Good morning, lovely people, and happy FRIDAY. We’re still getting used to the drought of national holidays after the flurry of shortened workweeks we got over the past month — we hope you’re surviving well. We have about a month and a half before our next big holiday (Eid El Adha), and we’re already counting the days.

We also have a deluge of weddings and conferences coming up over the next month. If you are like us, we know the pain of trying to find a suit that perfectly fits the venue and event you have in your pipeline.

Which is why we’ve curated an Enterprise Guide this week for tailors all over Cairo to suit your different needs and budgets — you can find it below.

Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.

WANT TO START A CAREER IN INVESTOR RELATIONS ADVISORY?Enterprise Advisory (formerly known as Inktank Communications) is looking for smart, talented people to help us tell the stories of exciting companies. Enterprise Advisory is the region’s leading investor relations advisory company and works on investor and strategic communications issues that take you deep inside the c-suite. Our clients are in Egypt, Saudi Arabia, the UAE and beyond. Egyptian and foreign nationals alike are welcome to apply.

NEVER WORKED IN INVESTOR RELATIONS OR ADVISORY BEFORE? We have the Enterprise Advisory Development Program. The four-month program will see full-time, paid participants take part in workshops and lectures from veteran investor relations and advisory professionals, while also applying their knowledge in a practical setting. Those who successfully complete the program will be offered full-time positions on staff for a chance to work in a flexible and supportive — but still fast-paced — work environment that eschews micromanagement and rewards good work. Enterprise Advisory offers the chance to build a network of high-ranking individuals across some of the largest and most influential companies in the region through direct exposure to clients.

During the program, you’ll learn:

  • Finance for non-finance people;
  • How to analyze businesses, their business models, their strategic advantages, and their strategies;
  • How to take that information and then tell an audience of investors, journalists, and analysts a compelling and well-developed story;
  • How to frame individual companies’ stories within the wider macroeconomic environment.

Career switchers are very welcome.

Apply directly to jobs@enterprisemea.com and mention “advisory development program” in your subject line.

LAST WEEK IN 3 MINS-

It was another busy newsweek as the government continues to accelerate progress on its state privatization program and as it looks to drum up more investments and FDI with fresh incentives. But first…

ON THE MACRO FRONT-

#1- The Central Bank of Egypt left interest rates unchanged (pdf)at its monetary policy meeting yesterday, in line with expectations.Seven of 10 people we’ve spoken with had expected the central bank to keep rates where they are through to next month on the back of a minor decrease in April’s inflation figures.

#2- The EBRD downgraded Egypt’s growth forecast to 4.0% in the current fiscal year due to continued economic headwinds caused by stubbornly high inflation and a currency crisis. The Bank's assessment marked a 0.7% downward revision from its previous forecast published three months ago.

#3-Fitch Ratings has downgraded the long-term deposit ratings of four Egyptian banks following its lowering of the country’s sovereign rating earlier this month. The National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and CIB all saw their ratings drop from B+ to B “reflecting the sovereign's weaker ability to provide support, particularly in foreign currency.” Fitch kept its outlook for the banks unchanged at negative.

PRIVATIZATION-

#1- The government finally sold a 9.5% stake in Telecom Egypt to institutional investors, raising some EGP 3.75 bn. The sale of some 162.2 mn shares in the state-owned telecom operator was 3.1x oversubscribed. We’re still waiting for word on the institutions who bought shares in the company but we know that only some 9% went to foreign investors.

#2- More could be coming soon: National Investment Bank subsidiary NI Capital is gearing up to sell stakes in seven state-owned companies, two of which should close by June and the remainder before the end of the year. Stakes in this roster of state-owned companies up for grabs include those oil, petrochemicals, and transport.

#3- Agthia put in a bid for Safi: Emirati F&B company Agthia placed its bid for Safi, reportedly joining several other bidders for a stake in the military-owned bottled water company.

#4- Egypt needs lenders’ approvals before selling Siemens power plants: Egypt has reportedly requested permission from German banks to sell shares in the three 4.8 GW Siemens-built power stations to investors. The government earmarked the Beni Suef plant for privatization earlier this year but the financial terms agreed with the project’s backers mean that it will need to get their sign-off before it can start marketing it to investors, sources reportedly said.

ENTERPRISE EXPORTS + FDI FORUM-

We held our inaugural Enterprise Exports + FDI forum last weekwith a stacked roster of panelists who shared their insights into how we can build a strong export-driven economy. Some key lessons from the forum:

#1- Good Egyptian businesses are still attractive to investors: “Economic uncertainty “is a little bit higher” right now, “but this doesn't prevent investors from investing in Egypt. They just need to price it in,” Hossam Abou Moussa, partner at Apis Partners, said during a panel discussion.

