Cabinet approves USD 500 mn Samurai bond sale

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What We're Tracking Today

Attention Canadians: No visas on arrival in Egypt for you

Good morning, wonderful people, and welcome to the final news day of the week. It’s also the (unofficial) last Thursday of summer, with the pace at which students return to classrooms set to accelerate from Sunday.

We have some debt news and a lot of energy news this morning, but the BIG STORY HERE AT HOME is news of what appears to be a brewing visa flap with Canada:

Attention Canadians: It looks like you may no longer be getting visas on arrival — at least for a while. Canadians traveling to Egypt will soon no longer be able to obtain a visa on arrival and will instead have to apply for one via an embassy or consulate abroad before traveling, according to Global Affairs Canada’s travel page for Egypt.

When do the changes take effect? It’s unclear. The Canadian government’s travel page says it is from Sunday, 3 September, while the Egyptian embassy in Ottawa says the rule change is effective 1 October.

Egyptians with Canadian citizenship will have to jump through hoops, too, if they’re traveling on their Canadian passport (if the changes take effect): One option will be to pay (for the first time) for a visa on arrival, provided you can prove Egyptian citizenship. Immigration officials will accept expired national IDs and passports as proof, the embassy says. To go this route, though, you’ll need to get a certificate from an Egyptian embassy or consulate attesting that you’re Egyptian — otherwise, you may not be allowed to board your plane. The other option: Apply without charge for a visa prior to your departure.

What’s going on? Officially, nobody’s saying. But it seems Egyptian authorities aren’t happy with what they say are Canada’s increasingly strict visa rules for Egyptians and have decided to respond in kind, according to an email sent from the Egyptian embassy in Ottawa seen by Canada’s CBC. According to the broadcaster, the email describes the difficulties experienced by Egyptians as “offensive in nature to the dignity of the Egyptian state.”

Cooler heads should prevail: Canada and Egypt have long been friends, and it’s near-impossible that you do not personally know someone whose kid has or is going to university there. Canada is home to what is, depending on how you count, the fifth- or sixth-largest Egyptian diasporas (counted by first-generation citizens); it would rank higher if you included folks with any Egyptian heritage. We hope both governments quickly take steps to de-escalate — and that most certainly includes Canada re-imagining an immigration bureaucracy that has become both faceless and soulless.

Where do things stand? At least one member of the House of Representatives has picked up the issue, with the Social Democratic Party’s Freddy El Bayadhi saying he’s made inquiries of the Prime Minister’s Office as well as the ministries of tourism and foreign affairs, according to Masrawy. The report says the Tourism Ministry then confirmed that Canadians will need to apply for visas before traveling.

Are you Canadian, already in Egypt, and looking to renew your visa soon? There is nothing in the public record that suggests you’ll have new procedures to follow, but it would be a good idea to check into this now. We’re asking and will report back next week as soon as we have news.

PSA- Calling all prospective master’s students: Applications for the UK government’s Chevening scholarship will open from Tuesday, 12 September and close on 7 November. The scholarship offers full financial support for students to pursue an eligible master’s degree at over 150 UK universities. Applications will be open here.

FROM THE RUMOR MILL-

Have the two potential mystery bidders for Safi been named? Al Borsa claims to have unmasked the two mystery firms interested in acquiring Safi as Mansour Group and Agthia, citing anonymous sources. Agthia has been rumored to be in the running to purchase the military-owned bottled water firm for months, though chatter just two weeks ago claimed that the ADQ-owned Emirati firm had lost interest.

Why we’re talking about this: An updated state ownership policy document leaked on Tuesday revealed that two investors are considering acquiring the company.

Remember: The National Services Projects Organization (NSPO) has spun off the factories and 75 distribution points into a new company, according to the document. It’s not clear which assets are being offered to investors, or whether the new company will remain under the ownership of the NSPO.

HAPPENING TODAY-

HSBC Egypt takes GAFI on the road, heading to Beijing today: GAFI and our friends at HSBC Egypt are showcasing Egypt’s Vision 2030 sustainable development strategy at the Africa Singapore Business Forum, which kicked off on Tuesday and concludes today. More than 600 Asian investors and corporations are attending.

