairo, who says “by creating the environment where an entrepreneur will thrive, you create the economic conditions for all to thrive.” Ahmed El Alfi, chairman of Egypt venture-capital firm Sawari Ventures is one such example. As a panelist at the Atlantic Council event, Burns writes that he is an “important example of how the private sector is leading the drive to promote sustainable businesses,” with his firm launching 45 companies through start up accelerator Flat6Labs. Burns says the increased entrepreneurial drive in Egypt is showing that “amidst the turmoil and economic uncertainty, progress is not only possible, it is a reality.”

El Alfi was also the topic of a Financial Times (paywall) piece, saying young Egyptians drive the country’s growing technology sector and estimating that venture capital investment in tech during 2015 at under USD 5 mn — is 10 times lower than the sector needs. “Start-ups are like weeds,” he says. “They grow in any environment. They are one of the few things that have been going positively in the country. Young people launch start-ups regardless of the environment, whether it is leftist, Islamist or whatever.”

WORTH READING

The family is the “deep state” in Egypt: The New Yorker’s Peter Hessler published a long piece that delves into (Upper) Egyptian politics, exploring social norms in Upper Egypt and how they reflect in election campaigns. Hessler is particularly struck by the “autocratic behaviour of male elders” and how they wield “virtually all the power” from “ordering drinks” to “dictating votes” despite their scarcity, as he puts it, since men aged 55 or older represent only 5.7% of the population. Commenting on what he observed at the town of El-Balyana, Hessler says “[i]t felt simpler in a more isolated place, where one could recognize how social traditions contribute to political dysfunction. I suspected that Cairo isn’t much different at its core—even there, institutions are weak, and family hierarchies dominate most people’s lives. Officials respond to events in ways that feel more personal than political … Losers lash out, and anger is a common emotion, as is pride. The old control the young; the men control the women. But none of it can really be blamed on the Brotherhood, or the N.D.P., or any particular political figure. In Egypt, the family is the deep state.”

DIPLOMACY + FOREIGN TRADE

President Abdel Fattah El Sisi met with the head of the Export-Import Bank of the US (Eximbank) Fred P. Hochberg on Sunday. Hochberg expressed the bank’s willingness to finance US imports to Egypt and provide loans and financing to further develop trade between the two countries. International Cooperation Minister Sahar Nasr also attended the meeting, discussing development projects that could use Eximbank funding, AMAY reports.

The head of the Export-Import Bank of Korea is due to arrive in Cairo on Thursday to discuss the details and projects up for the USD 3 bn financing agreement signed during President Abdel Fattah El Sisi’s Asia tour, according to International Cooperation Minister Sahar Nasr. The meeting’s agenda will prioritize development projects, which will receive a USD 700 mn portion, and discuss the details of the USD 2.3 bn segment from the export credit agency for renewable energy transmission projects, Nasr tells Al Ahram. In a separate interview with Al Ahram, GB Auto Chairman and Egyptian-Korean Business Council head Raouf Ghabbour called on the government to do more to facilitate investments by Korean companies in Egypt, which have shown a keen interest to invest. He points to the issue of repatriation of revenues as a factor that needs more improvement, aside from the FX liquidity shortages. He also urged businesses to look East instead of to regional and European markets.

The Federation of Egyptian Chambers of Commerce has signed agreements with its South Korean and Japanese counterparts to cooperate on developing power, water, and telecommunications projects in Africa, according to head of the Federation of Egyptian Chambers of Commerce Ahmed El Wakeel. The three chambers of commerce will work to establish a framework to efficiently funnel investments and development financing from Japan and South Korea, while developing standards and improving the export potential of Egyptian and African export goods, Al Mal reports.

The Egyptian Commercial Service (ECS) is organizing a visit by a German business delegation of around 100 companies and financial institutions headed by the German economic affairs and energy minister on 17 April, Al Masry Al Youm reports. The ECS is planning meetings for the delegation with President Abdel Fattah El Sisi and the ministers of trade, investments, finance, and the Foreign Ministry, in addition to a business summit with Egyptian companies, says ECS head Ali El Laithy.

ENERGY

Electricity Ministry pays EUR 1.2 bn to date for Siemens power plant projects
The Electricity Ministry has so far paid Siemens EUR 1.2 bn for work on its power plant projects, worth a total contract value of EUR 8 bn, says managing director of finance at the Electricity Holding Company Nadia Qatary. The most recent payment was EUR 240 mn for the EUR 2 bn Beni Suef plant. According to Al Mal’s math (which has the costs of the power plants at EUR 6 bn), Egypt will pay for EUR 4.1 bn using 15-year loans from Deutsche Bank, HSBC, and KfW IPEX-Bank, while the remaining local components will financed through state-owned banks. (Read in Arabic)

