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Egypt’s NFA standing positive for seventh consecutive month
The Egyptian banking sector’s net foreign assets (NFA) reached a surplus of USD 11.8 billion in November, rising USD 1.2 billion from October and marking the seventh straight month of growth. |
Claps class:
The NFA indicator shows the contrast between the overseas assets owned by the banking sector, which includes the Central Bank of Egypt (CBE) , and the debts owed to non-residents.
Refresher:
Egypt’s net foreign assets became positive for the first time since February 2022 in May, with the surplus increasing to almost USD 14.3 billion from a deficit of USD 3.7 billion the month before.
Also from the CBE:
The CBE also noted a drop in reserve money, which stood at EGP 1.808 trillion in November, down from EGP 1.905 trillion at the end of October
The bank raked in a net profit of EGP 88.3 billion during November, marking an 18% month-on-month fall. |
EFG’s projections for the next two years
In its annual report, EFG said it forecasts GDP to rise 2.4 YoY% in FY 2025 to reach a 3.7% growth clip. Growth is projected to continue into 2026, reaching 4.7%, Mubasher quotes the company as saying. |
What else?
EFG also projected that the CBE will likely slash interest rates by 500 basis points over the next year, with another similar reduction the following year, bringing the rate down to 18.3% by the end of 2026, the news outlet notes.
Exchange rate:
The report anticipates the Egyptian pound’s average exchange rate against the US dollar will be EGP 49.11 pounds in 2025, and rise further to 50.58 pounds by 2026.
FDI:
As for foreign direct investment, the report predicts a significant 370% YoY surge to USD 45.6 billion in 2024, followed by a decline to USD 11.7 billion in 2025, and a modest recovery to USD 12.7 billion in 2026.
Suez Canal:
The report expects Suez Canal revenues to dip to about USD 3 billion next year.
Remember, Red Sea disruptions as a result of the war next door drove down Suez Canal revenues USD six- seven billion in between 7-10 months, the President said in October.
However, EFG expects them to rebound by 2026, reaching around USD 5 billion. |
Shalateen Mineral Resources Company intends to up its gold supplies to the CBE approximately 25% YoY in 2025 to reach 1.25 tons, Asharq Business quotes a government source as saying. |
Shalateen who?
Founded in 2012, the company is 35% owned by the Egyptian Mineral Resources Authority. The Egyptian Ministry of Defense’s National Service Projects Agency holds a 34% stake, while the National Investment Bank has 24%.
Remember:
We wrote in July that the company set a plan to supply the CBE with 1.2 tons of gold this year, but, according to Asharq’s source, the company will now fall over 16.6% short of its target.
The company’s Chairman said it provided 750 kilograms of gold valued at approximately EGP 2.6 billion in 2023.
More plans underway:
The company’s Chairman said earlier this year it had commenced building a mining industrial hub in Aswan with an anticipated completion date of May 2025 and a budget of EGP 350 million. |
What else is clapping?
- Government-owned pharmaceutical firm HoldiPharma is planning to debut a 25-30% stake in its subsidiaries “Chemical Industries Development (CID)” and “Misr Pharma” on the EGX in 1H 2025, Al Borsa quotes anonymous sources as saying . Misr Pharma is expected to take the IPO plunge first in 1Q, and CID would follow its lead afterwards.
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