AM — Canada imposes travel restrictions, gov’t rolls out booster shot program

Good morning, friends, and welcome to December. Our favourite month of the year is kicking off with the return of 2020-style travel restrictions abroad and new vaccine requirements here at home. Is anyone else feeling like a glitch in the matrix has turned us all into extras in some pre-apocalyptic version of Groundhog Day — or maybe Hot Tub Time Machine?

PSA #1- You can’t get into a government facility, Egypt Post branch, or notary office starting today without proof of vaccination or a negative PCR test that’s no older than 72 hours, cabinet spokesman Nader Saad told Kelma Akhira’s Lamees El Hadidi last night (watch, runtime: 14:56).

The exception to the rule: Unvaccinated citizens will still be able to access hospitals for treatment and police stations in case of an emergency.

People who haven’t been vaccinated WILL be able to go to the bank today. Customers can still enter bank branches without showing proof of vaccination — but will need to wear a face mask and adhering to other precautionary measures, Saad said yesterday.

Wait, wasn’t today supposed to be the first “no jab, no bank day”? Indeed it was: Local Development Ministry spokesperson Khaled Qassem made the announcement during a phone-in interview on El Hekaya.

PSA #2- At-risk Egyptians can now register to receive their booster shots: The eligible groups — the elderly, people with chronic medical conditions, and people with high exposure to the virus such as medical staff — who have been fully vaccinated for over six months, can now register to get their booster shots on the Health Ministry’s website (www.egcovac.mohp.gov.eg), Saad announced on Kelma Akhira.

PSA #3- Amid all of the travel restrictions, a faint ray of sunshine: Egyptian expats won’t need to pay to renew Saudi visas from now through February, Saudi Arabia’s General Directorate of Passports announced.

THE BIG STORY ABROAD-

It wasn’t a happy day in US markets yesterday after an ill-timed hawkish turn by Fed chief Jay Powell added fuel to the Omicron-fanned market volatility. Equity gauges across the world were already in the red by the time Powell spoke on Capitol Hill, driven lower by a pessimistic prediction by Moderna’s CEO, who told the Financial Times that there will be a “material drop” in the efficacy of covid vaccines against the new variant. But the sell-off was soon exacerbated by the Fed chairman, who told a Senate committee that the central bank could finish withdrawing stimulus “a few months sooner” than planned due to “high” inflationary pressures.

At close: The S&P 500 and the Dow both lost 1.9% and the Nasdaq fell 1.6%. Brent crude dropped almost 4% to new three-month lows, the greenback declined 0.4%, and US treasury yields fell.

The EGX dodged the blow yesterday, closing before Powell spoke. The benchmark EGX30 closed up just over 1.6%.

“Powell just added gasoline to the fire by finally admitting that inflation isn’t going away as fast as anyone would like,” one strategist told Bloomberg. “A faster tapering is probably coming as a result, and that has markets worried the punch bowl is leaving the party.”

Asian markets are in the green this morning and futures suggest Wall Street will open in the green and shares in Toronto will be flat at the opening bell.

The story is dominating the front pages of the global press this morning: AP | Reuters | Bloomberg | WSJ | FT | CNBC.

CIRCLE YOUR CALENDAR-

It’s a new month. The key news triggers to keep your eye on at the start of December:

• PMI: Purchasing managers’ index figures for November for Egypt, Saudi Arabia, and Qatar will be released on Sunday, 5 December. Figures for the UAE, which normally come out on the same day as Egypt and Saudi, will be released two days later on Tuesday, 7 December.
• Foreign reserves: November’s foreign reserves figures will be released during the first week of the month.
• Inflation: Inflation figures for November will be released on Thursday, 9 December. Data for inflation typically appears on the 10th of every month, but is moved up one day if that falls on a Friday.
• Interest rates: The Central Bank of Egypt’s Monetary Policy Committee will hold its final meeting for the year to review interest rates on Thursday, 16 December.

