H2 Industries, a German company invests 3 billion USD to build a green hydrogen plant in Egypt
For our top talks today, H2 Industries, a German company invests 3 billion USD to build a green hydrogen plant in Egypt. The German company which specializes in energy storage, plans to launch its first project in Egypt in the field of converting waste to hydrogen, according to the company’s CEO, Michael Stauss. The plant, located east of Port Said, will have a production capacity of 300 million tons per year of green hydrogen. Stoss pointed out that the Egypt factory represents the beginning of expansion in the Middle East and North Africa, revealing that his company is in negotiations with the United Arab Emirates and 8 African countries to establish similar projects to produce green hydrogen from waste. ((Bloomberg Asharq)
- Egypt is working on more than one axis to reduce carbon emissions, coinciding with hosting the World Climate Summit (COP 27) at the end of this year.
It is worth mentioning that investment in green hydrogen production is one of the areas that Egypt focuses on, both through private sector projects, as well as through the Sovereign Fund of Egypt, which announced a partnership with Egyptian and foreign companies to establish the first green ammonia plant in Ain Sukhna. The Egyptian government aims to increase the proportion of energy production from new and renewable sources to 20% of the total energy production in 2022, and to reach 42% by 2035. (Bloomberg Asharq)
- Ministry of International Cooperation has entered a number of development finance agreements in 2021 to bolster the government’s efforts in executing the comprehensive health insurance law.
The ministry has signed an agreement with the World Bank to obtain financing worth 400 million USD to support the law. Moreover, the ministry has agreed upon receiving another financing worth 182 million USD from the French Development Agency (AFD) to support the state’s budget in funding the health insurance law. These financings reinforce the comprehensive health insurance law, which the government adopts to develop healthcare services and offer insurance coverage for all Egyptian citizens. The healthcare sector in Egypt has also received grants worth 20 million USD from the US and the European Union (EU). Egypt is working on the implantation of the comprehensive health insurance law to serve all the citizens by 2030. (Arab Finance)
- The Egyptian government will apply the immediate cash payment on exports shipped as of July 1st 2021 at a discount rate of 8%, instead of the 15% currently implemented on exports taking place until June 30th 2021.
This comes in line with the presidential directives to support exports and provide cash for exporters to enable them to fulfill their requirements amid the ongoing Covid-19 pandemic. The government has supported exporters with around 31 billion EGP, adding that this amount has been disbursed to more than 3,000 exporting companies since the launch of the initiative in October 2019. The fourth phase of the immediate cash payment initiative is currently being completed, with exporters participating since January 30th until February 10th. (Al-Mal)
- In a similar context, Egypt’s Fuel Automatic Pricing Committee has decided to amend the fuel prices in the local market, the Ministry of Petroleum and Mineral Resources said in an official statement. The price of the 80-octane gasoline increased to 7.25 EGP per liter from 7 EGP,
Additionally, the price of the 95-octane gasoline has been increased to 9.50 EGP per liter from 9.25 EGP. Meanwhile, the price of diesel fuel remained the same at 6.75 EGP per liter. (Arab Finance)
- And for our investments talks, first, Emirates NBD Egypt has launched a new campaign to provide loans for small- and medium-sized enterprises (SMEs). Under the campaign,
the campaign that takes place for three months starting January 2022, SMEs have the chance to be among the 10 winners of the facilities per month. During the three-month campaign, 30 winners are set to get the loan facilities; three winners will receive the full value of the loan worth up to 2 million EGP, while the remaining 27 winners will be only awarded the first monthly installment of the loan of 500,000 EGP maximum. The winners will be chosen under the supervision of the Egyptian Ministry of Social Solidarity. (Arab Finance)
- Second, the United Bank of Egypt has invested around 200 million EGP in the agricultural sector as part of the Central Bank of Egypt’s (CBE) initiative to support the private sector at a declining rate of 8%, according to the bank’s chairman Ashraf El-Kady.
