Back to the complete issue
Tuesday, 16 August 2022

THIS EVENING: Auf Group snaps up 75.5% of Modern International Confectionery + It’s a mixed bag out in the international press

Happy hump day, ladies and gentlemen. It’s a mixed day on the news front today — not too busy here at home, but not quite what we would call a “slow” day.


Auf Group grabs local snacks player: Egyptian healthy food company Auf Group acquired a 75.5% stake in Modern International Confectionery Co, Auf Group’s Chief Marketing Officer Rasha Ghaly told Enterprise, confirming a report from Al Mal. The acquisition comes nearly a month after UAE’s food and beverages group Agthia’s board approved a proposed acquisition of a majority stake in Auf Group for EGP 2.9 bn.


There’s no single story capturing the attention of the international business press this afternoon. Among the stories getting coverage is an explosion in Russia-held Crimea targeting an ammunition depot, with Ukraine hinting it was responsible for the attack without outright claiming responsibility (Reuters | the Wall Street Journal). CNBC is also on a similar topic, leading its front page with Russian President Vladimir Putin lashing out against the West for “trying to prolong” Russia’s conflict with Ukraine. Elsewhere, the Financial Times’ top story is hedge fund Elliott Management offloading nearly its entire stake in Japan’s SoftBank.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Israeli energy firms want to invest in Egypt’s renewables sector: Israeli gas producer NewMed Energy is lining up a joint venture with Tel Aviv-listed Enlight Renewable Energy to invest in renewables projects across the MENA region.
  • Ukrainian officials are trying to arrange the release of a 60k-ton shipment of wheat destined for Egypt after the ship carrying it was detained last month for investigation into its ownership.
  • Giza Systems is one step closer to being Saudi-owned: Saudi Arabia’s competition watchdog has given the greenlight to Saudi Telecom’s internet subsidiary to acquire a controlling stake in Giza Systems.

CORRECTION- In our coverage this morning of foreign holdings of Egyptian treasury bills, we incorrectly reported the figures for May and June. Based on Central Bank of Egypt FX rates at the end of May and June, foreign holdings in June were USD 8.35 bn, and May holdings were USD 8.10 bn. The story has been updated on our website. H/t Ahmed A.


Consensus in the market is that the Central Bank of Egypt will go for a rate hike on Thursday. We’re updating this morning our interest rate poll from earlier this week after hearing back from another analyst and their crystal ball. As of this morning, six of eight analysts and economists we surveyed see the CBE going for a rate hike: Four are calling a 100-bps hike, one is forecasting a 200-bps rise and another a more modest 50-bps increase. A Reuters poll out yesterday is also calling a rate hike, with the wire service saying the sweet spot is 50 bps.

Expect more details on how gov’t plans to cut back on electricity: The Electricity Ministry will hold a press conference in the next few days to announce details of measures to curb electricity use that cabinet approved last week, Electricity Minister Mohamed Shaker reportedly told Al Mal.

☀️ TOMORROW’S WEATHER- The mercury will rise to 39°C during the day tomorrow before falling to 23°C at night, our favorite weather app tells us.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; 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.