Is the EGP still overvalued?

TL;DR

CBE auctions USD 1.5 bn at EGP 8.78 — and some analysts say the EGP is still overvalued. (Speed Round)

First Gulf Bank not interested in Barclays Egypt. (Speed Round)

Tuition at international schools in Egypt will be subject to VAT. (Speed Round)

EgyptAir may up international ticket prices 5-15%. (Speed Round)`

Telecom Egypt faces antitrust probe. (Speed Round)

Egypt, Russia to resume flights as soon as security standards are in place -Lavrov. (Diplomacy + Foreign Trade)

Fed maintains target range for benchmark federal funds at 0.25-0.5%. (The Macro Picture)

Eni to bring four wells in Zohr onstream by mid-2018. (Energy)

LG could open second factory in Egypt. (Manufacturing)

Media is saying that cabinet shuffle imminent — again. (Egypt Politics + Economics)

By the Numbers

WHAT WE’RE TRACKING TODAY

The Central Bank of Egypt’s Monetary Policy Committee meets today to consider rates, and the expectation of analysts at home and abroad seems to be that we’re looking at a 100 basis-point hike in the CBE’s overnight deposit rate to 10.25, the highest level in seven years. Reuters’ Asma Alsharif found that “All 10 contributors to the Reuters poll said they expect the monetary policy committee (MPC) to raise rates on March 17 in an attempt to defend the EGP after the devaluation, with forecasts ranging from a 50 basis point hike to a hike of 100 basis points.”

Also today: Real estate developer SODIC will holding its FY2015 results call at 4:00pm CLT (tap here for the invitation) after releasing solid results yesterday. The call comes a day after the company reported its bottom line had surged 118% year-on-year to EGP 311 mn in FY2015 and signalled strong revenue prospects in the pipeline with a 43% y-o-y rise in contracted sales last year to EGP 4.4 bn. SODIC said the doubling of its bottom line came primarily on the back of “delivery of high margin units in Westown Residences, Allegria and the Strip” as well as interest income. The company directed substantial effort and focus toward expanding its project portfolios across different geographies in 2015 through the acquisition of new land. That included the acquisition in February of c. 100 acres of land on the North Coast, 30 acres in Six of October it bought at auction this fall, and the more recent acquisition of 655 acres through a co-development agreement with Heliopolis Housing. SODIC’s full earnings statement is available here in pdf.

ON THE HORIZON

AmCham is holding its Women in Business: The Key to Economic Growth summit on 22 March. The conference will also announce the regional winners of the fourth AmCham MENA Council Women Awards. You can register for the summit here.

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SPEED ROUND

Did the EGP appreciate yesterday? The CBE sold USD at a rate of EGP 8.78 per USD 1 at Wednesday’s special auction, at which the CBE was set to sell USD 1.5 bn, six banking sources told Reuters and five told Bloomberg. The rate is EGP 0.07 lower than official exchange rate of EGP 8.85 per USD 1, with the exceptional sale set to cover temporary overdrafts of foreign currency at banks. “The central bank did not officially announce the rate. Officials at the central bank could not be reached for comment.” Bloomberg says the central bank told the banks to deposit the USD they bought back again for one year at an interest rate of 1.2%.

… Even if it did not, using real effective exchange rate (REER) terms, the EGP still looks a overvalued, Reuters’ Sujata Rao writes. “The [EGP] is nowhere near fair-value yet. It’s gone from being the most overvalued to one of the most overvalued emerging currencies in REER terms,” Renaissance Capital’s global chief economist says. An investment strategist at NN Investment Partners echoed a similar sentiment, saying: “I am not going to close the underweight because I think there is a lot of downside risk to the currency,” calling for a further 10% devaluation this year.

In fact, JP Morgan is predicting a 35% devaluation of the EGP this year, Al Borsa quotes a JP Morgan research report as saying. It predicts that the CBE will raise interest rate corridors by 50 bps. It also expects an inflation rate between 14-16% this year on the back of both the devaluation and the planned implementation of the value-added tax. Egypt will probably also seek a loan from the IMF before the year is out, despite statements from the government to the contrary, the bulge-bracket bank is quoted as suggesting.

