Egypt lobbying IMF executive board on USD 12 bn bailout package

NTRA is going to finalise drafting the 4G contracts today and will send them to the MNOs “within days.” The news comes after the network operators missed the deadline to apply for 4G licenses back in the first week of August, Al Mal reports. The three mobile network operators (MNOs) are requesting the National Telecommunications Regulatory Authority (NTRA) add a clause to the 4G license agreement guaranteeing more 4G frequency within two years launch, sources told Al Mal. The MNOs are insisting on the additional spectrum to ensure they offer quality services — and to insulate themselves from future challenges from the Consumer Protection Agency. We had previously reported that the NTRA had promised to make more network frequencies available, but officials noted at the time that permission to release the frequencies was the responsibility of “other government authorities” that are not required by the Telecommunications Act to play ball.

SODIC is holding its 2Q2016 results conference call today at 15:30 CLT with Managing Director Magued Sherif, CFO Omar Elhamawy, Finance Director Mahmoud Badran, and Financial Planning Head Ihab Abo Taleb. The call will be hosted by CI Capital’s Jan P. Hasman; dial-in details are available here.

Foreign Minister Sameh Shoukry will visit Beirut today to discuss possible solutions to Lebanon’s presidential impasse, Ahram Online reports. See Diplomacy, below, for more.

We’re also keeping an eye out for news we had expected yesterday, including the appointment of advisors on the state’s planned USD 3-5 bn bond issue and news of the program to IPO state companies. We’re betting that what was billed as a meeting between the CBE and the heads of banks was actually deputy governor Gamal Negm’s directive to the heads of compliance departments, which we note below in Speed Round.

The final days of summer are upon us: Classes start at Cairo American College tomorrow, and MBIS is back on Sunday. BISC returns on 28 August, and most international private schools are back on Sunday, 4 September. There’s still no word on whether tuition will suddenly become subject to the proposed value-added tax — or whether parents might have to pay it this school year.

The first batch of hard data on the UK’s economy following the Brexit referendum is due this week, with reports on inflation due out today, jobless claims on Wednesday and retail sales on Thursday, MarketWatch reported.

Egypt has already begun lobbying members of the International Monetary Fund’s executive board to ensure that voting on the USD 12 bn, three-year extended fund facility goes smoothly, an anonymous government source told Al Shorouk. The source expects the vote to be held before the end of August end and for Egypt to receive the first tranche of the funding within six-to-eight weeks. The government is also working on securing funding from the African Development Bank, the World Bank, and the Gulf Cooperation Council countries around the same to ensure that Egypt has the firepower it needs to tackle the parallel market — something the source describes as being at the top of the government’s reform agenda. Tempering expectations of wide-ranging economic reforms, the source says the government received “security recommendations” against hiking commodity prices, warning of potential social discontent. “It is the same advice we have been receiving since decades,” the source says.

CBE targeting offshore black-market activity: The central bank has instructed banks to help it clamp down on black market traders operating outside the nation’s borders. CBE Deputy Governor Gamal Negm asked the heads of bank compliance departments yesterday to report suspicious inbound transfers of EGP. With the clampdown on FX bureaus intensifying, Negm says Egyptian expats have been selling USD for EGP at black market rates, then wiring EGP home to their own accounts or those of family and friends, Al Mal reports. The CBE is also concerned about the use abroad of debit cards and of credit card cash advances, including the widespread practice of cardholders applying for supplemental cards in the names of family members.

The crackdown on the parallel market is slowing-down the clearance of imports, especially as Maersk has decided to charge importers in USD for their services, joining shipping companies such as CMA CGM, Hamburg Sud, SCA Logistics and others, said Ahmed Mostafa, head of Alexandria’s union of customs brokers, Al Borsa reported on Monday. He added that the move has already taken its toll on ports, where commercial goods and raw materials are piling up. Importers have called for the government to step in as they find it increasingly difficult to source FX in light of the crackdown. USD-denominated fines have begun to accumulate as a result of delayed clearing. Importers had previously claimed it might be illegal for shipping agencies to charge in USD, as former Prime Minister Ibrahim Mahlab had issued a decree barring payment for services in Egyptian ports in foreign currency.