The new round of Silicon Waha’s Startup Factory will kick off on 10 December at the Assiut Technology Zone. The program will offer marketing tips and tricks for startup founders, who can apply here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: What role does infrastructure play in lessening Egypt’s food insecurity? Last week, we looked at the forces straining our food system. Today, we dive into the infrastructural issues — most of which have to do with supply chain efficiency (or lack thereof) and high levels of food waste — and what is being done to fix these problems.

Oh, Canada… Non-Canadians travelling from or through Egypt are banned from entering the Great White North if they’ve been here in the previous 14 days, the country’s transport minister said last night, as the Trudeau government tightens border restrictions in response to Omicron. Ottawa also added Malawi and Nigeria to the naughty list, making it 10 countries that are now subject to a Canadian ban of some form.

How will it work? Canadian citizens and permanent residents are still able to enter the country if they’ve visited Egypt in the past 14 days, but will need to present a negative PCR test before flying and will be subject to further testing and quarantine after landing. Anyone else who has been through Egypt in the past 14 days will be denied entry.

Wait, it gets better: Citizens and folks with PR need to “obtain, within 72 hours of departure, a valid negative COVID-19 molecular test in a third country before continuing their journey to Canada” if they’ve been in Egypt within the past 14 days. Hit this link for all of the details.

Canada’s health minister hit us with a bit of shade, according to the Globe and Mail, which paraphrases him as having said that Egypt, Nigeria and Malawi “have been added to a list … where the variant has been detected” and noting that Egypt and the other countries “have difficulty measuring what is happening within their borders. But he explained that the decision has more to do with travellers who transit through them, not the citizens of those countries.” And you thought we were exaggerating the other day when we said the state of panic abroad was starting to feel a bit like spring 2020?

Ecuador did the same earlier in the day: Travellers from Egypt, along with seven countries in southern Africa, are now unable to enter the South American nation. A few hours later, Brazil became the first country on the continent to report a case of Omicron.

Is the US next? The US disease prevention body may tighten travel restrictions in the coming days in anticipation of Omicron reaching the country’s shores, Bloomberg reports. Washington last week introduced restrictions that prevent foreign travellers from eight countries in southern Africa from entering the country.

Meanwhile: It seems we probably had NOTHING to do with Belgium’s patient zero: A World Health Organization official has said that there has been no evidence that Belgium’s first case of Omicron was contracted in Egypt, telling the National that “it’s unlikely” that the infection originated here. Earlier this week when the Omicron panic was just starting, a traveller returning to Belgium from Egypt was said to have tested positive for Omicron 11 days after returning home, sparking rumors that she contracted the virus here in Egypt.

And it’s starting to look like Omicron may not be the Andromeda strain —thought it’s admittedly still early. Here’s the state of the science:

• Omicron is more transmissible than past variants — and also seems (so far) to have slightly milder symptoms.
• It may infect jabbed people more easily than did previous variants, according to the chief of BioNTech;
• There will likely be a “material drop” in efficacy of vaccines against Omicron, according to mRNA jab-maker Moderna;
• But existing vaccines will still provide a lot of protection, Oxford University scientists say…
• …and it seems both BioNTech / Pfizer and Moderna could roll out updated jabs within the next 100 days — if necessary

MEANWHILE-

We’re getting another 1.8 mn Johnson & Johnson shots: The Mastercard Foundation and Africa CDC is giving Egypt 1.8 mn Johnson & Johnson vaccine doses, according to a statement. Under the initiative, the Mastercard Foundation is purchasing vaccines for over 65 mn African people.

Egypt has dropped five spots in Bloomberg’s Covid Resilience Ranking to #42 among the 53 countries included. We were #37 in October and #36 in September. The UAE came on top of this month’s ranking, dethroning Ireland due to its high vaccination rates, few covid cases and low death rate.

