Back to the complete issue
Monday, 18 February 2019

Egypt to sign hedging contracts for FY2019-20 in two weeks

EXCLUSIVE- Egypt could sign hedging contracts for FY2019-20 in two weeks’ time: The government could sign in as little as two weeks’ time contracts to hedge against the price volatility of fuel, imported wheat and cooking oil, a senior government official told Enterprise. The contracts begin in FY2019-20 to help ensure Egypt meets its budget deficit target in the coming financial year. The Finance Ministry has received 20 offers from global and GCC-based institutions, the official said.

Background: We noted earlier this month that the government was considering hedging against the prices of strategic imports, including wheat and petroleum, starting from July. Finance Minister Mohamed Maait said a day later at a press conference that the mechanism has in fact been put in place, but that a time frame had not yet been decided. Last December, the government pulled back from two fuel hedging contracts as crude prices turned lower than expected. The ministry at the time was also working to expand its hedging strategy to include wheat and other commodities.

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 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; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.