INFRASTRUCTURE

East Port Said industrial zone infrastructure to be completed in 2018
Samcrete’s industrial arm the Industrial Development Group (IDG) will complete the East Port Said Industrial Zone’s infrastructure by 2018 at a total cost of EGP 3 bn, according to managing director Sameh Attia. The industrial zone will be built over an area of 16 mn sqm, he adds, noting that final agreements with the General Authority for the Suez Canal Economic Zone are expected by the end of the month. IDG has spent EGP 30 mn in preliminary infrastructure work so far, adds Attia. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

Agriculture Ministry promises improvements to the poultry industry
The Agriculture Ministry is willing to accommodate licensing small-time poultry farmers by expediting permits and renewals as part of an effort to alleviate some of the pressures on the industry, according to Agriculture Minister Essam Fayed. The government will also seek to develop alternative and locally sourced materials for packaging products by developing soybean production, he says. His comments come after a Business News Foundation-organized Expert Guide forum on the poultry industry. As we noted last week in our coverage of the forum, 30% of small- and medium-sized operators have closed up shop due to a 20-25% rise in the cost of production inputs, especially packaging. The forum also noted that most of the small poultry farmers that make up 80% of the industry are unlicensed.

MANUFACTURING

Production requirement shortage to be resolved within six months, says trade minister
The crisis caused by shortages in production requirements on the domestic market will be resolved within the next six months, Trade and Industry Minister Tarek Kabil tells Amwal Al Ghad. Kabil had reached an agreement with CBE governor Tarek Amer to prioritize clearing production requirements held up in ports due to the foreign currency shortage. The CBE recently flooded the market with USD 9 bn, which contained around 25% of the shortage, he adds. (Read in Arabic)

REAL ESTATE + HOUSING

Military is building low, mid-income housing on land previously allocated to Arabtec
The Armed Forces’ Engineering Department is building social housing and mid-income housing projects on land the Housing Ministry previously allocated to UAE’s Arabtec, sources tell Al Shorouk. The department is building 15,000 homes as part of the social housing program and developing 75 feddans in the third phase of the Dar Misr mid-income housing program. The projects are part of President Abdel Fattah El Sisi’s initiative to add 200k homes to the social housing project within a year of being allocated the land. (Read in Arabic)

Arab Contractors study offers to form consortiums with domestic contractors for new administrative capital
Arab Contractors is studying offers from domestic contractors to form consortiums to work on construction and infrastructure in the New Administrative Capital, company Chairman Mohsen Salah tells Amwal Al Ghad. The Chinese partner’s involvement in the early phases of the project will not diminish opportunities for domestic contractors to work on the project, adds Salah. Arab Contractors formed a consortium with Petrojet and China State Construction Engineering to extend infrastructure networks to the capital at an investment cost of EGP 2.5 bn, he adds. (Read in Arabic)

TOURISM

German delegation to inspect Sharm El Sheikh, Hurghada, Marsa Alam airports
An aviation security delegation from Germany’s Transport Ministry will be visiting Egypt to inspect the Sharm El Sheikh, Hurghada, and Marsa Alam airports between 10-14 March, Civil Aviation Minister Hossam Kamal tells Amwal Al Ghad. Kamal assured that all safety procedures and protocols have been followed according to international standards (Read in Arabic)

Meridiana airlines to launch direct flights from Milan to Cairo in May
Italy’s Meridiana Airlines plans to launch weekly direct flights from Milan to Cairo beginning early May, Al Borsa reports. Meridiana, which has a 35% share of tourism flights from Italy to Egypt and has direct routes to Sharm El Sheikh, will employ 170-seater aircrafts for this direct route, says the Tourism Development Authority’s (TDA) Mohamed Abdel Gabbar. TDA is in talks with the airline to open a direct flight route to Luxor and Aswan, Abdel Gabbar adds. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Production input prices for auto industry grow 8-10%
Prices of production inputs for the manufacturing of local car components have risen 8-10%, according to the latest prices quoted by importers to the Egyptian Auto Feeders Association, the head of the association Ali Tawfik tells Al Mal. Tawfik attributes this to the continued devaluation of the EGP in the parallel market. 60% of production inputs for the auto feeders industry are imported, so any price fluctuations are felt heavily. He adds that demand in the industry has dropped due to a sharp fall in orders by “two of the biggest assemblers in the country.” (Read in Arabic)

Transport Ministry still hopes to raise Metro ticket prices
The Transport Ministry has plans to raise the price of metro tickets to EGP 3 for rides on the new air-conditioned cars, according to Transport Minister Saad El Geyoushi, who apparently seems undeterred by the House Transportation Committee’s rejection of a proposal to raise prices to compensate for revenues. His latest plan, which he discussed in a phone interview on Al Hayat Television, will see the price of tickets rise 10% annually to keep up with inflation.

