THIS EVENING: Fawry’s grows all its revenue streams in 1Q2022 + BoE raises interest rates to 1.25% amid high inflation + MPs to vote on the budget next week
Happy THURSDAY, friends. We’ve made it through another rather busy week that’s ending on a relatively quiet note at home.
THE BIG STORY TODAY
Fawry grew its revenue streams in 1Q2022, but saw a dip in its bottom line from nonrecurring items: Fawry’s net income fell 63% y-o-y in 1Q2022 to EGP 28.2 mn, according to the company’s earnings release (pdf). The company’s bottom line was impacted by nonrecurring items, including a noncash EGP 19.1 mn expense for its newly-introduced ESOP program. Meanwhile, Fawry’s revenues rose 38.4% during the quarter to come in at EGP 483 mn. The quarter saw Fawry grow all of its revenue streams, with its banking services leading the pack with y-o-y growth of 115.5% due to expanded agent banking and acceptance businesses.
THE BIG STORY ABROAD
The Bank of England raised interest rates by 25 basis points today to 1.25%, according to a statement from its monetary policy committee. The decision shied away from a more aggressive rate hike, with only three of the nine MPC members voting to raise rates by 50 basis points to address rising inflation. Although the BoE signaled it could “act forcefully” in response to more persistent inflation down the line, today’s rate hike — which was lower than expected and lagged behind other central banks, including the US Federal Reserve — drove down the GBP and pushed up yields on UK government bonds. The story is getting front-page treatment in the Financial Times, Bloomberg, and CNBC.
The African Export-Import Bank’s (Afreximbank) annual meetings are on their second day at the new administrative capital, with President Abdel Fattah El Sisi inaugurating the official opening earlier today, according to Ittihadiya. Central Bank of Egypt Governor Tarek Amer also spoke at today’s session, stressing Egypt’s commitment to growing African trade (watch, runtime: 11:16).
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Egypt, Israel and the EU sign gas export agreement: Egypt and Israel will increase gas exports to the EU under an MoU signed in Cairo yesterday that comes as the continent looks to phase out its reliance on Russian fossil fuels.
- Aldar eyeing MNHD? The UAE’s Aldar Properties is reportedly eyeing an acquisition of a majority stake in EGX-listed real estate developer Madinet Nasr Housing and Development (MNHD), but MNHD has yet to receive any formal offers.
- EFG Hermes’ microfinance arm Tanmeyah has acquired B2B e-commerce marketplace Fatura in a stock and cash transaction.
MPs to vote on the budget next week: The draft 2022-2023 budget and the development plan will head to the House of Representatives next week, House Budget and Planning Committee Chairman Fakhri El Fiqi said yesterday. From Sunday, MPs will have three days to discuss the budget, with a final vote potentially being held on Tuesday.
REMEMBER- Under the constitution, MPs have to pass the budget for the next fiscal year before 30 June.
The first workshop in the government’s public consultations on its ambitious state ownership policy document begins next Sunday, according to the online platform for the consultations. Every Sunday and Tuesday will see workshops on specific industries, starting with an agriculture-focused workshop next Sunday and a food industries-focused workshop on Tuesday. Each Thursday is reserved for workshops with the House of Representatives or the Senate, along with think tanks.
Foreign Minister Sameh Shoukry will head to Luxembourg to discuss energy with his EU counterparts, according to Africa Intelligence.
???? CIRCLE YOUR CALENDAR-
We have a date for the Amcham AGM: Our friends over at Amcham will hold their annual general meeting on Monday 27 June at the St. Regis Cairo Hotel. Finance Minister Mohamed Maait will address the gathering.
The Ayady Misr Handicrafts Exhibition is on today and tomorrow in the Tell Basta area in Zagazig, featuring traditional and handmade products from around the country such as pottery, crochet, and home accessories, according to a cabinet statement. You can also shop the collections from the Ayady Misr website.
There’s a handful of conferences coming up next week:
- The Aswan Forum for Sustainable Peace and Development will take place in Cairo later this month on 21-22 June (Tuesday-Wednesday).
- The Big 5 Construct Egypt (pdf) construction industry exhibition runs from 25-27 June at the Egypt International Exhibition Center (EIEC) in Cairo.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
☀️ TOMORROW’S WEATHER- Expect fairly hot weather over the weekend, with daytime highs of 38°C on Friday and Saturday, our favorite weather app tells us. Temperatures will fall to 21-22°C at night.