Compromise on VAT fails: House Budget Committee to recommend 12% rate. The House of Representative’s Planning and Budget Committee will recommend a baseline value-added tax rate of 12% in its report to the House, said deputy committee chair Yasser Omar. The report is due next week. The Ismail government has consistently pushed for a 14% rate, hinting it would only consider moving to a lower rate if the list of exemptions were to be pared-back. The committee has countered by saying the list of exemptions should be expanded. The House as a whole has the power to accept the committee’s recommendation, side with cabinet or pick its own rate, said committee chair Hussein Eissa. Omar tells Al Masry Al Youm that the committee did get the Finance Ministry to reduce the tax on cooking oils, television sets (yes, that most essential of goods) and refrigerators.

We’re not firing bureaucrats, we’re slowing down their hiring. That was the gist of the government’s strategy to fight the EGP 10 bn growth spending on civil servants’ salaries to EGP 228 bn this fiscal year, said Deputy Finance Minister Mohamed Maeet, AMAY reports. The government has no plans to slash salaries, but will slow the pace of hiring. This is a far cry from the much-needed reforms promised under the Civil Service Act, which was watered-down by the House of Representatives to the point of being unrecognisable.

Thank you, low oil prices: State spending on petroleum subsidies has dropped 23% y-o-y in FY2015-16 to EGP 55 bn, Tarek El Hadidi, Chairman of EGPC, told Reuters. The amount also came below the EGP 61 bn budgeted for during the fiscal year. Egypt is targeting a further reduction in spending on petroleum subsidies to EGP 35 bn in FY2016-17, the newswire notes.

While we’re on subsidies, the Export Subsidies Fund has adopted a seven-point strategy to govern the disbursement of export subsidies this year, said Industry and Trade Minister Tarek Kabil. “The higher up you are on the value chain, the greater the export subsidy,” said Kabil. Export markets and maritime routes will also be a factor in subsidy eligibility, with the Russia-Black Sea, the European Union (by way of Italy), Kenya-Tanzania, West Africa (by way of Cote D’Ivoire) routes getting preferential treatment. Subsidies will also be granted to companies participating in trade shows abroad, he added. Exporters to Africa will receive a 2% top-up on top of the base subsidy, with the fund covering 50% of expenses, while exports to Russia, China, Latin America, and other “new” markets will see their base subsidies rise 50%.

Exporters based in Upper Egypt and border regions will see subsidies rise up to 50% to encourage their development. SMEs will receive a 2% increase in subsidy, with the fund also covering 60% of costs of obtaining quality certification, and 80% of the cost of participating in trade fairs. Preference will be given to companies that have quality certifications or whose exports are growing. The new policy was received well by industry leaders and a number of association heads, Al Borsa reports.

Eni is investing USD 3.5-4 bn in building a natural gas processing plant in Port Said with a capacity of 2.7 bcf/d. The facility will process gas produced from the Zohr field, Oil Minister Tarek El Molla told Al Borsa. Eni will also connect the plant to the nearby LNG liquefaction plant, he added. The company is currently drilling the fifth out of six development wells that will go into production by the end of 2017 with a capacity of 900 mcf/d, he added.

As many as 10 feed-in tariff (FiT) companies are exploring legal options to bail out of phase one of the FiT program after failing to close funding for their projects because of the government’s insistence on domestic arbitration. Sources in the legal community tell Al Borsa that representatives of FiT companies have been inquiring about potential legal liability if they should back out of their projects. Some companies are looking to recoup funds they paid for the development of the infrastructure at Benban as part of cost-sharing agreements with the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority. As we noted earlier this week, Cairo Solar, ACWA Power, OTMT, SunEdison-Orascom Construction, Scatec Solar, and Engie have confirmed that they will join Abdul Latif Jameel and Enel Green in leaving phase one.

New wheat import regulations outlined by Egypt’s quarantine authority in a letter dated 8 August seen by Bloomberg means shippers will now have to keep ships at port until the agency’s approval is given. The move could increase the cost of shipping to Egypt. The head of the agriculture quarantine office and the spokesperson for the agriculture ministry did not respond to Bloomberg’s requests for comment. The vessel Dorothea Oldendorff has been stuck at the Damietta port since 22 July, with indications that its cargo has yet to be fully unloaded, according to Bloomberg’s ship-tracking data.