Banque du Caire has begun issuing three-year certificates of deposit that carry a 15% interest rate annually payable on a quarterly basis, joining Banque Misr and NBE, which offered the CDs on Monday, Al Masry Al Youm reports. The same rules apply, meaning you can access the CDs if you give up the amount in USD, which will then be converted to EGP and invested in the CDs. BdC’s offer is valid for only two months.

The Pharmaceuticals Division of the Federation of Egyptian Industries is calling on the government to raise the prices of medications in light of devaluation, Al Borsa reported. At a press conference yesterday, division head Ahmed Al Azaby claimed that over 3,000 items would disappear from shelves over the coming three months if the government does not allow the price to rise.

…EgyptAir is also moving to raise ticket prices following the devaluation, said CEO Sherif Fathy. The airline is looking to increase prices by 5-15%, Fathy tells Al Shorouk, adding that the company is still mulling the range, but noted that 85% of aviation costs are pegged to the USD. He did state that the price of domestic flights would not rise.

Banking sector should witness a boost in liquidity following the devaluation and the easing of restrictions on foreign currency deposits, consulting group IHS Inc says, according to Bloomberg. “International-currency commitments to Egyptian banks declined to below [20%] of total deposits at the end of the third quarter of 2015, from about a quarter before the restrictions were imposed in February last year,” according to a report by IHS banking. However, the currency depreciation will likely weigh on capital adequacy ratios for banks as loans in foreign currency are converted to EGP for capital ratio calculations. Also standing to benefit is the real estate sector, The National’s Michael Fahy writes. All listed property companies should have an uplift in values following Monday’s CBE’s decision, according to Naeem Brokerage. While the devaluation will hurt disposable incomes and drive inflation, demand for pro­perty is likely to become more popular for Egyptians who want to hedge against inflation, said Mamdouh Abdel Wahab, director of the investor relations at Palm Hills Development.

That’ll be an extra EGP 28 bn per fiscal year: An EGP 0.10 devaluation against the USD translates to an extra EGP 2.5 bn in expenditure on fuel subsidies in a fiscal year, an EGPC source told Al Shorouk. What is working in Egypt’s favour right now is the sustained drop in international energy prices, as the state budgeted its expenses assuming oil at USD 70 per bbl.

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Tuition fees at international schools will be subject to the value-added tax, Tax Authority chief Abdel Moniem Matar told Al Mal. “Whoever can pay for international schools can bear the tax,” he explained. Matar also said that domestic public and private schools will be exempt from VAT. Whether banks will be exempt from the tax is yet to be resolved. Banks believe they should not be part of the VAT regime as they were not bound by sales taxes. However, the head of the research department at the Tax Authority says every transaction with banks has added value and should thus be subject to VAT.

Taxes on the Suez Canal Economic Zone (SCZone) are not up for negotiations with investors once set, said the head of SCZone Ahmed Darwish. However, any and all other incentives can be negotiated and worked out with investors, he added. The SCZone is currently debating between a 22.5% tax (matching the national standard) or a special 10% rate, said Darwish.

First Gulf Bank (FGB) is not interested in Barclays Egypt: FGB, the UAE’s largest bank by market capitalisation, denied reports it is interested in acquiring Barclays Egypt as the lender pulls out of Africa. “FGB notes recent news reports with respect to an interest in bidding for Barclays assets in Egypt. These reports are untrue as FGB has not engaged in any discussions regarding any possible bid to purchase these assets.” The National writes that Bloomberg reported FGB met with advisers about a “planned bid.”

In an op-ed headlined “The USD 5 bn Egyptian Opportunity,” US Export and Import Bank Chairman and President Fred P. Hochberg writes for Daily News Egypt that his institution “is eager to consider financing for US exports to Egypt … Projects in Egypt – led by both the private sector and the government – offer opportunities in energy, petrochemicals, rail, aircraft, and ports, for which US companies want to compete.” Hochberg notes that the EXIM Bank “is receiving more inquiries about doing business in Egypt than at any time in our recent history” and notes its support for Carbon Holdings, gas-fired and renewable energy projects, EgyptAir’s purchase of Boeing aircraft, and Egyptian National Railways’ purchase of locomotives.

