NBE may invest in Ethiopia
The National Bank of Egypt may invest $150 million in a 20,000-hectare agricultural project in Ethiopia, the Reporter said, citing a bank official.
The Egyptian bank has opened a representative office in Ethiopia that will promote trade and investment relations between the two countries, the Addis Ababa-based newspaper said, citing Ahmed Dowek, head of the new office. -Bloomberg
Orascom Telecom appeals Algeria tax claim
Egypt’s Orascom Telecom said that its Algerian subsidiary Djezzy appealed to the Administrative Court of Algiers to request, “An injunction to immediately suspend the payment order received pursuant to the rejection of OTA’s appeal to the tax administration on April 1.
In a company statement, officials also requested “The dismissal of the entire tax adjustment for the years 2004 through to 2007, on the merit of the case.
Meanwhile, the telecom operator provisionally paid $254 million, representing the balance of principal amounts due under the tax claim. In accordance with Algerian law, remaining penalties (currently $175 million) are suspended until final decision by the Administrative Court.
Earlier in March, Algerian authorities rejected Orascom Telecom s appeal against claims its Djezzy unit owed back taxes and penalties from 2004 to 2007, the Egyptian mobile operator said on Sunday.
Orascom paid $120 million in December in order to file an appeal against a $597 million tax bill which Algeria says Djezzy owes for 2005-2007. Algeria also claims a $50 million bill from 2004. The appeal rejection covered both claims.
Algerian sources told Reuters last month the government wanted Orascom to exit the country. Algeria s finance minister later said the government treated all telecom firms equally and only wanted its taxes paid.
Orascom Telecom s relations with the Algerian government soured in early 2008 when a sister firm, Orascom Construction Industries (OCI), sold its Algerian cement manufacturing assets to France s Lafarge.
The transaction angered Algerian officials who believed they should have been consulted.
Djezzy headquarters and dozens of the firm s shops in the Algerian capital were ransacked in November by crowds angry about minor violence surrounding a soccer World Cup qualifying match between Algeria and Egypt.
Agriculture ministry says meat imports to continue
Minister of Agriculture and Land Reclamation Amin Abaza said that meat imports from Indian and Latin American countries will continue so long as those countries are able to meet international standards.
Mona Omar, assistant foreign minister of African affairs, said that a batch of more than 2,000 cattle will soon be imported from Djibouti Port into Egypt, after undergoing necessary veterinary checks.
Meanwhile, meat prices are predicted to rise to LE 85 per kilo in Egypt s governorates. Dozens of residents in Minya attacked a local government unit in Maghagha city in an attempt to get Ethiopian meat, reportedly sold at LE 26 a kilo. -GN4ME
Egypt’s finance ministry unveils revenue data
The Ministry of Finance announced a considerable decrease in total revenues and grants as a result of a 92 percent drop in non-tax revenue.
In an official statement issued last week, the ministry said revenue totaled LE 1.4 billion compared to LE 17 billion from June to December of last year.
Stock profits from the Suez Canal Authority and the Egyptian General Petroleum Corporation and other sources dropped by 34 percent, reaching LE 19.1 billion compared to LE 29 billion from July 2009 to February 2009.
Grants also decreased by 73 percent equaling LE 1.6 billion, compared to LE 6 billion during the same period last year. Corporate income tax proceeds also fell by 35 percent from LE 31 billion to LE 20 billion.
Despite the broad decrease in revenue, sales tax proceeds increased by 3.3 percent to reach LE 41 billion, and customs revenue increased by 2.6 percent, reaching LE 9 billion.
Minister of Finance Youssef Boutros-Ghali said the most recent report by the ministry uncovered that the ratio of public debt to gross domestic product has increased slightly. The debt stands at LE 549 billion, or 46.5 percent of the gross domestic product
He also revealed that external debt has increased to $33.3 billion, registering a 3.6 percent increase.
Over the past eight months, the total deficit has increased by around two percent, reaching LE 74.7 billion, or 6.3 percent of the gross domestic product, compared to LE 45 billion in the same period last year, said Boutros-Ghali. He attributed this increase to slow economic activity and the international financial crisis. -Al-Bawaba
Gulf Air launches services to Alexandria
Bahrain’s national carrier Gulf Air will begin services to Alexandria and Aleppo starting June.
Services to the Egyptian city of Alexandria will start on June 2 with four flights per week on Monday, Wednesday Thursday and Saturday. Flights to Aleppo in Syria will commence on 17 June with three flights per week on Monday, Thursday and Saturday.
The airline also announced additional flights and more capacity on key destinations as part of its new summer schedule. Gulf Air will increase its services to both Iran and Iraq. Tehran, Shiraz and Mashad will be served daily and Baghdad and Erbil services will increase respectively to a five times and three times weekly service.
The airline will also increase frequencies to Kuala Lumpur offering a daily service. -Al-Bawaba
