Back to the complete issue
Tuesday, 21 March 2017

CI Capital expansion post sale; Kramers cut off from all but oil, rice, sugar; CBE’s lack of clarity on monetary policy,

Hona El Asema’s Lamees El Hadidi was all about the economy last night, covering inflation as well as the role of the Central Bank of Egypt and subsidies.

But first, she spoke to CI Capital chairman Mahmoud Attallah on the conclusion yesterday of CIB’s of the investment bank to a consortium of investors (which we cover at length in the Speed Round). When pressed, Attallah didn’t have much to say about CI Capital’s potential IPO, telling Lamees that the issue has yet to be discussed with CIB. He also told Lamees that CI Capital has reached an agreement with its new shareholders on its expansion plans, including branching out in the UAE and covering GCC markets (watch, runtime 6:19).

Supply Minister Ali El Moselhy phoned in to tell El Hadidi that, as of 1 April, that only cooking oil, rice, and sugar will be covered under the commodity subsidy program (watch, runtime: 6:14). At the moment, welfare recipients can choose to use their EGP 21-per-month subsidy ration to purchase some 56 subsidized commodities. State-owned grocers participating in the system will begin dispensing packages containing the three products, while other products will be sold at market prices. According to El Moselhy, the move would curb subsidies fraud and leakage into the black market. The minister also took the time to explain his efforts to clean up the ration card system by pointing out that out of 91 mn citizens, 71 mn Egyptians are subsidy beneficiaries (watch, runtime 10:34).

The conversation segued nicely into your regular Hona El Asema programming of railing against inflation, with the CBE bearing the brunt of Lamees’ rage last night. She said the CBE is falling short of its mandate of maintaining and ‘inflation-targeting’ monetary policy (watch, runtime 7:25). Union Capital CEO Hany Tawfik phoned in to say that the House of Representatives — of which he’s pleasantly skeptical — has the right to summon the CBE governor and the Finance Minister to explain their policies (watch, runtime: 3:45).

Lamees also covered the finances of the Cairo Metro, with senior Metro official Essam Mounir suggesting the operator will attempt to brave public backlash yet again to hike ticket prices. According to Mounir, the company wants to double ticket prices to EGP 2, as this will be the fastest way to rescue the Metro from its mountain of debt (watch, runtime 6:53). We’ve heard that one before.

Yahduth fi Masr’s Sherif Amer spoke to Deputy Finance Minister for Tax Policies Amr El Monayer about the upcoming stamp tax, which El Monayer confirmed will be referred to today’s cabinet meeting for approval. El Monayer seemed perplexed by the stock market losing EGP 3.7 bn yesterday, maintaining that the stamp tax came as a surprise to no one.

DMC’s Eman El Hossary interviewed Administrative Prosecution Authority head Ali Rezk to talk about corruption (watch, runtime 1:55).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.