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Tuesday, 17 May 2022

Banking and rail news aplenty + Edita is looking at microfinance

There’s plenty of banking news: The Central Bank of Egypt has joined the global Network for Greening the Financial System (NGFS), a network of central banks and financial regulators that aims to mobilize green finance and manage climate risks in the banking sector, it announced in a statement (pdf) yesterday. Meanwhile, Midbank has received approval from the Financial Regulatory Authority to launch (pdf) consumer finance company Mid Installments, and the National Bank of Egypt has launched (pdf) a WhatsApp service for customer enquiries.

WATCH THIS SPACE: Edita to launch two new companies: Edita’s board of directors has signed off (pdf) on a proposal from management to establish a new holding company and a EGP 15 mn micro lender.

The Anti-Money Laundering Act received a nod from the House Legislative Committee, with the bill up for discussion in the House’s plenary session on 22 May. (Ahram Online)

German rail company Vossloh will supply rail fastening systems for Egypt’s high-speed railway under a EUR 40 mn contract, the company said in a statement yesterday. The first deliveries will begin this year and continue through to 2024.

REMINDER- We’re set to sign contracts for the second and third phase of the railway with Siemens by the end of May. The German conglomerate, Orascom Construction and Arab Contractors signed a USD 4.5 bn contract with the government last September for the first phase of the line, which will run 660 km between Ain Sokhna and Marsa Matrouh and is due to open in June 2024. The later phases will link Cairo, Aswan, the North Coast and the Red Sea, running 1.8k km across the country.

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

  • Industry is safe from higher gas prices for now: There is no intention to raise natural gas prices for the industrial sector in the current period in response to rising international prices, Oil Minister Tarek El Molla said yesterday. (Bloomberg Asharq)
  • AT Lease eyes EGP 1 bn+ securitization bonds: Shari’ah-compliant leasing company AT Lease plans to issue more than EGP 1 bn worth of securitization bonds this year. (Amwal Al Ghad)
  • A new authority for regulating airspace: The Official Gazette has published a presidential decree to set up the National Center for Airspace Management. (Youm7)

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