Al Mashat lays out entrepreneurship committee’s plan to up startup investments tenfold

Tuesday, 3 Dec 2024

Al Mashat lays out entrepreneurship committee’s plan to up startup investments tenfold

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Today at a glance

Policy

The lowdown on the government’s new Entrepreneurship Ministerial Committee.

Manufacturing

Arab Organization for Industrialization to set up tire manufacturing city with unnamed Chinese partner.

PHARMA

Government dues owed to pharma firms hit EGP 50 bn.

Startup watch

Nowlun secures USD 1.7 mn in seed funding round to drive regional expansion.

What We're Tracking Today

Today is the last day for retail investors to grab a piece of United Bank.

Also on our Radar

Cemex inks agreement for its third waste-to-energy project.

PLANET FINANCE

Nasdaq, S&P mark the start of December with fresh records.

Going Green

Creating an international market for green hydrogen will be key to executing the green transition.

What We're Tracking Today

United Bank’s retail tranche already 23x oversubscribed as offering enters last day

Good morning, friends, and a happy hump day to you all. Unlike the weather, local business and economy news is continuing to heat up as we approach the end of the year. We’ve got a packed issue today, so let’s jump right in.

PSA-

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There’s a chance of light to moderate showers tomorrow in Alexandria, with a high of 23°C and a low of 11°C.

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HAPPENING TODAY-

#1- Today is the last day for retail investors to grab a piece of United Bank, with the retail offering for the Central Bank of Egypt-owned bank set to wrap today, before trading kicks off on the EGX. The tranche is offering 16.5 mn shares — equivalent to 5% of the total offering — at 13.85 a pop.

The offering is already 23x oversubscribed as of yesterday, as retail investors jump one of only two IPOs to kick off this year, Amwal Al Ghad reports, citing sources in the know. Act Financial’s EGX debut in July also saw its retail tranche heavily subscribed, covering the subscription 54x.

The bank’s private placement also saw heavy interest from institutional investors, with the offering of 313.5 mn shares — equivalent to 95% of the total offering — being 6x oversubscribed by the time the offering came to a close last week

All together the offering is expected to raise EGP 4.6 bn, with the bank offering a 30% stake in the company through 330 mn shares.

#2- Will today be the day that Egypt’s non-oil private sector returns to growth territory? S&P Global will publish Egypt’s Purchasing Managers’ Index (PMI) figures for November a little later this morning, measuring the country’s non-oil private sector activity. After breaking into growth territory in August — the first time in three years — the sector fell back into the red for the following two months.

October’s reading puts us just under the growth threshold, edging up to 49.0 and leaving us just below the 50.0 mark that separates growth from contraction. Pressing on the sector in October were rising price pressures — driven by higher costs of raw materials and utilities — that dampened new order volumes across the board.

#3- Food Africa 2024 kicks off today: Africa’s largest food and beverage trade exhibition, Food Africa 2024, opens at the Egypt International Exhibitions Center in Cairo today, hosting over 900 exhibitors from 32 countries. The three-day event will bring together wholesalers, distributors, and retailers in food and beverage industries from countries across the world.

WATCH THIS SPACE-

#1- Egyptian electricity exports to Syria via Jordan could be in the cards: Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Electricity Minister Mahmoud Esmat told Asharq Business on the sidelines of the Arab Ministerial Council for Electricity. Esmat added the caveat that the plan hinges on stabilizing the security situation in the country and did not provide a timeline for when a project

Esmat didn’t provide a timeline for the project, but we may have to wait a while until we have excess capacity to export. An unconfirmed report citing a government official earlier this week pencilled in either 2029 or 2030 as when the country will finally be able to close the gap between domestic production and consumption.

#2- The days of unlicensed apartment rentals for tourists may soon be over, with the executive regulations for a law on apartments rented to tourists and temporary rentals to be “issued in the coming days,” Tourism Minister Sherif Fathy told the House yesterday, according to Al Masry Al Youm. Licenses will be granted based on the apartments’ cleanliness, security, and safety standards to ensure a better experience for those visiting the country, the minister added.

Egypt has some great short term rentals for tourists — but some pretty terrible ones too that often masquerade as much nicer than they are, which the minister hopes to help solve with an inventory of licensed properties that can host tourists. The new regulations should also help increase tourism revenues and open new areas for investment, the minister added.

FROM THE DEBT MARKETS-

The central bank sold USD 980.5 mn worth of one-year, USD-denominated t-bills yesterday, with an average yield of 4.50% — down 0.65 percentage points from the last time the same length bills were auctioned off in June, according to data from the Central Bank of Egypt.

IN THE HOUSE-

The House is expected to vote on the cash-based subsidies bill today: The bill, which received preliminary approval on Sunday and was initially expected to be voted on yesterday, would establish a Takaful and Karama fund to provide cash-based payments to those under the poverty line, funded by the state budget, private contributions, foreign grants and loans, and investments.

MPs are also expected to give preliminary approval today to the draft CriminalProcedures law, now in its third week of discussions.

ICYMI: MPs yesterday gave the greenlight to a EUR 1 bn macro-financial assistancepackage from the EU, which marks the first phase of a EUR 5 bn set of concessional loans running through 2027 as part of a wider EUR 7.4 bn package from the EU announced in March. The funds will go towards alleviating external financing constraints, easing the government’s balance of payments and budget needs, and boosting FX reserves against the backdrop of regional geopolitical tensions.

THE BIG STORY ABROAD-

No single story is dominating the headlines across the global press this morning, with attention split between parliamentary turmoil in France, cross-border strikes amid a fragile ceasefire in Lebanon, another high-level corporate resignation, and Musk’s latest run-in with the courts all fighting for attention.

News outlets are forecasting the “all but certain” collapse of the French government led by Prime Minister Michel Barnier by the end of the week, after his move to try to push through an unpopular budget of EUR 60 bn in tax rises and budget cuts led to no-confidence motions being put forward from both the left and right. Barnier is warning of “serious financial turbulence” if both the budget and government falls, and it seems the markets have already got the memo. (Reuters | New York Times | Bloomberg | BBC | Guardian)

Our corner of the world is also continuing to attract the attention of the world’s press, with the rebel advance in Syria and cross border strikes in Lebanon despite the ceasefire pushing their way up the digital front pages. At least nine were killed yesterday in Israel’s heaviest strikes since the ceasefire began last week. (New York Times | Bloomberg)

WHILE IN BUSINESS NEWS– A Delaware judge has struck down Tesla CEO Elon Musk’s USD 56 bn pay package for the second time, rejecting Tesla’s attempt to reinstate it through a shareholder re-vote. (Reuters | New York Times | Financial Times | Wall Street Journal)

AND- Another CEO called it quits this week, with Intel’s Pat Gelsinger “abruptly” stepping down amid the chipmaker’s ongoing struggles to regain its footing in a fiercely competitive industry. Gelsinger, who took the helm in 2021, faced mounting pressure as Intel’s ambitious turnaround plans failed to gain traction, with its market value nearly halving this year while rivals like Nvidia surged ahead. (Financial Times | Bloomberg | Wall Street Journal | New York Times)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at the infrastructural, institutional, and social enablers for establishing a global market for green hydrogen and its derivatives.

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United Bank What We're Tracking Today

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Policy

Planning Minister Rania Al Mashat gives us the lowdown on the new Entrepreneurship Ministerial Committee

The government’s new Entrepreneurship Ministerial Committee has big plans in store: The recently formed Entrepreneurship Ministerial Committee has announced ambitious plans to increase investments in Egypt’s startups tenfold to USD 5 bn in the coming period. But how exactly does the government plan to reach this lofty goal? EnterpriseAM spoke with Planning, Economic Development, and International Cooperation Minister Rania Al Mashat who serves as the committee head to get the inside scoop on how the committee will work as the government executes its plan to position Egypt as a regional startup hub.

It’s the right time to double down on startups: Entrepreneurship is witnessing significant growth globally, with the startup ecosystem representing a promising sector for our future economic growth, Prime Minister Mostafa Madbouly said during a recent meeting with representatives of ten local startups. Madbouly noted that Egypt’s relatively youthful population is a key asset in this field, adding that the government is committed to translating the sector’s potential into economic growth through “robust support.”

THE DETAILS-

The committee aims to strengthen the startup ecosystem: Among the committee’s primary goals is strengthening the capacity of startups and the overall entrepreneurial climate, with an eye toward spurring sustainable growth and generating a greater number of high-quality jobs, Al Mashat told us. The committee will also be responsible for maximizing the local economy's benefit from startups, helping startups access international markets, linking sectors facing pressing challenges with innovative solutions from local startups, and reducing brain drain, she added. Additionally, the committee will be tasked with studying international entrepreneurship best-practices to be applied in line with the needs of the Egyptian market, Al Mashat noted.

