Egypt wants to get back on JPMorgan’s EM indices

Good morning, friends. We are kicking off this shortened workweek with a packed issue, so let’s dive in.

WATCH THIS SPACE-

#1- We’re getting USD 2.9 bn from our development partners: Egypt is set to secure USD 2.9 bn in financing to support the state budget and enhance structural reforms from a number of development partners, including the European Union, the World Bank, the African Development Bank, Japan, the Asian Infrastructure Investment Bank, and the French Development Agency, Planning, Economic Development, and International Cooperation Minister Rania Al Mashat told reporters on the sidelines of the press conference on Thursday. The new funds are pending the necessary approvals, she added.

** We have more from the press conference in the news well, below.

#2- Egypt wants to get back on JPMorgan’s EM indices: The government is “stepping up efforts” to be relisted on JPMorgan’s widely-tracked emerging-market sovereign bond indices, Bloomberg reports, citing unnamed sources it says are familiar with the matter.

We will soon be eligible to be considered for reinclusion. Egypt is now 250 days into the 12-month period before the bank can consider putting it back on its Government Bond Index-Emerging Markets. We were dropped from the index on 31 January due to at-the-time persistent FX shortages in the country that prevented investors from repatriating returns. Egypt is hoping to get on the bank’s watchlist sometime within 1H 2025, which should open the door for a decision to be made late 2025 or in 2026.

This wouldn’t be the first time we were put back on the list: We rejoined the index in early 2022 after having been kicked out for over ten years because of the economic turmoil following the 25 January Revolution in 2011.

#3- An Egyptian-British investment conference is in the works: The government is planning an Egyptian-British investment conference to attract new British investments, according to a cabinet statement. The conference will give the Madbouly cabinet to showcase the available investments in the country and attract new investors, alongside further investments from existing investors, according to the statement, which did not provide any more details.

ICYMI: The news follows the British Egyptian Business Association’s (BEBA) Septemberbusiness mission to the UK, which saw a number of our cabinet members and gov’t higher ups discuss a wide array of potential investments with UK-based firms and other entities.

Business conferences can generate some serious dough: The Egypt-EU Investment Conference in June saw Egypt ink EUR 67.7 bn worth of agreements and MoUs — making it a potential model for investment conferences going forward.

#4- More freezones incoming: The General Authority for Investment and Freezones (GAFI) will set up four new freezones and have two others go live next year, GAFI boss Hossam Heiba told Asharq Business (watch, runtime: 6:28).

HAPPENING TODAY-

#1- 5G services are closer than ever: The country’s mobile network operators are inking agreements giving them access to 5G services today, one government source told Enterprise.

We’ve been waiting: Telecom Egypt received the first 5G license in the country from the National Telecommunications Regulatory Authority back in January, after which it partnered with Chinese tech giant Huawei to deploy 5G networks, allowing Huawei to set up 5G sites in “hotspot areas” throughout Egypt.

#2- The House is back in session: MPs kick off the fifth legislative season.today, discussing and voting on an array of decisions. The House will discuss and vote on amendments to the law regulating the Sovereign Fund Egypt, which give the prime minister the responsibility of assigning out the minister in charge of the fund — the responsibility currently falls to the planning minister.

AND- MPs will also discuss and vote on a EUR 2 mn grant from the European Investment Bank, which will help the Housing Ministry implement a number of national wastewater management projects.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 32°C and a low of 22°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 29°C and a low of 20°C.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

CIRCLE YOUR CALENDAR-

The CIT Ministry is planning to launch a specialized AI business incubator early next year, CIT Minister Amr Talaat said. The incubator, one of several set to be launched, will offer technical guidance and computing resources to support startups

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

THE BIG STORY ABROAD-

It’s exactly one year since Hamas’ attacks on Israel triggered a deadly and ongoing campaign in Gaza that has since seen thousands of Palestinians killed — with the estimate for the exact number of deaths contested by multiple sources as many remain missing or under rubble. The UN estimates over 42 mn tons of rubble, which could take more than a decade to clear, Reuters reports.

Israel’s military marked the eve of the anniversary of the start of the war with an aerial and ground offensive in Gaza, said to be the largest in months, killing 26 people in Deir al Balah through two attacks on a school and mosque that are now shelters for the displaced, Reuters reports separately. It also struck Jabaliya in northern Gaza, dropping leaflets to tell residents they’re attacking the area. In Lebanon, Israel bombarded Beirut overnight, while Hezbollah struck a military base near Haifa in Israel, the Guardian reports.

IN THE BUSINESS PRESS- It’s relatively quiet, typical for the start of a new week, but only for a little while as earnings season kicks into gear with 3Q figures set to trickle in as of 11 October. Speculations and forecasts are already making headlines, with Reuters taking note of an expected weakening recovery in Samsung’s earnings and of UBS’ forecast of an average 4.7% growth in S&P 500 earnings this quarter.

*** 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 take a deep dive into the financial literacy programs equipping Egypt’s workforce for future employment.