Good morning, folks. Bring your reading glasses and first hit of caffeine. Today’s issue is a bit of a marathon, from an “extensive” cabinet shake-up on its way to why our dream of a 25% drop in apartment prices might remain just that — a dream.

We also dive into how Egyptian professionals are looking to online education platforms to reskill, and report on Egypt getting ready to tick off the Gabal El Zeit wind farm from its divestment to-do list. Meanwhile, the startup scene is getting a USD 1 bn boost with a new Charter aiming to mint five local unicorns, and we look at how crypto winter fears are returning as the Trump-fueled rally unravels.

***

WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.***

Watch this space

GOVERNMENT — An “extensive” cabinet reshuffle was approved and will be presented for the House’s green light tomorrow, a senior government official tells EnterpriseAM. The news follows a communique to MPs to attend a plenary session set to take place at 1pm to “consider an important matter.”

We’re told that despite the big changes, Prime Minister Moustafa Madbouly and the cabinet’s economic team will remain in place.

Why this matters: By ring-fencing the economic team, the government is sending a clear message to international creditors and investors that the current reform trajectory is non-negotiable. With the IMF program in a critical phase and the government pushing for increased private-sector participation, a change in the finance or investment portfolios would have triggered unnecessary uncertainty.

What’s next? Once the House approves the changes, the new ministers will be sworn in at Ittihadiya. We’ll be watching closely to see if any ministries are merged — as has happened in previous reshuffles — and looking closely at newly appointed ministers’ resumes to see if we can get insight into what the new cabinet’s priorities will be.

CAPITAL MARKETS — CI CapitalAsset Management opened books yesterday on a new IPO fund targeting newly listed shares on the EGX, alongside two launches focused on quantitative strategies (Quant fund) and high-dividend equities (HD20 fund), according to a statement (pdf) from the company. Subscriptions will be open for two months.

Why it matters: The launch of an IPO-focused fund signals market expectations of increased listing activity, giving investors a dedicated way to access new paper amid limited primary issuance in recent years. The Quant fund comes ahead of the anticipated EGX derivatives rollout, offering a vehicle designed to operate in a more hedged, model-driven trading environment once those tools are in place.

CORPORATE ACTIONS — Saudi sovereign wealth fund PIF is moving closer to securing a seat on Rameda’s board. The local pharma company’s board unanimously approved calling an ordinary general assembly to discuss a request from Seventh Saudi Investment Company, a PIF subsidiary, to nominate a representative to the board, it said in a disclosure to EGX (pdf). The date of the assembly is yet to be determined.

Why it matters: The move signals a potential shift for the Saudi shareholder from a passive investment to deeper involvement. It currently holds 11.1% of the pharma player after more than doubling its stake in 2022. Seventh Saudi Investment Company is currently the second-largest shareholder in the company after Compass’ healthcare investment platform Equinox Pharma, which holds 19.2%, and ahead of Kuwait’s Ekuity Holding, which owns 10.1% and already holds a board seat.

INVESTMENT — The Egyptian-American Enterprise Fund (EAEF) plans to exit two more portfolio companies this year, aiming to raise around USD 75 mn, according to a letter (pdf) to the US Congress. The planned divestments follow a sharp performance turnaround, with the fund posting a net income of USD 54.1 mn last year after a USD 20.3 mn loss in 2024.

Why it matters: EAEF’s renewed appetite for exits signals that Egypt’s private equity market is stirring back to life after years of FX-driven valuation paralysis, with the fund saying its strategy is anchored in what it describes as broader macro recovery and return of investor confidence. The fund is shifting from capital preservation to active harvesting, and its ability to convert assets into liquidity will be closely watched by foreign limited partners and regional PE firms weighing whether now is the time to enter — or re-enter — the market.

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.

Subscribe here

** DID YOU KNOW that we cover Saudi Arabia, the UAE, and the MENA-IndiaCorridor?

Happening tomorrow

Gourmet will officially take its place on the EGX tomorrow, with trading in the premium food retailer’s shares set to begin on Tuesday under ticker GOUR.CA at EGP 6.90 per share, according to a bulletin from the bourse seen by EnterpriseAM.

The listing follows the company selling a 47.6% stake in an IPO, whose public tranche was 55.8x oversubscribed and private placement was 12.2x covered. The company raised approximately EGP 1.3 bn in proceeds.

We’re keeping an eye on January’s inflation figures due tomorrow, set to serve as early clues ahead of the Central Bank of Egypt’s meeting to decide on interest rates on Thursday. The country’s December reading showed annual headline urban inflation unchanged at 12.3% despite food and beverages price hikes, supporting forecasts that inflation will continue making relatively adequate progress toward the CBE’s target of 7% (±2%) by the end of 2026.

Data point

USD 52.6 bn — that’s what net foreign reserves rose to at the end of January, climbing USD 1.1 bn from December, according to data (pdf) from the central bank. The increase was driven by a USD 2.6 bn uptick in the value of gold reserves, which helped offset a USD 1.5 bn fall in FX holdings.

PSA-

WEATHER- The warm weather is set to continue in Cairo today, with a high of 28°C and a low of 17°C, according to our favorite weather app.

But it’s cooling down quite a bit in Alexandria, with a high of 23°C and a low of 13°C.

The big story abroad

Global headlines are focused on Asian markets’ broad rally, riding the wave of incumbent Japanese Prime Minister Sanae Takaichi’s landslide victory in snap elections yesterday. In anticipation of Takaichi’s reflationary agenda — more spending and tax cuts — markets responded bullishly, sending Japan’s Nikkei climbing 4.2% to an all-time high.

Gold rebounded on the news: Partially boosted by Takaichi’s victory, gold rose above USD 5kper ounce, jumping as much as 1.7% in early trading and recovering half of the losses it sustained since dropping from a historic high late last month. Helping the recovery is also promising backing from the likes of Deutsche Bank, Goldman Sachs, and the Chinese central bank.

Super Bowl LX is getting plenty of attention this morning after the Seattle Seahawks won the game with 29 points, securing their second-ever title. The defeated Patriots lost their chance at their seventh title.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at how Egyptian professionals are looking towards online education platforms to upskill and prepare for AI shaking up the work place.

Tags: