TL;DR

EFG Hermes is gearing up to enter emerging markets within the next 18 months. (Speed Round)

Leonardo DiCaprio encounters an Egyptian journalist at the Academy Awards. How do you think it went? (Worth Watching)

More airlines threaten to halt Egypt ticket sales if ban on repatriation continues. (Speed Round)

Egypt tourism revenue down USD 1.3 bn since the Metrojet crash – PM. (Speed Round)

Nestle is pushes ahead with plans to invest EGP 1 bn in Egypt despite challenges. (Speed Round)

“Belady” certificates to offer annual returns of up to 5.5%. (Speed Round)

Cyprus has no claim to a share of the Zohr supergiant gas field, Eni says. (Speed Round)

EGAS to issue tender for third FSRU next month. (Speed Round)

Japan to take part in Egyptian projects worth USD 18 bn + El Sisi meets Mitsubishi Heavy Industries, Mitsubishi Hitachi Power Systems presidents. (Spotlight)

Renewable energy authority to arrange EUR 180 mn for Siemens project next month. (Energy)

China to begin Textile City project in Minya by end of April. (Manufacturing)

By the Numbers

WHAT WE’RE TRACKING TODAY

The second annual Egypt Tourism Briefing kicks off today at the Nile Ritz-Carlton. The event, organized in partnership with the Egyptian Resorts Company (ERC) and Sahl Hasheesh, will discuss planning for investment in the long term and hotel performance forecasts for 2016 with tourism industry experts including the Tourism Ministry’s economic adviser, Adla Ragab, and ERC CEO Mohamed Kamel.

The EBRD is holding a discussion on the Rise of Women Journalists in the Arab World at the EBRD Auditorium in London on Tuesday, 1 March.

WHAT WE’RE TRACKING THIS WEEK

President Abdel Fattah El Sisi is expected to be in South Korea on 3 March to meet with President Park Geun-hye, the prime minister and the speaker of parliament. The president is also expected to sign a declaration on the promotion of relations to the level of Comprehensive Partnership and Cooperation between the two countries, according to an Ittihadiya statement.

The Emirates NBD / Markit Purchasing Managers’ Index for Egypt, the UAE, and Saudi Arabia are set to be released on Thursday, 3 March.

ON THE HORIZON

The government will present its plan to the House of Representatives in the second half of March, announced Prime Minister Sherif Ismail, saying the plan was a collaborative effort and that parliament was a partner to the executive branch of government. The delay in the announcement had been reportedly due to procedural setbacks from within the House.

The 12th Annual EFG Hermes One on One 2016 runs next week from 7-9 March (Monday-Wednesday) atAtlantis, The Palm in Dubai.

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LAST NIGHT’S TALK SHOWS

Lamees El Hadidy dwelled on relations with Japan as President Abdel El Fattah El Sisi’s “milestone” visit got underway, saying it was the first time an Arab leader has spoken at the Japanese parliament. She touched on the fact that Japan would provide 2,500 scholarships for Egyptian students annually, while hammering home her belief that Egypt needs to learn from Japan when it comes to its educational system. We won’t be holding our breath.

(On that note, Prime Minister Sherif Ismail called on the private sector to be an active partner in developing Egypt’s education system, but stipulated that it must be regulated, he said during an an interview on the Ana Masr program on Egyptian state television hosted by Al Moataz Bellah Abdel Fattah, AMAY reports. He scored Egypt’s education system 6 out 10, apparently choosing to ignore Egypt’s second-to-last ranking of 139 out of 140 in last October’s Global Competitiveness Report. Ismail acknowledged that the government needs to focus on bettering the position of the country’s teachers and training them, developing more schools, and upgrading performance reviews and administration of the schools.)

But back to El Hadidy. The host segued into comments about CBC’s silence on the Khairy Ramadan controversy after a guest delivered a blanket insult to Upper Egyptian women on his show. The Chamber of Audiovisual Media Industry cleared Ramadan of any wrongdoing. El Hadidy said both she and the station should have defended Ramadan, but didn’t “out of respect for the law.” We’d like to remind readers that both CBC and El Hadidy washed their hands of Ramadan earlier last month during the debacle. She also took a moment to ask authorities to strictly implement Egypt’s Media Law, which “has been put to sleep in the government’s drawer.”

The liveliest segment of the show came in the form of a heated in-studio debate between several members of the house of representatives commenting on the recent proposal to increase the ratio required to form a coalition in the parliament to at least 25%, which subsequently and unsurprisingly created chaos and led to mass exits from yesterday’s session. Wafd party member Talaat El Seweidy said the proposal was unfair for all members except those who belong to the Support Egypt bloc, which has around 270 MPs (45% of parliament). He added that the fact that a coalition needs at least two or three members from 15 governorates makes matters more difficult. However, Support Egypt’s Salah Hasaballah and Support Egypt leader Sameh Seif El Yazal, during a call in, argued that around 304 MPs already approved the proposal. Independent MP Mohammed Al Akkad complained that Speaker of the House Ali Abdel Aal did not give them enough time to discuss the matter.

Abdel Aal was also the inspiration for an hour-long outburst by Ibrahim Eissa, who described him as “without a hint of political experience” and “an obedient employee” who deems any opposition as unpatriotic. Eissa then lashed out at the conspiracy-theory-obsessed mentality that has Egypt by the neck. He added that anyone who questions the authorities in Egypt is seen as “conspiring” against the country, presenting, among many others, Qatar and Italy as examples of such accused conspirators.

Amr Adeeb’s guest last night was footballer Ahmed Hossam, otherwise known as Mido, who is currently in a highly entertaining feud with the infamous MP Mortada Mansour — but who isn’t at this point? The Zamalek president sacked Mido just a few weeks ago when Zamalek were defeated at the hands of their arch rivals Al Ahly. On the show, Mido accused Mortada of allegedly ordering him not to play certain Zamalek players because they were under the influence of witchcraft. “Mortada called me into his home along with [assistant coach] Hazem Emam and told us not to play striker Bassem Morsi and Kahraba because they’re [under the influence of] witchcraft,” Mido said. “I was dumbfounded” — honestly, so were we at this point in the program. Mido proceeded to review Mortada’s history with Zamalek, including when members of the Zamalek fanclub the White Knights assaulted him in front of the club’s headquarters two years ago and the time he insulted a general during a game, among others. (Watch here, run time an incredible 59:57)

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SPEED ROUND

EFG Hermes is gearing up to enter emerging markets within the next 18 months, CEO Karim Awad tells Reuters’ Arabic service. EFG Hermes’ plan is to evolve from being an investment bank focused on the Arab world to one with a wider scope focused on emerging markets as a whole within “a year to a year and a half.” The company sees some emerging markets expanding rapidly soon and “want to be there from the start,” Awad says. “We still care about Africa, but we are just waiting for the right time to enter,” he adds. Domestically, Awad said the impact of acquiring Tanmeyah Micro Enterprise services will reflect on EFG Hermes’s financial statements starting 2Q2016. He also denied rumours of a share buyback, saying he prepares to use liquidity to expand operations. Commenting on OTMT’s impending acquisition of CI Capital, Awad welcomed the entrance of “an investor of Naguib Sawiris’” size to the market, but maintained that EFG Hermes remains the “biggest player” in the Middle East market.

British Airways has threatened to halt flights to Egypt until it is able to repatriate its revenues from the country, says Tourism Minister Hisham Zaazou, who promised airlines that the issue would be resolved next week. This comes amid threats by a number of U.S. airlines and Brazil’s TAM Airlines to halt sales of tickets in Egypt if they cannot repatriate funds from Egypt, says head of the Egyptian Travel Agents Association Elhamy El Zayat. These airlines have joined Air France-KLM, which threatened to stop sales in Egypt over the past two weeks. El Zayat tells Al Borsa that foreign airline revenues trapped in Egypt amounted to USD 480 mn. The cabinet discussed a number of proposals to placate the industry at a meeting on Sunday, including a gradual ease of restrictions. El Zayat, however, states that this proposal would not be accepted by some of the airlines. Zaazou says he will be talking with the central bank and the airlines throughout the week.

And while we’re on the woes of the tourism industry: Egypt’s tourism revenue dropped roughly USD 1.3 bn since the Sinai Metrojet crash last year, Prime Minister Sherif Ismail said in a televised interview on Monday, Reuters reports. “After the plane crash, over the past three or four months, we lost around USD 1.2 bn or USD 1.3 bn in revenues,” Sherif said.

Nestle is reportedly pushing ahead with plans to invest EGP 1 bn in Egypt over the next few years despite the FX crunch making it difficult to finance imports and repatriate profit, Reuters reports. In fact, business has grown despite the challenges, says CEO and chairman for North East Africa Yasser Abdul Malak, adding that the group makes 70% of its products locally and has managed to finance imports because banks prioritize essential foods when it comes to USD allocation. And while the conflict in Libya hit exports from Egypt, Abdul Malak says Nestle is expected to reach almost double-digit growth in the North East Africa region in five to 10 years. Abdul Malak adds that Nestle has not repatriated profits for years and has not repatriated royalties for months. “It is very important to also appreciate that the solution is not necessarily reducing imports. The solution is to increase exports,” he says.

Cyprus can’t claim a share of the Zohr supergiant gas field, Eni says: All of the natural gas in the Zohr gas field is on the Egypt side, Eni says, dashing Cypriot hopes that some volume might have crossed to the Cypriot side. “The comprehensive formation evaluation program confirmed the same gas-water contact and connection with the discovery well showing Zohr as a single and continuous mega tank of natural gas, fully comprised in the Egyptian Exclusive Economic Zone (EEZ) and within the Shorouk Block,” Eni announced, according to In-Cyprus.

…Speaking of Eni, Bloomberg says it has “led all its peers in the proportion of new resources it added to offset the oil and natural gas it pumped during the year” and that’s before including the gas in Zohr. In contrast, Shell is posting the worst reserve replacement ratio.

EGAS to issue tender for third FSRU next month: EGAS plans to issue a tender for a third floating storage and regasification unit (FSRU) in the second half of next month, Al Shorouk reports. A source says EGAS is looking for a vessel with a capacity to regasify over 600 mcf per day. SUMED is already preparing the Ain Sokhna port to receive the third FSRU and its works there should be completed before its arrival, EGAS Chairman Khaled Abdel Badie had said.

“Belady” certificates to offer annual returns of up to 5.5%: The Belady USD-denominated certificates banks are issuing to Egyptian expatriates starting today will be offered by National Bank of Egypt (NBE), Banque Misr, and Banque Du Caire. The certificates will offer maturities of one, three, and five years, carrying yields of 3.5%, 4.5%, and 5.5%, respectively, according to Reuters. NBE Chairman Hisham Okasha says the bank will not collect any fees from Belady subscribers for the transaction, Al Masry Al Youm reports. Deputy CBE Governor Lobna Helal says the central bank guarantees that certificate holders will be able to repatriate interest payments continually as well as the principal upon maturity, Al Ahram reports.

“Egypt cancels 5-year T-bond issue, 10-year bond yield jumps,” runs the Reuters headline atop a piece by reporter Asma Alsharif, noting that the first cancellation since the summer of 2014 signals that “the finance ministry would not let yields rise too high. … Bankers say state-owned banks had been suppressing yields at auctions in order to keep government borrowing costs from rising but in the last three auctions yields have jumped.”

MOVES- LG Electronics has appointed Don Kwack as the new Managing Director for LG Egypt. According to the company press release, Kwack served as the Head of Home Appliance & Air Solution Company, EU/CIS/China region Sales & Marketing Function Division for LG Electronics. Also announced getting new responsibility: The UAE’s Mashreq Bank appointed Aladdin Omar Al Deesi as its new Regional Head of Distribution for the UAE, Qatar and Egypt, CPI Financial reports. Al Deesi has over 17 years of experience in the finance industry, holding positions in corporate banking, wealth management, distribution and in the SME sector at Citibank and Emirates NBD.

…In what was probably his first interview after assuming the post, Kwack said new LG investments in Egypt are contingent on government policy transparency and the ease of importing inputs. Al Masry Al Youm writes that Kwack criticised changes to customs and tax regimes, with the former causing LG to increase its prices domestically by 35%. He added that LG Egypt did not manage to generate any profits last year and required direct support from its parent company.

Why does Egypt pay only 2% of the price of Sovaldi? Because “it’s something we should do,” Gilead Sciences’ executive vice president of corporate and medical affairs Gregg Alton tells Bloomberg. Alton’s “disorienting job” to “sell a USD 1,000 pill for USD 10 without losing money” is profiled by Bloomberg. “The Egyptians ‘were relentless’ in pursuing [an agreement], Alton says, with government physicians tracking down his team at a conference in Amsterdam after seeing data on the drug before it was approved by the U.S. Food and Drug Administration.” A surprise from the report: even after selling Sovaldi for 2% of its U.S. price in Egypt, it is still above the manufacturing cost. However, Alton refused to talk about Gilead’s margin in Egypt, saying that there are other expenses “including for marketing, educational and legal matters.” According to Doctors Without Borders’ Rohit Malpani, Gilead is “still making a substantial amount of money.” Alton added that his team is continuing to strike agreements “in countries where it might sell discounted Sovaldi; he says it’s working now on China and Mongolia,” even if this is overshadowed by “reverberations from the U.S. sticker shock.”

Yes, Salma, there is such a thing as unicorns: UAE online retailer Souq.com wins USD 275 mn in investment from Tiger Global, Naspers: New York-based Tiger Global Management and South Africa’s Naspers invested USD 275 mn in the latest fundraising round for Souq.com, according to a statement from the UAE-based online retailer. Souq.com also notes it added a number of other investors, including Standard Chartered Private Equity, the International Finance Corporation (IFC), and others. TechCrunch says this makes Souq the Arab world’s first “unicorn” — a tech outfit valued at USD 1 bn or more, but notes that “Ronaldo Mouchawar, CEO and co-founder of Souq tells us it’s because he’s more focused on growing and doesn’t want to distract his team with unicorn talk.” The story is also getting plenty of love from the New York Times, Bloomberg and Reuters. The company’s statement notes that the Mideast e-commerce market should be worth about USD 20 bn this year. The company plans to use a good chunk of the cash to shore up its mobile application, the Times reports, quoting Mouchawar as saying 70% of purchases in KSA, the region’s second-largest e-commerce market, are made on mobile. Souq has operations across the GCC (with the exception of Kuwait, which it’s looking to serve from Dubai starting this year) and in Egypt.

Chris Rock’s opening monologue to the 88th Academy Awards, take two: We apologize that the link we had in yesterday’s issue was taken down almost immediately after dispatch. We’re not sure if this will still be around this morning, but hey, at least we tried. (Watch, running time: 10:34)

SPOTLIGHT on El Sisi’s state visit to Japan

Japan’s Prime Minister Shinzo Abe promised Egypt economic assistance including USD 17.7 bn in business projects with Japanese companies at a joint press conference with President Abdel Fattah El Sisi, Reuters reports. The two promised to launch an education cooperation initiative that would see 2,500 Egyptian students studying in Japan. Education had been a focal point of the president’s trip to Japan, and he plans to visit an elementary school on Wednesday before he leaves.

Meanwhile, Japan’s Nikkei news organization has a very solid English-language wrap-up on El Sisi’s visit, including what it’s billing as an exclusive on news that “Japanese trading house Marubeni may help build Egypt’s largest power plant.”

Egypt also officially signed the three loan agreements with Japan, worth about USD 500 mn, we’d reported on yesterday. International Cooperation Minister Sahar Nasr the agreements with representatives of the Japanese government and President of the Japan International Cooperation Agency (JICA) Shinichi Kitaoka, DNE reports. President Abdel Fattah El Sisi also met with Kitaoka to talk enhancing cooperation with JICA to implement more projects, particularly in energy, transportation through establishing underground lines, and the Grand Egyptian Museum, according to an Ittihadiya statement.  Among the agreements is a USD 50 mn financing agreement for a solar power plant in Hurghada, says the head of the New and Renewable Energy Authority Mohamed El Sebky, Al Mal reports.

President Abdel Fattah El Sisi met with the presidents of Mitsubishi Heavy Industries and Mitsubishi Hitachi Power Systems yesterday to talk about the projects studied by both companies in Egypt, including the rehabilitation of a number of existing power plants, providing high-efficiency turbines for natural-gas-fueled power plants, providing modern technology for coal-fired power plants and playing a part in the Suez Canal Area Development project. “El Sisi’s visit to Japan will witness the signing of two Memoranda of Understanding (MoU); the first for studying the establishment of a power plant and a water desalination station in East Port Said zone; and the second for studying the establishment of a coal-fired power plant,” according to an Ittihadiya statement.

And more news coming out of the Japan visit: President Abdel Fattah El Sisi delivered a speech in front of Japan’s National Diet yesterday, highlighting “parliamentary cooperation between the two countries, as an important channel to enrich bilateral relations,” according to an Ittihadiya statement. The speakers commended Egypt’s political and economic progress, and noted its “influential role in the Middle East, as a cornerstone for security and stability.” El Sisi noted Egypt’s role in the peace process in the Middle East, despite its difficult conditions, citing a permanent solution to the Palestinian issue as the only solution to restore stability in the region. El Sisi expressed “hope to restore the flow of Japanese tourism to Egypt, affirming that Egyptian authorities will spare no efforts in preserving the security of its visitors from any part of the world.”

