Good morning, wonderful people. It’s shaping up to be another busy day here in Cairo as we gear up to welcome fresh funds from the IMF and for Act Financial to make its EGX debut.

WATCH THIS SPACE-

#1- The recently approved USD 820 mn tranche from the IMF should arrive in the “coming days,” Finance Minister Ahmed Kouchouk said in a ministry statement released yesterday following the Fund concluding the third review of our USD 8 bn loan program. Kouchouk described the decision as a “vote of confidence” in the government’s economic policies and a “message of reassurance.”

USD 1.2 bn in green financing next? Egypt will begin the process of applying for the USD 1.2bn in green financing from the IMF’s Resilience and Sustainability Facility in August, Mubashar reports, citing unnamed government officials. The completion of the third review opens the door for Egypt to apply for the additional climate financing.

#2- Gov’t eyes USD 1.2 bn worth of private investments for logistics projects: The Transport Ministry wants to attract some USD 1.2 bn in private investment to carry out seven strategic projects to build new dry ports, expand maritime capabilities, and improve logistics centers across the country, Al Mal reports, citing a government document. The ministry aims to tap both domestic and international companies to implement these projects, which include a USD 530 mn logistics center and land port in Sixth of October City and a USD 160 mn dry port in Sadat City, as well as a port in New Fayoum, dry ports in South Sinai and New Sohag, and sea berths in Sokhna Port and Tewfik Port.

Part of a bigger plan: The new Madbouly cabinet has big plans for the country’s ports — it wants to set up 31 new dry ports and logistics zones during the coming three years. Check the new government’s ambitions for transport and logistics infrastructure in our Hardhat here.

HAPPENING TODAY-

We welcome Act Financial to the EGX: Act Financial’s will begin trading on the bourse at the start of today’s trading session, according to an EGX bulletin (pdf). The company completed the first IPO Egypt has seen in a year last week — the retail tranche of the IPO was 54.8x covered, while the institutional tranche was 20.2x oversubscribed.

Remember: Act Financial offered some 32% of the company — 360 mn shares — at EGP 2.90 a pop.

DATA POINT-

#1- Suez Canal revenues have dropped to around USD 300 mn a month, down 64.7% from USD 850 mn previously, Prime Minister Mostafa Madbouly said yesterday. Canal revenues continue to suffer due to Red Sea tension, Suez Canal Authority boss Osama Rabie said earlier this month, adding that revenues have fallen 23% y-o-y during FY 2023-2024 to USD 7.2 bn.

#2- Egyptians are not investing in gold like they once were: Demand for gold bars and coins in Egypt dropped 27% y-o-y in 2Q 2024, data released by the World Gold Council shows. The council argues that the decline in gold bars and coins sales in Egypt to 7.6 tons, down from 10.4 tons in the same period last year, was partly due to the EGP float undermining “the currency-hedge motive for investing in gold,” in its report for the quarter.

Do you want to attend our 2024 Enterprise Finance Forum on 24 September? Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth that the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in our country and the wider region. Among the questions we’ll be asking:

  • What’s Egypt’s role in the regional industry?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image above.

PSA-

WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 27°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 32°C and a low of 25°C.

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

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THE BIG STORY ABROAD-

For the first time in weeks, there’s more business news occupying front pages in the foreign press than politics, as Microsoft and Samsung kicked off 2Q earning season for Big Tech yesterday, fueling another market sell-off amid continued concerns about the commercial viability of AI.

BUT FIRST- Israel attacked a southern suburb in Beirut yesterday, claiming it killed a senior Hezbollah advisor. Israeli officials said no other attacks are planned for the time being, Bloomberg reports. The attack came in retaliation to a strike on the Golan Heights that killed 12 children and teenagers and for which Israel blamed Hezbollah. Three Lebanese civilians died in the Israeli attack, including two children, according to Reuters.