The committee also plans to place a particular emphasis on youth and women in rural and underdeveloped areas, linking pressing challenges in these areas with innovative solutions offered by local entrepreneurs, Al Mashat said.

The nuts and bolts: The committee will be headed by the Planning and International Cooperation Ministry and includes members from the CIT, higher education, finance, supply, investment, and industry ministries, as well as the head of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) and representatives from the Central Bank of Egypt and the Financial Regulatory Authority (FRA). The committee’s technical secretariat was formed last month, and is jointly headed by the Planning Ministry and the General Authority for Investment and Freezones (GAFI). The group has also set up four specialized working groups focused on developing policy frameworks and accessing funding, managing startup initiatives and project coordination, ensuring global market access while retaining local talent, and finding solutions to sector challenges. A possible merger with the cabinet’s permanent entrepreneurship unit could also be on the cards, Al Mashat added.

The committee has also established a set of short-, medium-, and long-term goals, including:

In the short term, agreeing on a plan of action, activating legislation related to the sector, and addressing information gaps;
In the medium term, coordinating government initiatives, focusing on specific sectors to maximize available resources, and facilitating government procedures for entrepreneurs;
In the long term, greatly increasing available jobs and boosting the number of Egyptian firms that achieve unicorn status, which will contribute to the growth of the Egyptian economy.

Startup players are getting their say: The committee has also received some 433 recommendations on improving Egypt’s entrepreneurship ecosystem, according to Al Mashat.

A CLOSER LOOK AT THE COMMITTEE’S EARLY INITIATIVES-

#1- A charter for Egypt’s startup community: A startup charter is currently being developed that will serve as a practical roadmap for defining what a startup is and supporting their growth and sustainability, Al Mashat said.

#2- A coordination framework for the sector: The ministerial group will issue a coordination framework that will include mechanisms for implementation, following up on progress, initiating cross-ministerial projects, and ensuring alignment of government activities to avoid conflicts between policies and legislation.

#3- Incentives for investors: The committee is currently developing tax exemptions and revising laws to ensure that they are in line with international standards and startups’ needs, Al Mashat said. It’s also activating incentives to encourage investments by major companies, whether directly or through VC funds.

#4- Measures to ease market entry and support int’l expansion: The group is also studying existing legislation in order to identify what laws require revision in order to encourage market entry, particularly with regard to business setup regulations and tax laws. The committee is also studying the creation of new legal frameworks to facilitate startups' entry into international markets, Al Mashat added.

#5- Learning from past initiatives: The group will look at previous programs and initiatives designed to help startups in order to design new programs and initiatives that effectively respond to their current needs, Al Mashat said.

THE ROAD AHEAD-

Egypt also has all the tools needed to become a magnet for startup investment funds from the MENA region, particularly if measures to increase competitiveness, drive investments, and simplify procedures are implemented, sector players have told Al Mashat.

Still, several challenges remain: The relocation of homegrown startups and entrepreneurs to locations outside Egypt is one of the most prominent challenges facing the sector, along with legislative and legal hurdles and financial and tech support issues, Al Mashat told EnterpriseAM.

Development partners will have a key role to play: Whether through financing or investments and technical support, development partners have a pivotal role to play in supporting startups, Al Mashat told us. She noted that Egypt has many constructive partnership models with international entities, and that the committee aims to benefit from international partners that can provide startups with access to international markets.

Sector players are optimistic, with a number of sector insiders noting that the formation of the specialized ministerial group for entrepreneurship is a positive indicator of the government’s direction with regard to empowering startups (watch, runtime: 9:52).

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Manufacturing

Arab Organization for Industrialization to set up tire manufacturing city with unnamed Chinese partner

The localization of the auto industry continues to rank high on the gov’t’s agenda: The Industry Ministry revealed new information about the government’s plans to localize automotive feeder industries during yesterday’s ministerial group for industrial development meeting, according to a ministry statement. The projects under discussion included a raft of tire manufacturing projects as well as a new initiative to produce EV batteries.

Welcome to tire city: The USD 360 mn joint tire-manufacturing project between the Arab Organization for Industrialization (AOI) and an unnamed Chinese company is set to be an entire tire manufacturing city in a freezone in Ain Sokhna, with the project to include three tire factories, a facility for manufacturing tire production equipment, service and maintenance centers, a steel wire plant for tire reinforcement, a white carbon production facility, and a research and training center, according to the statement. The first tire factory will kick off operations within a year.