THE MACRO PICTURE

China cut the amount of money lenders must lock away in required reserves by 0.5 percentage points yesterday, Bloomberg writes. FT (paywall) estimates that the cut will “inject about Rmb 690 bn (USD 106 bn) into the banking system … and brings the ratio for big banks to 17 per cent.” Chinese stocks gained while the CNY weakened following the announcement. China also said on Monday it expects to lay off 1.8 mn workers in the coal and steel industries (about 15% of the workforce) to reduce industrial overcapacity. “It was the first time China has given figures that underline the magnitude of its task in dealing with slowing growth and bloated state enterprises,” Reuters reports.

Consumer prices in the euro-area dropped to -0.2% in February, with core inflation falling to 0.7% from 1% last month, according to Eurostat. “The median estimate from economists surveyed by Bloomberg was for headline inflation to remain unchanged, so [the] disappointing number will serve to increase pressure on the ECB to ease further at its policy meeting next week,” Bloomberg writes.  The euro currency dropped following the release while German sovereign debt yields fell once again.

EGYPT IN THE NEWS

While Japanese and African news sources have been preoccupied with President Abdel Fattah El Sisi’s visit to Japan, other foreign coverage has been a bit thin on Egypt the last few days. Case and point: Bloomberg is now catching up to the Tawfik Okasha shoe debacle. “An Egyptian lawmaker and supporter of President Abdel-Fattah El-Sisi was struck by a shoe wielded by a colleague on Sunday after he met the Israeli ambassador to Cairo,” according to the piece.

Al-Monitor pens a piece about Egypt / Congo relations under the umbrella of the GERD and Inga Dam. Egypt’s Electricity and Energy Minister of Mohamed Shaker tells Al-Monitor, “We will provide technical, technological and engineering support for the construction of the Inga Dam,” as GERD talks come to a standstill and Egypt looks to strengthening its relationship with other Nile upstream countries. Congolese Minister of Energy and Water Matadi Gamanda tells Al-Monitor, “The completion of the dam is facing major challenges in terms of design, financing and management, and we hope Egypt will cooperate with us on facing these challenges.”

BBC caught wind of TV presenter Reham Saeed being sentenced to six months in prison and fined EGP 10,000 for defaming harassment victim Somaya Tarek on her TV show in October 2015. The court also sentenced Saeed to a year in jail for “violating [Tarek’s]  personal freedoms,” according to Ahram Online.

A U.S. Air Force veteran is facing trial for supporting Daesh, Reuters reports. “Tairod Nathan Webster Pugh, 48, was detained by Turkish authorities in Istanbul in January 2015 after he returned from a year-long stint living in Egypt … U.S. investigators say they found a letter to Pugh’s Egyptian wife on his computer declaring his intention to “defend the Islamic States” and saying he had only two options: ‘Victory or Martyr’.” Pugh is being charged with attempting to provide material support to a terrorist group and with obstructing a federal investigation.

WORTH READING

“I want to send a clear message to others in our region that change happens by our hands only. Our region does not need a super-strong external power to stop its decline,” says Sheikh Mohammed bin Rashid in an op-ed in Project Syndicate, adding that the UAE is working for “a future of happiness, tolerance, and youth.”  His formula: national development based on core values (including tolerance), led by youth, and focused on a future in which everyone achieves happiness.

WORTH WATCHING

Leonardo DiCaprio struggles to understand what the [redacted] an Egyptian journalist from Youm7 is asking him about him winning an Academy Award, Allah Yekhrbetkom: Our country is once again shamed by the rogue actions of an Egyptian released into the wild without proper supervision, as Egyptian journalist Shaimaa Abdel Moneim from Youm7 (where else?) tried asking something, who knows what, of Leonardo DiCaprio backstage at the 88th Academy Awards. The following video link is from Variety, in case you were wondering just how far and fast our collective scandal has travelled. (Watch in English, sort of, running time: 1 minute).

DIPLOMACY + FOREIGN TRADE

Italy denies recalling its ambassador in Egypt: The Italian Embassy in Cairo has denied reports that it is recalling its ambassador over the Giulio Regeni murder case, Al Ahram reports. The embassy clarified that the rumors were based on a report citing an Italian newspaper that does not reflect the government’s opinion.