Someone in government with an uncommon amount of common sense (maybe Tourism Minister Hisham Zaazou? Maybe with a bit of solid PR advice?) took ownership of the defacing of Bryan Adams’ guitar. The Canadian rock star thanked the head of the Customs Authority for officially apologizing for the incident with his guitar in a Facebook post. One PR disaster down, ‘x’ to go.

Telecom Egypt reportedly faces an antitrust probe. The Egyptian Competition Authority (ECA) is investigating Telecom Egypt (TE) for alleged antitrust violations, Al Borsa says. TE is accused of engaging in monopolistic practises in the pricing of its network infrastructure to the detriment of internet service providers that compete with its TE Data subsidiary. Preliminary assessments by the ECA point to monopolistic practises since other companies are being  forced to sign contracts in which the price is determined solely by TE, without any alternatives. The results of the investigation will be announced in April. (Read in Arabic)

GB Auto’s net profit grew 34% y-o-y in FY2015 to EGP 233 mn from EGP 174 mn in FY2014. Revenue for the year, however, decreased 0.5% y-o-y to EGP 12.3 bn on the back of a 15.9% drop in passenger car sales to EGP 7.5 bn, according to a statement (pdf) from the company. GB Auto retains its market leadership through the distribution of Hyundai, whose sales captured a 21% market share of passenger cars in January, according to AMIC. GB Auto will introduce Hyundai Elantra AD and Hyundai Elantra HD at the Automech Formula exhibition, said head of the passenger car division Mustafa Abdel Halim. He tells Al Borsa that the company plans to pump EGP 75 mn in after-sales services this year.

Egypt will “spare no effort to find and punish” those responsible for torturing and killing Italian student Giulio Regeni, President Abdel Fattah El Sisi said, according to Reuters. The country will “continue to work with the Italian authorities to arrest the perpetrators, so that they can be punished according to the law,” he told Italy’s La Repubblica (found here in Italian, with an excerpt in English here) newspaper, calling the incident “terrifying and unacceptable.” El Sisi suggested the timing of the murder was suspicious: “The timing of this incident is intriguing …  Why did it happen during the visit of the Italian Minister of economic development to Egypt … Why did it happen when bilateral relations gather unprecedented momentum both politically and economically? Are there any beneficiaries who seek to impede relations, given the turbulent situation in the region?”

Cabinet said at its weekly meeting yesterday that it was considering a further rescheduling of the tourism sector’s dues to state agencies. The decision could include those who have owed the government back payments on contracts and bills going back to January 2011. The cabinet also explored reforming the coastline protection committee, which if approved, would be headed by the Irrigation Minister. Other key decisions include:

• Approved tendering works on 17 national projects, including the development of tunnels under the Suez Canal; developing piers in East Port Said; waterworks and sewage systems in Dakhalia and Kafr El Sheikh, Wadi El Gedeed, and Sohag; development works on the regional ring road;
• Approved a USD 244 mn automatic loan from the Arab Monetary Fund to support Egypt’s payment balance;
• Allowed the Giza Governorate to contract waste management companies to collect garbage in North Giza for EGP 30 mn;
• Approved protocols signed with the Italian government to extend a EUR 8.6 mn credit line to the Social Fund for Development to help SME development;
• Approved a USD 20 mn grant from the Kuwait Fund for Arab Economic Development to aid Syrian refugees;
• Approved cooperation protocols signed between the Manpower Ministry and International Labor Organization to protect the rights of migrant laborers in Egypt, Libya, Morocco, and Tunisia;
• Extended the city line and development area of New Beni Suef by around 5,000 feddans.

SPOTLIGHT ON Automech Formula

Day one of the Automech Formula car show kicked off on Wednesday, with discussions focused on the decline in auto sales in Egypt, the so-called ‘automotive directive’ to protect domestic assemblers, and the state of the FX market. Head of Bavaria Auto Group Fareed Al Tobgy believes declining sales will continue this year as a result of the FX shortage, problems acquiring LCs, and government-guided prices putting off German manufacturers.