And that’s not all on the tire front: State-owned tire manufacturer Trenco’s Alexandria-based factory — which manufactures Nisr brand tires — is set to be developed in partnership with unnamed European companies, with production targeted to start within two years. A new Trenco tire factory is also set to be established in collaboration with a Chinese company in Alexandria’s Amreya, the statement noted.

ICYMI: Local sources reported back in August that the government was looking to team up with the private sector to revive and develop state-owned tire manufacturer Trenco, with estimated investments of USD 160 mn. Trenco — which previously covered 30% of the internal market — shut down operations in 2022.

There are also plans in the works to manufacture electric bus batteries, which will support the production of El Nasr Automotive’s electric microbuses and expand the EV supply chain.

EgyptAlum’s Nagaa Hammadi aluminum plant set to undergo expansion in 2025: The government has approved a four-year plan starting next year to expand the production capacity of state-owned aluminum producer EgyptAlum’s Nagaa Hammadi complex, with an eye toward fulfilling local demand and reducing imports of aluminum.

Remember: Norwegian renewables player Scatec is set to build a USD 1.1 bn solar plant to power the ramping up of production at the complex with an extra 2-GW worth of power.

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Arab Organization for Industrialization automotive Egypt Aluminum El Nasr Automotive Manufacturing Scatec

A MESSAGE FROM VODAFONE

Vodafone Egypt unveils ongoing commitment to disability inclusion on International Day of People with Disabilities (PWDs)

Diversity and inclusion are crucial in both the workplace and the community. In honor of International Day of People with Disabilities (PWDs), Vodafone Egypt highlights their initiatives that empower individuals with disabilities, demonstrating its commitment as a market leader.

In partnership with Helm, Vodafone Egypt, as the strategic partner, just launched the “Unity Cup”, the first inclusive football tournament in the MENA region, to break barriers for people with disabilities (PWDs). Vodafone competed with two teams made up of employees with and without disabilities against 20 other participating companies. Vodafone Egypt’s team placed second in goalball and third in pan-disability football.

Earlier this year, it also introduced LEAP, Egypt’s first two-year graduate program for PWDs in the private sector. Currently, Vodafone Egypt's PWD employment rate is at 5%.

Vodafone Egypt's AI Assistive Tools Hackathon is the first event of its kind for people with disabilities (PWDs) in Egypt’s private sector. The strategic goal of the hackathon, which has run for two editions so far, is to develop technology that empowers PWDs in the workplace by enhancing technological accessibility and work opportunities.

Committed to uplifting the Egyptian market and empowering the community of PWDs in Egypt, Vodafone Egypt forged an impactful partnership with Ain Shams University in 2024 to collaborate with its center for disabled students. This alliance will offer transformative training and dynamic internship opportunities aimed at enhancing the employability of PWDs in Egypt.

As a market leader in empowering people with disabilities (PWDs), Vodafone Egypt has been recognized with multiple prestigious accolades. In 2024, Vodafone Egypt was named the Gold Winner for Excellence in Diversity & Inclusion at the SHRM MENA Star Awards, marking two consecutive years of receiving this top honor. Vodafone Egypt also earned the Silver Award for Health and Well-being, reflecting dedication to creating supportive environments for all. At the 2024 International Customer Experience Awards (ICXA), Vodafone’s tailored Call Center for the Deaf and Hard of Hearing was celebrated with the Best Customer-Centric Culture Award, reinforcing its commitment to accessibility and equal experiences for all customers.

In 2016, Vodafone Egypt proudly launched the Deaf and Hard of Hearing Call Center, for the first time. Since then, its impact has grown immensely, with a customer base reaching thousands today. Additionally, it took the initiative of organizing awareness sessions on sign language to empower school students, sharing Vodafone Egypt’s expertise in serving the deaf and mute community.

Today, Vodafone Egypt celebrates a 50% accessibility rate for PWDs at its retail stores, with each governorate boasting at least one accessible location. With over 200 trained employees in sign language across its 112 stores, Vodafone Egypt exemplifies its commitment to inclusivity.

Vodafone Egypt’s mission is to ensure that no one is left behind by fostering a culture of diversity, inclusion, and empowerment through positive impactful initiatives.

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A MESSAGE FROM VODAFONE Vodafone Egypt

PHARMA

Egyptian government dues owed to pharma firms hit EGP 50 bn

Government arrears owed to Egypt’s pharma companies have climbed to EGP 50 bn, Federation of Egyptian Chambers of Commerce’s pharma division head Ali Auf told EnterpriseAM. Despite the mounting debts, firms continue to supply meds under existing agreements with the Unified Procurement Authority to keep hospitals stocked, Auf added.