The total volume of the bank’s dedicated financings to the industrial, agricultural, and contracting sectors under the initiative stood at 1.9 billion EGP, El-Kady added. El-Kady previously said that the bank’s provided financings worth 1.7 billion EGP for the industrial and contracting sectors as per the initiative. The bank’s total volume of credit portfolio amounted to EGP 20 billion in January, El-Kady noted. (Al-Mal)
- Moving to our EGX and companies talks, International Company for Medical Industries (ICMI) announced that its board of directors has approved to sell the company’s administrative headquarter at El-Obour buildings at a value of 1.32 million EGP.
This sale will provide additional liquidity for achieving the company’s goals. The headquarter will be re-leased for a year until a replacement is provided. The board also nodded to forming a committee to enter talks over purchasing the remaining shares in New Alfa company and Alfa Medica company. Moreover, the board agreed on the resumption of operations at the company’s 10th of Ramadan branches to pave the way for gradually carrying on the production and arranging for the required finance to import modern production lines. This comes in line with the company’s plan as per the conducted studies. (EGX)
- valU, a subsidiary of Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO), has signed an agreement with the American University in Cairo (AUC) to offer suitable financing plans for individuals seeking an undergraduate or a graduate degree at the university.
This agreement will enable students aiming at joining one of the AUC’s programs to pay for their tution fees for a single academic year through valU over a period of six to 12 months at an unmatched 1.5% discounted interest without fees nor a down payment. Installment settlements will be carried out through payment aggregator Paymob to provide customers an easy payment experience. (Arab Finance)
- Fawry for Banking Technology and Electronic Payments (FWRY) is planning to make new investments worth not less than 800 million EGP in 2022.
Last week, Fawry entered agreements with a number of local banks to enable disbursing real-time remittances of Egyptians abroad via Fawry’s outlets in Egypt, and the company is currently seeking to obtain the approval of the Central Bank of Egypt (CBE) regarding this matter. The company previously announced that Fawry plans to issue pre-paid cards in collaboration with one of the local banks over the coming period. (Hapi Journal)
- Moreover, the Financial Regulatory Authority (FRA) has approved the publication of the disclosure regarding the decision of Fawry for Banking Technology and Electronic Payments’ (FWRY) board of directors to raise the company’s capital.
The company’s authorized capital is set to increase to 3 billion EGP from 1 billion EGP. Also, Fawry’s issued and paid-up capital is determined to be raised to 1.65 billion EGP from 853.65 million EGP by 800 million EGP distributed over 1.6 million shares at a par value of 0.5 EGP per share. It is worth noting that the CEO of Fawry Ashraf Sabry said that the company plans to invest 800 million EGP in 2020. (EGX)
- Wintershall DEA (RWEDE.UL) said on Thursday it had transferred a stake in a Gulf of Suez oil concession which it had operated for 38 years to state-owned Egyptian General Petroleum Corp.
The transfer became effective on Jan. 1, the German company said in a statement on Thursday in Cairo, adding that it is part of a plan to focus on natural gas production. It is worth noting that the German company had operated this stake for 38 years. (Reuters)
- And finally, EFG Hermes Corp Solutions, a subsidiary of EFG Hermes (HRHO), is in talks with a number of banks to obtain a loan worth 2 billion EGP in 2021,
according to CEO EFG Hermes Corp Solutions Talal Elayat. The loan will be used to support the company’s finance lease and factoring activities. The company’s current volume of credit facilities amounts to around 10 billion EGP. Moreover, the company is planning to issue securitized bonds this year. He also said that EFG Hermes Corp Solutions has closed securitization issuances at a value of 790 million EGP over three tranches in 2021, mentioning that it has granted financings worth nearly 8 billion EGP to its customers. In June 2020, EFG Hermes announced the combination of its finance lease and factoring units in a new entity under the name of that EFG Hermes Corp Solutions. (Al-Mal)
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