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Egypt to build $1bn flat steel integrated industrial complex

Published

1 year ago

September 13, 2023

The Egyptian government has announced plans to establish an integrated industrial compound to produce flat steel.

The investments according to a statement on Wednesday by the cabinet are worth $1 billion and will complement industrial reforms in the mining and drilling sector through which President El Sisi intends to reform the economy.

The complex would target international exports while also serving the local market with a flat steel manufacturing capacity of 1.8 million metric tonnes annually.

The project will be built in collaboration with an international firm, according to the cabinet, which did not specify which company. It has received approval from the General Authority for Suez Canal Economic Zone.

Already, Egypt is home to some of the continent’s biggest steel companies. Some major steel producers in Egypt are Al Ezz Steel Rebars S.A., which owns and operates the Al Ezz El-Dekheila Steel Co. plant in Alexandria and has the capacity to produce 6 million metric tons per year; Suez Steel Co. (Solb Misr), with the capacity to produce 2 Mt/yr of steel at its plant in Ain Al-Sokhna; Beshay Steel Group, which has the capacity to produce 3.0 Mt/yr of steel at its plant in Sadat City; and the Egyptian Steel Group, which has the capacity to produce 830,000 t/yr of steel at its plant in Ain Al-Sokhna, among other producers.

Mining and steel production are part of Egypt’s main earning sources. According to reports, GDP contribution from Mining in Egypt increased to 121359.30 EGP Million in the third quarter of 2022 from 103335.20 EGP Million in the second quarter of 2022.

Egypt’s economy is challenged, as its official data agency, CAPMAS on Sunday revealed that the country’s headline inflation, driven by the basket of goods that comprise the consumer price index, rose higher than expected to hit 37.4% in August from 36.5% in July.

Related Topics:Egypt Featured Mining Steel

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IMF mission concludes 4th loan program assessment in Egypt

Published

5 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.