Egypt, IMF reach staff-level agreement on seventh review

Good morning, friends. Three stories today, one through-line: who absorbs the cost?

Nassef Sawiris’ NNS Holding has filed the draft offer memorandum for its take-private of OCI Global with Dutch regulator AFM — the last step before a formal offer goes live. It follows NNS confirming its EUR 4.10-per-share allcash bid as its final offer, tapping into its own coffers to fund the transaction.

A “credit bubble” or a blind spot? We sat down with former FRA chairman Sherif Samy and analyst Ahmed Ezz El-din for two reads on the risk in the consumer finance sector.

AND- A recent FAO report flagged the country’s wheat exposure, but the crop was largely shielded on timing. We speak to analysts who tell us the real squeeze now sits in energy and input costs during the summer planting window.

***

ARE YOU MORE OF A LISTENER?Morning Drive is a 10-minute summary of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or driving through the morning rush. And if you like it, tell your friends to tell their friends. They can find us on Apple, Spotify, or wherever they get their podcasts.

***

Within reach of the finish line

We are one step closer to a USD 1.6 bn IMF disbursement. The Madbouly government and the IMF reached a staff-level agreement on the seventh review under our USD 8 bn Extended Fund Facility (EFF) and the second review of our parallel Resilience and Sustainability Facility (RSF), according to a statement. Subject to approval by the IMF’s board, the agreement will unlock USD 1.5 bn under the EFF and some USD 136 mn under the RSF, bringing total disbursements under the arrangements to USD 7.2 bn.

The Fund is happy with how we’ve handled the spillover from the regional war — “the Egyptian economy has remained relatively contained, supported by the authorities’ timely and decisive policy actions,” Mission Chief for Egypt Amine Mati said in the statement. He pointed to fuel and electricity price adjustments and the rationing of public spending.

The flexible exchange rate got some love for “acting as a shock absorber to sizable portfolio outflows.”

This doesn’t mean we’re out of the woods just yet: The statement reiterated a point made by the lender time and time again — the need to improve the business environment, level the playing field, and accelerate the divestment agenda to put us on the path towards private sector-led growth.

We’ve been making progress on that front: This month alone saw two big privatization moves — Taqa Arabia acquired 10% of 172 military-affiliated Wataniya fuel stations and Alcazar Energy took over the management of Gabal El Zeit wind farm. And there’s more to come, as the state ramps up its efforts to take more of its companies public. Read more here.

When can we expect the funds to land? The board will reportedly greenlight the disbursements this summer. After that, our eighth and final review under the current program is expected to be completed by the end of the year.

Keeping fuel flowing

The government is moving to renew the General Petroleum Company’s (GPC) rights over six oil-producing concessions, according to a government document seen by EnterpriseAM. A house joint committee is reviewing a government-drafted bill that would allow the oil minister to contract with GPC to extend exploration, development, and production rights across the Eastern Desert, the West Gulf of Suez, Sinai, and the Western Desert.

The concessions: GPC — a candidate for an upcoming EGX listing under the government’s privatization program — will secure 15-year exploitation periods, renewable up to a 30-year cap, covering the Gemsa, South Rafah/Abu Raad, Abu Sennan, Ras El Behar, Ras Ghareb, and Ras Ghareb Extension concessions.

The fiscal terms: The state can collect a royalty of up to 50% of net field income. While GPC remains subject to annual income tax, it will receive exemptions from other taxes and fees, including VAT on project-related goods and services. The company and its contractors will also benefit from customs exemptions on imported equipment, provided no local alternative meets quality and safety standards, or if the local option is priced over 10% higher than the import.

Why it matters: Decreasing oil output deepened our reliance on imports to cover domestic demand. The Oil Ministry is trying to rebuild the supply side with a 2026 exploration program targeting 101 wells and USD 1.31 bn in drilling investment, but keeping mature producing areas online remains the near-term defense against a wider fuel gap.

WhatsApp usernames are up for grabs

WhatsApp is introducing optional usernames to allow users to connect and chat without having to share their personal phone numbers, the company said in a press release. Once the feature officially launches later this year, first-time contacts will only see your username, providing an extra layer of privacy.

Usernames will be unique to each user and can be reserved via the app starting this week. For creators, small businesses, and organizations, the platform will allow them to claim their existing handles used on their social media accounts.

PSA-

WEATHER- We are facing the warmest day of the week in Cairo today, with a high of 37°C and a low of 24°C, according to our favorite weather app.

It’s several degrees cooler in Alexandria, with a high of 31°C and a low of 23°C.

The big story abroad

With no fresh update on the US-Iran talks, no single story is dominating the front pages this morning.

Cook stays: The US Supreme Court ruled to block President Donald Trump’s attempted sacking of Federal Reserve governor Lisa Cook. While the 5-4 decision is being billed as a victory for Fed independence, the court ruled in a separate decision that Trump may axe members of independent federal agencies.

Another high-profile shakeup in the media world: Mass media giant Comcast has plans to spin off its media and entertainment arm NBCUniversal and its European media business arm Sky. The split reportedly aims to increase investor appeal by letting shareholders choose between Comcast’s steady broadband business and the new media group.

Meanwhile, in the AI world: The rush to fund energy infrastructure for data centers has triggered a massive surge in US power and utility dealmaking. Data center growth is driving “a seemingly unstoppable trend line” in power demand. So far in 2026, data center investment skyrocketed to USD 151.5 bn, more than doubling y-o-y.

And, in a first, the Dow Jones Industrial Average surpassed the 52k mark yesterday, as tech companies start off the week strong. This coincided with Google-owner Alphabet’s debut on the index — its shares jumped 4.8% to lead gains.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We unpack why Egypt’s domestic green debt market stalled after its 2020 debut, and how multilateral capital is quietly stepping in to plug the financing gap.