Economy Plus newsletter brought to you by sponsorship
Headlines
FedEx Express plans to offer the shares of its subsidiary in Egypt on the Egyptian Stock Exchange
The Russian “Severstal” offers to supply raw materials to Egyptian steel companies
The “Rational Commodities” seeks $700 million from the “Islamic State”
3 possible effects on the Egyptian economy due to the Ukrainian war
Magdi Yaqoub offers to settle debts of 380 million pounds with Banque Misr
60 investors complain against the expropriation of tourist lands
The Egyptian Post launches the electronic payment and collection system
Misr Italia intends to issue the second tranche of securitization bonds in the last quarter
Main story
No increase in electricity prices until June, despite the rise in gas
Mohamed Shaker, the Minister of Electricity, told Economy Plus that electricity prices will not be increased at present, despite the increase in gas prices, and that the increase will be due next July. Gas prices rose by more than 27% due to the impact of the Russian-Ukrainian crisis, as Moscow is the second largest gas producer in the world after the United States, and controls about 40% of gas exports to the European Union.
The minister added that the increase scheduled for July will be slight in household consumption within the plan to get rid of electricity subsidies by 2025, and the new increase will start from July readings.
He explained that despite the current high gas prices, the Ministry of Electricity is able to deal with all variables, especially since the newly established units have an efficiency of more than 60%, and there is still stability in supplies and a capacity reserve that exceeds 22,000 megawatts.
He said that with the increase in the productive capacitiesofprojectsrenewable energy will decline. The cost of production It is possible to reduce the value of electricity, especially since the largest part of the cost of production is the value of fuel.
In another context, Al Borsa newspaper quoted the minister as saying that the electrical interconnection projects will not be affected by the Russian war on Ukraine, whether the interconnection with Saudi Arabia, Cyprus and Greece, and soon there will be developments regarding the electrical interconnection with Greece.
Shaker added that Egypt has signeda memorandum of understandingwithCyprus And Greecefor the electrical connection Procedures and consultations are still taking place regarding the supply of cables and connection points, as well as the integrated study of the project.
The most important news
The Russian company Severstal, which specializes in steel production, has offered Egyptian companies working in the steel industry to supply their needs of the necessary raw materials.
These steps came after the decision of the EUEuropean Union countries to suspend the company's sales to it, due to the sanctions imposed on the company's CEO, Alexei Mordashov, in response to the Russian invasion. for Ukraine. Sources in an Egyptian steel company told Al Borsa newspaper that the company had received correspondence from Russia's Severstal regarding the supply of steel raw materials, despite the lack of prior cooperation between the two sides.
The sources added that the disruption of freight traffic due to the escalation of the crisis between Moscow and Kiev prevents his company from signing any import contracts from Russia during the current period. According to the report of the World Steel Federation, Russia's steel production last year amounted to 76 million tons, and thus it ranks fifth among the list of the largest steel producers in the world.
On the other hand, Russia's Ural Airlines suspended its flights to Egypt, from March 14 to May 20, in light of the geopolitical tensions in Russia due to the war on Ukraine, according to Bloomberg, citing Russian media.
Ural had already canceled its flights to a number of countries until March 26, including the UAE, Armenia, Israel and Azerbaijan, as well as suspending its flights to Phuket in Thailand until the end of May.
In a related context, a report by Prime Securities Company predicted 3 possible impacts on the Egyptian economy as a result of the outbreak of the war between Russia and Ukraine, foremost of which is the continued rise in the inflation rate, as a result of the rise in global food prices and food prices. Oil, which has to adjust the annual inflation expectations for the current year.
The report suggested that the Fuel Pricing Committee would resort to raising prices at the end of this month, including oil gas - liquefied gas - with the possibility of increasing the price of diesel.
She explained that investment and trade with Russia has become more difficult than ever as a result of the tensions and sanctions imposed on it, so Egypt began to diversify grain import markets, but this will be costly in light of expectations of a continued level of global prices and shipping costs. High.
The tourism sector will also face great challenges, as Russian and Ukrainian tourists represent approximately 22% of the total tourists to Egypt,” Prime added.
Will FedEx Express offer its Egyptian unit on the stock exchange? This is what Jack Muse, the regional president of FedEx Express for the Middle East, the Indian subcontinent and Africa, indicated to Al-Shorouk newspaper. The newspaper quoted Muse as saying that the company intends to offer part of its company in Egypt on the stock exchange, during the coming period.
He added that the company's direction is to provide its servicesdirectlyto customersin Egypt for the first time. In its history, after 32 years of working with local agents, it came due to the great development in economic growth rates, the volume of trade and exports in the country, and the existence of distinct investment opportunities, especially in light of Egypt’s pivotal geographical location, which is a gateway to Africa and the world, whether in terms of air transport or wild.
The Egyptian General Authority for Supply Commodities affiliated to the Ministry of Supply has addressed the International Islamic Trade Finance Corporation - one of the institutions of the Islamic Development Bank Group - to increase financing in the amount of $700 million to be directed to the import of food commodities, mainly wheat, in light of the high prices wheat globally.
