Good morning, friends. It is day three of the war in the Gulf, and Egypt continues to push through physically unscathed even as policymakers and investors alike position themselves for a prolonged period of uncertainty.

Critically, every foreign investor in the exit lane yesterday was able to repatriate their funds without hiccup. Dealing rooms at the nation’s banks handled flows with aplomb as the EGP slid 1.7% against the greenback. That’s exactly what you want to see: The exchange rate acting as a shock absorber after the latest in an interminable line of “exogenous shocks,” with zero signs the Central Bank of Egypt has its thumb on the scale.

The Finance Ministry is also sounding a note of confidence: Senior officials we spoke with are signalling that they’re not backing away from international markets — and they’re not going to pay an insane risk premium, either.

Meanwhile, yesterday’s selloff on the EGX was… modest? The benchmark EGX30 was down 2.5% as traders recovered from a sharp drop at the opening bell. At least one market participant thinks the dip — coming as it does after last week’s wave of profit-taking after the EGX touched an all-time high — has opened a window for folks with piles of cash from maturing CDs to enter the stock market.

^^ We have the rundown on all of that and more in this morning’s news well, below.

From The Dept. of Minor Inconveniences

Our website is down: EnterpriseAM.com is one of the many, many services hosted on Amazon Web Services out of the UAE. The data center that hosts our site — and the apps and websites of dozens of other brands you know — was damaged after “objects hit” it, reportedly starting a fire and leading to a power outage. Our site has been down since mid-afternoon on Sunday and we're yet to hear from Amazon when we can expect it to be back up.

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MANUFACTURING — The new Madbouly cabinet is pivoting away from traditional bank-led industrial subsidies toward a market-driven financing model, according to a joint statement from the Industry and Investment ministries. Five heavyweight investment banks — Beltone, EFG Hermes, Al Ahly Pharos, CI Capital, and Cairo Capital — are working with the Sovereign Fund of Egypt to launch a suite of industrial investment funds. These will span debt, equity, and transferable securities, effectively creating a new capital pipeline for manufacturers outside the traditional banking system.

Why it matters: Egyptian industry has relied for years on subsidized interest rate initiatives from the central bank — most of which have been rolled back under pressure from the International Monetary Fund. By bringing the Sovereign Fund of Egypt in as a strategic partner, the government is providing a de-risking mechanism intended to crowd in private capital. If successful, this would move industrial growth from a fiscal burden to a capital market play. It also signals that the government is finally listening to the private sector’s plea for liquidity that doesn’t carry 30%+ interest rates.

What’s next? The Financial Regulatory Authority is expected to fast-track regulatory approvals for these specific funds. We will also watch for the onboarding phase with export councils and chambers of commerce. Meanwhile, investment banks are expected to announce the initial capital targets for these funds in the coming weeks.

M&A — B Investments is looking to acquire a 51% stake in specialty coffee roaster and cafe chain Brown Nose through its EGX-listed subsidiary OB Financial Holding (previously OFH), a company representative tells EnterpriseAM.

The private equity firm tapped Matouk Bassiouny & Hennawy as counsel for the potential acquisition, and the file is currently under review by the Egyptian Competition Authority, we were told.

B Investments is gunning for its majority stake “either from day one, or doing a two-step transaction where we acquire a stake now and an additional stake later to allow us to reach majority,” they said. The private equity firm “typically looks to acquire 25-50% of the target companies,” Chairman Hazem Barakat told us last month, adding that the firm is also looking to deploy EGP 2-3 bn over the next two years.

INVESTMENT — The government is mulling a new national investment entity — likely a holding company — to centralize Egypt’s economic footprint in Sub-Saharan Africa. Proposed by Foreign Minister Badr Abdelatty during a cabinet meeting yesterday, the entity would coordinate fragmented efforts across the continent, focusing on sectors where Egypt holds a clear competitive advantage, including agriculture, mining, and industrial manufacturing.

The proposal specifically calls for the Central Bank of Egypt and the wider banking sector to be baked into the structure. This suggests the government is finally looking to provide the formal financial umbrella — including trade finance and sovereign backing — that Egyptian firms have long lacked when competing against state-backed players from China, Turkey, and the GCC.

Why it matters: While giants like Elsewedy Electric and Arab Contractors have deep roots in the continent, mid-tier Egyptian operators have historically sat on the sidelines due to high geopolitical risk and a lack of institutional de-risking. A single, state-backed vehicle could provide the political cover and financing infrastructure needed to secure large-scale concessions and infrastructure-linked projects that are currently out of reach for individual balance sheets.

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Happening today

A staff delegation from the World Bank Group, led by President Ajay Banga, is in town for meetings with senior government officials. The visit takes place under the Bank’s Country Partnership Framework for Egypt for fiscal years 2023-2027, which outlines its financing and advisory priorities, including support for inclusive growth, private sector development, human capital, and climate resilience.

Banga is expected to visit the Integrated Waste Management Facility in Tenth of Ramadan, the flagship infrastructure component of the World Bank-funded USD 200 mn Greater Cairo Air Pollution Management and Climate Change Project. The facility is designed to serve Greater Cairo for up to 50 years, with an initial treatment capacity of around 5k tons per day and sanitary landfill cells capable of accommodating roughly 21 mn tons over the first five years. It is slated for completion by the end of 2026.

Happening tomorrow

Is non-oil private-sector activity poised for a rebound? The private sector awaits S&P Global’s Purchasing Managers’ Index report for February, expected tomorrow, after the index slipped back into red territory last month following a short-lived recovery in the two months prior.

Data point

35.2 TWh — that’s how much electricity Egypt generated from renewable energy sources in 2025, hitting a new record and marking a 28% y-o-y increase, according to industry publication Mees, citing data from the New and Renewable Energy Authority. While total generation figures for the year are still being finalized, the surge likely pushes the share of renewables in the national energy mix comfortably above the c.12% level seen at the start of the decade.

PSA

WEATHER- Expect foggy and rainy conditions in Cairo today, with a high of 18°C and a low of 9°C, according to our favorite weather app.

It’s cool with light to moderate showers in Alexandria, with a high of 17°C and a low of 11°C.

The big story abroad

The global front pages are all about the regional war and its impact on markets this morning. Between soaring oil prices and a strengthening USD, markets, currencies, and commodities are seeing massive fluctuations as investors look for safety amid all the uncertainty.

Worth reading: The Financial Times is out with a piece looking at what this all means for theglobal economy, while the Wall Street Journal dives into what a post-Khamenei Iran could look like.

From stocks to oil and logistics, we dive into what this all means for us at home in the news well, below.

*** 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 the education sector has been no exception to the wave of disruptions heralded by AI technology, and how at the center of it all sits the homegrown startup Faheem.

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