Speaking at a forum hosted by Al Mal, Al Tobgy made recommendations including: having banks extend long-term loans on cars; amending leasing laws to include individuals instead of just companies; initiating replacement programs on old cars; better policy coordination between government agencies; and further cooperation with the industry. Head of the Honda Division in El Nil for Trading & Distribution Sherif Mahmoud predicts declines of 30% in the industry this year.

On the automotive directive: Head of the Egyptian Automobile Manufacturers Association Hussein Moustafa says failure to enact the measure is preventing new investment from flowing into the sector. Volkswagen, the world’s third largest car company, is ready to manufacture car components in Egypt if the directive is adopted, said Karim Al Naggar, head of the Egyptian Automotive & Trading Company, Volkswagen’s official distributor. Furthermore, Honda will reconsider assembling in Egypt once the automotive directive is announced after halting plans two years ago, said El Nil’s Sherif Mahmoud, Al Mal reports. Former Industry Minister Mounir Fakhry Abdel Nour weighed in, saying that government delays in implementing the automotive directive would place Egypt’s agreements with the EU on the car industry at risk. Egypt also risks losing EU-made components in three years if the directive is not adopted, he told Al Mal.

Speaking on the devaluation at Automech was Nissan Egypt’s CEO, who told Al Borsa that the devaluation is greatly hurting Nissan despite the decision being beneficial to the country overall. Nissan Egypt has been struggling to pay its USD 200 mn tab with foreign exporters, and a 14% devaluation is exacerbating the situation.

Among the conference’s surprises was Volkswagen’s sudden withdrawal from the show hours before it began. Al Naggar attributes the move to the FX crisis in general and the lack of new models to present at the car show in specific.

THE MACRO PICTURE

As widely predicted, the Federal Reserve kept rates unchanged and scaled back forecasts for how high interest rates will rise this year due to the potential impact of weaker global growth and market turmoil on the US economy. The Federal Open Market Committee kept the target range for the benchmark federal funds rate at 0.25-0.5% and lowered its median projection for US growth this year and next, according to a statement issued Wednesday after a two-day meeting in Washington.

George Osborne, Britain’s chancellor of the exchequer, downgraded the growth outlook for one of Egypt’s largest trade partners (and the largest non-Arab investor in Egypt) and announced higher borrowing, delivering a “tight budget against the backdrop of weakening public finances,” in an address to parliament, the FT (paywall) reports. Among the measures announced are a sugar levy on the soda industry expected to raise GBP 520 mn, tax increases for big businesses, and tax relief for smaller ones. Osborne also talked of reducing the capital gains tax to 20% from 28%, adding that corporation tax would drop to 17% to 2020 from 20% now. He also warned against the UK breaking off from the EU, saying “Britain will be stronger, safer and better off inside a reformed European Union.”

EGYPT IN THE NEWS

Foreign coverage on Egypt was focused on President Abdel Fattah El Sisi’s promises to solve the Giulio Regeni case. The Guardian picked up on the interview the president gave to La Repubblica, saying that an Egyptian team in charge of this case would head to Rome within days to speed up the investigation.

Could the Coptic Church be part of the GERD solution? Al Monitor’s George Mikhail talks to Bishop Beeman, the coordinator of relations between the Ethiopian and Egyptian Coptic churches and chairman of the crisis management committee at the Coptic Holy Synod, who says the church plays an indirect role in the crisis the construction of the Grand Ethiopian Renaissance Dam, which Egypt says will sharply reduce its share of Nile waters. “Based on its historical and spiritual ties with the Ethiopian church, the Coptic Orthodox Church can play an indirect role … the Ethiopian people and church will not allow the government to harm the Egyptian people. This was confirmed by the Ethiopian church leaders in all of our meetings.”

Talks between a Hamas delegation and Egypt to mend relations have apparently flopped, according to the Jerusalem Post. The Israeli paper quotes an Al Ahram article as saying that Hamas’s refusal to admit any responsibility in Sinai terrorist incidents and its “refusal to admit mistakes” were the reasons the talks fell through the cracks. We were unable to find the exact piece on Al Ahram, but managed to get our hands on a statement from Maan News Agency confirming that talks were a bust. The Hamas delegation arrived right after Egypt accused the group of playing a part in the assassination of chief prosecutor Hisham Barakat.