The Health Ministry reported 949 new covid-19 infections yesterday, up from 911 the day before. Egypt has now disclosed a total of 358,578 confirmed cases of covid-19. The ministry also reported 62 new deaths, bringing the country’s total death toll to 20,474.

Real estate developers may soon be coming under closer scrutiny after the Madbouly cabinet yesterday greenlit new regulations designed to protect consumers and reduce market risk, it said in a statement following its weekly meeting.

Don’t read the statement expecting clarity: Cabinet provided zero details on the regulations that may soon be imposed on developers, saying only that they will introduce “binding standards” governing contract enforcement, marketing, and “maintenance and operation” work. “The controls aim to protect the real estate market and preserve the rights of buyers,” the statement said.

Some of the measures floated so far would really step up regulation of the industry: Officials have been considering rules that would make it a legal requirement for auditors to monitor each developer and file quarterly reports on their projects and activities. At one time, there was a suggestion that companies would be required to create separate financials and / or accounts for each of their projects, allowing auditors to monitor their finances — a logistical and accounting nightmare, we think.

What’s the “consumer protection” angle? Policymakers have been discussing whether to require developers to purchase ins. policies that pay out if they break contractual terms with their customers. Under a presidential decree In August, real estate developers are not allowed to begin selling units until at least 30% of the project is completed.

Then there’s the idea for a new state-regulated industry lobby / quasi-regulator: A separate bill currently in the House would set up a new real estate federation that would be in charge of issuing licenses, monitoring companies’ performances, handing out fines, and managing company-client disputes.

What’s next? The rules will now head to President Abdel Fattah El Sisi for sign-off before being made official through a cabinet decree.

Egypt’s bond menu now includes everything from ESG to women’s empowerment: Companies in Egypt will soon be able to list social, ESG, gender equity and women’s empowerment, and sustainable development bonds on the EGX after the Financial Regulatory Authority (FRA) approved (pdf) yesterday amendments to the executive regulations of the Capital Markets Act.

Incentives to sweeten the terms for investors: Private equity funds, hedgies, and charity organizations will get a 50% markdown service fees charged by the FRA for examining investment certificates if they choose to invest in these bonds.

The FRA has not yet specified the criteria for bonds’ inclusion under these categories. Generally, social bonds are used to raise funds for new and existing projects with positive social outcomes (such as affordable housing) while ESG bonds take into account projects that impact environmental, social and governance principles (such as workplace diversity initiatives or, say, greening your production process). Gender bonds would help finance projects or initiatives that support women’s empowerment such as a program to provide financing to women-led SMEs, while sustainable development bonds can help finance a wide range of projects from sectors including education, health, and sustainable transportation projects.

The rollout comes a year after Egypt first introduced green bonds as part of a debt diversification strategy and a way to support the transition to a green economy. Egypt held the region’s first-ever issuance of sovereign green bonds last year, while our friends at CIB took to market the country’s maiden corporate green bond issuance, completing a USD 100 mn sale in July. A fresh offering of corporate green bonds is reportedly in the works, with unnamed private sector players planning to issue USD 120-200 mn-worth of the climate-friendly securities.

Other types of debt instruments in the works include Egypt’s maiden sovereign sukuk offering that could go to market in early 2022, as well as new “floating rate” bonds being considered by the government.

You think it’s been a crazy-hot year for startups raising funds in 2021? Just wait until next year… Six Egyptian startups — Trella, Bosta, Mozare3, Brimore, Teegara, and Koinz — are looking to raise a combined USD 250 mn in 2022, Bloomberg Asharq reports. It’s unclear how much each company plans to raise, but all of them plan to put the funding towards expansion, whether it’s growing their footprint locally or tapping new markets in the region.

