Good afternoon, ladies and gentlemen, and happy hump day. We made it to the midweek mark and are looking forward to the weekend to come.

THE BIG STORIES TODAY

#1- NBE raises limits for local USD transactions on select credit card types: The National Bank of Egypt (NBE) has announced that it will raise its usage limits for credit cards carrying out transactions denominated in foreign currency, the bank announced on its website.

The new transaction limits:

  • Visa Gold and Mastercard Titanium will have a limit of EGP 25k, up from EGP 7.5k previously;
  • Visa Platinum, Mastercard Platinum, and UEFA Champions League Mastercard will have a limit of EGP 40k, from EGP 12.5k previously;
  • Mastercard World, Visa Signature, Mastercard World Elite, Visa Infinite, and Corporate Credit Cards will have a limit of EGP 60k, from EGP 20k previously.
  • Limits on Visa Classic, MasterCard Standard, and MasterCard EgyptAir cards were kept unchanged at EGP 5k.

Clients can also use the international limits for purchases and cash withdrawals while traveling abroad by contacting the bank within 90 days, according to limits listed here for each card type (pdf).

#2- Another Egyptian-Chinese EV venture in the works:GV Investments’s automotive arm GV Auto has signed a partnership agreement with Chinese state-owned auto manufacturer FAW Group to locally assemble, market, distribute, and export EVs, GV Investments Chairman Sherif Hamouda told Al Borsa. The partnership will be backed up with an initial investment of EPG 3 bn, Hamouda told Asharq Business.

Chinese EVs, assembled in Egypt: Locally assembled EVs from the partnership should start rolling out by the beginning of next year, Hamouda added. The two companies will use already existing factories to assemble the vehicles and have already set their sights on what models to assemble locally.

Not just local assembly, but local manufacture too: “Manufacturing will not be limited to local assembly only, but rather complete parts will be manufactured for the first time,” Hamouda told Asharq Business. The project’s goal is to up the local component ratio to 65%.

Exporting EVs is also part of the plan: The companies are planning to establish a hub from which it aims to export its vehicles from Egypt, Hamouda said.

ATTENTION, EGYPT INVESTORS-

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

Dominating the conversation in the foreign press is US President Joe Biden’s expected move to announce a significant hike in tariffs on Chinese EVs, among other imports. Chinese EVs, solar cells, semiconductors, and a wide selection of other Chinese products are set to see drastic increases in duties in order to “protect strategic American industries.” Biden will be upholding the same tariffs put in place by former President Donald Trump, which he had criticized during his presidential campaign.

Tariffs on Chinese EV will see a fourfold increase, jumping from 25% to 100%. This comes as a response to US automakers losing their foothold in China, and concern that domestic carmakers will be undercut on their own soil. China’s current EV tech boom has seen the country compete with international automakers as they begin to tap offshore markets. Tariffs on Chinese solar cells and semiconductors will double to 50%, though the increases are expected to be staggered to give domestic companies time to increase their production or find exporters from other countries. (NYT | Bloomberg)

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

☀️ TOMORROW’S WEATHER- The mercury will hit 30°C at its highest and 19°C at its lowest in Cairo tomorrow, according to our favorite weather app.

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