WORTH WATCHING

Morning staff meeting pep talk by Conan the Barbarian. (Watch, running time: 36 seconds)

DIPLOMACY + FOREIGN TRADE

Egypt and Russia could resume flights “within the tightest deadlines possible”: Russia and Egypt will resume direct flights between the two countries as soon as “the highest security standards are ensured for Russian citizens,” said Russian Foreign Minister Sergey Lavrov following a meeting with his Egyptian counterpart Sameh Shoukry yesterday, TASS reported. “In the meantime, the Russian side has been taking intensive measures for opening a consulate general in Hurghada,” Lavrov said. “This will be important for the sake of the further development of tourist ties. We will open the consulate general this year.” There has been “positive cooperation between Moscow and Cairo on resuming flights between the two countries,” Shoukry said, reported Reuters. “We acknowledged the fact that the reduction of tourist flow to Egypt harms both the Egyptian and the Russian side,” Sputnik quotes Shoukry as saying.

The Italian-Egyptian Debt for Development Swap Program is on the cusp of granting Egypt the USD 100 mn third tranche of the program, deputy head of the program Yassin Mubarak told Al Borsa. The first phase of the program involved 53 development projects and was valued at around USD 149 mn between 2001 and 2008, while the second involved 31 projects valued at USD 100 mn between 2007 and 2017, he added.

The Japan International Cooperation Agency (JICA) has not completed assessing additional expenditures for Grand Egyptian Museum, an official within the agency told Al Mal. This is why JICA has not yet signed off on a loan to fund the museum. The delay in assessment is behind the lack of an additional loan agreement during President Abdel Fattah El Sisi’s visit to Tokyo last week.

ENERGY

No power cuts this summer, says EEHC Chairman
There will be no power cuts this summer, said Egyptian Electricity Holding Company Chairman Gaber El Dessouky. The annual maintenance programs for the power plants will be completed within weeks, he adds. The Electricity Ministry’s plan to increase the efficiency of power plants will bring their capacity up by 40-45%, says El Dessouky. (Read in Arabic)

Eni to bring four wells in Zohr onstream by mid-2018
Eni is aiming to bring four wells in the Zohr filed into production by mid-2018 as part of the first phase of the field’s development. The second phase will bring 16 wells onstream by 2020, sources within the company told Al Borsa. The company is investing USD 5 bn to complete the first phase, the sources adds, noting that an estimated USD 12 bn will be invested during the project’s duration. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

Future of Egypt’s wheat supplies dependent on UN food and agriculture analysis
Egypt is allowing wheat imports with trace levels of the ergot fungus, said Agriculture Minister Essam Fayed, while government agencies try to resolve a dispute that has disrupted shipments to the world’s biggest wheat buyer. No timeframe had been given to an official from the United Nations Food and Agriculture Organization, drafted in to resolve the row on a scientific basis, Fayed told Reuters. “I have been following up to make sure it is done as soon as possible but it takes time and I can’t tell you how long it will take at the moment,” he said. Fayed’s stance on fungus tolerance levels is in direct contrast to that of quarantine officials who say no level of ergot is allowed in shipments until legislation changes. (Read)

Egypt bought 240k tons of wheat from France, Romania, Ukraine
Egypt has purchased 240k tons of wheat from France, Romania, Ukraine at an average price of USD 189 per ton, Reuters’ Arabic service reports. 120k tons were bought from France, while 60k tons came from Ukraine and Romania each, said Mamdouh Abdel Fattah, head of the General Authority for Supply Commodities. (Read in Arabic)

Food industry companies meet ministers to discuss food safety authority
Food industry companies will meet with the ministers of industry, supply, health, and agriculture to discuss how the new food safety authority will operate and the law governing its formation, Al Borsa reports. This food safety regulator has been 11 years in the making, and its formation has become imperative, said head of the Food Industries Division Mohamed Shokry. He also stressed that this authority should be directly supervised by the cabinet or the presidency to ensure its independence. (Read in Arabic)

