MPs give initial approval to the Suez Canal Authority’s EGP 10 bn fund: The House of Representatives yesterday gave its initial approval on amendments to the Suez Canal Authority (SCA) law that would establish a EGP 10 bn fund.

A rainy day fund: The fund’s resources will be deployed to help the SCA absorb external economic shocks such as the covid-19 pandemic and the war in Ukraine, the head of the authority, Osama Rabie, said.

The SCA will be able to sell and lease its assets as well as use its financial resources and revenues to capitalize the fund. It’s not clear if this includes canal revenues, which are usually destined for state coffers. Rabie will head the fund’s board and the rest of the board members will be appointed by Prime Minister Moustafa Madbouly.

MPs voice opposition to privatization: A large number of MPs voted down the amendments, claiming that the chief objective of the bill is to sell down assets owned by the SCA. “This is an authority for generating FX for the country and not a company whose assets could be up for sale or privatization,” Rep. Atef El Meghawry said during the session.

The canal’s assets are off limits, those belong to the government and are not up for sale, Rabie told Al Hayah Al Youm in an interview last night (watch, runtime: 5:06). The only assets the fund will be able to sell or lease are those it will invest in.

The fund already has a few investments in mind: The fund could invest in the manufacture of ships and in green hydrogen projects, Rabie added.

What’s next: The amendments will return to the general assembly for a final vote in an upcoming session.

MORE CALLS FOR GOV’T RESIGNATION-

MPs launched attacks on the Madbouly government for its handling of the economic crisis for the second session in a row, and called on ministers to take tougher action to rein in the FX black market and surging food prices. “The failure to contain the FX black market or shore up the country’s FX revenues are two good reasons for dismissing the government,” said Rep. Amr Darwish, who called on the central bank to stabilize the market as soon as possible.

The state took measures to reduce black market trading on Sunday, introducing new rules for gold exporters requiring them to receive payment into a bank account within 10 days of making a sale or face being blacklisted by the banking sector.

ALSO FROM THE HOUSE:

• Penal Code amendments discussion pushed back: The amendments would give utility companies the right to stop servicing housing built on agricultural land.
• The Energy Committee approved a EUR 500k French grant to help Egypt fund its green hydrogen sector, which the cabinet approved in October.