Good afternoon, wonderful people. It’s not a particularly busy Wednesday here at home as everyone appears to still be shaking off the cobwebs after a series of long weekends and holidays.

THE BIG STORY TODAY

Egypt’s non-oil sector activity contracts again in April: Egypt’s purchasing manager index (PMI) figure — which tracks the country’s non-oil business sector — fell to 47.4 in April from 47.6 in March, according to S&P Global’s Egypt Purchasing Managers’ Index (pdf). This reflects “a renewed fall in employment as well as sustained downturns in output and new orders,” said Phil Smith, S&P Global Economics Associate Director.

New order volumes and business activity “markedly” dropped again in April, albeit at slightly slower rates than in March, as firms are weighed down by “weak demand conditions, high prices and volatile exchange rates,” the index shows.

On the bright side: There was a notable easing in cost inflation, as improved FX availability tied to the recent EGP float contributed to the slowest rise in input costs in over 3 years.

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We’re a massive consumer opportunity and the regional export hub of tomorrow.

…but here at home, our community is in a rut. The enthusiasm gap between domestic business leaders and global investors is stark.

We’d all do well to remember: It’s a chicken-and-egg kind of thing. Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks.It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

THE BIG STORY ABROAD

Cracks emerge inWashington’s unconditional support for Israel: The White House has withheld a shipment of 2k- and 500-pound bombs to Israel amid Tel Aviv’s full-scale invasion of Rafah, and concerns over how the heavy explosives will be applied to the dense urban environment, where over 1 mn civilians are seeking shelter, Reuters reports, citing a US official.

Israel claims that it has reopened the Kerem Shalom crossing into Gaza, which has served as a key entry point for humanitarian aid but was closed over the weekend after a Hamas rocket killed four Israeli soldiers — but no aid has yet entered since its reopening and there is no one to receive the aid, says the UNRWA, according to the Associated Press.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • PIF returns to market in first post-float investment, aims to take CIRA Education private in partnership with founders: Egypt’s leading private education company, CIRA Education, could delist from the EGX and become the regional education platform of Saudi Arabia’s sovereign wealth fund.
  • Foreign reserves hit their highest level in over four years:Net foreign reserves increased by USD 696 mn from the month before to USD 41.1 bn at the end of April, reaching their highest level since pre-pandemic.
  • Swypex raises USD 4 mn in seed round: Local fintech platform Swypex has announced its launch, after raising USD 4 mn in a seed investment round.

☀️ TOMORROW’S WEATHER- It’s getting even warmer in Cairo tomorrow, with the mercury set to peak at 35°C and drop to a low of 18°C, according to our favorite weather app.

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