Trade Ministry will halt rice exports after April due to inflation
The Trade and Industry Ministry has decided against extending exports of rice past April as a result of a hike in the price of rice to EGP 800 per ton, Al Borsa reports. The Rice Division of the Federation of Egyptian Industries had requested that the ban on exports be extended until the end of the year. However, some in the industry feel inflation does not accurately represent demand, with Moustafa Al Naggary of the export council stating that major dealers in rice have been hoarding supplies to drive up the price. (Read in Arabic)

MANUFACTURING

LG Egypt discuss establishing second factory in Egypt
LG Egypt representatives met with the General Authority for the Suez Canal Economic Zone Chairman Ahmed Darwish to discuss establishing their second factory in Egypt in the Economic Zone, sources tell Al Borsa. The company will receive a USD 14 mn letter of credit from Banque Misr in the next three months, the source added. LG have yet to decide on what products the factory will manufacture, noting that the decision hangs on the investment opportunities presented by the authority. (Read in Arabic)

Egypt to manufacture solar panels to reduce cost of importing them, says PM
The Military Production Ministry will begin manufacturing solar panels to circumvent having to bear the cost of importing them, announced Prime Minister Sherif Ismail. Ismail affirmed the government’s dedication to developing domestic manufacturing sectors, with a particular focus on iron, steel, phosphates, and textiles. (Read in Arabic)

El Araby Group to partner with Bertazzoni-Italia to manufacture kitchen stoves
El Araby Group plans to sign a partnership agreement with cooking and kitchen product firm Bertazzoni-Italia to manufacture kitchen stoves locally, said El Araby’s deputy chairman Ibrahim El Araby. The company purchased a plot of land from retailer Makro Egypt on the Alexandria-Desert Road for the joint venture. While he did specify the investment value of the project, Al Borsa is reporting that initial investments in the JV will be no less than EGP 100 mn. (Read in Arabic)

TOURISM

Tourism Development Authority refuses to cancel fines on delayed instalments
The Tourism Development Authority (TDA) has refused to waive fines on delayed dues from investors with projects under construction, an official from the authority told Daily News Egypt. The authority fears its revenues will be affected next year due to cancelling the fines, the source added. Hotel projects that are operational, however, will be unaffected. Delayed instalments from investors who have received land from the authority amount to approximately USD 118 mn, said TDA head Serag El Din Saad. (Read)

Tourism Ministry to attend Egyptian Kuwaiti Forum for Investment and Tourism
Egypt’s Tourism Ministry is expected to attend the Egyptian Kuwaiti Forum for Investment and Tourism at the end of April in Kuwait to boost tourism from the Gulf state, according to the head of the Tourism Activation Authority Sami Mahmoud. The ministry intends to market approximately 10 projects valued at EGP 3bn during the forum, including hotels and entertainment venues, according to a ministry official. (Read)

UNWTO secretary general, tourism minister meet at ITB Berlin
UNWTO Secretary-General Taleb Rifai lauded measures Egypt has taken to boost tourism despite recent setbacks, Rifai said during a meeting with Tourism Minister Hisham Zaazou at the sidelines of ITB Berlin last week, according to an emailed statement. “Despite current challenges Egypt is today, and will continue to be, a world-leading tourism destination, capturing one in every four international tourist arrivals to the Middle East,” he said. The pair also discussed the upcoming UNWTO City Tourism Summit being held later in 2016 in Cairo.

TELECOMS + ICT

NTRA to issue 10 regional virtual ISP licences by December 2016
The National Telecommunication Regulatory Authority (NTRA) is planning to issue 10 virtual internet service provider (ISP) licences in Egypt by December 2016 to combat the illegal line-sharing phenomenon seen across governorates. The NTRA will issue four licences by April, and the remaining six will be issued before the end of the year, sources tell Al Borsa. The service will be offered through TE Data, Link DSL, Vodafone Data, Etisalat Internet, and Noor for a fixed, predefined rate, while the NTRA will get 3% of revenues generated from the ISPs. Around EGP 1.2 bn is lost each year due to illegal connections. (Read in Arabic)

