The EU adds EUR 90 mn to the race to fix Egypt’s grid

A EUR 90 mn grant from the European Union is coming our way to support investments in the electricity grid and renewable energy development, according to a cabinet statement. European backing has been one of our go-tos for grid support, with the European Bank for Reconstruction and Development committing EUR 200 mn to support grid upgrades last year. Another EUR 35 mn grant was also inked for Scatec’s green ammonia project in Ain Sokhna.

Why this matters: The grid wasn’t built for volatile wind and solar energy, risking large chunks of new capacity going unused. The Egyptian Electricity Transmission Company spent EGP 26.3 bn upgrading the grid’s infrastructure during the last fiscal year, and Investment Minister Hassan El Khatib has spoken about the need for USD 45 bn in distribution infrastructure investments to integrate new clean capacity.

Eastern Company, Philip Morris hike cigarette prices

State-owned Eastern Company approved a direct price increase across several of its cigarette brands, with the new prices officially taking effect yesterday, it said in a disclosure (pdf) to the EGX. Under the revised list, the prices of Cleopatra King Size, Cleopatra Soft Queen, Cleopatra Box, Cleopatra Super, and Mondial cigarettes were raised by around 9%.

US tobacco giant Philip Morris also hiked prices by up to 8% for its cigarettes and heated tobacco products last week, according to a statement (pdf). The price of its higher-end smokes climbed as much as 6%, while its more affordable L&M brand saw an 8% increase along with its Terea heated tobacco range.

IN CONTEXT- Cigarette price hikes are rooted in a tax framework that treats tobacco as a dependable revenue source for the government, with excise duties and VAT forming a large share of retail prices and partially funding public health spending. The latest increases build on a July 2025 VAT law amendment that expanded price brackets and allowed annual hikes of up to 12%. The Tax Authority leveraged this mechanism in October to impose a second 12% tobacco tax increase this FY — reinforcing tobacco’s role as a budget lever with limited demand fallout.

Madinet Masr taps Al Shorouk Construction for EGP 4.8 bn Sarai build-out

Madinet Masr signed a EGP 4.8 bn MoU with Al Shorouk Construction to construct 81 residential buildings in the Elan phase of its Sarai project in East Cairo, according to a statement (pdf) from the developer. Delivery is expected by the end of 2027.

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