But the government is keen to let the industry know that it will make good on its debts, with an announcement last week that it has allocated a total of EGP 10 bn to settle a significant portion of debts owed to pharma and medical supplies companies, to be paid over a three-week period. Prime Minister Mostafa Madbouly also reaffirmed the government’s efforts to fully settle its dues owed to pharma firms.

While the government’s commitment to pay a portion of outstanding dues offers firms some relief, Auf emphasized the need for additional support to address liquidity issues and sustain production. He noted that while the sector has been included in the government’s low-interest financing initiative, which offers loans at a 15% interest rate for manufacturers, firms have yet to receive the soft loans carrying interest rates of 5-7% that they were told would be coming in order to help them recover to pre-FX crisis production levels.

A new distribution initiative is also hoping to bring liquidity into the sector and avoid similar crises in the future, with 1.5k licensed pharma warehouses expected to receive a larger share of locally produced meds in exchange for immediate payment of manufacturers. These distributors, which currently collectively hold around EGP 70-80 bn in liquidity, according to Auf, are expected to play a pivotal role in easing the cash crunch across the sector by assuring that a greater portion of meds purchases are paid for up front rather than in arrears.

Meds price hikes are set to continue, with the sector to hike the prices of around 100 meds per month. Auf added the increases will be incremental and targeted, with more modest adjustments for chronic illness meds and larger hikes for non-chronic meds.

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healthcare pharma

Startup watch

Nowlun secures USD 1.7 mn in seed funding round to drive regional expansion

Local and regional investors lead Nowlun seed funding round: Egyptian digital shipping platform Nowlun has raised USD 1.7 mn in a seed funding round led by Saudi Arabia’s Nama Ventures and Egyptian VC A15, with participation from Sanabil 500 Global and prominent angel investors, according to a press release.

Where is the money going? The funds will be used to accelerate Nowlun’s expansion in the MENA region, enhance its shipment management platform, and expand its real-time cargo tracking capabilities, Al Mal reported, citing the company CEO Moataz Khamis.

What’s next? Nowlun aims to expand its workforce from 40 to 100 employees by 2025 to support its regional and global growth plans. The company also plans to add Jeddah and Damman branches to its current roster of offices in Cairo, Alexandria, and Riyadh next year, according to Khamis.

Another funding round is also in the works: Nowlun plans to launch a fresh investment round in the second half of 2025.

What they said: “Driven by a sense of responsibility, my team and I are committed to transforming this industry using cutting-edge technologies. This funding will enable us to further simplify the shipping process and make shippers’ lives easier,” said Khamis.

Tags:

logistics Nowlun Startup watch startups venture capital

EARNINGS WATCH

NBE and Banque du Caire report solid bottomline growth

The earnings reports continue to trickle in with the National Bank of Egypt and Banque du Caire both logging strong bottomline growth in their newly released earnings statements.

NBE SEES NET INCOME RISE 146% IN 2Q-

NBE’s net income soars in 2Q 2024: The National Bank of Egypt reported a 146% y-o-y increase in net income during 2Q 2024 to EGP 44.8 bn, according to the bank’s most recent standalone financial statement (pdf).

For the half: NBE recorded a net income of EGP 70.6 bn in 1H 2024, marking a 186% y-o-y from the same period in 2023.

BANQUE DU CAIRE SEES NET INCOME INCREASE 50% IN 3Q-

Banque du Caire’s 3Q net income rises 50% y-o-y: Banque du Caire reported a net income of EGP 2.9 bn in 3Q 2024, up 50% from the same period last year, according to its most recent standalone financial statements (pdf) and accompanying press release (pdf).

For the nine months: The bank’s net income grew 90% y-o-y in 9M 2024 to reach EGP 8.6 bn, driven by robust growth across retail banking, treasury, corporate services, and SME banking. The bank’s gross loan portfolio also increased 20% y-o-y in 9M 2024 to EGP 216 bn.

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banking Banque du Caire earnings watch National Bank of Egypt

LAST NIGHT’S TALK SHOWS

Fiery rhetoric from Trump and a humanitarian response conference in Cairo caught the attention of the nation’s hosts

The nation’s talking heads zeroed in on US President-elect Donald Trump’s fiery warning that the Middle East would face “hell” if all hostages in Gaza weren’t released before his January 20 inauguration. The television hosts also dissected the Cairo Ministerial Conference to Enhance the Humanitarian Response to Gaza that took place yesterday with over a hundred top diplomats from across the globe in attendance.

