Browsing: Egypt

• 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 …

• AfDB projects in Egypt and Côte d’Ivoire win at the 2024 Bonds, Loans & ESG Capital Markets Africa Awards.
• These projects showcase innovative financing, like Egypt’s Panda Bond and Côte d’Ivoire’s Sustainable Loan, promoting sustainable development in Africa.
• The awards highlight the significance of ESG criteria, demonstrating the Bank’s role in advancing economic sustainability and growth on the continent.

The African Development Bank has been at the forefront of driving significant financial initiatives across Africa, as demonstrated by its involvement in groundbreaking projects in Egypt and Côte d’Ivoire.  The prestigious 2024 Bonds, Loans, and ESG Capital Markets Africa Awards recently honored these projects, highlighting the innovative approach and impact of the bank’s efforts.

Strategic Achievements Through AfDB Projects

Two African Development Bank-supported ventures have garnered top awards in notable recognition of excellence and innovation. Egypt’s groundbreaking RMB3.5bn ($478.7 million) Sustainability Panda Bond issuance clinched the Sovereign, Supra, and Agency …

• Zimbabwe is the worst hit in Africa with food inflation at 26% YoY, followed closely by Egypt at 18%, Malawi at 9%, and Guinea at 7%.
• The persistent weakness of the Zimbabwe dollar has been a driving force behind the steep price growth throughout 2023.
• Real food inflation, calculated as the difference between food inflation and overall inflation, provides a dire picture of the strain on households’ budgets in these countries.

The economies of Zimbabwe, Egypt, and Guinea are facing significant challenges due to soaring food inflation, placing them among the top 10 countries globally most affected by this roiling crisis.

According to the World Bank’s February 2024 update, Zimbabwe leads the pack in Africa, with food inflation at a staggering 26 per cent year-on-year, followed closely by Egypt at 18 per cent and Guinea at 7 per cent.

Real food inflation, calculated as the difference between food inflation …

• International Finance Corporation targets specific projects in Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
• IFC’s $30 million (Sh4.8 billion), own-account investment will help Africa Infrastructure Investment Fund 4 Partnership (AIIF4) exceed its final close target of $500 million (Sh80.4 billion).
• A pan-African infrastructure private equity firm called the Africa50 Infrastructure Acceleration firm I is raising up to $500 million for investments

Kenya is among six African countries that International Finance Corporation (IFC) will pump $30 million (about KSh4.8 billion) equity investment to fund works on essential infrastructure.

The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.

In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In …

• Egypt’s President El-Sisi was reelected to a third, six-year term in last week’s presidential elections.
• Under President El-Sisi, Egypt’s foreign-currency debts have surged to around $163 billion, one of the highest levels in emerging markets.
• El-Sisis must immediately look to balance the concerns of a citizenry paying ever more for food, power, and transport following the currency devaluation since the beginning of 2022.

Egypt’s president, Abdel-Fattah El-Sisi, has been re-elected by a landslide, extending his leadership over the North African nation to 2030. Egypt is struggling with the worst economic plight in decades amid the prospects of another currency devaluation.

El-Sisi secured 89.6 per cent of the votes in the 10 to 12 December election, as announced by the National Elections Authority on 18 December. A record 66.8 per cent of Egypt’s 67.3 million registered voters participated in the election.

El-Sisi’s win in Egypt’s presidential election was no surprise, …

• An Egyptian company’s plan to build an industrial city in Kibaha by El Sewedy Industrial Development is a prime example of the growing complementarity between resources in the Middle East and those in Africa.
• Investing $400 million to create over 50,000 employees is more than a commercial move. This strategic move demonstrates Egypt’s growing clout in East Africa.
• As a result of growing interest in investing in African countries from the Middle East, the dynamic between these two regions is likely to reshape long-established economic alliances and partnerships.

Egyptian company Elsewedy’s remarkable investment in Tanzania

An Egyptian company’s plan to build an industrial city in Kibaha by El Sewedy Industrial Development is a prime example of the growing complementarity between resources in the Middle East and those in Africa. Consequently, completing a historic project in Tanzania represents a watershed moment in Africa’s economic progress.

Investing $400 million to create over …

South Africa is set to topple Nigeria and Egypt as Africa’s biggest economy in 2024. This is according to forecasts from the International Monetary Fund. According to IMF’s World Economic Outlook, South Africa’s gross domestic product will reach $401 billion per current price in 2024. On the other hand, Nigeria’s GDP will reach $395 billion, with Egypt’s GDP reaching $358 billion.

South Africa, the continent’s most industrialised nation, is expected to maintain the top spot as Africa’s biggest economy for only one year. In 2025, the country will again lag behind Nigeria and fall to third place behind Egypt a year later. This is according to the IMF’s World Economic Outlook, a report released last week.…