Egypt has relaxed restrictions on imports from Japan, allowing seafood imports under the condition they are cleared by the Japanese government and shown not to include radioactive materials, Al Masry Al Youm reports. Other imports will be scanned at their port of arrival, in accordance to adopted European regulations. The blanket ban on importing scrap metal is maintained. Egypt banned some imports from Japan after the Fukushima disaster and a number of Japanese exporters and officials had complained that Egypt’s restrictions were even harsher than the European Union’s.

The Foreign Affairs Ministry is lobbying Arab foreign ministers to ensure that Egypt’s candidate succeeds Nabil Elaraby as the Arab League’s Secretary General. While the ministry did not name the candidate, it is widely speculated to be former Egyptian Foreign Minister Ahmed Aboul Gheit, DNE reports.

The ongoing destabilization in Libya is behind the postponement of signing an agreement that would see Egypt import 2 mn barrels of crude oil per month from the eastern Libyan oil fields under the control of the internationally recognized Tobruk government, Al Mal reports. The agreement, which was negotiated back in December, would see Egypt buy crude at a discounted price of USD 2.5 per barrel in exchange for rehabilitation services to bombed Libyan fields and destroyed oil pipelines. The first shipment of the agreement was originally intended to arrive in January.

ENERGY

Renewable energy authority to arrange EUR 180 mn for Siemens project next month
The New and Renewable Energy Authority is looking to complete negotiations with domestic and foreign lenders for EUR 180 mn next month to fund the first phase of the 2,000 MW wind farm Siemens is building. The first phase of the project will generate 180 MW, sources within the authority tell Al Borsa. The authority is looking to finance 60% of the project through international finance organizations and is currently negotiating with the EBRD, IFC, the KfW Development Bank, and AfDB, the source adds. The remaining 40% will be financed through domestic banks, including NBE, CIB, and Banque Misr. The total cost of the wind farm projects is EUR 2 bn. (Read in Arabic)

Prime minister studies solar power project with SkyPower
Prime Minister Sherif Ismail met with a delegation from Canadian renewable energy producer SkyPower to discuss developments on the project to build a 300 MW solar power plant in West Minya, ahead of signing the final agreement, Al Shorouk reports. The project includes manufacturing the solar panels that will be used in the plant, says PM spokesperson Hossam Qawish, and will help bring additional experience in the field of renewable energy to Egypt. (Read in Arabic)

Seven companies sign cost-sharing agreement for solar power projects in Zaafarana
The New and Renewable Energy Authority is signing cost-sharing agreements with seven companies that qualified to build feed-in tariff projects, sources within the authority tell Al Borsa. The seven companies are set to build solar power stations with a combined capacity of 305 MW. The cost-sharing agreement divides the cost of connecting the new power plants to the national grid and the cost of necessary infrastructure between the government and investors. The companies are set to pay 30% of the cost within 10 days of signing the agreement, the source adds. (Read in Arabic)

Egyptian Electricity Holding to issue int’l tender for Ataqa plant upgrades after rejecting offers from El Sewedy, Chinese aviation company
The Egyptian Electricity Holding Company is preparing to issue a global consulting tender next week to convert the Ataqa power plant to a combined-cycle plant from a simple-cycle power plant after rejecting offers from El Sewedy Electric and the Aviation Industry Corporation of China, according to head of the East Delta Electricity Production Company Ahmed El Hassany. The USD 350 mn project is hoped to boost the Ataqa plant’s capacity to 960 MW from its current 640 MW. (Read in Arabic)

Egypt invites 16 corporations to bid on 200 MW West Nile solar power plant
The Egyptian Electricity Transmission Company invited 16 companies and consortiums to bid on the 200 MW West Nile solar power plant, Al Mal reports. The companies, who have qualified out of 21 companies that originally bid on the project under the build-own-operate system, include ACWA Power, Masdar, Enel Green Power, Toyota Tsusho, Lekela Power, and EDF. (Read in Arabic)

MANUFACTURING

China to begin Textile City project in Minya by end of April
A delegation from the Chinese textile industries council will visit Egypt at the end of April to begin the Textile City project in Minya after signing of a cooperation agreement between the Egyptian and Chinese councils last week, deputy head of the Supreme Council for Textile Industries Mohamed Qassim tells Al Borsa. General Authority for Investment (GAFI) will handle the land issue. The Chinese companies are waiting for feasibility studies conducted by the council, GAFI, and the Minya governorate. (Read in Arabic)