Change across the region is driving investor interest, says Stephen Moss, HSBC Bank Middle East’s regional chief executive for the Middle East, North Africa and Türkiye (MENAT). “The MENAT region is witnessing unprecedented economic change and transformation, led by Saudi Arabia and the UAE, and we’re seeing robust growth momentum driven by a vision to diversify economies and spearhead energy transition. This is an opportune time for Chinese investors and businesses to make inroads into the Middle East,” he said

HSBC will take GAFI today to Beijing, where HSBC China is hosting a MENAT summit today. “Egypt has played an important role in China’s Belt and Road Initiative due

to its strategic location that makes it a vital trade route connecting the Middle East and Africa,” said Todd Wilcox, HSBC Egypt’s deputy chairman and CEO. “A growing number of Chinese investors are turning towards Egypt with more than 2k Chinese firms already operating in the country with investments of USD 8 bn in various sectors. This is the right time for Egyptian businesses to accelerate dialogue and engagement with Chinese investors to showcase the expansive trade and investment opportunities the country has to offer.”

China + MENA have a lot to gain from strengthening trade ties: HSBC has estimated the value of untapped trade potential between China and MENAT at USD 178 bn over the next five years, according to a new report to be released during today’s summit in Beijing, the bank said (pdf ) yesterday.

HAPPENING TOMORROW-

EgyptAir is heading to Port Sudan: EgyptAir will start operating daily flights between Cairo and the Sudanese coastal city from 1 September. The announcement by the Civil A viation Minis try and the national carrier yesterday came a day after President Abdel Fattah El Sisi and Sudan army chief General Abdel Fattah Al Burhan held talks in Alamein.

WAR WATCH- Almost 290k refugees from Sudan have fled to Egypt since the violence erupted in the middle of April, according to the latest UN data.

The new flights got ink in the foreign press: Associated Press.

INFLATION WATCH- Your sandwich bel gebna and chai bl laban are getting more expensive from tomorrow: Cheesemaker Domty and dairy producer Juhayna will both hike prices from tomorrow in response to rising input costs. Juhayna will raise the prices of its milk products by up to EGP 11 from 1 September according to a price sheet obtained by Al Mal. Meanwhile, C NBC Arabia reports that Domty prices will rise by up to 7.5% from tomorrow, citing unnamed sources.

Remember: Annual urban inflation accelerated at its fastest ever rate in July driven by a record increase in food prices.

FDI WATCH- Deadline day for the Smart Green Projects initiative: Submissions for the second phase of the Smart Green Projects initiative will be due on Friday, 1 September. The second iteration of the government-led initiative is accepting applications for projects working on addressing issues like energy, emissions reduction, sustainable agriculture and green buildings. Shortlisted projects will get the chance to present their vision during COP28. The top three contenders in six categories are also awarded prizes between EGP 250k and EGP 750k.

TOMORROW IS A NEW MONTH-

As we near the final month of 3Q — here are the key news triggers on which to keep your eyes as we head into September:

PMI: S&P Global will publish Egypt’s PMI figures for August next Tuesday, 5 September.
Foreign reserves: The central bank will release August’s foreign reserves figures next week.
Inflation: Capmas and the CBE will publish the latest inflation data on Sunday, 10 September.
Interest rates: The CBE’s Monetary Policy Committee will gather to discuss interest rates on Thursday, 21 September.

A delayed climate investment forum is coming next month: The forum on environment and climate investment that the Environment Ministry was supposed to have held in June has been rescheduled for September, Minister Yasmine Fouad said Tuesday, without providing any details. We’re keeping our ears to the ground on exact dates, venue, who’s attending, and what’s on the agenda.

THE BIG STORIES ABROAD-

Hurricane Idalia: The storm is still the top story across much of the US media this morning. (Associated Press | Reuters | Washington Post)
The Donald: Trump is a close second after New York’s attorney-general yesterday pressed a state court to hold the former US president guilty of fraud relating to financial statements filed between 2011 and 2021. (Associated Press | Reuters | New York Times)
Ukraine: The Gray Lady is leading with the latest from the war in Ukraine, where both sides have fired barrages of missiles into each other's territory. (New York Times)

CHECK OUT OUR AGENDA-

The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

This is our first two-day event,which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS.

