UK’s CDC expected to invest $150-200m in Egypt’s banking sector

29 / 05 / 2019

By Marwa Nassar - -

The UK’s development finance institution CDC Group is expected to invest an estimated dlrs 150-200 million in Egypt’s banking sector on the back of a decision by the Central Bank of Egypt allowing CDC Group to be the first non-international financial institution (IFI) bank to be granted approval to provide ‘Tier 2’ capital to Egyptian Banks.

The CDC will also open an office in Egypt in the coming months to support its increased engagement in Egypt, the British embassy in Egypt said in a statement.

UK Secretary of State for International Trade Liam Fox – who has concluded his visit to Egypt – announced new partnership agreements with Egypt in the healthcare, transportation, and financial services sectors, read the statement.

Fox said Egypt and the UK’s Vodafone signed a 100-million-dollar contract for a new health insurance IT system in Port Said.

British pharmaceuticals giant GSK has also announced an EGP 100 million upgrade to two major production lines in Cairo, which aims to increase production capacity and provide job opportunities for Egyptians.

UK’s Bombardier Transportation has been named by the Egyptian government as preferred bidder for 4.4 billion-euro contract. The company will build and operate a new monorail system, including supplying rolling stock, to a new trainline in Cairo.

The monorail system is a 54km line connecting the New Administrative Capital with East Cairo and a 42km line connecting 6th October City with Giza.

Fox said “This is a strategically important project in a growing market like Egypt, demonstrating how UK manufacturing expertise is competing and winning in global markets against tough competition. The global headwinds are getting stronger and we face a world economic slowdown. But the UK now has an international economic department – the Department for International Trade – helping British business succeed abroad in ways that never happened before.”

Phil Hufton, President UK, Bombardier said “Being named as preferred bidder for the Cairo Monorail is excellent news for Bombardier and for our teams in the UK and in Egypt. It shows that the British rail industry is world class and can compete and win in global markets. We welcome the government’s support for our bid.”

The project involves both the civil engineering of the monorail infrastructure, as well as manufacturing of the cars themselves, at Bombardier’s Derby facility in the UK for export to Egypt.

The bid is supported by UK Export Finance (UKEF). Bombardier will deliver the project in partnership with two Egyptian companies; Orascom Construction and the Arab Contractors.

The project will involve investing in a new, dedicated monorail production line at Litchurch Lane able to build the monorail cars between 2021 and 2024.

Meanwhile, Fox said “Now is a great time to be looking at the business opportunities with Egypt, a country projected to have one of the top 15 economies by 2050. As Egypt commits to carrying out its reform vision, the UK continues to support it in building a resilient, sustainable economy.”

British Ambassador to Egypt Sir Geoffrey Adams said that “with Egypt’s economic reforms and the UK’s departure from the EU, we have the opportunity to tear down barriers to trade and investment and strengthen our economic ties.”