Regional expansion plans: Digital trucking platform Trella is looking to grow its presence in the Gulf, as well as enter sub-Saharan African countries, co-founder and CFO Hatem Sabry told the news website. The platform closed one of Egypt’s biggest series A rounds this year in June, and currently operates in Egypt, the UAE, Saudi Arabia, and Pakistan. Also eyeing the GCC is courier startup Bosta, which is looking to finalize its planned launch in the UAE and Saudi Arabia this month or in 1Q2022, said CEO and co-founder Mohamed Ezzat. Meanwhile, social commerce platform Brimore is heading to Kenya, a big market with advanced payment methods, according to co-founder Ahmed Sheikha. The platform, which connects independent sellers with SME manufacturers to help suppliers streamline distribution, aims to operate with 400 factories by the end of 2022.

Growing in current markets: Food delivery-turned-loyalty and engagement app Koinz plans to expand its footprints in its current markets, Egypt and Saudi Arabia and to double its app users to reach 2 mn, according to co-founder and CEO Hussein Mumtaz. The platform recently reported raising a USD 4.8 mn seed round led by Tinder founder and former CMO Justin Mateen. Agri-fintech startup Mozare3 plans to establish food preparation and packaging stations and expand its footprint to 15 governorates in 2022, from seven currently, according to founding partner Hussein Abou Bakr. The company, which recently landed a seven-figure pre-seed investment, has regional expansion in its 2023 plans, with an eye on Sudan and Morocco, Abou Bakr told Asharq. Meanwhile, e-commerce startup Teegara wants to grow the number of local factories it works with and nearly triple the products on its platform, according to co-founder and CEO Ahmed Kayyali. The B2B marketplace recently closed a five-figure pre-seed round led by Alexandria Angels Network, and angel investors from KSA, Egypt and the Netherlands.

ALSO FROM PLANET STARTUP- Fintech newcomer Klickit has closed (pdf) its first investment round led by EFG Hermes. It will use proceeds to enhance the platform’s tech stack, which will be integrated with EFG’s valU consumer finance arm.

Egypt buys the wheat dip: Egypt’s state-owned grains buyer has taken advantage of a dip in wheat prices to purchase what sources tell Agricensus could be the country’s largest-ever tender. GASC bought 600k tonnes of wheat on Monday, securing heavy discounts from traders as wheat futures fell, according to the website.

International prices have dipped this week on a strengthening USD and fears that the Omicron covid-19 variant could slow the global economy. Chicago wheat futures have fallen more than 8% since last Wednesday as investors pulled out of risk assets in anticipation of a covid-driven fall in demand.

Egypt has capitalized: Egypt agreed an average price of USD 352.37 per tonne FOB, and USD 378.33 (CFR) in Monday’s tender, securing discounts of up to USD 10.75 per tonne, according to Agricensus. GASC purchased 240k tonnes of Romanian wheat, 240k tonnes of Russian wheat and 120k tonnes of Ukrainian wheat.

This could be a record wheat purchase, overtaking a tender for 540k tonnes in 2008, which was thought to be the previous biggest tender.

Global wheat prices have soared this year, reaching a new 10-year high as a combination of poor weather, surging fertilizer prices and export tariffs squeeze supply. Egypt — the world’s biggest importer of wheat — is facing a steeper import bill as its international tenders deliver the steepest prices in at least five years. The government is preparing to start reducing bread subsidies to soften the impact on the state budget, and is looking to prevent further damage with hedging contracts.

State-owned National Bank of Egypt (NBE) is in talks with an Asian development bank to borrow more than USD 600 mn, Al Masdar reports. The loan will be divided into two tranches, the first part of which is valued at USD 600 mn and should be finalized before the end of the year, the bank’s head of financial institutions, Hesham Elsafty, told the newspaper. The value of the second tranche has not yet been agreed but should be signed off on during 1Q2022, he said.

NBE is also negotiating with France’s development finance agency to obtain two credit facilities. The bank has already signed the contract for the first USD 100 mn facility and talks are ongoing for the second.

Big borrowing plans: NBE is looking to borrow USD 1.5 bn from international institutions in 2022, Deputy Chairman Yehia Aboul Fotouh said earlier this month.

