Browsing: Egypt

• Employment in Egypt’s private sector contracted in November, marking the fastest decline since February 2024.
• This dip was largely attributable to companies opting not to replace departing staff due to weakened sales and subdued optimism.
• Across the industry, purchase prices of goods increased partly due to a stronger US dollar against local currency.

Egypt’s private sector continued to face persistent challenges in November, with a drop in employment levels reflecting waning optimism across industries. According to the latest S&P Global Egypt Purchasing Managers’ Index (PMI), economic uncertainty and weak customer demand stifled growth prospects for the North African country, forcing businesses to scale back hiring and purchasing activities.

The PMI climbed slightly to 49.2 in November from 49.0 recorded in October, marking the second consecutive month of improvement but still lingering below the critical 50.0 threshold that signals expansion.

Senior Economist David Owen noted that while the contraction rate slowed, …

• PickAlbatros operates a portfolio of 4-star and 5-star hotels located in key tourist destinations in Egypt.
• Vantage Capital’s exit highlights the resilience and growth of Egypt’s hospitality sector amid challenging global conditions.
• Egypt’s hospitality sector is a key pillar of the country’s economy, attracting 15 million international tourists annually.

Vantage Capital, Africa’s mezzanine debt fund manager, has announced the successful full exit of its investment in PickAlbatros Hotels, a leading hotel owner and operator based in Egypt.

PickAlbatros operates a portfolio of 4-star and 5-star hotels located in key tourist destinations along Egypt’s Red Sea coast, including Sharm El Sheikh, Hurghada, Sahl Hasheesh, and Marsa Allam.

These resorts are popular for their luxurious beachfront access, fitness clubs, water parks, and swimming pools, making them major attractions for international tourists, particularly from Europe.

The investment exit marks a milestone for both Vantage Capital and the PickAlbatros group, highlighting the resilience and …

• The latest Stanbic IBTC Bank Nigeria PMI shows most companies continued to report less demand, attributable to an increase in the cost of products.
• Nigerian industries reported the sharpest rise in input costs and output prices in six months.
• High pump prices, transportation, and materials for manufacturers continued to hurt businesses in the month under focus.

Inflation in Nigeria

Rising inflationary pressures in Nigeria hit businesses hard at the close of the third quarter, with selling prices increasing by the sharpest margin in six months. The country’s private sector reported marginal job opportunities in September, the lowest in the previous three months.

According to Stanbic IBTC Bank Nigeria PMI, most companies continued to report less demand, attributable to an increase in the cost of products amid thinning incomes. Findings show that business confidence dipped in September and was the second lowest level on record, only just above July.

“Nigeria’s …

• The African pharmaceuticals market is projected to reach $34 billion by 2027.
• Egypt has been tipped to contribute most to Africa’s pharmaceutical industry’s growth.
• What implication does this change present to global pharmaceutical giants?

Africa pharmaceutical investment is well underway, and for the first time, the continent seeks to produce and distribute medicinal drugs but, what would be the impact on the global industry? “The failures of the global health systems during the COVID-19 pandemic—when export restrictions, lockdowns, and hoarding sent supply chains into frantic disarray—made local manufacturing of pharmaceutical supplies a top priority for African leaders,” notes global health writer Sara Jerving in her report titled New foundation is ready to help African pharmaceutical manufacturers.

Africa pharmaceuticals market reached $25 billion 2022 and is expected to grow at a 6 percent five-year CAGR to reach $34 billion by 2027 reports IQVIA, a global research institute. According to the …

• Though encouraging that the number of female CEOs has risen from 230 (9.6%) in 2023 to 310 (11.1%) in 2024, these numbers show a tech segment that is still heavily dominated by men.
• Interestingly, smaller ecosystems such as Zambia, Rwanda, and Senegal are outperforming traditional hotspots like South Africa, Nigeria, Egypt, and Kenya in terms of female leadership.
• Between January 2022 and June 2024, startups with female co-founders raised $747M, representing just 11.9% of the total, while those led by female CEOs secured only $289M.