** Earnings watch: SODIC reported a net profit after minority interest of EGP 97 mn in 2Q2016, up from EGP 70 mn in 2Q2015. Total revenue recorded in the quarter was EGP 435 mn, up from EGP 301 in 2Q2015. 2Q2016 is highlighted by a 90% y-o-y increase in contracted sales to EGP 1.2 bn as SODIC launched a phase in each of its Villette, Eastown, Courtyards, and Forty West projects. 60% of 2Q2016’s sales came from projects in East Cairo and contracted sales for 1H2016 have recorded EGP 1.9 bn, on track to achieve the full year’s targets. In 2Q2016, the company delivered 201 units, up from 166 units in the same period last year. You can view the earnings release here.

Also reporting earnings:

• Madinet Nasr Housing and Development (MNHD) reported 2Q2016 consolidated net income of EGP 76.4mn on revenues of EGP 259.9 mn, up 41.1% y-o-y.
• Orascom Hotels & Development (OHD) recorded 1H2016 net losses worth EGP 135.8 mn on revenues of EGP 618.1 mn although real estate revenues grew 25.9% to EGP 182.8 mn vs. EGP 145.2 mn in 1H2015. The staggering decline in tourist arrivals is affecting the company’s hotels performance, according to the company’s earnings release.
• Egyptian Resorts Company reported a net loss of EGP 35.4 mn in 2Q2016 on revenues of EGP 5.9 mn. The company had turned in a profit of EGP 184 mn a year ago.
• Orascom Development Holding (ODH) reported consolidated net losses worth CHF 50 mn in 1H2016, a decline from CHF 2 mn in net profit during 1H2015.
• Arabian Cement’s consolidated net profit grew to EGP 143.07 mn in 1H2016 from EGP 124.42 mn recorded in 1H2015.

Medinet Nasr for Housing and Development’s board agreed to convert up to one third of its shares into global depositary receipts, according to a company statement (pdf, Arabic). Under new rules issued on 4 August, domestic firms may not issue new GDRs if their percentage exceeds a company’s free float. Medinet Nasr’s free float is c.46%.

Gov’t appeals Administrative Court’s ruling voiding Tiran and Sanafir sovereignty treaty: The government’s State Lawsuits Authority has filed an appeal with the Supreme Constitutional Court, asking it to overturn a June Administrative Court ruling that voided a border demarcation agreement with Saudi Arabia. The authority maintains the Administrative Court does not have the jurisdiction to rule on matters of sovereignty, Al Shorouk says. The agreement handed the Red Sea islands of Tiran and Sanafir to Saudi Arabia.

Wait, isn’t TBT supposed to be on Thursdays, not Tuesdays? Russia’s Sputnik and state-owned Akhbar Al Youm signed cooperation agreement, according to a statement by Sputnik. “The agreement aims to develop professional cooperation and information exchange on a broad range of topics, including bilateral relations between Russia and Egypt, as well as creating a number of joint media projects,” Sputnik said. Alaa Abdel Hadi, Akhbar Al Youm’s editor-in-chief, who we can confirm is not a hologram spouting soundbites recorded in the 1960s, says "the West controlled the media for a long time and we are happy to cooperate with the Sputnik news agency, which will help us see other aspects of the truth."

“Emerging markets bolstered by carry trade in currencies,” reports the Financial Times. Except, of course, not in Egypt, where the trade is practically non-existent right now given the FX situation. Just to be clear: The piece makes no mention of Omm El Donia, we’re just noting that while other EM are benefitting from the carry trade, it’s doing bupkis for us. (The carry trade is essentially the practice of borrowing at a low interest rate — say, in USD — then buying another asset that’s likely to provide a higher return, such as another currency that grants a substantially higher interest rate. Like, in theory, the EGP. Still foggy on the carry trade? Khan Academy has a reasonable primer that breaks it down. Watch: run time 4:02.)

Bond funds look to EM…Meanwhile, the Wall Street Journal (paywall) notes that bond funds managed by BlackRock, Oppenheimer and Legg Mason are turning to emerging market as antidotes to low and negative yields in the developed world. The paper notes that “Global bond funds raised their emerging-market allocations in the first week of August to 10.6% from 9.8% in February. That is the highest level in about a year, according to the Institute of International Finance. The recent high was a 14% allocation to emerging markets in 2013.”

