Good morning, friends, and happy hump day. From fresh investments to energy, we have an absolutely packed issue for you this morning, so we’re going to jump right in after this brief programming announcement:

COUNTDOWN- There are just 13 days until the Enterprise Finance Forum, taking place 18-19 September (Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

You won’t want to miss this one: Join Todd Wilcox (CEO and deputy chair, HSBC Egypt), Akef El Maghraby (vice chairman, Banque Misr), Tarek El Nahas (group head of international banking, Mashreq), Nivanne Mortagy (North Africa lead, upstream, financial institutions group, IFC), Mounir Nakhla (founder and CEO, MNT Halan), Leila Serhan (group country manager and senior VP for North Africa, Levant and Pakistan, Visa) and many others for talks on everything from investing in uncertain times, to the coming of AI and digital banks. Stay tuned for the unveiling of our full list of speakers in the coming days.

Tap or click here to REGISTER or view the FULL AGENDA.

We are honored to count some of the region’s most important financial institutions as our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, and the IFC.

WATCH THIS SPACE #1- Banque du Caire (BdC) is looking to bring on board a strategic investor: That’s according to Banque Misr chief Mohamed El Etreby, who told Asharq Business yesterday that the state-owned lender has started the sale process and is looking to finalize an agreement sometime during 2024.

Is this instead of — or in advance of — the bank’s long-awaited IPO? El Etreby didn’t disclose any information about the transaction, stopping short of saying how large a stake is on offer, the advisors working with Banque Misr on the sale, or perhaps most importantly, what this means for the bank’s plans to go public on the EGX.

Remember: The bank has been considering an IPO for years, only to be thwarted by successive bouts of market instability. Fresh rumors surfaced in the local press as recently as last month claiming the bank could sell 49% of its shares to investors before the end of 2023. BdC is one of three banks that the Sisi administration has officially earmarked for privatization.

UPDATE- Whose are the faces behind Eastern Company’s new largest shareholder? Two leading Emirati business families are behind Global Investment Holding (GIH), the firm that agreed this week to the USD 625 mn purchase of a 30% stake in Eastern Company from the Holding Company for Chemical Industries (CIHC).

So, who’s buying? Abu Bakr Al Hussaini, whose wide family interests are rooted in trade and distribution, holds a 90% stake in GIH, A l M al writes, while Emaar Properties and Noon founder Mohammed Alabbar is also a shareholder. The newspaper writes separately that the two also hold stakes in United Tobacco, the Egypt-incorporated company that manufactures cigarettes under license for Philip Morris. The newspaper quotes CIHC chief Emad El Din Mostafa as saying GIH is more than 99% owned by the same two Emirati shareholders who hold stakes in United.

We’re still seeking confirmation on whether Philip Morris is involved. The global tobacco giant owned an economic interest of around 25% of United Tobacco as of the end of 1H 2023, while another 24% of United is held by Eastern Company. Eastern Company’s stake in United is not impacted by GIH’s 30% buy-in to Eastern, it said in an EGX filing (pdf) yesterday.

SIGN OF THE TIMES- Egyptians living abroad can now purchase land in new cities from abroad (in FX, of course) after thegovernment yesterday opened reservations, Housing Minister Assem El Gazzar said yesterday. More than 2.3k plots of land in 14 new cities have been made available to purchase by expats. Reservations close in three weeks time.

HAPPENING TODAY-

#1- PMI figures: S&P Global will publish August purchasing managers index figures for Egypt this morning at 6:15 CLT. Private-sector activity has finally been showing signs of life in recent months, with the perma-contraction easing gradually over the past four months. That’s one data point that adds to our feeling that the business community is starting to find its own solutions to (some) of the problems presented by FX pricing and availability (to say nothing of inflation). The question on our minds: Did that modest rally survive the dog days of summer?

