18 Mar 2021

The government is looking to issue a license for cigarette manufacturing (conventional and e-cigarettes) in Egypt, according to confirmed news reports. The bidding conditions include the following key points:

• Eastern Company (EAST) will own 24% of the new company
• The facility should have minimum annual production of 15bn sticks
• If the new company wants to produce lower-tier, mass-consumed cigarettes (priced at EGP18-24/pack), they have to be priced at a 50% premium to EAST’s own brands in the same category
• Interested bidders can submit an offer in 30 days
• Existing and new players can bid for the license
• No additional licences will be offered for 10 years from the date of granting this one (Source: Mubasher, al-Borsa Newspaper, Masrawy, al-Shorouk Newspaper)