EM back in favour, but investors take a pass on China: Emerging markets may be back in vogue after recording net outflows in January through March, but “the rush to invest in emerging markets has bypassed the biggest one of all: China,” the WSJ notes elsewhere (paywall). Noteworthy: The chart about half-way down showing net inflows into EM funds moving ‘up and to the right’ at the same time as inflows into China-specific funds craters. “The wariness partly reflects how unnerved global investors remain by markets that have proved exceptionally unpredictable, even by emerging-market standards.”

Driving the conversation this morning: Islam El Shehaby’s snub of Israeli competitor Or Sasson has officially jumped the shark. Writes Bret Stephens for the Wall Street Journal: “If you want the short answer for why the Arab world is sliding into the abyss, look no further than this little incident. It did itself in chiefly through its long-abiding and all-consuming hatred of Israel, and of Jews.” The corrosive impact of anti-Semitism aside, that’s literally the intellectual high point of Stephens’ argument.

Not making headlines in the WSJ: El Shehaby has been sent home in shame by the Egyptian Olympic Committee, according to a widely picked-up Reuters story. And, of course, we got a lecture, too: “As well as a severe reprimand [to El Shehaby], the [Olympics’ disciplinary committee] has asked the Egyptian Olympic Committee to ensure in future that all their athletes receive proper education on the Olympic Values before coming to the Olympic Games.” Forget about the fact that the Egyptian Olympic Committee had already warned El Shehaby before he left Cairo not to pull a stunt, as we’ve previously reported.

Elsewhere in Reuters: David Blumberg and his company’s ambitious grain project gets some love.

Trump pledges to work with El Sisi during speech on immigration and terrorism: Republican presidential nominee Donald Trump delivered a speech in Ohio on Monday in which he outlined his plan on immigration and terrorism. During the speech, Trump promised to “partner with King Abdullah of Jordan, and President Sisi of Egypt, and all others who recognize this ideology of death [radical Islam] that must be extinguished.” Trump’s plan to defeat terrorism will include forcing immigrants to undergo ideological screening tests to determine if they are extremists or sympathetic to extremists, because obviously no terrorist would ever think to just lie. Read the full stream of consciousness transcript here via Time Magazine.

Is there a coverup of the investigations into EgyptAir flight MS804’s crash in the Mediterranean? “The Egyptian civil aviation authority issued 25 bulletins in the first two months after the Airbus A320 crashed, but has said nothing for four weeks,” The Times of London reports (paywall). “This aircraft should never have taken off again from Roissy [Paris] without a repair,” Stéphane Gicquel, the head of the French National Federation of Victims of Attacks and Collective Accidents said, hinting to reports of technical malfunctions found before the plane took off. The Times says that the last report the victims’ families received from EgyptAir was on 25 July and noted that Egypt’s technical investigation committee “has not at this stage indicated when an interim report will be issued.” EgyptAir and the Egyptian Civil Aviation Authority did not comment. An ungated version of the article is available via The Australian.

Ancient Egyptian city is a warning to the world: Jack Shenker writes for The Guardian about Thonis-Heracleion, the sunken Egyptian city, some treasures of which went on display at the British Museum. Thonis-Heracleion is “an eerie reminder of how vulnerable cities are to nature’s forces,” Shenker says. In describing the fascinating history of the sunken city, he warns that Venice, arguably Thonis-Heracleion’s modern-day cousin, is already sinking, and Egypt’s coastline “remains one of the places on earth most vulnerable to rising sea levels, and even the most optimistic projections of global temperature increases could still displace [mns] in the region from their homes.” Shenker hopes the city is not “also a vision of our future.”

Shawkan feels “forgotten”: Jailed photographer Mahmoud Abdel Shakour, commonly known as Shawkan, feels he is becoming “forgotten,” AFP reports. Shawkan was arrested in August 2013 during the Raba’a protest dispersal and is accused of killing policemen and resisting authorities. He was awarded two journalism awards this year. “I wanted to be happy but I couldn’t. Give me my freedom and take the prize,” Shawkan said.

Government-aligned Al Ahram columnist Makram Mohamed Ahmed pens a piece on the increasing prices of essential commodities and the government’s failed attempts at controlling the market. He also criticises the failure to coordinate between the ministries of agriculture, supply, and scientific research to increase animal resources or expand fish farms.

Salah Montasser follows up with a piece on the absurdity of importing non-essential commodities,also inAl Ahram. He gives the example of importing “Spanish watermelons” when Egyptian alternatives are widely available and at a much cheaper price. He says this is an example of conspicuous consumption and should be stopped.