Sources told Al-Shorouk newspaper that an alliance of Emirati banks manages the credit facilities provided by the Islamic Trade Finance Corporation. Increasing it according to the Authority's needs in light of the current prices.
Banque Misr received an offer from businessman Magdi Yacoub, the head of the Tripartite Company for Manufacturing and Trade, to settle the debts owed to him, including offering a hotel in Hurghada for sale, in exchange for paying off the bank’s debts amounting to 380 million pounds, sources told “ Al-Shorouk said that there are ongoing negotiations with several investors to buy assets owned by the businessman.
This indebtedness is the largest debt owed by Magdy Yaqoub, and it is one of the debts that belonged to Banque du Caire, before it was transferred to Banque Misr.
The General Authority for Tourism Development has received complaints from about 60 companies and investors against the decision to withdraw lands previously allocated for the establishment of integrated tourism projects, which the decision to withdraw is due to non-compliance with the terms of the contract regarding the implementation timetable, according to the statement. Sources for "Al-Shorouk".
And she continued: “In the event that the grievance is not accepted, the State Council will be resorted to to challenge the decision to withdraw the lands, which are located in the Red Sea regions, specifically Hurghada and Marsa Alam.
Egypt Post has started applying the non-cash payment system to achieve integration and financial integration for postal customers. Dr. Sherif Farouk, Chairman of the Authority, said that the electronic payment and collection system allows customers to pay traffic fines, school fees, housing projects, and service fees. Postal services, such as transporting parcels and purchasing stamps, through point-of-sale (POS) machines located in post offices all over the country.
The post will expand in the coming period in the fields of e-payment to facilitate shopping and e-commerce services using the “QR code” technology and mobile applications, in line with the state's directions towards Implementing the financial inclusion system,” according to a statement yesterday.
Daker Abdallah, a member of the Construction and Building Committee of the Egyptian Businessmen Association and a member of the Real Estate Investment Division of the Federation of Chambers of Commerce, monitored in a press statement the rise in iron prices since the outbreak of the war by about 1,000 pounds per ton, and iron represents about 15% of the cost of establishing any project in general. General, which leads to an increase in unit prices by about 10%, if the rise in iron prices continues for a long period, especially after the iron companies’ recent decision to increase the price per ton.
Misr Italia Properties intends to issue the second tranche of the securitization bonds program during the last quarter of the year, at a value of approximately 700 million pounds, as part of a securitization program worth 2.5 billion pounds over 3 years, in conjunction with negotiating with several banks to obtain a loan of approximately 1.2 billion. EGP to provide all financing solutions for the company's various projects in agreement with Hermes, the company's financial advisor.
Mohamed Hani Al-Assal, CEO of the company, told Al-Shorouk that Misr Italia targets contractual sales worth 7 billion pounds during the current year, and allocated 3.5 billion pounds during the current year for spending on construction operations for projects and installments. Land due on the date of its payment.
Contact Real Estate Development Company has launched its third project, “Kayo Mall,” in the Administrative Capital, with investments of EGP 1.3 billion, on an area of 7,100 square meters, according to statements by Dr. Ahmed Fekry, the company’s president, to Al Shorouk.
Farag AmerChairman of the Board of Directors of Smouha El Alamein Company for Investment and Development said that his company contracted with El Saada Company to implement the first contracting contract worth 385 million pounds for the Santorini El Alamein project, provided that Carrying out concrete and paint works for 15 residential buildings within two years, within 60 buildings, with a total sales value of 10 billion pounds, according to Al Shorouk.
The Chinese company “CSCEC” has assigned a subsidiary of the Dorra Group to carry out the base works for the construction of 5 towers in New Alamein, with investments of approximately 200 million pounds, according to a statement by sources to Al-Shorouk.
Video of the day
The Egyptian Lotfi Mansour, the son of billionaire Mohamed Lotfi Mansour, is considering making a purchase offer to acquire the English club Chelsea, after its owner, the Russian billionaire Roman Abramovich, announced his sale, after he became threatened with being affected by the sanctions imposed on his country. Will he succeed?
Security
Charles Tawadros, Managing Director of Allianz Life Insurance Egypt, said that his company achieved a 54% growth in its profits to reach 542 million pounds during the previous year, compared to 351 million pounds during the corresponding period of the previous year. In statements on the sidelines of the “Allianz” forum organized by the company last week, Tawadros said that the company’s total investments rose to 11.14 billion pounds at the end of the previous fiscal year, compared to 9.7 billion pounds during the corresponding period, according to the “Amwal Al-Ghad” website.