“Trump isn’t just threatening Hamas—he’s threatening the entire Middle East. These statements aren’t just talk, they need to be taken seriously,” Ahmed Moussa said on Ala Mas’ouleety (Watch, runtime 4:46) in response to the president-elect’s post on his Truth Social platform earlier in the day.. “This is a clear, direct threat and a signal that Trump is coming in with a pro-expansion agenda for Israel. The Arab world needs to unite and confront this.” Moussa also called on Hamas to act quickly and broker a ceasefire.

“What hell is Trump even talking about? Gaza is already living through the worst of it,” retorted Amr Adib on Al Hekaya (Watch, runtime 4:45). "Dogs are eating the bodies of the dead in Gaza—what’s left to destroy? It’s already hell in Gaza. And what does he mean by ‘the Middle East’? Are we just a blip he can talk about like that?"

Ahmed Moussa provided a recap of the proceedings from the ministerial conference onthe humanitarian response in Gaza during his show (watch, runtime 17:00). Moussa noted Foreign Minister Badr Abdelatty’s emphasis on Egypt’s consistent stance on the Palestinian issue. Moussa words for the Western leaders were less generous however, as he called out the bn’s of USD’s and EUR’s pledged to Ukraine by the US and Europe, while “in Gaza, people are being wiped out while Americans support the Zionists,” he said.

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Gaza LAST NIGHT’S TALK SHOWS Middle East politics politics

Also on our Radar

Cemex inks agreement for its third waste-to-energy project. PLUS: Visa + Swypex, BP, Lasirena Group + HE Holding

RECYCLING-

Cemex to manage and operate waste WtE facility in Minya: Cemex signed an agreement with Minya Governorate for the management and operation of a EGP 90 mn waste-to-energy (WtE) facility in Tuna El Gabal in Minya, according to a statement from the Environment Minister. The plant is part of a EGP 278 mn initiative in Minya for waste recycling.

The details: The facility will have a recycling capacity of 20 tonnes per hour, and 320 tonnes per day. The waste will be treated to produce alternative fuel and organic fertilizer, with the rejected waste being disposed of in landfills in the governorate.

This isn’t Cemex’s only WtE projects in the pipeline: Cemex took steps to establish its first waste conversion facility in Gharbia Governorate back in May, with the company signing a partnership agreement to manage and operate a non-hazardous waste recycling and processing plant in El Mahalla El Kubra. In September, the company also inked an agreement with Assiut Governorate for a WtE facility with a monthly processing capacity of 7k tons of waste.

Remember: We heard in August that the government is set to sign contracts collectively worth up to USD 1.2 bn with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste across a number of governorates.

** Want more? We did a deep dive into where our waste-to-energy ambitions stand in a Going Green we published last year. Check out the story here.

FINTECH-

Visa has partnered with local fintech platform Swypex to digitize business payments in Egypt to “transform how businesses manage finances, streamline operations, and adopt smarter payment solutions,” according to a joint statement (pdf). “We are excited to support Swypex in their mission to revolutionize corporate financial management and look forward to the positive impact this collaboration will have on the broader market,” Visa Egypt Country Manager Malak El Baba said.

ENERGY-

#1- Jordan to use Egypt’s floating LNG regassification units: Egyptian Natural Gas Holding Company’s (EGAS) has signed an agreement with Jordan’s National Electric Power Company (NEPCO) that will see Jordan share the use of one of Egypt's LNG storage and regasification units over the next two years, according to a statement from the Oil Ministry. The agreement will enable Jordan to ensure it can process incoming shipments ahead of its fixed Aqaba LNG terminal slated for completion in 2026, according to Reuters.

#2- BP to invest in Egypt’s renewable energy sector: BP CEO Murray Auchincloss signaled the company’s intent to invest in Egypt’s renewables sector and expand its existing hydrocarbon interests in the county in a meeting with President Abdel Fattah El Sisi and Oil Minister Karim Badawy.

REAL ESTATE-

Lasirena to expand in Abu Dhabi with HE Holding: Local real estate and tourism company Lasirena Group formed a strategic alliance with Emirati conglomerate HE Holding to develop projects in Abu Dhabi, Amwal Al Ghad reports. The company is looking at potential expansions into several other countries and will announce a significant expansion in the local market soon, Lasirena Chairman Ahmed Omar said.