Al Masry Al Youm columnist Amr El Shobaki discusses the context in which the difficult economic decisions have to be made, highlighting the differences between now and during Egypt’s public-sector-driven industrial revolution post the 1952 revolution. The piece is rife with oxymorons, specifically on how “tough” economic reform measures have to be slowed down because the country is going through a “tough” time economically.

Mars at night: 360 Digital art compilation combining 9 bn pixel image of the Milky Way with a photo of Mars at night taken by the Mars Curiosity Rover. (View, image credits: Andrew Bodrov, NASA/JPL Caltech/MSSS, ESO/VVV Consortium)

The combination of horrible acting and intensely gory re-enactments makes this ‘90s workplace video come across as an unacknowledged entry in the Final Destination movie series. (Watch, running time: 4:52)

Saudi Arabia’s cabinet has approved the commencement of talks with Egypt over a potential MoU on extracting natural resources from the Red Sea, state-owned Saudi Press Agency reported on Monday.

Foreign Minister Sameh Shoukry arrived in Beirut on Monday to begin a three-day state visit, the Daily Star of Lebanon reported. Lebanon’s Foreign Minister Gebran Bassil said that FM Shoukry’s visit will focus on proposing solutions to end the presidential vacuum in Lebanon, which has been ongoing since 2014. “The visit will carry new ideas with regard to the way to [resolve] the Lebanese issue. It will be a beginning or reactivation of the situation,” Egypt’s Ambassador to Lebanon Mohamed Badreddine Zayed said in response to a reporter’s question on the nature of Shoukry’s visit.

Egyptian trade delegations will visit New Delhi in September and Moscow in October, Al Borsa reports. Six trade agreements are expected to be signed with India during the visit in September, which will be headed by President Abdelfattah El Sisi. The visit to Moscow is a joint Egyptian-Arab Gulf delegation to explore cooperation opportunities with Russia and Belarus.

EGAS will issue tenders for oil and gas E&P in eight or nine concession in the Mediterranean by the end of the year, Oil Minister Tarek El Molla told Al Borsa, bringing the total number of concessions during the year to 30. The new tender is set to be issued once EGPC Ganope complete the tenders being fulfilled throughout August. EGAS is obtaining the necessary regulatory approval for the concessions it is planning on tendering. Separately, the Oil Ministry is negotiating the price of natural gas from North Sinai with an unnamed IOC, El Molla told Al Borsa. He did not name company or provide any further details.

Russian state-owned energy company Rosneft received RUB 1 bn (c.USD 15.6 mn) for its first ever liquefied natural gas shipment to Egypt through its contract with Egyptian Natural Gas, according to Russian state news agency TASS on Monday, citing Rosneft. The shipment was made to the port of Ain Sokhna.

The Electricity Ministry is in talks with the Finance Ministry to allocate EGP 10 bn in funding for Egyptian Electricity Transmission Company (EETC) projects, an Electricity Ministry source told Al Mal. It is unclear whether this implies that the Finance Ministry will provide the funding itself or secure a loan on behalf the Electricity Ministry, but the source notes that the latter’s subsidiaries are nearing their maximum limits of bank borrowing. The source adds that one of the options the Finance Ministry is considering is taking an equity stake in EETC, rather than resorting to debt to fund the investment.

An unnamed electricity ministry official has reportedly denied that the ministry will stop importing prepaid meters as a result of the FX shortage, Al Shorouk reported on Monday. His claims contradict Electricity Minister Mohamed Shaker’s statement last week that the ministry is relying on domestically produced meters “for the coming period” to avoid sourcing FX and encouraging production. Meanwhile, the Ministry is looking to outsource the reading of electricity meters at homes and plans to launch a tender that will take place next week, with the winners to sign the contract by the end of this year, Al Borsa reported on Monday.

The National Authority for Potable Water and Sewage is set to tender 15 sewage projects, worth EGP 300 mn, in October, an unnamed housing ministry source told Al Borsa. Preference will be given to bigger firms who are likely to deliver the projects on time, which are set to be built in the governorates of Damietta, Gharbia, Beheira and Menoufiya in 8 -12 months’ time depending on the production capacity of each project.