The website stated that the investment portfolio of Al-MuhandisLife Insurance Company rose to EGP 1.402 billion by the end of December 2021, compared to EGP 1.030 billion in June of the year. the past. The company stated that net investment income jumped to 3.336 million pounds during the first half of the fiscal year 2021/2022, compared to 195 thousand pounds in the same period last year. With regard to the rights of policyholders, the financial indicators of the “Mohandes Life Insurance” company revealed their growth at the end of last December, exceeding 812 million pounds, compared to 781 million pounds in the corresponding period of last year.
We are following
Egypt's stock of wheat remains safe and exceeds4months,thanks to contracts and the national silos project, which contributed to raising the storage capacity of wheat to 3.6 One million tons, after it did not exceed 1.2 tons before 2014, according to Abdel Ghaffar El Salamouny, Vice Chairman of the Board of Directors of the Grain Industry Chamber of the Federation of Egyptian Industries, in a statement yesterday.
The chamber expected a fluctuation in the amount ofdomestic wheatthis seasonwhich starts from Mid-April, between 3.7 million tons and 4 million tons.
According to press statements by Dr. Mostafa Abdel-Gawad, head of the Sugar Crops Council at the Ministry of Agriculture, the local production of sugar has reached 3 million tons, and consumption does not exceed 3.2 million, which reduces the gap between supply and demand.
The Central Bank of Egypt commented in a statement issued bytheinformation center of the Council The Ministers In response to the news circulated about Egypt recording the highest real interest rate in the world, which negatively affects indicators of the Egyptian economy, the Monetary Policy Committee believes that the basic interest rates are consistent with the inflation rate targets of 7%, with an increase or decrease. 2% on average in the last quarter of 2022, and price stability in the medium term, taking into account the support for economic activity.
The General Federation of Chambers of Commerce decided to replace the Exchange Divisionby inauguratinga coordinating council to follow up The activity of exchange companies in Egypt, as a result of the decline in the number of companies operating in the activity to less than 50 companies, compared to 111 companies in the past. According to Ali Hariri, the head of the council, the council includes 5 members of the owners of exchange companies and has met once since its establishment, according to Al Shorouk.
The Ministry of Petroleum defended the quality of gasoline in EgyptHamdi Abdel Aziz, media advisor to the Minister of Petroleum and Mineral Resources, said that Egyptian gasoline at various gas stations nationwide conforms to international standards, and does not contain any percentage Of manganese, and the same applies to imports abroad, indicating that the Minister of Petroleum formed control committees two months ago that suddenly pass through the supply and service stations and test the fuel samples present in the stations and ready for sale to consumers, within the framework of continuous follow-up of all elements of the transportation and distribution system.
Abdul Aziz added that the letter circulated by the pioneers of social networking sites was attributed to car companies complaining about the poor quality of gasoline at the supply stations, which affected modern cars of their products, if it is correct, based on samples. It is found in the tanks of cars, not the tanks of petrol stations, explaining that some car owners add fuel improvers inside their car tanks, and it may contain percentages of manganese, according to Al-Ahram Gate.
Tariq El-Molla, Minister of Petroleum and Mineral Resources, discussed the preparations of the Italian company, Eni, to pump new investments in the Gulf of Suez and Nile Delta regions, according to the commitment agreement signed last December to search for, develop and exploit oil. Al-Mulla, with the company delegation, also discussed the developments in international oil prices and their impact on opportunities to increase investments, according to a statement issued by the ministry yesterday.
Port Said customs revenues amounted to 3.34 billion LE in February of total taxes and customs duties, according to a report reviewed by the Ministry of Finance.
The consortium of Orascom Construction, Pioneers of Modern Engineering, and Hassan Allam is awaiting the issuance of letters of credit to start implementing a package of projects for the benefit of the Libyan government, with a value of 3 billion euros, to implement two power stations and a ring road project, in addition to Two other road projects, Mohamed Mahlab, president of the Rowad Engineering Company, told Al-Shorouk.
The prices of local flour imports have risen to the owners ofbakeriesthe free marketoutside The ration systemfrom 9.5 thousand pounds to 11 thousand pounds per zero ton, in just one month, affected by the rise in wheat prices, Attia Hammad, head of the bakeries division of the Federation of the Cairo Chamber of Commerce, told Al-Shorouk.
Infographic
Gulf economy
Saudi Arabia raised oil pricesfor all regions as crude oil prices rose in the wake of the Russian invasion of Ukraine to more than $115 a barrel. State-owned Aramco, with a controlling stake, raised the price premium for its Arab Light crude for next month's shipments to Asia to $4.95 a barrel above its standard crude price benchmark. The price premium for the month of April represents an increase of $2.15 per barrel over the March price and the highest premium for the main grade, according to Bloomberg. Aramco raised the prices of other grades for Asia by up to $2.70 per barrel.
Arabic and international
The International Monetary Fund warned yesterday that the serious global economic repercussions of the war in Ukraine would be "more devastating" if the conflict escalated. He said that the sanctions imposed on Russia will have a “material impact on the global economy and financial markets, with side effects on other countries,” according to the Fund’s statement yesterday, which confirmed that if the conflict escalates, the economic damage will be more devastating.