Our full agenda will be out at month’s end. Among the topics we’ll be discussing:

Looking into the crystal ball: Top industry CEOs will join us on stage to answer tough questions on where we are as an industry, the forces that will shape all of our businesses going forward, and their views on dealflow in the year ahead.

Surviving nuclear winter: We discuss how private equity and venture capital players are tackling challenges including fundraising and deployment in an environment in which it’s awfully difficult to price your local asset in USD terms.
The robots are coming: We explore what the coming AI and big data means for the industry in our part of the world and what can bankers, NBFI, and fintech players do to capitalize on them.
What do you do when nobody wants to be a banker — and when those who are already (investment or commercial) bankers are either (a) dreaming of doing their own startup or (b) moving to Dubai (or, increasingly, Riyadh)? We go deep into the weeds with industry leaders on how they’re building talent for tomorrow.
NBFIs are a bubble. Prove me wrong: We chart the explosive rise of NBFIs and ask whether the industry is ready for a wave of consolidation. We’ll dive into whether consumer finance is starting to mature as a segment — and ask which sector is next.
What does 2024 hold in store for fintech: We dive deep into which categories are getting traction, which segments will account for the lion’s share of future growth, what business they would start today if they could, and what we can expect of the sector in the year ahead.
What’s a bank, anyway? Wherein we talk challenger and neobanks with the players looking to shake up the brick-and-mortar industry.

** NEW: MORE NETWORKING TIME- Our agenda includes expanded networking time, including an expanded coffee break and a post-event networking room for you to interact with your peers and speak one-on-one with the team at Enterprise.

STAY TUNED for more detail about our exciting agenda in the weeks to come.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial.

CIRCLE YOUR CALENDAR-

Help keep Wadi Degla clean: Trail running events organizer Ultra Ibex is holding a trash clean-up in Cairo’s Wadi Degla between 9-11 am on Friday, 15 September. Volunteers will clear trash from the 3-km stretch from the entrance of the Wadi, the same area where they collected more than 100 bags of trash last year. All proceeds collected from the event will go towards installing 10 new trash collection units in the Wadi. Register to help out here.

Are you a corporate and want to back the cleanup? Our friends at Ultra Ibex are actively looking for partners.

Shopping for a home? Real estate exhibition Cityscape is taking place on 20-23 September at the Egypt International Exhibition Center (EIEC) in Cairo. The event will feature Cityscape Talks (pdf), a series of discussions and presentations that will bring together experts from the private and public real estate sectors, investors, and decision-makers.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Get ready to embark on a sensational journey of entertainment. From October through December, London will be illuminated by the brilliance of three remarkable events, sponsored exclusively by Somabay. The laughter will be unstoppable at the uproarious Egyptian Trilogy comedy tour, followed by the enchanting Samar Tarik. Brace yourselves for a captivating finale with the mesmerizing Farah El Dibany. Somabay brings you an unforgettable trifecta of events that will leave you utterly captivated and eagerly anticipating each spectacular moment.

Egypt cabinet approves USD 500 mn Samurai bond sale, approves formation of new green hydrogen council

A second samurai bond issuance is in the pipeline: Ministers have given the green light to the Finance Ministry to take a fresh USD 500 mn issuance of JPY-denominated bonds to market, the cabinet said in a statement following its weekly meeting yesterday. The so-called “Samurai bonds” would carry a tenor of five years, the statement said, without disclosing when the sale could take place.

This isn’t our first rodeo in Japan: Egypt closed its maiden samurai bond issuance in March 2022, when it sold USD 500 mn (c.JPY 60 bn) of the JPY-denominated bonds.

Remember: External pressures have forced the government to diversify its foreign debts. With the currency crisis and rising rates all but shutting Egypt out from western capital markets over the past year, the government has turned to other types of debt such as Samurai bonds and sovereign sukuk. It is also planning to sell CNY-denominated bonds in China for the first time, with a USD 500 mn issuance in the pipeline.

ALSO FROM THE CABINET MEETING-

#1- Samsung gets a golden license: Samsung Electronics received the golden license to establish and operate a 6k square meter mobile phone factory in Beni Suef, the cabinet said in a statement. The company commits to completing the first phase and commencing production in the 2H 2024, with the project expected to be completed by 31 December 2025.

Expect more of this in the coming weeks: President Abdel Fattah El Sisi this week directed the cabinet to expand the granting of golden licenses to all the priority manufacturing and industrial projects.

#2- A new council for green hydrogen: The cabinet also approved the launch of a council for green hydrogen tasked with overseeing the implementation of the government’s green hydrogen strategy, it said in a separate statement. The council will be headed by the PM, and feature key cabinet ministers and the heads of the Suez Canal Economic Zone, the General Authority for Investment (GAFI) and the Sovereign Fund of Egypt.

#3- A new relationship : The cabinet agreed to set up a unit to handle relations with the multilateral Brics bloc of major emerging economies after it joins the organization next year, according to a separ ate stateme nt. The unit will be made up of relevant ministers and other officials, he said, without giving more details.

REMEMBER- Egypt was among six countries invited to join the bloc next year during the organization’s annual summit in South Africa last week. The OG members are Brazil, Russia, India, China, and South Africa.

Orascom-led consortium signs land allocation agreement for 3-GW wind farm

We have plenty of news on the energy front, including major updates on wind and solar projects as well as the passage of another regulatory milestone for the Dabaa nuclear power plant.

The future Sohag wind hub just got bigger: An Orascom Construction-led consortium has signed a land allocation agreement with the Electricity Ministry for its planned 3-G W wind fa rm, cabinet said in a stateme nt yesterday. The consortium — which comprises France’s Engie and Japan’s Toyota Tsusho Corporation alongside Orascom — has been allocated a 852 sq-km plot in Sohag, according to the statement.

What we know: The group will build the 3 GW wind farm under a build-own-operate structure over six phases, and it is set to be fully operational by the end of 2028. The first phase of the project will see the consortium bring 500 MW of wind energy online by 1Q 2026, and the second phase will add on an additional 500 MW by the end of 4Q 2026. A third phase will bring online another 500 MW by 1H 2027, with an additional 500 MW will be operational by 1Q 2028. The consortium is expected to bring the final 1 GW of the project online over two phases by the end of 4Q 2028.

That makes it 28 GW for Sohag: Both the Masdar-Infinity-Hassan Allam consortium and Acwa Power have secured land in the governorate for their respective 10-GW wind projects, as has Scatec for its 5-GW facility.

That’s not all: Ministers approved a proposal by the consortium to establish new renewable energy projects with 150-200 MW of capacity, cabinet said yesterday, without providing further details.

ACWA SECURES FINANCE FOR SOLAR PLANT-

A financial close for Acwa’s Kom Ombo solar plant: Acwa Power has achieved financial close for its 200 MW solar project in Kom Ombo, the largest privately-owned solar plant in the country, it said in a statemen t yesterday.

Where the money’s coming from:

Long-term loans from multilateral lenders: The Saudi company has borrowed USD 123 mn from a number of multilateral lenders, including the European Bank for Reconstruction and Development (EBRD), OPEC Fund for International Development, the African Development Bank, the Green Climate Fund, the Sustainable Energy Fund for Africa, and the Arab Bank.
Equity bridge loans: The company has taken out USD 59 mn in equity bridge loans from Apicorp (USD 45 mn) and the EBRD (USD 14 mn).

About the project: The utility-scale plant will be located next to Africa’s biggest solar park, the 1.4 GW Benban complex, in which Acwa is also taking part. It will provide power to 130,000 households when it begins commercial operations in January 2024.

DABAA PHASE 4-

Fourth Dabaa reactor approved: The Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) has given the all-clear to Rosatom and co. to proceed with the construction of the fourth 1.2-GW reactor at the Dabaa nuclear plant, according to a cabinet statement out yesterday. The authority said it had confirmed the safety of the unit and that it would not pose any risks to humans or the environment.

Remember: The Russian state nuclear firm received approval from regulators to start construction of the 4.8-GW nuclear plant in June last year. Permissions to build the second and third units were given last October and in March. Construction on the second reactor started in November and the third reactor in May.

Afreximbank to lend Egypt USD 400 mn for fertilizers plant

Fertilizer finance from Afreximbank: The African Export-Import Bank (Afreximbank) has agreed to extend a USD 400 mn loan to the state-owned Chemical Industries Holding Company (CIHC) for a USD 1.2 bn phosphate fertilizers complex in El Wadi El Gedid governorate, a CIHC source confirmed to Enterprise. As ha rq Business originally reported the news, citing two government sources.

About the project: CIHC subsidiary El Wady for Phosphate Industries and Fertilizers (Waphco) will build, operate, and maintain the complex. Our source told us the project will require around USD 1.2 bn to establish, rather than USD 1 bn as reported by Asharq. The plant is set to produce some 1 mn tons annually of phosphoric acid — a key feedstock for phosphate fertilizers. Construction is set to kick off in 1H 2024 assuming the financing is in place, according to our source.

Where’s the rest of the funding coming from? Talks are underway to secure the majority of the remaining finance from local and international lenders, our source said, adding that CIHC will also chip in some of the proceeds from the sale of EGX-listed Paint and Chemical Industries (Pachin) to National Paints Holding.

Advisors: Bank of Alexandria is the financial advisor negotiating the facility with Afreximbank and other lenders on behalf of the government.

This is just one of a number of phosphate factories under consideration: Three other fertilizer and phosphoric acid plants have been proposed by a mix of local and international companies. The facilities would be based in an area of the Eastern Desert known as the Golden Triangle for its high concentration of phosphates.

Egypt auto sales remain low in July

Auto sales dipped in July as the industry continues to be weighed down by the impact of the FX crisis. Car dealers sold 6,295 vehicles in July, slightly from 6,331 in June, according to figures released yesterday by the Automotive Marketing Information Council (AMIC). That’s 51% lower than the 12.7k vehicles that were sold in July 2022.

The breakdown: Companies sold fewer than 5k passenger cars during the month, largely unchanged from the month before and 45% lower than July 2022. Bus sales volumes fell 11% from the month prior to 566. Truck sales, meanwhile, rose 13% from June to 797. AMIC figures reflect data contributed by member distributors, who include most (but not all) industry participants.

It’s been a tough year for the industry: Distributors have sold some 31.8k passenger cars since the start of the year, down 69% from the first seven months of 2022.

REMEMBER- The country’s currency crisis continues to weigh heavily on the local auto sector, as a shortage of FX creates obstacles to importing vehicles amid high inflation. Total auto sales fell more than a third in 2022 after capital controls put in place for most of the year made it almost impossible for distributors to import cars and components, and forced a number of global car manufacturers to suspend sales to Egypt.

Egypt’s president talks economic ties, regional issues with US lawmakers

A US congressional delegation was in town yesterday: President Abdel Fattah El Sisi met with a delegation of US lawmakers including senators Lindsey Graham and Robert Menendez for talks in Alamein yesterday, Ittihadiya said.

On the agenda: The president discussed bilateral economic and investment ties, and the role of US companies in developing Egypt’s infrastructure and increasing energy production. A number of regional and global issues were brought up, including Russia's war in Ukraine, the crises in Sudan, Libya, Syria and Palestine, and the dispute over the Grand Ethiopian Renaissance Dam (GERD).

Orascom Construction saw its net income triple during 1H 2023

Orascom Construction’s (OC) net income attributable to shareholders rose 19 1% y-o-y during the first six months of the year to USD 98.7 mn, according to its earnings release (pdf). Revenues were down 18% to USD 1.56 bn.

It was the same story on a 2Q basis: The construction giant’s net income more than tripled y-o-y to USD 62.6 mn in 2Q 2023, as FX gains from the group’s net asset position in Egypt and the divestment of two building material subsidiaries offset a decline in revenues. The company’s revenues fell 19% y-o-y to USD 758.6 mn during the quarter on the back of a 29% decline in revenues from its Middle East and Africa operations.

Backlog + new awards down: Orascom Construction’s backlog excluding BESIX fell 15% to USD 5.5 bn as of the end of 1H 2023. Egypt made up the majority of the company’s backlog, with a 68% share, followed by the US (27%) and Saudi Arabia (2%). New awards fell 33% y-o-y to USD 1.6 bn during the six-month period, and were down 58% y-o-y in 2Q.

What they said: “We continue to create value for shareholders and focus on our long-term strategy. We recently divested two of our non-strategic building materials subsidiaries in May and June. These transactions align with our approach to unlock value across our matured assets for allocation to growth and value accretive areas,” CEO Osama Bishai said.

Mohamed Al Sayyad named vice chairman of Egypt’s financial regulator

Mohamed Al Sayyad (LinkedIn) has been named vice chairman of the Financial Regulatory Authority (FRA) by Prime Minister Moustafa Madbouly, according to a cabinet statement. Al Sayyad. Al Sayyad has more than 30 years of experience in the sector and has held various roles at the FRA and at the EGX, where he most recently served as assistant to the head of the bourse and as head of listed companies. Prior to joining the EGX in 2013, he served as the assistant to the chairman of the FRA.

Sisi’s meeting with US lawmakers dominated the airwaves last night

It was another quiet night on the talk shows yesterday, with the pundits all covering President Abdel Fattah El Sisi’s meeting with US lawmakers yesterday. Ala Mas’ouleety (watch, runtime: 3:31), Masaa DMC (watch, runtime: 4:14), and Al Hayah Al Youm (watch, runtime: 6:14) all gave the meeting airtime. We have more on this in this morning’s Diplomacy section, below.

Ebda school admissions are open: Applications are open for students to apply for admissio ns into National Initiative for Developing Egyptian Industry(Ebda) schools in Badr and Damietta, said Masaa DMC’s Ramy Radwan (watch, runtime: 11:08).

Egypt sovereign wealth fund authorized capital doubles to EGP 400 bn. PLUS: News from Sodic, Avanz Capital.

INVESTMENT-

#1- The SFE just doubled its authorized capital: Prime Minister Mousafa Madbouly has issued a decision to double the Sovereign Fund of Egypt’s authorized capital to EGP 400 bn, according to a decision published in the Official Gazette on Tuesday.

EGP 400 bn today. EGP 1 tn in 2025? SFE chair Hala El Said sa id in November that the fund’s authorized capital will increase to EGP 1 tn within three years.

Remember: The SFE has almost USD 12 bn in assets, making it the forty-seventh largest sovereign fund in the world, according to the SWF Institute.

#2- MSME x Avanz Capital : Avanz Capital and the MSME Development Agency have signed an MoU aimed at increasing private investment and boosting innovation, according to a statement (pdf) out yesterday. Under the agreement, the two sides will exchange information and expertise related to investment funds and develop a training program for investors and fund managers.

HOSPITALITY -

Sodic x Robert De Niro: Our friends at Sodic have partnered with the global luxury brand Nobu Hospitality to launch two luxury hotels, a residential project and restaurant in two locations in Egypt, the real estate developer said in a press release ( pdf ) yesterday. One of the hotels and the residential area will be based in the company’s New Zayed project, while the second hotel will be located in the Ras El Hikma area on the North Coast. Information about the size of investment and time frame for the two projects wasn’t made public.

Nobu: A luxury hotel and restaurant company founded in the 1990s by celebrity chef Nobuyuki Matsuhisa and Robert De Niro.

COMMODITIES-

Romanian + French wheat incoming: GASC has purchased a total of 240k metric tons of wheat sourced evenly from French and Romanian suppliers in an international tender, Reuters reports, citing a statement from the state grains buyer. This is the second time in a week that GASC has bought Romanian wheat.

Monetary policy in the US and EU is going to start diverging

Interest rate expectations on both sides of the Atlantic are looking very different: Monetary policy in the US and Europe is expected to start diverging from next month as sticky inflation forces the European Central Bank to maintain its aggressive stance at the same time as the Federal Reserve debates bringing its tightening cycle to an end.

The Fed: Wall Street is only getting more (over?) confident that the Federal Reserve will leave rates unchanged when it meets next month, with stocks rising for a fourth consecutive session yesterday. (Reuters)
The ECB: Meanwhile in Europe, stubborn inflation in Germany and Spain are raising expectations that the European Central Bank will continue to hike rates in September. (Financial Times)

MEANWHILE- In the embattled Chinese real estate sector: Country Garden, the country’s biggest real estate developer currently fighting to avoid defaulting on its debts next month, just posted a USD 7 bn loss for the first six months of the year. (Financial Times)

ALSO- Visa + Mastercard are hiking merchant fees: Visa and Mastercard are set to increase charges retailers pay when accepting customers’ credit, debit and prepaid cards. The higher “interchange” fees are expected to come into play in October and April, and could see the payment giants receive an extra USD 502 mn a year. Bloomberg and the Wall Street Journal have more.

EGX30	18,818	+1.0% (YTD: +28.9%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	11,575	+1.2% (YTD: +10.5%)
ADX	9,744	-0.2% (YTD: -4.6%)
DFM	4,067	-0.4% (YTD: +21.9%)
S&P 500	4,515	+0.4% (YTD: +17.6%)
FTSE 100	7,474	+0.1% (YTD: +0.3%)
Euro Stoxx 50	4,315	-0.3% (YTD: +13.8%)
Brent crude	USD 85.95	+0.5%
Natural gas (Nymex)	USD 2.81	+5.5%
Gold	USD 1,971.00	+0.3%
BTC	USD 27,265	-1.4% (YTD: +64.9%)

THE CLOSING BELL-

The EGX30 rose 1.0% at yesterday’s close on turnover of EGP 2.3 bn (11% above the 90-day average). Regional investors were net sellers. The index is up 28.9% YTD.

In the green: CIB (+3.3%), Heliopolis Housing (+2.5%) and Edita (+2.2%).

In the red: Orascom Construction (-3.4%), Alexandria Containers (-3.3%) and Beltone Financial Holding (-2.4%).

Gabon junta seize power, detain president following disputed election

Another coup on the continent: Military officers in oil-rich Gabon said on Wednesday that they seized power in the African country and put President Ali Bongo under house arrest after he won a third term in Saturday's disputed election. Should the coup succeed, it would put an end to the political dominance of the Bongo family, which has been in power since 1967.

Do we sense a pattern here? The putsch comes a month after mutinous troops seized power in Niger, drawing condemnation from the West and threats of military action from other west African states. Should the Gabon coup succeed, it would be the eighth in West and Central Africa since 2020.

Egypt reax: Egypt’s foreign ministry said it is closely monitoring developments and called on all sides to maintain security and stability.

Bond traders don’t tend to like coups: Gabon’s international bonds fell the most on record, with USD bonds due 2025 and 2031 posting the biggest drops among emerging-market peers, Bloomberg reports. The shares of some European firms with operations in Gabon joined the sell-off. Eramet, Maurel & Prom, and a listed unit of TotalEnergies — France-based firms — as well as Norway’s Panoro Energy all saw their share prices fall.

My Morning Routine: Mahmoud Antaki, founder of Ministry of Meat

Mahmoud Antaki, founder and head chef at Ministry of Meat: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mahmoud Antaki, the founder and head chef at Ministry of Meat, which makes the best beef bacon we’ve had anywhere.

My name is Mahmoud Antaki, and I'm the founder and head chef at Ministry of Meat. At the age of 18, I left Egypt and moved to Miami to pursue a degree in strategic management. Because I couldn't work on a student visa, I had to get an under-the-table type job at a restaurant. I started out as a server, but I quickly realized that I loved the energy in the kitchen — what we call the back of the house — way more than the front of the house. The back of the house was a combination of big dudes, ex-cons, and really good cooks. Lots of cursing, too. So I was like, “Sign me up here! What’ve I gotta do?”

I went to culinary school in California after eight years in Miami. I was doing pretty well and one of the chefs sent me to a Michelin-starred restaurant to get a stage — an internship for chefs. I worked with an incredible chef called Raphael Lunetta, a French-American surfer who taught me pretty much everything I know.

I lived and cooked in Peru and Argentina for a few years. In 2011, I headed off to Peru and spent two years playing the flute, meditating, and learning the cuisine. But it was in Buenos Aires that I really understood why Argentina is the barbecue capital of the world, not Texas. In Argentina, I got to understand what meat is and it totally changed my perspective on what barbecuing is. I also learned that it’s best to cook from what you can find in your backyard. Why would I cook saumon fumé in Egypt, for example? Why not go to the Nile River, catch me a couple of tilapias and make something with that? So that’s what I did when I moved to Aswan.

I returned to Egypt when I was 37. Before settling in Cairo, I spent two years on a small island called Heissa in Aswan and opened a small restaurant. But I was faced with a challenge: How do you come to a land that's not yours, surrounded by poor Nubian people, and just start making money like that? It seemed inappropriate. So I started thinking about how I could involve and benefit the community. I asked the families around me to make certain items on the menu. The women would cook and send the food down to the restaurant, and I would pay for it. And because guests could only come to the restaurant by boat, the fishermen were involved too. I made some ceviche from the native tilapia that drove people crazy. I had all sorts of people coming in — actors, writers, gurus, and even Dr. Magdi Yacoub.

I was mind-boggled by why Cairo doesn’t have decent sausages or hot dogs, like the Bratwurst that you get in Zurich — those nice, juicy, popping sausages. So when the pandemic hit, my wife and I created Ministry of Meat. I bought cooking equipment and started smoking sausages on my roof and my wife did the social media and organized deliveries. We started delivering to our neighbors, then to expats in Maadi, and now to everyone with our new central kitchen. One day, I’d love to open a factory for mass production so that we can export our meats to the world.

Ministry of Meat does things a little differently: Our business addresses the scarcity of clean meat. Our meat doesn’t have fillers, soybean, or gluten. It's not manufactured food. It's 100% pure meat.

Striking a good work–life balance was hard at the beginning because I'm not your average nine-to-five person. I’m something of a free soul and used to do whatever I wanted whenever I wanted to before starting my business. But having the right partner in life and business, my wife, helped me to achieve a balance.

If there's no Miles Davis in the morning, it’s a bad omen. I wake up around 6:30-7:00 am with the kids and put on some Miles Davis and John Coltrane. Then I fix my coffee and sit with the kids before their mom gets them dressed and drops them off at the nursery. My children Ismail and Selim are my best friends in the world. They’re like two little gangster hustlers.

I unwind after work by either playing with my kids or working on music production. I have a studio downstairs where I play my flutes, put on some loops, and record (Soundcloud). And sometimes I play the keyboard or the piano. I put my headphones on and I'm just disconnected from the world for a couple of hours.

I love it when the people I supervise do it better than me — it means I'm doing my job right. My right-hand man, Otdb, is one of the best cooks I've ever met. You show him one time how it's done and halfway through he says, “Khalas, I know.” Then the next day he makes it better than you.

Eventually, I’d like to go live on a farm somewhere. I would take my wife and kids and we’d just build a small shed, have some animals, farm and eat what we plant, and live on the land. I’ve been looking at options in Thailand and Sri Lanka. First we have to work the financial aspect out as well as make sure the kids can go to school. It’s my ultimate dream.

‘Don’t copy anyone’ and ‘create a place where people want to work’ are the two bits of advice I’d give to anyone who plans to start a business.

CALENDAR

AUGUST-

29-31 August (Tuesday-Thursday): Africa Singapore Business Forum 2023, Singapore.

SEPTEMBER

September: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

End of September: ADQ to acquire stakes in Elab, Ethydco and EDC.

1 September (Friday): Application deadline for the Smart Green Projects initiative.

3-5 September (Sunday-Tuesday): Pharmaconex, Egypt International Exhibition Centre, Cairo.

4-6 (Monday-Wednesday): Africa Climate Summit, Nairobi, Kenya.

7-8 (Thursday-Friday): Regional Forum for Sustainability & Development, Cairo.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

13 September (Wednesday): Deadline for settling outstanding military service in FX.

15 September (Friday): UltraibexWadi Degla Protectorate clean-up event.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for applications to EGYAID scholarship program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

20-23 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

21 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

27 September (Wednesday): Deadline for bidding in the fifth phase of the investment map offered by the Industrial Development Authority (IDA).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm ElSheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

30 September (Saturday): The start of the new academic year for Egyptian schools.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

October: Egyptian-Jordanian Business Council, Amman, Jordan.

October: Gov’t expects to finalize sale of Gabal El Zeit wind plant.

October - November: Gov’t expects to finalize sale of military-owned fuel retailer Wataniya.

1-3 October (Sunday-Tuesday) International Expotec for water economics management, Egypt International Exhibition Center, Fifth Settlement, Cairo.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

2 October (Monday): Government meeting with investors to look into liberalizing electricity grid.

6 October (Friday): Armed Forces Day.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

10-12 October ( Tuesday-Thursday) Ceramica Expo, Cairo International Convention Center.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

2 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

December: Gov’t expects to finalize sale of military-owned bottled drinks company Safi.

December: Gov’t expects to finalize sale of Zafarana wind farm.

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

21 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

2024: Standard Chartered Bank to open a branch in Egypt.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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