Good morning, y'all. Much like the weather, local business and economy news is heating up.

In today’s issue, we’ve got our latest PMI readings, which are yet to reflect an anticipated uptick in post-float business activity, news that Egyptian stocks back in MSCI’s good books thanks to an increase in FX liquidity, Contact Financial’s first bond issuance of the year, and much, much more. So, let’s jump right in.

PSA-

WEATHER- It’s heating up in Cairo today, with a high of 36°C and a low of 27°C, according to our favorite weather app.

It’s not much cooler in Alexandria, with a high of 33°C and a low of 23°C.

And over the weekend, expect to see the weather cooling to the low 30s in the capital and all the way down to the mid 20s for our friends on the Mediterranean.

WATCH THIS SPACE-

You will soon be allowed to open a bank account completely online: We may soon be able to say goodbye to long queues at the bank, with the central bank’s Digital Financial Identity Company set to launch in 2H 2023, which will open the way for banks to begin letting customers open accounts without the need of visiting a branch, Asharq Business reports, citing an anonymous government official. The new firm will act as a central entity that will enable users to open banks through digital IDs without having to go to the bank.

HAPPENING TODAY-

Inflation easing for a second consecutive month? Analysts and policymakers are optimistic that inflation data for April set to be released later today by state statistics agency Capmas will show inflation easing further, after annual urban inflation cooled 2.4 percentage points to 33.3% in March.

Currency stability is helping restore confidence that Egypt can reel in high inflation, concluded a poll by CNBC Arabia of 13 analysts and economists. A majority of 77% expect inflation to slow for the second month in a row, with forecasts ranging from 0.5 to 1.5 percentage points.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Want to subscribe? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

CIRCLE YOUR CALENDAR-

#1- Vodafone gears up for the AI Assistive Tools Hackathon: Vodafone Egypt in partnership with USAID, Plug and Play, ITIDA, and the Ataa Fund will launch a three-day competition to encourage young people with disabilities to develop and showcase their ideas how AI can be used to make inclusive and accessible workplaces.

Interested? Applicants have until Saturday 25 May to apply for the competition, which runs through 30 May-1 June. Prizes include a EGP 600k grant to turn the winning idea into a startup and month-long incubation programs from Plug and Play.

#2- Techne Summit is back for another round: This year’s Techne Summit will be held at the Cairo International Stadium’s indoor halls complex from 25-27 May. The investment- and entrepreneurship-focussed event will host some big name speakers from leading VC firms and companies from the region and around the globe. Register your attendance here.

#3- Students have until the end of the month to apply for USAID’s undergraduate scholarships: Applications for USAID-Egypt’s Scholars Activity and Egyptian Pioneers undergraduate scholarships are open until May 31.The scholarships will be granted to over 370 Egyptian students of public, experimental, and STEM high schools across the country. Offered in partnership with the AUC and the Higher Education Ministry, the scholarships cover tuition, housing, stipends, English language training, some study abroad options, and leadership development. Students with disabilities are highly encouraged to apply. Students can apply here.

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

ATTENTION, EGYPT INVESTORS-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

THE BIG STORY ABROAD-

The war in Gaza and a dysfunctional global EV market are two of the big stories that you need to know this morning.

#1- Joe Biden has warned Israel that he will cut off shipments of offensive weapons (we’re … not sure what weapon isn’t offensive?) to Israel “if they go into Rafah.”

In his own words: “I made it clear that if they go into Rafah — they haven’t gone in Rafah yet — if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities — that deal with that problem,” he said in an exclusive with CNN.

The story is leading front pages around the world: Politico | Financial Times | Wall StreetJournal | Bloomberg | Reuters.

#2- Those Chinese-made EVs you see plying Cairo's streets? They're part of a global problem. Sales of EVs are up sharply at BMW — and the Bavarian carmaker saw its margins collapse in 1Q as a result, reports Germany’s Handelsblatt. The culprit? Competition is rising in a softening market in which many players have tons of excess product, forcing it to cut selling prices.

A lot of that oversupply is coming from China, where companies are now pushing EVs on other markets — including here in the Middle East. That has even friendly trade partners on edge and saw the European Union this week threaten to impose sanctions on Chinese EVs unless Beijing takes action in the short term, Bloomberg notes. EC boss Ursula von der Leyen said China is “flooding our market with massively subsidized electric cars,” Reuters adds.

Chinese companies could look to start producing EVs in other countries in a bid to ease tensions — much as Japanese automakers did to smooth-out economic relations with the US back in the 1980s. Two cases in point: EV leader Byd as well as Neta Auto plan to start producing EVs in the lucrative Indonesian market, with Byd saying it will invest USD 1 bn in its plant, the Financial Times reports.

AND- Top French business daily Les echos reports that European officials are worried about deep fakes and disinformation campaigns heading into the 6-9 June European Parliament elections.

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.

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.

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 on subject matter knowledge, while also working on constructing and filing Enterprise 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.

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