HEALTH + EDUCATION

Prime minister asks health minister to expand healthcare coverage
Speeding up the implementation of a comprehensive health coverage system in addition to increasing the number of liver transplant and surgery centers were at the top of the agenda in a meeting between Prime Minister Sherif Ismail and Health Minister Ahmed Rady. Additionally, Ismail ordered the immediate implementation of a unified oncology protocol and speeding up the baby formula tender and self-destructing syringe factory that will be built in cooperation with the State Ministry for Military Production. (Read in Arabic)

TELECOMS + ICT

Egyptian business delegation inks seven partnership agreements with Moroccan ICT companies
The ICT Division of the Federation of Egyptian Industries (FEI) signed seven partnership agreements with a federation of Moroccan ICT companies during an Egyptian delegation’s visit to Morocco, according to the division’s VP Hussam El Samad. The past two weeks saw a delegation representing 21 companies hold meetings with over 80 executives from Moroccan companies. The FEI is planning further trips to Saudi Arabia and the UK in conjunction with the Information Technology Industry Development Agency, says ITIDA VP Ehab Mustafa. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Volvo sales drop 12% in February with no plans to release new models
Sales of Volvo cars in Egypt for February are expected to plummet by as much as 12%, says Ahmed Al Shamy, head of Volvo sales at the Ezz Elarab Automotive Group, Volvo’s licensed distributor in Egypt. Al Shamy adds that this was an improvement over January, which saw sales decline 50%. The company has no plans to release any new models as a result of the “CBE’s decisions and FX liquidity shortages,” Al Shamy says. (Read in Arabic)

BANKING + FINANCE

Misr Insurance lands Electrolux Egypt policy
Misr Insurance has landed the asset insurance policy for Electrolux Egypt, formerly Olympic Group, following competition with AIG and GIG. The policy runs for a year and protects factories, machinery, storage, buildings, and vehicles from theft, fires, explosions, and natural disasters as well as covers social insurance for vehicles. (Read in Arabic)

NBE to meet with Chamber of Woodworking and Furniture Industry in Damietta in March to study SME loans
The National Bank of Egypt is set to meet with the Chamber of Woodworking and Furniture Industry in Damietta in March to discuss loans to SMEs with a 5% interest rate as part of the CBE’s initiative to support SMEs. The CBE announced in January it was allocating EGP 200 bn to support SMEs. 25 companies have requested loans so far, says the chamber’s deputy head in Damietta Abdel Halim Al Iraqi, with the number likely reaching 100 by the time of the meeting. The value of individual loans ranges between EGP 5 mn and EGP10 mn, with one of the conditions set by the CBE being sales of between EGP 1 mn and EGP 20 mn. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Malaysia interested in Egypt industrial zone
Egypt and Malaysia are studying establishing a Malaysian industrial zone in Egypt, Ahram quotes Trade and Industry Minister Tarek Kabil as saying. The industrial zone would allow Malaysian industries to make use of Egypt’s international trade agreements, especially in Africa, he adds. The industrial zone in question will be located in the Suez Canal Axis development project, Amwal Al Ghad quotes head of the Egyptian-Malaysian Business Council  Sherif El Gabaly as saying. Egypt is looking to make use of Malaysian expertise in eliminating bureaucracy for investors, he adds.

NATIONAL SECURITY

Egypt discusses equipment contract for Mistral warships with Russia
Negotiations between Egypt and Russia for communication and control systems for the Mistral helicopter carriers have made “serious progress,” a representative from the United Instrument Manufacturing Corporation (UIMC) told Russian state-owned agency TASS. UIMC, the equipment’s manufacturer, maintains that no final decision has been reached. The equipment Egypt needs differ from ones manufactured for helicopter carriers for use in the Russian Navy, the source added. (Read)

ON YOUR WAY OUT

The House of Representatives has agreed to ban Tawfiq Okasha from the next 10 sessions for his comments regarding the House and Speaker Ali Abdel Aal, Al Shorouk reported.

CALENDAR

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

01 March (Tuesday): The second Egypt Tourism Investment Briefing, The Nile Ritz-Carlton, Cairo.

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

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

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

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

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

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)

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

27 November 2016 (Sunday): 2016 Cairo ICT Conference