#2- The Japanese FM is in Cairo: Japan’s chief diplomat Yoshimasa Hayashi will hold talks with President Abdel Fattah El Sisi and Foreign Minister Sameh Shoukry on the second day of his visit to Egypt today. He will also hold a three-way meeting with Shoukry and Jordan’s foreign minister, Ayman Safadi.

This comes four months after the Japanese prime minister visited Egypt, during which the countries upgraded bilateral ties to a strategic partnership.

#3- The economy takes center stage at the National Dialogue today, with participants set to discuss debt, the budget deficit, inflation and industrial policy.

#4- Climate leaders from across the continent are in Nairobi for the second day of the Africa Climate Summit. Prime Minister Moustafa Madbouly, Environment Minister Yasmine Fouad, and Egypt’s UN high-level climate champion, Mahmoud Mohieldin, are among the Egyptian delegation attending the summit, which wraps tomorrow.

On Day 1 in Nairobi:

#5- Africa pharma expo: It’s the final day of the Pharmaconex exhibition at the Egypt International Exhibition Centre. The event runs through to Tuesday.

HAPPENING THIS WEEK-

Foreign reserves figures will be out any day now. Expect the central bank to release figures for August before the week is out.

G20 summit: G20 leaders (sans Xi and Putin) will gather in New Delhi for the 2023 G20 summit on Saturday and Sunday. We’re also expecting an Egyptian delegation at the gathering, though it’s unclear which ministers will be in attendance.

FURTHER AFIELD- Other local news triggers to keep your eyes on as we move through September:

  • Inflation: Capmas and the CBE will publish the latest inflation data on Sunday, 10 September.
  • Interest rates: The CBE’s Monetary Policy Committee will gather to discuss interest rates on Thursday, 21 September.

CLARIFICATION- N ew patisserie Fôu is open for business from tonight — order from the comfort of your couch. The grand opening of Farah El Charkawy’s new online-only patisserie Fôu, which we wrote about in yesterday’s AM, is an invitation-only event. Excusez nous for the faux pas. But pastry fiends can still get their fix by ordering through Fôu’s website, which goes live tonight. Arbitration lawyer El Charkawy — late of Zulficar and Partners — attended top European culinary schools (including Alain Ducasse in France) to perfect her craft and we can’t wait to taste what she’s creating.

THE BIG STORIES ABROAD-

Russia + Turkey are leading the front pages in the global press this morning for a number of reasons:

  • The fate of the grain pact: Turkish President Recep Tayyip Erdogan expressed optimism that the Black Sea grain pact will soon be revived following talks with Vladimir Putin in Sochi yesterday. Moscow suspended the agreement in July and resumed a partial blockade on Ukraine’s ports because of what it said were unfair Western sanctions on its exports. (Associated Press | Reuters)
  • A Russo-Turkish gas hub could be in the offing: Moscow and Ankara are close to agreeing to set up a gas trading hub in Turkey, a move that will provide Russia with another avenue to export gas and strengthen Turkey’s position as a major energy player in the region. (Bloomberg)
  • Putin x Kim? The US is claiming that North Korean leader Kim Jong-Un will travel to Moscow later this month to discuss arms sales with Vladimir Putin. (Associated Press | Washington Post | Financial Times | New York Times | Wall Street Journal)

CIRCLE YOUR CALENDAR-

Calling all prospective master’s students: Applications for the UK government’s Chevening scholarship will open from Tuesday, 12 September and close on 7 November. The scholarship offers full financial support for students to pursue an eligible master’s degree at over 150 UK universities. Applications will be open here.

Taqa shareholders to vote on board shake-up post-stake sale: Taqa Arabia shareholders will convene for a general assembly meeting on 26 September to vote on restructuring the board and appointing new members, the company said in a bourse filing (pdf) yesterday. The meeting comes six weeks after the military’s National Service Projects Organization acquired a 20% stake in the firm.

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

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: Can Egyptian farmers tackle climate-related challenges with high-tech precision agriculture?

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