Good morning, ladies and gentlemen: On this Monday morning we bring potentially good news for our green energy ambitions as well more optimistic noises from the IMF about the future of our reform agenda and loan program. On the flipside, the government has dialed back its FY 2023-24 growth expectations and the latest fiscal data from the Finance Ministry aren’t exactly light reading.

PSA- It’s time to go back to WFH if you live or work in Maadi: The Madbouly government is tearing down the old North Tora bridge — the one that splits the former Tora prison from what was previously the prison’s olive garden — to complete the expansion of the Hasaballah Al Kafrawi axis. The bridge linked the Nile Corniche to the Autostrad and will be replaced by a “North Tora Axis” capable of handling more traffic.

The result yesterday was pure gridlock in Maadi. Officials have said nothing about whenthey expect the new route to open, prompting plenty of Maadi companies (Enterprise World Headquarters, included) to opt for a transition to WFH until we see how this shakes up.

** DID THIS MORNING’S EMAIL WIND UP IN YOUR TABS? Please drag us to your inbox — it goes a long way toward making sure Enterprise makes it into everyone’s email inbox.

WATCH THIS SPACE-

#1-The IMF will move forward with Egypt’s USD 3 bn loan program “soon, soon,” the Fund’s Managing Director Kristalina Georgieva told Asharq Business yesterday in Dubai, without giving further details. Georgieva hailed the Egyptian authorities as “doing a very good job in a very difficult environment.”

The IMF is focused now on helping officials here get a grip on soaring inflation, after which it will look at the exchange rate policies, Georgieva told Sky News Arabia in a separate interview. Georgieva added that the IMF will very likely scale up Egypt’s current loan program due to the additional burden posed by the war in Gaza, in a repeat of remarks she made last month. Inflation surged to successive record highs this year on the back of successive currency devaluations and the FX shortage.

Remember: The IMF postponed reviews scheduled for March and September this year after authorities failed to meet several conditions of the facility, including a commitment to implement a fully flexible exchange rate. The central bank is widely expected to float the EGP after this month’s presidential election in a step expected to pave the way for the country to pass the reviews and receive the almost USD 700 mn in delayed loan payments.

#2- Officials are mulling the sale of EGP 8 bn worth of real estate assets to investors — including Saudi ones —in 1Q 2024, Public Enterprise Minister Mahmoud Esmat told Asharq yesterday. Heliopolis Housing and Development is among the state-run companies investors are looking at, Esmat said, explaining that the partnerships will see investors developing land plots owned by the state-run companies.

Remember:The state-owned National Organization for Social Ins. (NOSI) acquired 100% of the Heliopark project from Heliopolis last month in a sale worth EGP 15 bn.

HAPPENING TODAY-

#1 It’s day five of COP28 in Dubai: Gender equality will be among today’s main themes: How women are affected by climate change and how climate action and finance can bhelp gae directed to close the gender gap. Other topics of discussion include clean energy transition, mobilizing Islamic finance for climate, and sustainability in finance, trade and investing.

Planning Minister Hala El Said is in Dubai for the gathering and set to attend the Arab Women Leaders’ Summit with WISER and as well as a session on women’s participation in climate action and sustainable development.

Want to go deeper on everything happening over there? Enterprise Climate has got yourback.

#2 The Egypt Defence Expo (EDEX) is finally here: Around 35k defense and security professionals from across the world will land in Cairo today for the opening of the defence expo at the Egypt International Exhibition Center, which runs through Thursday. You can register to attend here.

#3-The CBE plans to auction USD 990 mn in one-year treasury bills today, according to data on its website. The USD-denominated issuance will be settled on Tuesday.

#4- It’s the second day of the World Youth Forum, which is taking place in Sharm El Sheikh. The event wraps tomorrow.

HAPPENING TOMORROW-

PMI: We’ll find out how Egypt’s non-oil private sector performed in November when S&P Global publishes the latest PMI figures.

HAPPENING THIS WEEK-

FX reserves: November’s foreign reserves figures should be released by the central bank this week.

HAPPENING NEXT WEEK-

Elections: Voters here at home will head to the polls on 10-12 December to cast their ballots in the presidential election. Voting for expats wrapped yesterday. First-round results are due on 18 December and a runoff, if necessary, will take place in early January.

AND- Inflation figures are due out on Sunday, 10 December.

THE BIG STORY ABROAD-

Israel’s war on Gaza continues to dominate the world’s attention this morning: The IDF’s escalating attacks in the south of the enclave and a reported attack on a US warship in the Red Sea by the Iran-aligned Houthis are leading coverage in the western press. (Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Wall Street Journal | BBC)

THE REALIGNMENT-

One less Bric in the wall: Argentina looks like it’ll be leaving the Brics before it has joined it if the country’s new chief diplomat is to be believed. The South American country — along with Egypt and four other nations — was expected to join the alliance of emerging economies on 1 January, a decision that Javier Milei’s new hard-right administration will reverse. “We will not enter the Brics,” incoming foreign minister Diana Mondino wrote on X last week, following through on Milei’s campaign pledge for a foreign policy reset that would see the country distance itself from China and strengthen ties with Washington.

WAR ECONOMICS-

War-swollen defense stocks outperform S&P 500: Defense stocks have outperforming the S&P 500 since the outbreak of the war in Gaza on 7 October, stoking ESG concerns among everyday investors owning shares in index-tracking and target-date funds, the Wall Street Journal writes.

The numbers: Shares of General Dynamics have gained 13.5% since the outbreak of the waron Gaza, while RTX and Lockheed Martin have rallied 18% and 12.2%, respectively. That’s significantly higher than the 6.6% gained by the S&P 500 over the same period.

For conscious investors:Weapon Free Funds is a database, run by the nonprofit organization As You Sow, which flags arms makers present in mutual funds and exchange-traded funds. The website traffic has risen 5x in seven weeks following 7 October, according to the WSJ.

HELP GAZA-

Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than 1 mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century.

The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank and Misr El Kheir. Pay in EGP using your credit card.

Or check out our list of charities to which you can make direct donations via bank deposit and / or Fawry.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at what the government is doing to boost our marble and granite industry.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We looking at signs of growing Russian interest in our education industry — a sector in which Russia was never previously a player. Foreign interest in K-12 education (sometimes a touchy subject) and in post-secondary education (now required of any new institution that wants to open) has previously been dominated by American, Canadian, British, French, German, and Japanese curricula and by partnerships with UK and Canadian universities.

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