Good afternoon, ladies and gentlemen, and a very happy THURSDAY to you all. It may have been an abridged workweek at the tail-end of a string of long weekends.

THE BIG STORY TODAY

Inflation falls once again as price shocks continue to cool post-float: Annual headline inflation in Egyptian cities eases for the second consecutive month to 32.5% in April from 33.3% in March amid the slowdown of consumer price increases after the float, figures from state agency Capmas show.

Food inflation hits its slowest rates since December 2022: Food and beverage prices — the largest component of the basket of goods and services used to calculate headline inflation — continued to rise, albeit at the lowest rate of increase since December 2022, according to our math. Food inflation came in at 40.5% in April compared to 45.0% in March. F&B prices also decreased by 0.9% m-o-m in April, marking the first month of deflation since August 2021.

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

Washington is still firm in withholding bombs from Israel in hopes of thwarting an attack on Rafah. US President Joe Biden’s administration made the decision to stall the delivery of 3.5k 500- and 2k-pound bombs to Israel until it pauses its attack on Rafah, where over 1 mn Palestinians are taking refuge. The hold on bombs doesn’t extend to other weaponry, but Biden’s administration has threatened to withhold artillery shells that Israel has been firing into Rafah. Israeli assaults on Rafah in the past few days have already claimed the lives of 55 Palestinians, bringing the death toll to 34.9k since October 2023. (NYT | Reuters | Bloomberg | CNN)

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

  • Business activity at its second lowest point in the last 12 months despite hopes of a post-float rebound: Activity in Egypt’s non-oil private sector activity slipped further in April, while inflationary pressures fell and business sentiment improved.
  • Egyptian securities are back in the MSCI’s good books: Global index provider MSCI has decided to remove all special treatment measures on Egyptian securities listed in its indices in the May 2024 index review.
  • Mnzl closes funding round led by international and Africa-focused VCs: Local startup Mnzl has raised USD 3.5 mn in a funding round led by Africa-focussed P1 Ventures, the UK’s Localglobe, and Nigeria-based Ingressive Capital.

☀️ TOMORROW’S WEATHER- Get ready for even warmer weather in Cairo tomorrow, with the mercury set to peak at 37°C and drop to a low of 21°C, according to our favorite weather app.

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