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Monday, 25 July 2022

FRA wants to more than double non-bank lending by 2026

FRA wants to see serious growth in the non-bank sector: The Financial Regulatory Authority (FRA) wants to see NBFS lending more than double to EGP 820 bn by 2026, up from EGP 370 bn last year, the regulator said in a statement yesterday. This comes as part of the FRA’s 2022-2026 strategy, which aims to more than double the EGX’s market cap to EGP 1.6 tn.

BAD NEWS FOR EXPORTERS? Exporting products to Jordan will get more complicated starting September: Jordan will impose pre-clearance fees for Egyptian imports and mandate the use of letters of credit (L/Cs) for financing trade with Egyptian companies, Al Borsa reported, citing a letter from the Jordanian government. The move is reportedly a response to Egypt’s new digital customs system, which charges exporters a fee to file documents on the Advanced Cargo Information (ACI) system. Jordan is a significant importer of Egyptian household goods, electronic appliances and machines, and also acts as a transit country for goods heading to Iraq, Sherif El Sayyad, head of the Export Council for Engineering Industries, told the newspaper. The council has called on the government to appeal to Amman and block the move.

FROM PLANET STARTUP- B2B logistics firm Khazenly is looking to expand to the Gulf and grow its footprint in Egypt, co-founders Mohamed Younes and Mohamed Montasser told Asharq Alawsat. The company is looking to enter Saudi Arabia and the UAE but has no timeframe for the move, they told the newspaper. This comes a few weeks after the startup closed a USD 2.5 mn seed round led by Arzan Venture Capital and Shorooq Partners.

Other things on our radar this morning:

  • External debt rises significantly in 3Q: Egypt’s external debt jumped 17% y-o-y in 3Q FY2021-2022 to USD 157.8 bn, according to central bank figures. Long-term debt accounted for around 83% of the total figure.
  • Saudi German Hospitals Group wants to make its hospitals in Egypt green: The Saudi German Hospital is working on applying new “green” measures to its newest hospital in Alexandria, as part of a wider strategy to establish an environmentally-friendly model for its facilities in Egypt, Regional Manager Mohamed Hablas told Enterprise, confirming a report from Al Mal.
  • The government aims to roll out the universal health ins. system in Suez, Aswan and South Sinai before the end of the current fiscal year, after successfully trialing the program in Ismailia, Luxor and Port Said. (Statement)

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