Ministry of Finance proposed a new set of taxes and fees on luxury products and services, with the intention to raise tax revenues for the next fiscal year.
Tax changes that would reduce income tax for lower earners and raise tax for those on higher incomes received approval from the House Planning and Budget Committee on Thursday. Those would raise the personal income tax exemption threshold to EGP 36k from EGP 24k while introducing a new 27.5% higher rate of tax for people earning more than EGP 1 mn a year.
House of Representatives will discuss amending some provisions of Law No. 182 of 2020 by canceling the tax exemption imposed on the returns of treasury bills and bonds or capital gains resulting from dealing in these financial instruments.
The Finance Ministry expects to go ahead with its maiden USD 500 mn CNY-denominated bond issuance in 4Q 2023.
The Suez Canal Economic Zone (SCZone) has signed agreements with a number of Chinese companies that could see more than USD 700 mn invested in projects within the Chinese-developed TEDA industrial zone in Ain Sokhna.
The African Development Bank (AfDB) is lending EUR 110 mn for the third phase of the Gabal El Asfar water treatment plant, International Cooperation Minister said.
The General Authority for Investment and Free Zones (GAFI) handed over two golden licenses to Beko Egypt for Home Appliances and Bosch Egypt for Home Appliances, bringing the total number of companies that obtained the golden license to 15 companies. MTIE is a key beneficiary through its retail outlets.
Head of the Suez Canal Authority expected the increase in drought in the Panama Canal would have a significant positive impact on the activity of the Suez Canal, in the near future.
GASC has negotiated more flexible payment plans with wheat suppliers, amid the FX crunch. Delayed payments will eventually catch up with the GASC, so this cannot extend for long.
Cyprus wants to accelerate building a pipeline to Israel’s natural gas fields under a plan that could see it become a key energy supplier, competing with Egypt over exporting LNG to Europe.
The government will offer two global oil & gas exploration bids during 2H2023.
According to local press, EFG is advising on finalizing the sale of Telecom Egypt's stake in Vodafone Egypt within the coming three months.
AUTO (FV: EGP7.56, OW) released 1Q23 consolidated net profit recorded EGP108 mn, compared to EGP229 mn in 1Q22. The Auto segment recorded net losses of EGP80.5 mn. FX losses absorbed the biggest chunk of profitability by recording EGP264 mn. The financing business bottom line recorded EGP189 mn. Excluding the capital gain of 4Q22, net profit was down 12.1% QoQ. AUTO is currently trading at a FY23 P/E of 5.2x and an EV/EBITDA of 1.9x.
A number of imported raw materials used in the pharma industry will be temporarily exempted from VAT under a decision issued by the Customs Authority on Thursday.
A consortium of banks is currently negotiating with Ethydco to increase the US dollar-denominated loan interest. Meanwhile, the company is still in the process of negotiating with banks to reschedule its debts for four years.
ORAS-Hassan Allam Consortium has started working on the third ring road in Libya, at an investment cost of USD1 billion.
We upgraded ECAP FV to EGP18.75/share, with Overweight recommendation, factoring in FX rates, higher ASP, Expected recovery in volumes starting 2025, Better than previously expected margins, and higher net debt. ECAP is currently trading at 2023f P/E of 5.1x and EV/EBITDA of 2.8x.
SCEM reported a consolidated net loss after minority of EGP58.5 million in 1Q23 shrinking from comparative quarter losses of EGP67.2 million.
HRHO has officially rebranded to EFG Holding.