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ALSO ON OUR RADAR BP energy Fintech oil and gas real estate recycling renewables Visa

PLANET FINANCE

Nasdaq, S&P mark the start of December with fresh records

Wall Street kicks off the last month of the year on a high: The Nasdaq and S&P 500 closed their first trading session in December at record highs, buoyed largely by tech stocks, including Tesla, which closed up 3.5%. Yesterday’s rise also piggybacked off their performance in November, which ended as the indexes’ strongest month of the year.

Markets are getting a boost from Trump 2.0: Donald Trump’s upcoming return to the White House helped push a rally in stocks last month, with strategists seeing upside from the president-elect’s “potential plans for tax cuts and deregulation,” according to Reuters. Investors are broadly positive on the incoming “pro-business” administration, CNBC says.

Upcoming data could rock the boat a little, but December will likely be a good month for markets: The US Labor Department is set to release November jobs data this Friday, which some analysts and investors expect will create some volatility in the markets, according to the Wall Street Journal. Investors are also keeping an eye on the US Federal Reserve’s next Federal Open Market Committee meeting, following remarks from Fed Governor Christopher Waller that he’s leaning towards a rate cut but has concerns about inflation levels.

Still, analysts don’t expect markets to skyrocket this month. “December seasonality is generally bullish, but there’s precedent for a pullback when the market is already up big through November of election years,” Bespoke Investment Group said, according to Bloomberg. The S&P 500 could end the year at 6.2k points — a little less than 3% higher than its November close — as the index is likely to “grind higher, but not rocket higher,” InfraCap CEO Jay Hatfield tells CNBC.

MARKETS THIS MORNING-

Asian markets are broadly in the green in early morning trading, buoyed by gains from Wall Street yesterday. The Nikkei and Kospi are both up, while the Hang Seng Index is just barely in the red. Meanwhile, futures indicate the S&P 500 and Nasdaq are set to open in the green, while the Dow Jones could be facing some selling pressure.

EGX30	30,525	+0.1% (YTD: +22.6%)
USD (CBE)	Buy 49.65	Sell 49.78
USD (CIB)	Buy 49.67	Sell 49.77
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,739	-0.02% (YTD: -1.6%)
ADX	9235	-0.3% (YTD: -3.6%)
DFM	4847	+0.5% (YTD: +19.4%)
S&P 500	6047	+0.2% (YTD: +26.8%)
FTSE 100	8313	+0.3% (YTD: +7.4%)
Euro Stoxx 50	4847	+0.9% (YTD: +7.2%)
Brent crude	USD 71.83	-0.01%
Natural gas (Nymex)	USD 3.20	-0.5%
Gold	USD 2661.60	-0.7%
BTC	USD 95,428.60	-2.4% (YTD: +125.9%)

THE CLOSING BELL-

The EGX30 rose 0.1% at today’s close on turnover of EGP 4.4 bn (6.1% above the 90-day average). Regional investors were the sole net sellers. The index is up 22.6% YTD.

In the green: Alexandria Containers and Goods (+6.3%), Eastern Company (+5.6%), and Palm Hills Developments (+4.6%).

In the red: Ezz Steel (-3.4%), Orascom Construction (-2.0%), and Cleopatra Hospitals (-1.9%).

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Going Green

Creating an international market for green hydrogen will be key to executing the green transition

If green hydrogen is going to play a big role in a new global green economy, we need a working international market and the infrastructure to support it : Green hydrogen and its derivatives — including ammonia, methanol, and e-kerosene — are expected to play a key role in the global energy transition, with the use of these fuels expected to account for around 14% of the world’s overall energy consumption by 2050. However, the implementation of an international market for green hydrogen requires significantly scaled-up sustainable value chains, according to a report (pdf) from the World Trade Organization (WTO) and the International Renewable Energy Agency (IRENA).

International trade policy will have a crucial role to play — and, if done right, it could save a lot of money: Scaling up the production of green hydrogen on a global scale can only take place by “matching regions where these commodities are in high demand with regions benefitting from abundant supply,” the report reads. Cross-border trade could help save some USD 3.7 tn in investment costs by mid-century by connecting high-demand areas with regions that can easily and cheaply generate the renewable energy needed to produce green fuels at a low cost.

Policy makers will have to utilize what’s available in their respective tool boxes: The report encourages policy makers to look into the resources and tools available to them in their economies that could help boost the development of an international market for green hydrogen, which include — but aren’t limited to — “trade policies such as standardisation and certification mechanisms, government support and procurement, rebalancing tariffs, and carbon pricing mechanisms.”

