Good morning, all. In today’s issue of EnterpriseAM Egypt, we’ve got insights from leading HSBC economists, a USD 500 mn project to localize the production of baby formula, a deep-dive into how the EGX30 fared in May, and more.

PSA-

#1- Banks will be off from Thursday, 5 June through Monday, 9 June in observance of Eid Al Adha, according to a statement from the Central Bank of Egypt. Private and public sector workers are also getting the same five-day break.

EnterpriseAM Egypt will also be taking a break from your inboxes for the Eid break, but we’ll be back bright and early on Tuesday with all the most important updates to keep you up to speed.

#2- The Housing Ministry has extended the deadline to apply for mid-income housing units under the Housing for All Egyptians 7 initiative to 18 June, Minister Sherif El Sherbiny said in a statement yesterday. The extension comes amid strong demand and citizen requests to keep the window open longer. You can head over to the Official Egyptian Real Estate Platform for information about available units, eligibility requirements, and required procedures.

WEATHER- We’re in store for another summery day in Cairo today, with a high of 31°C and a low of 20°C, according to our favorite weather app.

It’s a few degrees cooler in Alexandria, with a high of 27°C and a low of 19°C.

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WATCH THIS SPACE-

Could Egypt soon be home to an official Apple store? Tech giant Apple wants to open an official Apple store in the country as part of plans to expand its presence in the local market, Hapi Journal quotes Apple's Director of Government Affairs for the Middle East and Pakistan Omar El Rifai as saying in a meeting with Investment Minister Hassan El Khatib. The company views Egypt as a gateway for its expansion into Africa and the Middle East, El Rifai said, highlighting the company’s continued commitment to developing call centers and training programs.

REMEMBER- The government has expressed interest in attracting Apple to establish a manufacturing presence in the country, with Prime Minister Moustafa Madbouly saying in May of last year that Egypt is working to get Apple to set up a factory here.

HAPPENING TODAY-

#1- Private sector activity health check, incoming: Policymakers, private sector players, and economists are eagerly awaiting S&P Global’s PMI figures for May that will be coming out shortly. April’s reading saw non-oil private sector activity decline further to 48.5 amid weaker consumer spending — marking Egypt’s lowest PMI reading in 2025 so far.

#2- It’s day two of Fi Africa andProPak MENA at the Egypt International Exhibition Center. The three-day annual conference (pdf) — which focuses on the food, beverage, and packaging industries — will bring together over 400 exhibitors from Egypt, the Middle East, Asia, and Europe, as well as over 16k attendees. It will feature talks and workshops for F&B and consumer goods manufacturers and showcase new technologies in a bid to promote potential investments and encourage sustainability and food waste reduction. You can register for the event through the link available on the Fi Africa and ProPak MENA websites.

FROM THE DEBT MARKETS-

The Central Bank of Egypt auctioned off USD 485 mn worth of USD-denominated one-year treasury bills yesterday, surpassing the targeted USD 450 mn, according to the bank’s website. The bills were sold with a yield of 4.25%, which has been the rate throughout 2025.

EGP-denominated t-bills were also offered up yesterday, with the auction raising EGP 58.8 bn — 15% above its EGP 50 bn target, according to data from the CBE’s website. Average yields fell 0.107 percentage points to 27.918% on three-month bills, while they rose 0.091 percentage points to 26.678% on nine-month bills.

IN CONTEXT- Investors have been demanding higher yields on short-term debt since the beginning of the CBE’s monetary easing cycle back in April, which has led to the Finance Ministry having to reject bids across a number of auctions and miss its targets. Meanwhile, investors are favoring long-term bonds following the cuts, in what is a positive development that helps extend the maturity profile of public debt, reduces annual interest payments, and stimulates the secondary market for public debt instruments, a government source told EnterpriseAM previously.

The end goal? The government aims to bring down the debt-to-GDP ratio to 80% by the end of June 2026 and to lower the external debt by USD 1-2 bn annually.

THE BIG STORY ABROAD-

Musk is still managing to still make the headlines after his step back from his chaotic foray into politics, with his xAI company looking to raise USD 5 bn in debt with a double digit interest rate to build out the company’s AI infrastructure. The company behind social media platform X and AI chatbot Grok is also selling USD 300 mn worth of stock in a tender offer that values the company at USD 113 bn. (Reuters | Financial Times | Bloomberg)

Also ranking high on the world’s digital front pages are peace talks between Russia and Ukraine that give little hope that the war could soon come to an end. A second round of direct talks between the two nations in Istanbul ended with both sides trading ultimatums and agreeing only on limited humanitarian measures that included a prisoner swap. Russia demanded Ukrainian withdrawal from four regions and neutrality guarantees, while Ukraine called for a full ceasefire, US oversight, and the return of abducted children — of which Russia agreed to release just 10 from a list that Ukraine claims reaches 400. (Reuters | Financial Times | Bloomberg)

Meanwhile, leading the Guardian is a report claiming that Israel’s deadly strikes on schools used as shelters are part of a deliberate strategy. The depressingly familiar reports of strikes on schools have become a hallmark of Israel’s assault on Gaza, with the UN detailing in a report last month that 406 schools have been struck with a direct hit during the 19 month-long war — accounting for 72% of all the enclave’s schools. (Guardian)

*** 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 at how desert sand can help make Egypt’s construction sector more sustainable.

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