Good morning, everyone. It is another busy morning here in Egypt and we don’t expect the news flow to slow down anytime soon as we sit tight awaiting the results of the IMF board’s discussion of our third review.

BUT FIRST- Do you want to attend our 2024 Enterprise Finance Forum on 24 September? Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth that the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in our country and the wider region. Among the questions we’ll be asking:

• What’s Egypt’s role in the regional industry?
• What are foreign investors looking for right now?
• Is real estate the only asset class in Egypt?
• What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

HAPPENING TODAY-

The third review of our IMF loan: The IMF Executive Board is scheduled to discuss the thirdreview of our USD 8 bn loan program today. The discussion was pushed back from an earlier date of 10 July to “finalize some details” and it is thought that the review was pushed back as the board waits to see how the newly sworn-in government will approach trimming fuel subsidies.

What’s next: The greenlight from the board will see the Fund disburse a fresh USD 820 tranche into the state coffers and will allow Egypt to apply for an additional USD 1.2 bn in climate financing. Egypt and the IMF reached a staff-level agreement on the third review early last month.

AND- USD 370 mn in IMF debt relief? The G20 countries could greenlight a decision to provide debt relief to the countries that are most indebted to the IMF, which could mean upwards of USD 370 mn in debt relief to Egypt, House Budget Committee head Fakhry El Feky told Hadret El Mowaten last night (watch, runtime: 5:22). This comes amid concerns that the Fund’s penalties on its biggest borrowers were becoming too hefty in light of higher interest rates and inflation.

Egypt is the Fund’s third largest debtor with USD 10.3 bn of outstanding credit, behind Ukraine and Argentina. Egypt is forecast to pay the IMF USD 370 mn in surcharges in the next five years, marking the country as the world’s third largest payer of surcharges.

Remember: The IMF is reportedly already looking into lowering the surcharges that it levies on its biggest borrowers.

WATCH THIS SPACE-

Forget leasing, Egypt is looking to buy a regasification unit: The government is reportedly in talks with Jordan to jointly purchase a new floating regasification unit, Asharq Business reports, citing unnamed sources. Egyptian officials are exploring purchasing the ship jointly or on our own, with discussion of leasing out the ship to other countries should our supply gap diminish.

Remember: Egypt currently has access to two regasification units, one in Jordan’s terminal in Aqaba, which Egypt was given the right to in an agreement inked last year, and a newly-leased Norwegian floating storage and regasification currently docked in Ain Sokhna.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 36°C and a low of 26°C, according to our favorite weather app.

It’s a little nicer in Alexandria, with a high of 33°C and a low of 24°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the new incentives and regs the state is mulling to boost local industry. Check out the story here.

THE BIG STORY ABROAD-

It’s a quiet day in the foreign business press. It’s a Monday, to start with — always slow for business in the West — and front pages everywhere are dominated by geopolitical tensions, elections, and the Olympics.

Fears of a full-blown war between Israel and Lebanon dominate the front pages this morning, as foreign diplomats and global leaders race to dissuade Israel from a forceful retaliation against Lebanon after Hezbollah allegedly struck a playground in the Israel-occupied Golan Heights, killing 12 Israeli civilians, most of whom were children. Israel and the White House are adamant that Hezbollah is behind the attack, despite the latter denying responsibility.

Israel attacked Hezbollah targets yesterday and vowed to further retaliate, with its security cabinet giving the all-clear for the government to decide the “manner and timing” of its response, Reuters reports. The US has reportedly warned Israel against retaliation in fear that the situation will “spiral out of control,” Axios reports.

Talks continue on a potential ceasefire in Gaza: Officials including CIA director William Burns, Egyptian intelligence chief Abbas Kamel, and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani met with Israel’s chief negotiator to hear new demands from the Israeli side. Talks are expected to continue, the Guardian reports.

In elections: US Vice President Kamala Harris’ presidential campaign raised USD 200 mn in its first week (the feat leads the Financial Times and Reuters at dispatch time this morning) and Venezuelan voters took to the polls yesterday in what is being billed as the country’s most consequential elections in decades. President Nicolas Maduro faces a stiff challenge from the opposition after quarter of a century at the helm.

OLYMPICS-

Egypt has taken home its first medal. Egypt’s Mohamed El Sayed picked up a bronze yesterday, beating Hungary’s Tibor Andrásfi in the men's épée individual. El Sayed lost in the semi-finals to France’s Yannick Borel.

You can follow Team Egypt through this schedule or by heading over to our Paris 2024 Guide.

The medal table now at the Paris Olympics:

• Japan (4 golds, 7 total)
• Australia (4 golds, 6 total)
• United States (3 golds, 12 total)

Yesterday’s highlight: US gymnast Simone Biles marked her return to the Olympics stage with a spectacular performance, qualifying for the final in first place despite tweaking her left calf. (The Guardian)

Today’s highlight: It’s a huge day for tennis nerds. Rafael Nadal (Spain) is set to clash with Novak Djokovic (Serbia) at 1pm Cairo time for their 60th showdown, while world number-one Iga Swiatek (Poland) takes on France’s Diane Parry at the same time. There are more than a dozen matches taking place today in total.

Want to see when your favorite sport is on? Check out the official schedule here.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We look at what the government is doing to boost dwindling private education investment.