Back to the complete issue
Sunday, 4 April 2021

Up in smoke

Egypt puts tender for tobacco license on ice: The Industrial Development Authority (IDA) has shelved a tender for a license to set up Egypt’s second tobacco company, two unnamed industry sources told Reuters. The bidding round was slated to be held this Tuesday. Companies were informed about the decision one day before the deadline set for submitting the bids, sources added.

So, when is the tender going ahead? Not for a while, by the looks of things. “What we understand … is that the postponement is for an indefinite period … Certainly, the conditions for the auction will be changed if it is held again,” one of the sources told the newswire.

Background: The IDA issued in March a tender for the license, which would have brought to an end Eastern Company’s monopoly on the tobacco industry (with a few caveats). But a few days later tobacco players filed a complaint with the competition watchdog alleging that the license violated antitrust rules, before another complaint was handed to the Federation of Egyptian Industries demanding that the IDA scrap the tender and revise its terms.

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; 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; 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.