Arbitrator rules that TE owes Orange Egypt EGP 250 mn in damages
The Cairo Regional Centre for International Commercial Arbitration ruled that Orange Egypt is owed EGP 250 mn in damages by Telecom Egypt for arbitrarily raising utilization fees on telecom infrastructure and ending negotiations to resolve the matter, Al Borsa reports. Orange Egypt’s dispute with TE was over EGP 11.7 bn. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Transport Authority looking to buy double-deckers
The National Transport Authority is assessing the possibility of importing double-decker buses, the head of the authority told Al Shorouk. Three international technical offers are being assessed along with an unspecified number of domestic ones, and the decision will be made according to budgeted expenses. The two-storey buses will reduce congestion and help provide transport options to a larger number of people, the authority believes. (Read in Arabic)

BANKING + FINANCE

Beta Technology Egypt negotiates with two banks to finance EGP 160 mn factory
Beta Technology Egypt is negotiating with a state-owned bank and a foreign bank for a EGP 120 mn loan to help fund the development of a EGP 160 mn factory, DNE reports. The factory will be used to manufacture 3D printers, VR glasses, and company-patented wireless laptop chargers. (Read)

OTHER BUSINESS NEWS OF NOTE

Kuwait’s Agility looking to manage airports, ports, eyeing expansion in Egypt
Kuwait’s Agility is looking to manage airports and ports if privatisation plans in Kuwait go through, CEO Tarek Sultan told Reuters. It “would be one of the first companies to enter the Iranian market after international sanctions imposed on the country were partially lifted earlier this year,” but Sultan did not elaborate. Also on Agility’s radar is Egypt, which Sultan described as “a promising market if difficulties surrounding foreign investors’ ability to transfer money abroad could be overcome.” (Read)

LEGISLATION + POLICY

State Council reviewing Electricity Law’s executive regulations
The State Council is currently reviewing the Electricity Law’s executive regulations, said Electricity Minister Mohamed Shaker. The council will complete the review within days, he added. The regulations will separate the Egyptian Electricity Transmission Company from the Egyptian Electricity Holding Company (EEHC) over a period of five years to allow for current projects to be completed, he added. The separation will ensure neutrality in buying energy from EEHC or the private sector. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Egyptian media is saying that cabinet shuffle imminent, again
A cabinet shuffle is once again making the rounds in major Egyptian news sources, all of them citing government sources. Most seem to agree that the ministers being replaced include finance, investment, health, transportation, education, in addition to finding a permanent replacement for former Justice Minister El Zend. Al Masry Al Youm is reporting a list of possible candidates to replace these ministers, while Al Akhbar is reporting that eight candidates will be replaced.

ON YOUR WAY OUT

Former Justice Minister Ahmed El Zend has reportedly left Egypt for Abu Dhabi, Al Masry Al Youm reported. Airport authorities said El Zend is not subject to a travel ban.

More to the story on El Zend’s sacking: Political analyst Moustafa El Fekky believes that El Zend’s firing may have to do with him subtly acknowledging that the Interior Ministry had something to do with Regeni’s death, Al Masry Al Youm reports.

In the market for used aircrafts? EgyptAir is selling 11 older aircraft, Al Masry Al Youm reported. In the upcoming period, the company will list seven more for sale, according to EgyptAir’s chairman.

Chatham House announced the launch of the online platform dedicated to research on “Syria and Its Neighbours.” The platform, which will be updated regularly, “features new, interactive content that seeks to analyse how the Syria conflict has impacted its neighbouring states, with a focus on understanding the long-term drivers and implications of Syria’s war.”

CALENDAR

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.

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

07-10 April 2016 (Thursday-Sunday): Cityscape Egypt Conference, Cairo International Convention Centre, Cairo

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

17 April 2016: German economic delegation visits 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.

10 May (Tuesday): Business News Foundation’s Third Annual Energy Conference: Energy and Sustainable Development, InterContinental Hotel Citystars Cairo. Register here.

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

27 November 2016 (Sunday): 2016 Cairo ICT Conference Group

04-06 December 2016 (Sunday-Tuesday): Solar-Tec Conference, Cairo International Convention Centre, Cairo