Good morning, wonderful people. We have an issue packed with macro and business news for you this morning to start the year at a high note.

WE’RE KICKING OFF A NEW MONTH- Here are the key news triggers on which to your eyes on during the first few weeks of January as we ring in the new year:

  • PMI: S&P Global will publish Egypt’s PMI figures for December on Thursday.
  • Inflation: Capmas and the CBE will publish the latest inflation data on Wednesday, 10 January.
  • Foreign reserves: The central bank should release December’s foreign reserves figures this week.

** The CBE’s Monetary Policy Committee will not be meeting this month, with its first meeting of the year scheduled for 1 February.

PSA #1- We have a long weekend ahead: Sunday, 7 January, will be a public holiday for both the public and private sectors in observance of Coptic Christmas, Prime Minister Moustafa Madbouly said in a statement on Sunday. You can expect the central bank and the EGX to follow suit.

PSA #2- Your little ones now need official permission before leaving the country alone: Egyptian minors under the age of 18 are no longer allowed to leave the country without being accompanied by their guardians unless they obtain prior permission from the Interior Ministry’s Passports and Emigration Administration, EgyptAir said in a statement. The statement did not detail how the process of obtaining permission will work.

PSA #3- The government’s decision to raise the minimum wage went into effect yesterday: The national minimum wage has now risen 17% to EGP 3.5k a month from EGP 3k — a decision that was made official last month — to cushion the impact of soaring inflation on low-income households.

THE BIG STORIES HERE AT HOME-

#1- El Sisi holds economy-centered meeting:President Abdel Fattah El Sisi met with Prime Minister Moustafa Madbouly and CBE Governor Hassan Abdalla on Sunday to discuss the economy, the global economic situation, and the country’s banking sector, according to an Ittihadiya statement. The readout emphasized the state’s digital transformation and financial inclusion drive, but did not get into issues of foreign exchange, monetary, or fiscal policy.

#2- Egypt is now officially a member of Brics: Brics began the New Year by welcoming five new members to its ranks. Egypt along with Saudi Arabia, the UAE, Iran, and Ethiopia are now full members of the economic alliance after being invited to join during the groups annual conference last August.

** With five new members joining the group, Brics may need a new extended acronym and we’re open to your suggestions.

#3- InstaPay will remain available with no fees for a little bit longer: The central bank has pushed back the decision to impose fees on transactions made through its digital payment platform InstaPay, it said in a statement last week. The central bank has also exempt customers from “all fees and commissions related to bank transfer services executed via electronic channels in EGP.” The bank did not disclose when these exemptions would expire.

HAPPENING TODAY-

#1- The House is back in session: MPs will reconvene after a nearly two-week break to debate and vote on a set of green hydrogen incentives approved by the House Energy and Environment Committee last week that will give tax breaks and other incentives to investors. The House will also vote on amendments that could enable foreign investors to own desert land and own more than 51% of companies that invest in desert land development.

#2- The Transport Ministry is hosting a yacht-tourism centered conference, bringing together investors interested in yacht tourism or setting up marinas, as well as those with investments in areas overlooking the Mediterranean, Red Sea, or Gulf of Suez. The one-day conference kicks off at 10am at the Transport Ministry’s HQ in the new capital.

** We have the full rundown on the state’s efforts towards turning Egypt into a yacht tourism destination in our Hardhat here.

EGX WATCH-

EGX30 sees biggest annual gain since 2016: The Egyptian Stock Exchange’s blue-chip index advanced 0.8% on Sunday — the last day of trading of 2023 — extending the EGX30’s 2023 gains to 70.5%, as investors look to stocks as a hedge against high inflation and a weakening EGP, Reuters reports.

THE BIG STORY ABROAD-

Israel’s supreme court supreme court struck down a controversial law yesterday passed by Israeli PM Benjamin Netanyahu’s government to limit judicial authorities over the government. The court blocked the law with a slim 8-7 majority that argued that the proposed law posed a threat to Israel’s “democratic” nature. Before Israel’s war on Gaza, Netanyahu had faced months of public protest calling on him to repeal the law and dissent from senior figures in the IDF because of the proposed law. (Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Associated Press)

Japan jolted by a mighty quake on day one of 2024: A 7.6 magnitude earthquake rattled central Japan yesterday, claiming four lives and destroying dozens of buildings on the country’s western coast.

WAR WATCH-

Israel wants full control of the Egypt-Gaza border, Prime Minister Benjamin Netenyahu said on Saturday, Reuters reported. “The Philadelphi Corridor — or to put it more correctly, the southern closing point (of Gaza) – must be in our hands. It must be shut. It is clear that any other arrangement would not ensure the demilitarization that we seek.”

*** 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: We take a look at the center bringing renewable energy expertise to Egyptian university students

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