Good morning, friends, and welcome to April. We ring in the new month and the second quarter of the year with mixed sentiment — analysts expect the central bank to pause its easing cycle as the regional war continues to pull capital out of Egypt and weaken the EGP against the greenback.

On the bright side: It seems the Madbouly government is getting serious about its privatization plans, setting a 30-day deadline to temporarily list 20 companies on the EGX.

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PRIVATIZATION — 10 state-owned companies will temporarily list on the bourse over the coming two weeks, head of the cabinet’s unit dedicated to state-owned companies Hashem El Sayed said during a privatization-focused meeting. By the end of April, another 10 would have made their debut on the bourse, he added.

You heard it here first: Last month, EnterpriseAM reported that 13 state-owned pharma, logistics, industry, and finance companies will file for temporary listings in March, giving each six months to get their paperwork and finances in order before the actual trading begins.

Part of a bigger plan: The goal is to generate USD 3-4 bn in immediate inflows by year-end, part of a larger USD 6 bn target for the upcoming fiscal year.

There’s more where that came from: The meeting also reviewed where things stand with the 40 state-owned companies that will be transferred to the Sovereign Fund of Egypt, confirming news first picked up by EnterpriseAM in March. By consolidating companies under the fund, the government expects to secure higher-value partnerships than it would if it were to sell individual stakes in each firm, a government official previously told us, adding that Egypt Aluminum, Misr Fertilizers Production Company (Mopco), Abu Qir Fertilizers, CID Pharma, Zahraa Maadi for Investment and Development, and Heliopolis Housing will be first on the transfer list.

LOGISTICS — Will Tanzania become the gateway for Egyptian goods to East Africa? Egypt and Tanzania will soon ink an MoU to establish a multi-purpose terminal at Dar es Salaam Port, a shipping line between Egyptian Red Sea ports and Dar es Salaam, and reciprocal logistics zones in both countries, according to a statement from the Transport Ministry.

The planned terminal at Tanzania’s largest city will also open access to six landlocked nations, with the jointly developed port providing a path for Egyptian goods to more easily make it to Malawi, Zambia, the Democratic Republic of Congo, Burundi, Rwanda, and Uganda. Feeding the terminal is a proposed maritime line from Egypt, linking the port of Dar es Salaam with the Red Sea ports of Sokhna and Safaga.

The upcoming agreement also solidifies the proposal we heard about in December to set up a Tanzanian logistics zone in Egypt and vice versa, modeled after a similar agreement with Rwanda. The zones would help increase bilateral investments, support joint industrial work, and better connect the two countries economically. The zone planned for Tanzania is also set to join up with the country’s high-speed rail network to help deliver goods.

CUSTOMS — The Finance Ministry is activating the pilot phase of the Advanced Cargo Information (ACI) system for express couriers today, a move that will become mandatory on 1 May for all airport-based courier firms, a government official told EnterpriseAM.

Under the new regulations, parcels exceeding 50 kg will require a unique ACID number to ensure “tight control” and market protection against substandard goods as the Nafeza platform evolves into a unified trade hub for all Egyptian ports, our source added.

While the full electronic export system has seen its April launch slightly deferred to finalize procedural organizing, the Finance Ministry is simultaneously preparing legislative amendments aimed at reducing customs disputes and slashing clearance times to boost the competitiveness of local exports, according to our source.

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PSA-

Schools are out for the day: The Education Ministry has decided to give students the day off in response to bad weather. It remains unclear whether schools will be closed tomorrow as well, with the ministry saying that it is coordinating with the Egyptian Meteorological Authority before making a decision on the matter.

WEATHER- The rainy weather is back in Cairo today, with showers forecast throughout the day along with potential thunderstorms, along with a high of 26°C and a low of 20°C, according to our favorite weather app.

It’s much the same in Alexandria, with rainy skies and the possibility of thunder storms, along with a high of 22°C and a low of 17°C.

The big story abroad

The news cycle remains fixed on the war in our region, but there may be an end in sight, with US President Donald Trump telling reporters that US forces will leave Iran in two to three weeks. Washington has been able to disable Tehran’s nuclear infrastructure, which will take up to 20 years to re-establish, Trump said.

Watch this space: Trump will deliver “an important update on Iran” in a national address scheduled for early tomorrow.

The resulting energy supply shock still holds sway, with US gasoline prices surpassing USD 4 per gallon — but investors remain confident that the Federal Reserve won’t be hiking rates anytime soon. Instead, investors anticipate the Fed will hold rates or potentially pivot to cuts later this year, wagering that rising energy costs are more likely to stifle economic growth than trigger inflation.

Meanwhile, in the world of AI: OpenAI raised USD 122 bn in a record-breaking funding round, raising its valuation to USD 852 bn. “AI is driving productivity gains, accelerating scientific discovery, and expanding what people and organizations can build. This funding gives us the resources to continue to lead at the scale this moment demands,” the company behind ChatGPT said. The round was led by Japan’s SoftBank.

ALSO WORTH NOTING THIS MORNING- US private equity firms are increasingly showing interest in Japan’s fast food industry. Notable investments include Carlyle Group’s USD 847 mn purchase of KFC’s Japan-based operations and Goldman Sachs’ JPY 70 bn acquisition of the country’s Burger King operations. The trend appears to be underpinned by demographic shifts and rising inflation, which make quick, convenient meals more appealing.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look at how green building certifications are starting to do more than badge office towers, hotels, and logistics parks in Egypt — they are increasingly helping developers and asset owners make buildings more financeable, more efficient, and more legible to institutional capital.

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