Good morning, everyone, and happy FRIDAY. We’re edging ever closer to the much-needed Eid break at the end of the month, but before then — we have to get through the final full workweek of June. Hang in there, folks.

If you have some extra free time on your hands and are in need of a new hobby, how about dabbling with some urban farming? Our Enterprise Guide for the week has everything you need to know before building an edible urban garden in your home. Give it a read 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.

The Enterprise Finance Forum is our flagship gathering — the one so many of you have been waiting for. The two-day event takes place this September and will be the latest in our must-attend series of invitation-only, C-suite-level gatherings.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations just after the 30 June holiday.

Do you want to become a commercial partner? Please click here.

STAY TUNED for more detail about our location, speakers, and exciting agenda in the weeks to come.

LAST WEEK IN 3 MINS- Interest in the privatization program is getting red hot: While the week started with some red hot inflation figures, the main running theme turned out to be the incredible interest we’re seeing in the privatization program, from both the private sector and our friends in the GCC.

PRIVATIZATION WATCH-

#1-Private equity giant Actis and Malaysian power company Edra are looking to acquire a 4.8 GW Siemens power plant in a transaction that could be worth some USD 2 bn. The two potential bidders plan to submit offers to acquire as much as 100% of the plant and operate it.

#2- Misr Pharma and CID are up for grabs: Several investors are in talks with the Public Enterprises Ministry to acquire stakes in state-owned pharma company Chemical Industries Development (CID) through a capital increase and HoldiPharma subsidiary Misr Pharma.

#3- Calling banks for Alexbank sale advisory:The Finance Ministry invited local and international banks to pitch for an advisory role on the sale of its 20% stake in Bank of Alexandria (Alexbank).

More banking sales to come? The House of Representatives approvedon Tuesday a government-proposed bill that will revoke the establishment laws of the Arab Investment Bank (aiBank), the Export Development Bank (EBank), and the Agricultural Bank of Egypt. While the law is an attempt to reform the regulatory framework of those banks and bring them in line with current legislation, the move could be a harbinger of a potential stake sale of those banks, banking sources tell us.

#4-SCZone is on course to IPO 20% of Port Said terminal operator on the EGX: The Suez Canal Economic Zone’s (SCZone) board of directors agreed to sell a 20% stake in Port Said Container and Cargo Handling (PSCCHC) in an IPO on the EGX. The SCZone currently holds a 39% stake in PSCCHC, while the Holding Company for Maritime Transport owns 40%.

MORE GCC INTEREST IN THE PRIVATIZATION PROGRAM-

#1- Abu Dhabi wealth fund ADQ is eyeing a 20-25% stake in state-owned Egyptian Chemical Industries (Kima). The stake sale is reportedly one of the financing options on the table for the second phase of Kima 2, the company’s nitric acid and ammonium nitrate plant in Aswan which is estimated to cost some USD 297 mn.

#2- Qatar could be looking to invest in Egypt’s hospitality sector: The Qatar Investment Authority (QIA) is considering acquiring a minority stake in seven hotels in Egypt, potentially through a stake in the planned hotel holding company that the government said it plans to establish bybundling seven of its five-star properties. The Qatari sovereign wealth fund is in negotiations with the Sovereign Fund of Egypt (SFE) and is looking to acquire up to 30% of the hotels, the people said.

#3- SEII is close to acquiring 70% of state-owned El Nasr Glass and Crystal: Saudi Egyptian Industrial Investment (SEII) could “within weeks” finalize an agreement with the state-owned Metallurgical Industries Holding Company (MIH) to acquire 70% of its subsidiary El Nasr Glass and Crystal Company through a capital increase.

M&A + INVESTMENT WATCH-

The Greek Campus and coworking space provider MQR entered into a definitive merger agreement, creating what they say is the MENA region’s largest community of entrepreneurs.

Meanwhile, Swiss pharma giant Roche and local meds firm Eva Pharmaagreed tolocalize the production of immunosuppressant medications for organ transplant patients, with the possibility of exporting to markets in Africa.

The Suez Canal Economic Zone also approved several new projects, including a USD 610 mn steel complex, a USD 300 mn Chinese ironworks, a ready-made garments factory, and a EUR 750 mn tire manufacturing plant.

ON THE MACRO FRONT-

Inflation accelerated once again in May: Annual urban inflation rose to 32.7% y-o-y in May from 30.6% the month before on the back of accelerating food and beverage prices. Inflation is now once again at its highest since July 2017, when it hit an all-time high of nearly 33%.

