Good morning, all. We hope the long weekend left you refreshed and ready to tackle another work week. We kick off the week with a macro-heavy issue, diving into the latest inflation and current account figures and the S&P upgrading our credit rating for the first time in years.

We have a busy week ahead, with the world’s eyes on Sharm El Sheikh as it prepares to host world leaders for the international summit on Gaza, where the ceasefire agreement will be finalized.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 28°C and a low of 20°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 27°C and a low of 20°C.

WATCH THIS SPACE-

#1- COMESA rolls out digital payments system: The Common Market for Eastern and Southern Africa (COMESA) has introduced a new digital payments platform that allows businesses across its 21 member states — including Egypt, Kenya, and Ethiopia — to settle trade transactions in local currencies, it said in a statement. The system aims to reduce reliance on hard currencies such as the USD, lowering trade costs and simplifying cross-border payments.

The new Digital Retail Payments Platform is being piloted between Malawi and Zambia in partnership with two digital financial service providers and a forex company. Kenya’s Trade Minister Lee Kinyanjui said the system will make regional trade more accessible for small and medium enterprises, which account for 80% of businesses and 60% of jobs in COMESA countries. The platform targets transaction fees below 3% of trade value.

#2- Fresh incentives for cement producers: The government is offering cement producers a one-time incentive this month to help increase supply in the local market, according to an Industry Ministry statement. Factories that increase their output to feed the domestic market this month will receive temporary discounts on fees related to amending production capacity in their operating licenses. This aims to encourage higher production, stabilize prices, and ensure enough supply in the local market.

ICYMI- The government in July gave cement factories one month to restart idle production lines as part of a broader push to stabilize prices and meet local demand.

#3- Air taxis are making their debut in Egypt: Abu Dhabi Aviation has launched Egypt’s first air taxi service in partnership with the Egyptian Air Force, with investments worth EGP 5 bn, Asharq Business reports. The project currently operates four aircraft, with plans to expand to eight next month. Fares start at USD 200 for short trips within Cairo and reach USD 1.5k for longer routes to Sharm El Sheikh, Hurghada, and El Gouna. The service targets tourists and business travelers, with future plans to expand into air medical transport and express cargo.

#4- The Central Bank of Egypt (CBE) launched the Banking Reform and Development Fund, which will work to “enhance the efficiency, infrastructure, and competitiveness of the Egyptian banking sector,” Governor Hassan Abdalla said in a statement shared by the bank.

The fund will be able to establish or invest in companies to advance its goals and cooperate with partners on a national and international level. The fund will also provide technical and financial support for initiatives to upgrade banking infrastructure, bolster cybersecurity, promote fintech innovation, and train human capital in line with global best practices.

The fund’s 11-member board will be headed by Abdalla and include CBE Monetary Policy Deputy Governor Rami Aboulnaga and CBE Banking Stability Deputy Governor Tarek Elkholy. The board also includes five bank CEOs elected by the Federation of Egyptian Banks, alongside three independent members with recognized expertise — Vodafone Egypt CEO Mohamed Abdallah, Bonyan CEO Tarek Abdel Rahman, and Sukari Gold Mines Managing Director Hoda Mansour.

HAPPENING TODAY-

Thirsty for innovative solutions for climate resilience and water sustainability? Cairo Water Week is here. The annual event kicks off today at New Cairo’s Triumph Luxury Hotel and wraps up on Thursday. Expect a packed schedule featuring workshops, exhibitions, and sessions around adaptation to climate change, water resource management, nature-based solutions, and sustainable infrastructure. The event will also host competitions for young inventors and showcase new technologies aimed at advancing the water sector in Egypt and the region.

CIRCLE YOUR CALENDAR-

#1- BEBA will host Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib later this month for a working early dinner, set for 28 October at Sheraton Cairo Hotel. The conversation with the two senior members of the cabinet’s economic team will be followed by a Q&A session.

#2- The Egypt–EU Summit will be held on 22 October in Brussels to advance the strategic and comprehensive partnership between both sides, Planning Minister Rania Al Mashat said. The summit will address economic cooperation, investment, and sustainable development.

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

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THE BIG STORY ABROAD-

We’ve got a mixed bag of headlines leading the front pages this morning. Among the stories getting plenty of ink:

#1- US President Donald Trump is threatening to slap a 100% tariff on all Chinese imports starting 1 November or earlier, after accusing Beijing of “very hostile” moves to curb exports of rare earths essential to tech manufacturing. The remarks sparked renewed fears of a trade war between the world’s two largest economies.Beijing’s decision to expand export controls on rare earths — key inputs for electric vehicles, electronics, and defense equipment — appears to have triggered the latest escalation. The new rules require foreign firms to obtain approval before exporting products containing the materials, effectively tightening China’s grip on the supply chain. (Financial Times | Guardian | Reuters)

#2- At least 60 people were killed in drone and artillery strikes by the Rapid Support Forces on a displacement shelter in Sudan’s Al Fashir between Friday and Saturday, CNN reports. The city, the army’s last stronghold in Darfur, has been under siege for months, with residents facing severe hunger and disease.

#3- Firefights broke out along the Pakistan-Afghanistan border late Saturday after the Afghan Taliban attacked Pakistani posts, Reuters reports.

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