The report’s recommendations break down relevant interventions into three buckets, which it refers to as physical, institutional, and social “enablers” that can help support the development of international markets for these specific green commodities.

The physical enablers laid out by the report focus on the infrastructure that is essential for integrating green hydrogen into global economies, including “renewable energy generators, hydrogen production plants and derivative commodity production facilities,” as well as “infrastructures for the storage, transport, distribution and delivery of hydrogen and derivative commodities.”

Remember: Green bunkering is part of this broader picture, with the Suez Canal Economic Zone — the ground zero for many of Egypt’s green hydrogen and ammonia projects — previously saying that it wants to roll out green methanol bunkering services before 2027 after receiving requests to supply ships with green methanol and gas. Blending green hydrogen into our existing natural gas pipeline infrastructure is also an option to exploit as we build out green hydrogen-specific infrastructure.

The report recommends a “holistic” approach to ensuring the availability of resources when planning for infrastructure development — one that takes into account the supply of renewable electricity, water, and carbon. It also calls for the prioritization of distribution infrastructure to “ensure market access for producers,” and emphasizes the need for developing diversified supply chains across related sectors.

Institutional enablers also have a big role to play: Nascent regulatory frameworks will need to be developed further in order to implement a global green hydrogen economy, the report notes. Governments will need to consider a whole range of different policy measures and interventions — including carbon tax credits, emissions trading systems, electrolyser subsidies, investment incentives, the allocation of state-owned lands, and demonstration applications — in order to create the optimal conditions for the growth of domestic and international green hydrogen markets.

On the global scale, developing shared standards is key: Given that the market is in its infancy, there is as of yet no clear alignment on global standards and certification requirements. These are needed to ensure that common definitions of what constitutes “green” hydrogen are being met across international borders.

Developing green hydrogen markets could bring about considerable social benefits: Developing a global market for green hydrogen and its derivatives could lead to significant job growth and overall socioeconomic progress — but will necessitate training local workforces to work in the sector, the report notes.

Emerging markets stand to benefit: The report estimates that further development of the global green hydrogen market could unlock around 22 mn jobs by 2050 — half of which would be in emerging markets and developing countries.

Where Egypt stands: Our significant experience in gray and green hydrogen and ammonia is an optimal starting point for establishing a thriving low-carbon hydrogen economy. The country also has substantial renewable energy capacity, a strategic geographic location in terms of proximity to European countries with high green hydrogen demand, well-developed port infrastructure, and access to global maritime traffic through the Suez Canal.

Looking ahead: Egypt is poised to be a relatively cost-competitive producer in the global green hydrogen and green ammonia markets by 2030 as the costs of electrolyzer systems and financing — as well tariff prices for renewable energy generation — fall. While our green fuel economy still has room to grow, we seem to be well-positioned to take advantage of a global green hydrogen market once it emerges.

Tags:

energy going green green hydrogen renewables

CALENDAR

2024

DECEMBER

27 November-3 December (Wednesday-Tuesday): United Bank IPO retail placement

3 December (Tuesday): S&P Global will publish Egypt’s PMI figures for November

3-5 December: (Tuesday-Thursday) Food Africa 2024, Egypt International Exhibitions Center, Cairo

4-5 December (Wednesday-Thursday): Russian trade mission to visit Egypt

7 December (Saturday): The Scientific Society for Tax Legislation will hold its annual conference

7 December (Saturday): The Future of Finance Conference 2024, Conrad Cairo Hotel, Egypt

10 December (Tuesday): Capmas expected to publish inflation data for November

12-21 December (Thursday-Saturday): Turathna handicrafts and heritage exhibition, Egypt International Exhibitions Center, Cairo

15-17 December (Sunday-Tuesday): Nebu Expo for Gold & Jewelry, Cairo, Egypt

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK

22 December (Sunday): The Nahda University Economic Forum’s third edition is set to take place

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

EVENTS WITH NO SET DATE

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

2025

January: Civil Society Support Fund to launch digital platform

January: CBE to launch InstaPay remittances for Egyptians abroad

February: Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn

1 January (Wednesday): The minimum pension will increase to EGP 1.5k, and the maximum to EGP 11.6k

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

18-19 February (Saturday-Sunday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

7-10 April 2025 (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1Q 2025: Eipico’s biopharma plant to begin operations

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2Q 2025: Safaga Terminal 2 to start operations

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place

September 2028: First unit of the Dabaa nuclear power plant begins operations

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