The government’s delay in implementing a blanket reduction of gas prices to USD 4.50 per mmBtu from USD 7 per 1 mmBtu is delaying steel manufacturers plans to increase exports, Ezz Steel Sales Manager Samir Noman told Al Borsa. The reduction would allow steel manufacturers to manufacture billets at full capacity, reducing the nation’s import bill by USD 1.2 bn, according to his projections. The gas price reduction required for all steel factories to work at full capacity will only cost USD 227 mn, said Noman. As we had earlier reported, Trade and Industry Minister Tarek Kabil promised to reduce gas prices to steel factories in September.

The Misr Petroleum Company will complete construction on the Badr City storage warehouse in 2016, and begin operations by early-2017 at a total cost of USD 33 mn, company chairman Mohamed Shaaban told Amwal Al Ghad. The warehouse comes as part of an expansion strategy to build storage facilities in remote areas, he added. Construction began in 2015 after the company completed the Ras Gharib facility, said Shaaban.

Phase four of the Cairo Metro’s third line will be complete by 1Q2018, according to the Central Planning Authority’s Tarek Abu el Wafa. The authority is reportedly considering two offers from a consortia of international banks potentially financing the third stage of phase four.

United Bank of Egypt will be sold off to a strategic investor in 2017, Chairman Ashraf El Kady said, putting a timeline on the potential agreement, according Al Masry Al Youm. El Kady says that several banks and financial institutions were interested, but did not elaborate further. The CBE will be receiving offers from potential buyers by early 2017 at the latest, he added. We had previously reported that the Kuwait Finance House has expressed interest in acquiring the CBE’s 99.9% in the bank.

The IFC has invested USD 839 mn over the last fiscal year in the Middle East and North Africa “to help banks extend trade financing for their clients, boosting cross border trade and spurring economic development,” according to an emailed statement. The IFC says it inked three trade finance agreements in FY2016 with Société Générale de Banque au Liban in Lebanon and NBK Egypt and Al Baraka Bank in Egypt “to help their clients access international markets and import critical commodities, including raw materials, pharmaceuticals, fertilizers, spare parts, and capital goods.”

The New and Renewable Energy Authority (NREA) has received offers from five international lenders — four of them international financial institutions and one a commercial bank — to finance the first phase of Siemens wind farms, sources tell Al Borsa. The banks include the IFC, EBRD, the African Development Bank, KfW Development Bank and Emirates NBD.

Ezz Steel has signed a USD 35 mn multi-year agreement with US-based Harsco Corp for slag and scrap management services in Sadat City, Recycling International reported. The agreement complements Harsco’s existing agreements with Ezz Steel Group in Ain El Sokhna and Alexandria. Harsco hinted at additional plans to deliver metal recovery and briquetting plants to Egypt. The agreement will allow Ezz Steel to develop innovative solutions for its byproducts, Ezz Steel’s co-managing director Hassan Nouh said.

The Egyptian Financial Supervisory Authority (EFSA) has handed down new regulations governing the licensing of real estate appraisers, Al Masry Al Youm reported. The regulations stipulate the company must be a joint stock company, the board must include an Egyptian member, and the managing director must also be listed under the EFSA as a real estate valuation expert, EFSA Chief Sherif Samy said.

Opposition politicians and former presidential candidates Hamdeen Sabahi and Abdel Moneim Aboul Fotouh are reportedly under investigation by the Prosecutor General’s office for espionage following their alleged attendance of a Hezbollah conference in Beirut last month, Ahram Online reported. The complaint was lodged by a lawyer ‘in his capacity as a citizen.’

The unemployment rate declined to 12.5% in 2Q2016 from 12.7% in 1Q2016, Reuters reports, a 2.9% y-o-y rise in the size of the workforce to 25 mn.

Twenty-two people were killed and 11 were injured on Monday as a result of the collision of two buses on the Meet Ghamr-Aga road in Dakahlia after the tire of one of the vehicles blew out, Aswat Masriya reported, citing the Ministry of Health spokesperson.

Cowpeas, of which black-eyed peas are subspecies, are a substitute for soy in meat products, the Egyptian Agricultural Research Centre has found, science portal Scidev reported. The centre produced a burger made with cooked cowpea that it thinks might be worth selling at state-subsidized retail outlets to replace soy additives, which fell out of favour in Egypt following reports it affects fertility and [redacted] performance in men.