Good afternoon, all. It’s another busy day here in Cairo with the EGP once again sliding against the greenback and fresh details out on the government’s awaited sukuk issuances. We also have big privatization news — with the government signing agreements to restructure five military companies ahead of taking them public.

THE BIG STORY TODAY

The Sovereign Fund of Egypt will start restructuring five military-owned companies ahead of listing them under an agreement signed with the military’s National Service Projects Organization and a number of consultancy firms, according to a cabinet statement.

The list of companies include some familiar names we have been expected to go public for some time now — filling station operator Wataneya, bottled water company Safi, food manufacturer Silo Foods, fuel retailer Chill Out, and National Roads Company. The offerings will take place between this year and 2026, according to the timeline outlined in the statement — though it remains unclear which companies will be offered when.

Advisors: EFG Hermes and CI Capital will serve as financial advisors. Legal counsel is being provided by ADSERO (Ragy Soliman and Partners) and Matouk Bassiouny & Hennawy, while PwC and Grant Thornton are on board for tax and accounting. Boston Consulting Group will lead on strategic advisory.

PLUS- The EGP slid to a fresh low against the USD today, reaching EGP 51.62-51.72 — its weakest level since the March 2024 float. The decline reverses a brief rebound that saw the EGP strengthened to 51.33 against the greenback yesterday after starting the week at 50.62.

The volatility is linked to renewed US-China tensions which triggered moderate foreign investor exits after a short-lived stabilization, a banking source told EnterpriseAM. The source warned that further EGP fluctuations are likely until global markets calm down. Twelve-month non-deliverable forwards (NDFs) suggest traders see the USD trading at EGP 61.50 by the end of the year, according to Asharq Business.

AND- Egypt to issue USD 2 bn in sukuk this year: Egypt is planning on issuing USD 2 bn in sukuk in 2025 through multiple offerings, with the government already having appointed banks for the issuance, Finance Minister Ahmed Kouchouk told Reuters earlier today. The government is also open to debt-for-investment swap agreements akin to last year’s Ras El Hekma agreement as a means of securing FX, Kouchouk told the newswire.

THE BIG STORY ABROAD

The US-China trade war drags on as China hits back with more tariffs: Beijing will raise tariffs on US goods to 84%, up from the 34% it previously announced, according to a statement from the Chinese Finance Ministry. The tariffs will come into effect tomorrow, taking the cumulative rate on US goods to 104% — on par with the duties applied to China by the Trump administration. The move comes hours after US tariffs on Beijing came into force.

It doesn’t end there — China is also suing the US for tariff increases at the World Trade Organization, according to a statement by China’s Commerce Ministry. It has also added six US companies to its unreliable entity list, imposing sanctions on the firms for their "military and technological cooperation” with Taiwan. Additionally, the country will add 12 US entities to its export control list, prohibiting exports of certain items to these parties in what it says is an effort to protect national security.

In the midst of all the reprisals, US treasuries were hit hard: US treasuries, a cornerstone safe-haven asset, saw a sharp sell-off as the new US tariffs went into effect. The 10-year treasury yield spiked 39 bps to 4.38%this week, potentially making its way to what could become its steepest weekly climb since 2013.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Tariff relief could be on its way, with the US considering easing its recently imposed 10% tariff on exports from Egypt’s Qualifying Industrial Zones (QIZs) as well as on some goods subject to most-favored nation tariffs.
  • The Finance Ministry now sees Brent crude prices averaging USD 77 per barrel from July 2025 through June 2026, down from its previous forecast of USD 82 a barrel in the FY 2024-25 budget, amid global uncertainty.
  • Egypt’s sovereign sukuk prices have fallen to their lowest level in 11 months, reaching USD 101.24 on 4 April, down from USD 101.73 only a week prior, as the debt market continues to bear the brunt of the US’s recent tariff measures.

☀️ TOMORROW’S WEATHER- Brace yourselves for another cooldown in the capital tomorrow — the mercury is forecasted to dip by 4 degrees, landing at 21°C in the morning and a chilly 11°C by night, according to our favorite weather app.

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