Good afternoon, friends, and congratulations on making it through another busy workweek.

Don’t forget to turn back your clocks an hour before you go to sleep tonight, as daylight saving time comes to an end at midnight tonight. Daylight saving time is a bugbear for some, but whatever your opinion, we can all enjoy that one hour of extra sleep tomorrow morning.

ALSO- Egyptian banks will be conducting system updates tonight as we prepare to turn back the clocks. The updates are scheduled for 11pm tonight until the early hours of Friday morning, affecting digital banking and ATM services until 6am on Friday, 31 October. So make sure you take care of any time-sensitive transactions ahead of time, and carry some banknotes just in case.

THE BIG STORY TODAY-

?Edge Holding for Investments signed an agreement to acquire a 30% stake in Basata Microfinance, a subsidiary of Basata Financial Holding (BFH), through a capital increase, according to a joint statement (pdf). Edge will take on management duties to support Basata’s nationwide expansion. There’s no publicly available information about the size of the transaction and the number of new shares that will be issued.

The transaction aims to broaden Basata’s product offerings, integrate digital financial services, and enhance governance and operations as part of efforts to ramp up financial inclusion for SMEs and underserved individuals, the statement reads. Basata also plans to create synergies with sister company Basata Pay to integrate payment solutions and develop cross-platform financial products.

About the companies: BFH invests in Egypt’s non-banking financial services sector, founded in 2017 as a joint venture between EGX-listed companies B Investments Holding and MM Group. It holds a 70% stake in Basata Microfinance. Edge Holding for Investments raised EGP 235 mn in capital and launched ventures in consumer finance, leasing, and real estate solutions. The firm plans to raise over EGP 300 mn to expand into SME, consumer, and mortgage finance.

Tax hike on alcoholic beverages coming soon: The Finance Ministry is preparing to tax alcoholic beverages based on their alcohol by volume percentage (ABV) in accordance with the amended VAT law starting 1 January 2026. The tax rate is set to rise by 15% annually for the next three years — after which the annual increase will be reduced to 12% starting 2029, according to a document seen by EnterpriseAM.

REMEMBER- VAT amendments, which were ratified in July, will also impact cigarettes, construction and contracting services. The amendments will help the government bring in an additional EGP 200 bn in tax revenues.

The amendments are also in line with the World Health Organization’s standards, and come with the aim of protecting public health, our sources said.

What does it mean for state coffers: The Finance Ministry hopes the alcoholic beverage tax hikes will generate EGP 4.7 bn from beer and EGP 170 mn from other alcoholic drinks, up from EGP 3.6 bn and EGP 5 mn, respectively, in the previous year.

THE BIG STORY ABROAD-

?The long-awaited meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea has turned out “amazing,” Trump said, describing the crucial trade talks that had markets swinging and the world holding its breath in fear of a reignited trade war between the two global superpowers. The US president further noted that disputes over the supply of rare-earth materials have now been settled.

Trump agreed to reduce fentanyl tariffs on China from 20% to 10% in exchange for Beijing resuming purchases of US soybean and rare-earth materials exports, as well as tightening control over illicit fentanyl trade. China further agreed to halt its export controls on rare-earth materials for one year.

Despite overwhelmingly positive reactions from Trump, Xi’s comments on the meeting were more grounded, simply noting that both countries reached a “basic consensus.” (BBC | Reuters | Financial Times | Guardian)

Minutes before the meeting between both leaders, Trump ordered the Pentagon to resume nuclear testing for the first time in 30 years to “keep pace” with Russia and China. The US president wrote on Truth Social, “Because of other countries' testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis. That process will begin immediately.” (CNN | BBC | CNBC)

☀️ TOMORROW’S WEATHER- We’re in for a warm start to the weekend, with temperatures in the capital set to peak at 31°C before cooling down to 21°C, according to our favorite weather app.

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