LEGISLATION WATCH-

#1- Budget greenlit by MPs: Parliament gave the final go ahead to the FY 2023-2024 budget and socioeconomic development planafter just two days of debate with majority parties Mostaqbal Watan and Protectors of the Nation (Homat El Watan) both voting in favor of the bill. Dissenting MPs voiced concerns over excessive borrowing included in the plan, the government’s handling of the current economic crisis and insufficient healthcare and education spending allocations. The budget is now on its way to President Abdel Fattah El Sisi to ratify.

WHAT’S HAPPENING NEXT WEEK-

Expect an important agreement between the IFC and the Madbouly cabinet on Sunday on the private sector: IFC Managing Director Makhtar Diop will be in town on Sunday to meet with several government officials, including Prime Minister Moustafa Madbouly, and sign agreements to “mobilize the private sector in Egypt,” according to an emailed statement.

REMEMBER- The IFC is interested in playing a role in the state privatization program: International Finance Corporation (IFC) Regional VP for Africa Sérgio Pimenta was in town in March for talks with the government on how best the IFC can participate in the program. In an exclusive interview with Enterprise, Pimenta detailed the many ways the IFC can help, including as an adviser as well potentially providing financing for investors. The IFC has been actively encouraging investors to take part, he tells us, adding that he believes it will pave the way for FDI.

It’s interest rate week: The Central Bank of Egypt’s Monetary Policy Committee meeting is on Thursday, 22 June. May’s hot inflation reading triggered concerns among analysts speaking to Reuters that it could put pressure on the CBE to raise interest rates during its next meeting. The CBE’s monetary policy committee left rates unchanged at its last meeting in May, saying it would continue to assess the impact of the 1k-bps worth of rate hikes implemented in the past 15 months. That said, analysts including Bloomberg chief EM economist Ziad Daoud have suggested we won’t see movement on rates unless and until the currency depreciates further.

President Abdel Fattah El Sisi will reportedly join a group of African heads of state traveling to Kyiv to meet with Ukrainian President Volodymyr Zelenskyy for peace talks on Friday. The group will fly to Moscow the next day for further talks with Russian president Vladimir Putin, the FT says.

OTHER EVENTS WORTH NOTING-

The Senate reconvenes on Sunday, 18 June, and The House reconvenes on Tuesday, 20 June after taking a week-long break.

The Egypt Infrastructure and Water Expo will run starting from Monday 19 June through Wednesday 21 June at the Egypt International Exhibition Center.

The Big 5 Construct will also run Monday through Wednesday at the Egypt International Exhibition Center.

The Capital Markets Annual Summit is on Tuesday, 20 June at the Nile Ritz-Carlton. Government IPO’s and the state’s privatization drive are expected to be on the agenda.

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-

AROUND THE WORLD IN SEVEN DAYS-

The Donald’s indictment last week dominated the foreign press. Former US president Donald Trump — the first to ever be charged with a federal felony — pleaded not guilty to 37 federal criminal charges that he unlawfully kept and shared classified documents after leaving the White House and misled officials who sought to retrieve them. Trump has maintained that the indictment is a politically motivated effort to undermine him and his 2024 presidential bid.

Zelensky’s hometown being battered was another focus this week. The missile attack that claimed 10 lives in the city of Kryvyi Rih comes on the tail-end of Ukraine’s counter-offensive activities.

In the international business news: The US Federal Reserve left rates untouched for the first time in 15 months following its two-day policy meeting. The decision to leave rates at 5.0-5.25% was widely anticipated, as the central bank takes time to assess the impact of the 500-bps in hikes made over the past year.

SIGN ON THE TIMES-A four-week-old Parisian AI startup — Mistral AI — bagged Europe’s biggest ever seedroundof EUR 105 mn. The startup, formed by a trio of former Meta and Google AI researchers, will launch a new “large language model” early next year that is similar to the generative AI system behind ChatGPT app.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications. Today, we run four daily Egypt and MENA-focused publications, five weekly industry verticals, and a weekend lifestyle edition designed to make our readers feel just a bit smarter.

We have tons more in the pipeline — come help us build new publications. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of >250k daily readers by telling stories that matter.

Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.

That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

During the program you will learn:

  • The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
  • Business and finance for non-finance people: Whether it's industry jargon or key concepts or simply how to read a balance sheet;
  • How to construct an Enterprise story: From idea formulation down to the structure, style and tone of writing;
  • How to develop sources that will give you the key insights needed to tell a complete story;
  • How to communicate these stories with the confidence and language of an insider.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

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

☀️THE WEATHER THIS WEEKEND- El Khamasin are finally behind us, and the real summer begins: The mercury is hitting a high 40°C today with a scorching sun, before dropping to a milder 26°C. For Saturday, expect a sunny day with a high of 38°C which should lead to a cooler evening temperature of 23°C, as per our favorite weather app.

Tags: