Egypt wants to attract more WtE investments

Good morning, friends. We have another brisk issue for you to wrap up the first workweek of Ramadan.

So, when do we eat? Maghrib prayers are at 5:57pm in the capital, and you’ll have until 4:48am tomorrow to hydrate and caffeinate ahead of fajr.

PSA-

WEATHER- Cairo is in for another rainy day, with a high of 21°C and a low of 13°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 20°C and a low of 11°C.

And over the weekend, expect to see a high of 23°C and a low of 12°C in the capital.

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WATCH THIS SPACE-

#1- Egypt wants to attract more WtE investments: The environment and finance ministries are working to boost investments in waste-to-energy (WtE) projects by amending laws regulating public contracts and increasing the feed-in tariff rate, according to a joint statement from the two ministries. Land for WtE projects has already been allocated across eight governorates for completion over the next three or four years.

REMEMBER- The government was set to sign contracts with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste at a total cost of up to USD 1.2 bn in August. The government has long been planning to boost electricity generation from municipal waste, initially setting a target back in 2020 of generating 300 MW of electricity from WtE projects by 2025.

#2- Saudi Arabia’s cabinet greenlit the Egypt-Saudi Agreement on Promotion andMutual Protection of Investments that is expected to help protect Saudi investors as they ramp up investment in Egypt. The agreement is expected to bring upwards of USD 10 bn in bilateral investments over the next three years.

#3- The gov’t will begin releasing imported cars for people with disabilities from ports following a decision to ease restrictions on proof of payment transfers, according to new directives from the Port Said Customs Office seen by EnterpriseAM Egypt. The amended rule allows buyers to prove financial ability through a bank, postal account, or a property sale contract instead of requiring a bank transfer receipt.

This comes after tighter import rules were introduced last October to close a loophole that allowed some to import cars under disability exemptions without paying the required fees. Egypt has collected some EGP 3 bn in fines from individuals who misused disability vehicle exemptions since last June, Deputy Finance Minister for Tax Policies Sherif El Kilani told Asharq Business.

The gov’t will also begin releasing passenger vehicles stuck at ports without ACID numbers required to import cars after the Prime Minister approved the move, according to another document seen by EnterpriseAM. However, car owners will need to pay owed customs and fees as well as a USD 110 fee.

Remember: Cars had been piling up in Egypt’s ports over the past few months after the authorities refused to release cars whose owners had tried to dodge the passenger car registration restrictions by registering their passenger cars under other categories.

GAZING INTO THE CRYSTAL BALL-

New gov’t growth figures estimate GDP growth to accelerate to 4.5% in FY 2025-26: Planning and International Cooperation Minister Rania Al Mashat said that the government expects growth to accelerate to 4.5% in FY 2025-26, up from a 4.0% projection for FY 2024-25, with growth coming “despite challenges posed by global protectionist trade policies,” she said in an interview with CNN.

The government’s new projection is more optimistic to some, but less optimistic than others: Al Mashat’s FY25-26 forecast is a few percentage points higher than the IMF’s recently slashed growth forecast of 4.1% and the World Bank’s revised projection of 4.2% for the fiscal year. However, the forecast is less optimistic than the EBRD’s, which sees growth expanding to 4.6% in the next fiscal year as investor confidence strengthens and reforms gain traction, BNP Paribas’ forecast of 4.7%, and Capital Economics’ optimistic view that growth will accelerate to 5.3%.

DATA POINT-

The number of factories in the Suez Canal Economic Zone (SCZone) has doubled to 130 over the past three years, with another 120 under construction, Prime Minister Moustafa Madbouly said in his weekly presser yesterday.

THE BIG STORY ABROAD-

The Trump tariff continues to capture the attention of the foreign press: US President Donald Trump granted a 30-day tariff exemption for vehicles that comply with the United States Mexico Canada Agreement (USMCA), giving companies a brief window to adjust. The move follows a meeting between representatives from Ford, General Motors, and Stellantis and the Trump Administration — US automakers are scrambling to assess the impact of the tariff. (Reuters | Washington Post | AP | Bloomberg)

CLOSER TO HOME- Trump escalated threats against Gaza’s population, warning, “to the People of Gaza: A beautiful Future awaits, but not if you hold Hostages. If you do, you are DEAD.” He vowed there would be “hell to pay” if Hamas doesn’t release the Israeli hostages held in Gaza. The US President’s remarks came as Adam Boehler — Trump’s top hostage negotiator — held direct talks with Hamas officials in Qatar. The meeting comes as Israel and Hamas discuss extending the now-expired ceasefire. (BBC | AP | The Guardian)

MEANWHILE- German borrowing costs saw their biggest spike in nearly three decades following a EUR 500 bn debt agreement to boost military and infrastructure spending. (Financial Times | Reuters)