Private app contracts 1,500 taxi drivers for its ride-hailing app
New ride-hailing app Private has contracted 1,500 white taxi drivers to join its fleet. The company plans to make it the largest driver fleet in Egypt, according to Private’s GM Momtaz Hassan. He states that the company will rigorously assess its drivers upon hiring and on the job, run background checks, and enforce strict safety measures. To add icing to the cake, it also plans to enforce uniforms. It remains to be seen how this service will be any different from Easy Taxi or how it will maintain its sizeable fleet due to the obvious deficiencies of its hiring pool. (Read in Arabic)

BANKING + FINANCE

No intention to issue USD-denominated bonds on international market, says NBE deputy chairman
“We cannot risk issuing USD-denominated bonds at the moment,” NBE deputy chairman Mahmoud Montaser tells Al Shorouk. NBE is currently negotiating for USD loans from international lenders, he adds. NBE recently received a loan worth USD 700 mn from the China Development Bank in accordance with an agreement signed in January to finance infrastructure projects, he adds. (Read in Arabic)

Al Baraka Bank allocates EGP 1 bn to national projects
Al Baraka Bank Egypt has allocated EGP 1 bn toward funding national projects in the fertilizer, petrochemical, gas, and logistics sectors, according to CEO Ashraf Ghamrawy. The bank had recently allocated EGP 500 mn toward ongoing energy and oil projects, he adds. Al Baraka Bank aims to increase profits 20% from last year’s EGP 265 mn. (Read in Arabic)

First Equity Partners Capital to grow its business to USD 1.5 bn by 2018
First Equity Partners Capital plans to grow its asset management and private equity portfolio to USD 1.5 bn by the end of 2018 from its current USD 1.2 bn, says CEO Amr Al Maghawry. The company has been concentrating on developing and restructuring SMEs and will continue to do so until 2018, Al Maghawry tells Reuters’ Arabic service. The firm is planning three IPOs on the Nilex. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Planning Ministry to form an independent body to supervise 2030 plan
The Planning Ministry plans to form an independent government body in charge of supervising and coordinating efforts to achieve Egypt’s 2030 sustainable development plan, Al Borsa reports. The ministry is contemplating either issuing a law for the plan with provisions for a supervisory authority or drafting a law just for the body, says Mohamed Sherif, CEO of LOGIC Management Consulting, which helped develop the plan. The body will also provide the president and the House of Representatives with progress reports, says Sherif. (Read in Arabic)

President wants foreign consultants on the 1.5 mn feddan project
President Abdel Fattah El Sisi instructed Prime Minister Sherif Ismail to use foreign consultants to help speed along the growth of the Egyptian Countryside Development Company, which will manage the 1.5 mn feddan project. The president was reportedly adamant that no cost be spared in getting the company off the ground. (Read in Arabic)

Alexandria bus drivers go on citywide strike
Public bus and tram workers in Alexandria went on strike on Sunday, with all garages and workshops being closed down city-wide. The workers are protesting management’s bonus levels, which they state reach EGP 15,000 while they receive only EGP 150. They are demanding bonuses of 300% of their base salaries. They are also demanding an end to arbitrary 20% salary reductions and a 15% share of revenues, Al Borsa reports. (Read in Arabic)

ON YOUR WAY OUT

We’re exporting double-deckers to the UK: Egypt’s MCV will export 60 double-decker buses to the UK, Trade and Industry Minister Tarek Kabil announced. Kabil’s comments were made during the inauguration of a new EGP 500 mn production plant bringing MCV’s total output to 8,000-10,000 vehicles annually, according to Amwal Al Ghad.

There will be no delays in implementing the requirement that all factories exporting to Egypt are registered by mid-March, Al Masry Al Youm writes. Trade and Industry Minister Tarek Kabil is requiring all importers to register their suppliers with the ministry.

Solar Impulse 2 lands in Egypt in July: Egypt will host the experimental solar-powered aircraft Solar Impulse 2 in July, during the aircraft’s journey circumnavigating the world, beginning in Abu Dhabi in March 2015. (Read in Arabic)

Former US First Lady Nancy Reagan passed away at the age of 94 yesterday, Reuters reports. Reagan was one of the most influential first ladies US during husband Ronald Reagan’s presidency from 1981 to 1989.

CALENDAR

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

07 March 2016 (Monday): The Retail Plus Conference, Royal Maxim Palace Kempinski Hotel, Cairo.

15-16 March 2016 (Tuesday-Wednesday): US 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.

21-22 March (Monday-Tuesday): The Africa CEO Forum, Sofitel Abidjan Hotel Ivoire, Abidjan, Ivory Coast.

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

27 March (Sunday): Business News Foundation’s Third Annual Energy Conference: Energy and Sustainable Development, InterContinental Hotel Citystars Cairo. Register here.

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)

26-28 April (Tuesday-Thursday): Arabian Hotel Investment Conference, The Madinat Jumeirah, Dubai.

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

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

02-03 May (Monday-Tuesday): The Middle East Investment Summit 2016, Ritz-Carlton DIFC, Dubai.

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

27 November 2016 (Sunday): 2016 Cairo ICT Conference