This follows a lot of borrowing in 2021: The bank raised a three-year USD 1 bn syndicated loan from a group of banks in May. It also borrowed USD 200 mn from the Asian Infrastructure Investment Bank and the OPEC Fund to channel into infrastructure projects, and a USD 20 mn credit facility from the European Bank for Reconstruction and Development to on-lend to SMEs.

Egypt could be shipping electricity to Iraq by 1Q2022: The project to link Iraq’s electricity grid to Jordan and Egypt should be finished in the next four months, Iraqi Communication Minister Arkan Shahab Al Shaibani told CNBC Arabia yesterday.

This will allow Egypt to export electricity to Iraq via Jordan, which already has a link to Egypt’s electricity grid. Jordan and Egypt earlier this week agreed to double its capacity to 1 GW, which will allow Egypt to send more excess power to Jordan and later Iraq.

Tenders for the project to link Jordan and Iraq will be issued in the next two months, Jordan’s energy minister said earlier this week.

The interconnection project is part of a larger project to eventually link Egypt’s grid to Libya, Palestine, Syria, Lebanon and Turkey. The project has been in the works for years, with major parts of it already completed. It is partly funded by the Arab Fund, and its completion is one of the keys to our bid to become a regional energy hub.

Ramy Salah Eldeen (LinkedIn) has been tapped as Alstom Egypt’s managing director, according to a company statement (pdf). Salah Eldeen is currently the company’s Egypt sales director, and replaces Mohamed Khalil (LinkedIn) who is relocating to head the company’s operations in Saudi Arabia.

Last night’s talk shows brought us many, many experts to give their two cents on Omicron: Yahduth Fi Masr had presidential health advisor Mohamed Awad Tag El Din (watch, runtime: 5:08), Al Hayah Al Youm had medical consultant Hatem Soliman (watch, runtime: 16:13) and Ala Mas’ouleety interviewed an adviser at the World Health Organization (watch, runtime: 33:27).

Human rights once again leads the conversation on Egypt in the foreign press: The New York Times says that the relatively small fine handed to rights defender Hossam Bahgat on Monday after being found guilty of spreading “false news” was designed to keep face abroad while sending a message here at home. Meanwhile, a contributor to Forbes’ blogging platform is calling for US President Joe Biden’s democracy summit to address rights concerns in Egypt and the Middle East. The summit is set to bring together more than 100 countries in Washington on 9-10 December for talks on protecting rights and freedoms globally.

Also making headlines:

• Mohamed Aboutrika called for Muslim players to boycott the Premier League’s LGBT campaign, ruffling feathers ahead of next year’s already-controversial World Cup in Qatar, even as beIN Sports reprimanded the former football star for his comments describing LGBT relationships as an affront to Islam. (Bloomberg)
• Scorpions and global warming: Aswan’s mass scorpion attack in November was apparently one of several unexpected climate change side effects that experts never told us about. (Bloomberg)

Other things we’re keeping an eye on this morning:

• Software company Red Hat is looking to set up shop in Cairo by the end of the year, said the company’s MENA regional general manager Adrian Pickering.
• e-Finance’s digital payments arm Khales signed a cooperation protocol to provide services to Misr Ins.
• The House also approved yesterday the text of the draft law that would regulate the fintech space, Al Shorouk reports. Parliament postponed its final vote on the bill.

Tensions between Russia and Nato rise over Ukraine: Russian president Vladimir Putin has vowed a strong response should Nato deploy missile systems and troops in Ukraine, further raising tensions in the region, Reuters reports. This came in response to the US and Nato, which yesterday warned of “serious consequences” should Russia invade the ex-Soviet state. A buildup of Russian military forces on Ukraine’s border has fuelled speculation in Western capitals that Moscow is planning to invade the country.

Day one of the Iran nuclear talks went pretty well, with EU, Iranian and Russian diplomats all voicing optimism, Bloomberg reports.