IN TECH NEWS-

#1- Investors continued to sell Big Tech, with Nvidia down 7% yesterday ahead of the sector’s earnings this week. The tech-heavy Nasdaq ended the day 1.3% down, while S&P 500 fell 0.5%. (FT)

#2- Microsoft’s Azure cloud service saw a slowdown in growth in 4Q 2023-2024, while capital spending hit USD 19 bn, with the tech giant saying the figure will increase in the new fiscal year. Microsoft’s shares were down 4% in extended trading following the results, which fueled already persistent concerns among investors about the excessive capital expenditure in AI and the lack of a fast pay-off.

#3- Samsung saw its bottom line increase six-fold on the back of a rebound in semiconductor prices and as earnings recovered from a low base, according to its earnings release (pdf).

#4- Intel plans to slash thousands of jobs in a cost reduction drive possibly as early as this week, as it continues to face subdued demand for its computer chips amid the AI boom. (Bloomberg)

AND IN OTHER BUSINESS NEWS- Standard Chartered announced plans for a USD 1.5 bn share buyback program — its biggest ever — as it lifted its income outlook on strong growth in Asia. (Reuters)

LATER THIS WEEK- Opec+ is expected to reaffirm its commitment to cutting production when it meets this Thursday, Reuters reports.

AND- US Vice President Kamala Harris is set to announce her running mate as early as next Monday before a multi-state battleground tour later next week. (Reuters)

OLYMPICS-

Egypt advances to the men’s football quarterfinals at the Paris Olympics after beating Spain 2-1 yesterday. The Pharaohs' Ibrahim Adel scored both goals, helping Egypt lead Group C with 7 points.

Missed the match? Check out the highlights here (watch, runtime: 4:54) or read them here.

Egypt will face Paraguay in the quarterfinals, with the match scheduled for Friday at 8:00 pm.

TEAM EGYPT has another packed day ahead. Among the most notable matches:

  • Shooting: Ibrahim Korayiem in the 50m pistol qualifications for men and Maggy Ashmawy in 2nd day of women’s trap qualifications (10:00 am)
  • Table Tennis: Dina Meshref in a clash against world no. 3 Japan’s Hina Hayata in women singles round of 32 (1:00 pm) and Omar Assar in an even match against Kazakhstan's Kirill Gerassimenko in men’s singles round of 16 (4:00 pm)
  • Fencing: Ziad Elsissy, Mohamed Amer, and Adham Moataz return to compete for medals as they face the French team in the team sabre competition (2:30 pm)
  • Archery: Jana Ali in a mission impossible against Korea’s Nam Suhyeon in the women’s individual round of 32 (4:15 pm)
  • Boxing: Omar ElAwady will face Kazakhstan’s Asadkhuja Muydinkhjaev in men’s 71 kg round of 16 (5:18 pm)
  • Handball: Egypt vs. France (8:00 pm).

Our own Nada Hafez has been making headlines after competing in the Olympics women’s individual sabre competition while seven months pregnant. After being knocked out of the competition after making it to the round of 16, Hafez wrote on Instagram that “What appears to you as two players on podium, they were actually three. It was me, my competitor, & my yet-to-come to our world, little baby.” (BBC | Guardian)

You can follow Team Egypt through this schedule or by heading over to our Paris 2024Guide.

Today should see the postponed men’s triathlon finally happen — weather permitting (thunderstorms are expected in the evening) — after being delayed from the previous day due to poor water quality levels in the Seine. Also watch out for: Nadal and Alcaraz’s tennis doubles quarterfinal against the US’ Austin Krajicek and Rajeev Ram; 100m swimming freestyle finals for men and women; and artistic gymnastics finals.

Highlights from yesterday: Simone Biles clinched her fifth gold medal in the women’s team event; and Andy Murray and his double’s partner Dan Evans made it to the quarterfinals.

The medal standings now at the Paris Olympics:

  • Japan (7 gold, 13 overall)
  • China (6 gold, 14 overall)
  • Australia (6 gold, 11 overall)
  • France (5 gold, 18 overall)
  • South Korea (5 gold, 11 overall)

Want to see when your favorite sport is on? Check out the official schedule here.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We dive into the latest efforts to grow Egypt’s yacht tourism sector — developing the Galala Marina.

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