The African tech ecosystem, renowned for its dynamic growth and innovative potential, is transforming. Yet, a pressing issue remains, gender diversity within leadership roles. This year’s “Diversity Dividend: Exploring Gender Equality in the African Tech Ecosystem” survey by Disrupt Africa highlights the gender disparities that continue to plague this burgeoning industry.

Despite recent improvements, the representation of women in leadership positions within African …

• This milestone is, however, delayed given that startup funding hit $1 billion in April 2023, as early as February in 2022 and May in 2021.
• One of the outstanding investments were d.light’s new $176 million securitization deal to enhance the uptake of solar powered equipment in Kenya, Uganda and Tanzania.
• Another record was Egypt-based MNT-Halan’s $157.5 million raise to fuel their expansion.

With five months to go to the end of 2024, the state of startup funding in Africa looks promising with new businesses attracting over $1 billion by the end of July. According to the startup funding tracker, Africa: The Big Deal, July was “the most successful month in terms of fundraising in Africa in more than a year, and represents what was raised in the whole of Q2 2024.”

This milestone, however, appears to …

• 121 African startups secured $466M, marking a 27 per cent drop from the previous quarter; women-led startups got 6.5 per cent of the capital.
• About 87 per cent of startup funding in the three months to March went to entities in Nigeria, Kenya, Egypt, and South Africa.
• Gender imbalance persists as only 6.5 per cent of the financing went to female-led startups in Africa.

The big four economies of Nigeria, South Africa, Kenya, and Egypt continue to attract the highest share of funding going to startups in Africa, even as the ecosystem suffered a 27 per cent drop in financing to $466 million in the three months to March 2024.

The latest analysis from Africa: The Big Deal shows that 87 per cent of startup funding in the three months to March went to upcoming entities in Nigeria, Kenya, Egypt and South Africa.

Attracting $160 million, Nigeria’s economy accounted for …

• The IMF has approved an expansion of the original economic rescue program for Egypt by $5 billion.
• Spillovers from the recent conflict in Gaza and Israel aggravated the shaky economic situation in Egypt.
• Egypt has recently taken difficult but necessary reforms to correct the country’s microeconomic imbalance.

IMF’s Economic Rescue Program for Egypt

The Executive Board of the International Monetary Fund (IMF) has completed the first and second reviews of Egypt’s Extended Fund Facility (EFF)arrangement, approving an expansion of the original economic rescue program by $5 billion.

The IMF had initially approved a $3 billion loan in December 2022 but has …

• As millions of people in Africa go to bed hungry today, tonnes of food will end up in landfills, too.
• A UN report identifies gaps in Africa’s retail and food service sectors, presenting a significant hurdle in fully understanding the scope of food wastage.
• The UNEP Food Waste Index Report 2024 identifies critical areas where action is needed to address the challenge in Africa.

An estimated one billion meals go to waste every day in Africa and across the world, the UNEP Food Waste Index Report 2024 reveals. The report, which shows food waste continues to hurt the global economy, adds that 783 million people were affected by hunger. In contrast, a third of the worldwide population suffered food insecurity in 2022.

• The three-year EU-Egypt strategic partnership aims to facilitate economic reforms and avert a migration crisis within the region.
• The triennial agreement represents the latest endeavour by the bloc to prevent refugees from traversing the Mediterranean.

EU-Egypt strategic partnership

EU leaders have finalised a deal worth $7.4 billion with Egypt to bolster the nation’s struggling economy. This move seeks to foster stability within the “troubled” region and prevent a new European migration crisis.

The three-year EU-Egypt strategic partnership includes $5 billion in soft loans to facilitate economic reforms, $1.8 billion to encourage private sector investments, and $600 million in grants. Of these grants, $200 million is allocated for migration management.

Following months of intense and productive diplomatic engagement between the EU and Egypt, six EU leaders journeyed to Cairo on Sunday, as stated by Italian Prime Minister Giorgia Meloni.”

The visit occurred just days following allegations by members of the European …