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USD 800 million in savings💰

Egypt to save USD 800 million from the IMF's decision to cut surcharges

A recent decision by the International Monetary Fund’s Executive Board to reduce borrowing costs for its member countries by 36% will see Egypt save USD 800 million by 2030, the Director of the Middle East and Central Asia Department at the IMF said.

Claps class:

The IMF charges interest similar to other lenders. In addition to the interest, it levies surcharges (extra fees) on members who draw substantial loans or ones who delay repayments.

The additional charges were instituted to help accumulate reserves to protect against financial risks and provide incentives for prudent borrowing.

Why this matters:

Egypt is among the countries paying the highest surcharges to the fund alongside Ukraine, Argentina, Ecuador and Pakistan, according to research from Boston University’s Global Development Policy Center.

In other IMF-related news:

Egypt is formulating three plans to be presented to the IMF before a delegation from the fund arrives next month to conduct its fourth review of our USD 8 billion loan program, Enterprise reported, citing statements by a government official.

One of the plans includes extending the loan program by two years in a bid to enable Egypt to enact essential reforms, while the second includes giving the government a year to implement a stimulus plan that includes halting energy price hikes and lowering interest rates to boost the economy.

The third would see the cabinet ask the IMF for additional funding while maintaining the program’s existing schedule in a bid to enable the government to increase the national minimum wage, improve its pension bonus scheme, boost contributions to the Takaful and Karama programs, and broaden healthcare services, the news outlet wrote.

Nas Investment acquires a third of Egyfert

Nas Investment Holding Company yesterday completed the purchase of a 32.39% stake in Samad Misr (Egyfert) from Midfert Misr in an EGP 186.6 million transaction, Al Ahly Pharos for Securities Brokerage & Investment Banking said in a statement.

The details:

Nas Investment Holding snapped up 3.11 million shares of Egyfert at an average price of EGP 60 per share.

The deal saw Midfert reduce its stake in the company from 32.5% to 0.104%.

Remember, Egyfert hiked its profits in 1H:

The company raised its net income 135.2% YoY in the first six months of 2024 to EGP 69.4 million.

And the deal makes sense as fertilizer exports are expected to surge:

Vice Chairman of the Chemicals & Fertilizers Export Council Tarek Zaghloul noted earlier this month that Egypt’s fertilizer and chemical exports amounted to EGP 4.2 billion in 1H, and that the Council is aiming to almost double the number to USD eight billion by the end of 2024.

If the target is realized, the exports volume would mark between a 15- 20% YoY rise from 2023 levels.

Alexandria Flour Mills reports 7.5% profit fall in Q1 FY 2024-25

Alexandria Flour Mills recorded a 7.5% YoY decline in net income during the first quarter of fiscal year 2024/2025, accumulating EGP 15.333 million.

Gross profit:

Gross profit decreased by 29.4% to EGP 16.352 million during the three months from July to September 2024.

Driving the drop:

The company attributed the decrease in income during Q1 FY 24-25 to a 19.9% YoY rise in production costs, a 1539 ton drop in the quantity of milled wheat during the period, and a 930 ton fall in the amount of flour it sent to its subsidiaries.

Revenues:

Despite the profit fall, the milling company’s revenues inched up 11.98% YoY to EGP 85.87 million during the period.

What else is clapping?

Alexandria Mineral Oils Company (AMOC) recorded a 13.7% YoY increase in net income to EGP 479.01 million from the start of July 2024 till the end of September. The firm’s sales also rose 26.1% YoY during the period to EGP 8.88 billion, it said in an EGX disclosure.
Madinet Masr for Housing and Development doubled its sales YoY during the nine months ending in September to 4000 units, recording EGP 36.7 billion in sales value during the period. This comes after the developer launched its Esse Residence project in Sarai, New Cairo, with investments estimated at EGP 10 billion in July.
United Bank (UB) has pushed up its IPO date on the Egyptian Stock Exchange from its previous debut target of Q1 2025 to Q4 2024, planning to list 30% of its shares in the next two months. This comes after the EGX agreed earlier this month to temporarily list UB with an issued and paid-up capital of EGP 5.5 billion distributed over 1.1 billion shares at a nominal value of EGP 5 apiece.