#2- But we need to act decisively, and fast: One of the first steps we should take is to select a small number of high performing sectors to heavily invest in, Yassir Zouaoui, partner at McKinsey, said during the opening panel.

#2- And cultivate a friendly environment for exporters and investors: Export subsidies, credit facilities with banks and tax exemptions are among the ways we can help spur exports, according to Oriental Group Chair Yasmine Khamis.

A MORE FRIENDLY ENVIRONMENT COULD BE ON ITS WAY- Prime Minister Moustafa Madbouly last week broke down 22 decisions taken by the Supreme Investment Council during its first meeting, aimed at drumming up more investments and exports from the private sector. The decisions include faster responses to applications for setting up a business, expanding eligibility for the one-stop-shop “golden license,” improving privileges in special economic zones, leveling the playing field between private and state-owned firms, and expediting dispute resolution.

GREEN ENERGY-

Green hydrogen incentives get the greenlight: Ministers have approved a package of incentives — including VAT and income tax breaks — for green hydrogen projects being implemented within five years, in a bid to stimulate Egypt’s nascent green hydrogen industry and increasing FX inflows.

Meanwhile, Infinity Power and Greek infrastructure investor Coupelouzossaid they could jointly produce renewable energy in Egypt that would be sent to Europe via a planned electricity link.

WHAT’S HAPPENING NEXT WEEK-

The 32nd Arab League summit will kick off in Jeddah today, with the Syrian government expected to make an appearance for the first time since the country was barred from the body in 2011 following its violent crackdown on protests at the outset of the Arab Spring. Fighting in Sudan and ongoing conflict between Israeli armed forces and Palestinians are expected to be on the agenda.

The G7 Summit will commence today in Hiroshima where leaders are expected to discuss the ongoing war in Ukraine and the state of the global economy.

The senate will reconvene on Sunday, following an almost two-week-long hiatus.

Oman sultan in town next week: Oman’s Sultan Haitham bin Tarek Qaboos is landing in Egypt on Sunday for an official two-day visit on the invitation of President Abdel Fattah El Sisi, according to the Oman News Agency.

Egypt will host the African Development Bank’s (AfDB) annual meetings in Sharm El Sheikh from Monday 22 May through Friday 26 May. Sustainable development and climate finance will be central themes over the course of the conference.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

YOUR MOST CLICKED LINKS-

  • The 22 decisions the Supreme Council approved at its first meeting to help create a more business-friendly environment got the most number of clicks. (Statement)
  • IHG’s plans to open two new hotels in Sheikh Zayed in 2026 and 2028 also got a lot of attention. (Statement)
  • Our breakdown of the government’s spending plans for the green economy in the upcoming fiscal year also got plenty of clicks. (Enterprise)
  • Visa’s new senior vice president and chief marketing officer for Central and Eastern Europe, Middle East, and Africa (CEMEA) Tarek Abdallah’s LinkedIn also got some love. (LinkedIn)
  • Israel’s statement of thanks after we brokered a truce between the country and the Islamic Jihad got interest. (Statement)

AROUND THE WORLD IN SEVEN DAYS-

The deadlock in US debt ceiling negotiations continued to make headlines:US President Joe Biden voiced confidence that the US lawmakers will break the deadlock in debt ceiling negotiations and avoid the country plunging into default next month, after cutting a trip short in hopes of finding a breakthrough.

The Turkish election also got plenty of ink: Turkey will hold a runoff vote on 28 May after neither president Recep Tayyip Erdogan or his main opponent, social democrat Kemal Kilicdaroglu, managed to secure more than 50% of the votes and claim victory.

Sudan continued to feature on foreign press’ front pages, as Khartoum saw violence intensify with the Rapid Support Forces (RSF) and Sudanese army continuing to fight for control of the nation’s capital. This comes despite ongoing peace talks in Saudi Arabia that earlier this month saw both sides agree to protect civilians and permit humanitarian aid into the country.

☀️ THE WEATHER THIS WEEKEND- Enjoy the last few pleasantly warm days before a heatwave hits next week. The mercury will rise to a high of 30°C today and 32°C tomorrow, before dropping to overnight lows of 16-19°C, according to our favorite weather app. Temperatures next week will hover around 35-36°C, before peaking at a sweltering 39°C on Wednesday.

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