Good morning, folks. The rise (and hopefully fall) of commodity prices is back in the headlines this morning, with news from the government that they’re launching a new initiative to cut commodities prices by 30% by the end of Ramadan. We’ve got the low-down of this new initiative, news that the IMF’s Executive Board is meeting this Friday to approve our USD 8 bn loan, and much, much more in today’s issue for you this morning.

It’s not just local business news that is heating up this week, with Cairo set for temperatures rising from 28°C today to above 30°C for at least the next ten days. So be sure to get your sunglasses at the ready and check that your AC is ready for what’s to come.

So, when do we eat? Maghrib prayers are at 6:10 pm in the capital city, and you’ll have until 4:23 am tomorrow to hydrate and caffeinate ahead of fajr.

CIRCLE YOUR CALENDAR-

The IMF Executive Board is scheduled to meet on Friday, 29 March to discuss and give the final thumbs up to Egypt’s USD 8 bn package with the fund, a source from the Finance Ministry confirmed to Enterprise. The board has yet to put Egypt on its public schedule, which extends until 3 April.

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

WATCH THIS SPACE-

#1- Import backlog kaput? Some USD 2.8 bn worth of goods have been cleared from the country’s ports thanks to the recent spate of foreign currency injections, Prime Minister Mostafa Madbouly said. The remaining USD 1.7 bn of goods have had their paperwork completed and secured the required FX through the banking system. These goods remain unclaimed by their importers — who have declined to receive them as they wait for the USD-EGP rate to further depreciate — and are set to be confiscated, Madbouly said, adding that they are subject to the laws and regulations of abandoned and unclaimed goods.

#2- The state’s Egyptian Electricity Holding Company (EEHC) and its subsidiaries are having to pay out an additional EGP 50 bn a year, following the float of the currency earlier this month, writes Al Arabiya, citing unnamed Electricity Ministry sources. As a result of the greenback strengthening against the pound in the official market following the float, the cost of loan installments and interest owed by the EEHC has risen, in addition to payments for station maintenance and dues owed to private sector companies that sell electricity to the government, the sources said.

What’s next? The Electricity Ministry will submit a memorandum to the Madbouly cabinet within two weeks detailing the situation and requesting government support so the EEHC and its subsidiaries can fulfill their financial obligations.

#3- National Bank of Egypt is looking to invest up to EGP 5 bn across six projects this year, the bank’s investment CEO Ahmed El Said told Asharq Business. The investment will go into both new and existing projects, which fall within the sectors of fintech, real estate, chemicals, and engineering, he added.

The bank will also raise around EGP 4 bn by exiting 12 companies this year, El Said added.

#4- Supreme Tax Council in the works: The government is set to form a Supreme Tax Council following the issuance of a presidential decree yesterday, according to a Finance Ministry statement. The council seeks to ramp up private sector participation, stimulate investment, and encourage local production and exports, and all state agencies will abide by its recommendations and rulings.

The council’s role: The new body will be tasked with regulating the relationship between investors and the government in regards to tax, studying tax laws, improving the efficiency of the tax administration, and extending technical support and legal advice to taxpayers, among other duties.

Who is on board? The council will be headed by the Prime Minister and will include the heads of the Federation of Egyptian Chambers of Commerce, Federation of Egyptian Industries, and Egyptian Federation of Investors Associations alongside representatives of the business community, tax associations, accountants, and experts in the economic, public finance, and tax fields.

FXWATCH-

Remittances inflows are “still far from reaching their peak,” as Egyptian expats increasingly return to using official channels to transfer money back to Egypt following the float of the pound, deputy CEO of the UAE’s largest FX bureau and remittances company Mohammad Bitartold Al Arabiya Business.

Remember:Remittances were down 30% y-o-y to USD 22 bn in 2023 as Egyptians abroad held onto their money or sent it back through parallel mechanisms. The government said it wants to raise remittances — one of Egypt’s biggest sources of FX — from Egyptian expats by 10% each year to reach USD 53 bn by 2030.

PSA-

Attention, govtech startups: The Communications Ministry has kicked off its GovTech Innovation Lab to support govtech startups “dedicated to tackling societal challenges and integrating innovative solutions into government services,” according to a statement from the ministry. The German development agency GIZ-supported project in collaboration with Flat6Labs, Robusta, Untap, WeCodeForYou, and Zero360 will also launch a three to five month acceleration program to provide startups training, mentorship, and networking with input from private and public sector entities. Registration for the program closes 13 April.

THE BIG STORY ABROAD-

It’s a big morning for politics and comparatively quiet on the business front.

In politics:The commentariat is obsessing over Donald Trump’s courtroom battles. The presumptive Republican presidential nominee can post a smaller USD 175 mn bond as he looks to appeal a civil fraud case — but will face criminal trial this April (sooner than he had hoped) in a hush-money case.

Sign of the times? French lender Credit Agricole said yesterday that it won’t fund two major LNG projects, one in Papua New Guinea and the other in Mozambique, Reuters reports.

This really stands out: Credit Agricole was the original financial advisor to both projects, which are being led by bid names including ExxonMobil, Eni, and TotalEnergies.

In context: The move comes as some big global banks step away from new hydrocarbon projects. Barclays said last month that it would stop “direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production.”

*** 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 IQAir’s 2023 World Air Quality report that ranked Egypt ninth — for the second consecutive year — among countries with the worst air pollution and speak to government officials about what they’re doing to tackle air pollution.

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