Good morning, all. We have another packed issue for you as the news flow shows no sign of slowing down.

WATCH THIS SPACE-

#1- A new investment incentive package will be announced within a week, Investment Minister Hassan El Khatib said at the Private Sector Engagement Annual Conference, according to Asharq Business. We first heard about the package last month from Prime Minister Moustafa Madbouly, who said that it would encourage and incentivize both new and current investors to pour more investments into various sectors.

It includes: The Investment Ministry is working with a number of other ministries including the Finance Ministry to introduce the first phase of the two-phase program to ease tax burdens on investors, according to El Khatib.

Also in the pipeline: The ministry is working on a number of policies to help the Madbouly government reach its growth target of 6-7%, up exports to USD 145 bn by 2030 by drumming up private investments worth USD 240 bn. The policies will be inflation-oriented and will prioritize increasing the private sector’s involvement in the economy. They will also aim to support foreign trade.

El Khatib also laid out some of the state’s investment priorities at the conference, pointing to industry, healthcare, agriculture, energy, and tourism. The minister also highlighted hydrogen production and energy storage as a priority, along with solar technology, microchip production, data centers, and outsourcing services.

#2- Efforts to split the Egyptian Electricity Transmission Company from the Egyptian Electricity Holding Company are still ongoing, with the committee in charge meeting yesterday, according to a Electricity Ministry statement. Electricity Minister Mahmoud Esmat highlighted that the move aims to encourage private investment in the energy sector, particularly in renewable energy, while maintaining the stability and efficiency of the national electricity grid.

#3- Fertilizer makers are looking at foreign investors to help them secure FX: Several fertilizer manufacturers are reportedly looking to offload stakes to foreign investors in an effort to secure the needed FX to carry out expansion plans, Al Borsa reports, citing Chemicals and Fertilizers Export Council Deputy Head Tarek Zaghloul.

INFLATION WATCH-

Analysts divided on September inflation forecast: A CNBC Arabia poll of 10economists revealed a split outlook for Egypt’s September inflation figure, with half of those surveyed penciling in an up to a 1.5 percentage point dip in inflation due to a favorable base effect. CI Capital’s Sara Sadaa expects annual inflation to remain flat at 26.2% in September and monthly inflation rising to 2%. Some 40% of surveyed analysts see annual inflation rising 3 percentage points on the back of the impact of fuel price hikes.

From the crystal ball: Some 70% of those surveyed believe that inflation will dip in 4Q, as the EGP stabilizes and expected foreign investments start rolling in.

Remember: Annual urban inflation has accelerated 0.5 percentage points to 26.2% in August after having fallen to 25.7% — its lowest level since December 2022.

SMART POLICY-

The Entrepreneurship Ministerial Committee held its first meeting yesterday, during which chair Planning and International Cooperation Minister Rania Al Mashat highlighted the need to “to reconsider existing laws and regulations to ensure alignment with international standards and the needs of startups,” according to a statement. She also pointed to the need to reform regulatory frameworks to bring in more private investment and provide equal chances for women and youth.

ICYMI- Last month, Prime Minister Moustafa Madbouly issued a decision to form a committee that aims to support the startup ecosystem in a bid to accelerate economic growth and job creation — dubbed the Entrepreneurship Ministerial Committee. It was tasked to propose policies and legislation to support the entrepreneurial ecosystem, and help startups access international markets and expand globally.

PSA-

WEATHER- We’re in for another cool day in Cairo, with a high of 33°C and a low of 23°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 30°C and a low of 22°C.

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THE BIG STORY ABROAD-

Israel, Hezbollah, and Hamas exchanged fire on the anniversary of the October 7 attack, with Israel launching air raids on 120 sites in southern Lebanon, and Hamas and Hezbollah both firing rockets at Israel, most of which the Israeli military said it had intercepted. Dozens of people in Lebanon were killed, including 10 firefighters, and two Israeli soldiers. Around 12 people were injured in Israel from Hamas’ and Hezbollah’s airstrikes. (Bloomberg | Reuters | The Guardian)

Oil prices rose to their highest levels since August, settling at USD 80.93 a barrel, as violence intensified and speculation over Israel’s retaliation with strikes on Iranian oil facilities continues, the Financial Times reports.

IN THE BUSINESS PRESS- Another antitrust defeat for Google is making headlines, after a US judge ruled that Google parent Alphabet open up its Play store to its competition and distribute rival third-party app stores within its Play store. The ruling comes following a jury decision last year that was in favor of Fortnite maker Epic Games, which had argued that Google had made it impossible for other app stores to establish themselves. (Reuters | FT | The Verge)

ALSO- It’s Nobel Prize season. The Nobel Prize in physiology or medicine was handed to Victor Ambros and Gary Ruvkun for their discovery of microRNA and the role it plays in gene regulation. Up next: The prize for physics will be handed out today, followed by chemistry tomorrow, literature on Thursday, peace on Friday, and economic sciences next Monday.

*** 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 look into rising sea levels and water scarcity’s effect on Egypt’s soil fertility.

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