El Khatib’s visit to India bears fruit

Tuesday, 18 Mar 2025

El Khatib’s visit to India bears fruit

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

Investment Watch

Indian chemicals player TCI Sanmar to invest USD 300 mn in the local market.

EXPANSION

Iconic bakery brand TBS to set up shop in Saudi Arabia.

What We're Tracking Today

Israel breaks ceasefire agreement, launching attacks that killed hundreds in Gaza.

Energy

Energean’s USD 945 mn asset sale to Carlyle is at risk of termination.

EARNINGS WATCH

Banque du Caire saw net income jump 86% in 2024.

Moves

GlobalCorp taps Ahmed El Tobgy as CEO of leasing.

Also on our Radar

AliExpress expands local payment options to include Egypt.

PLANET FINANCE

Brewing trade war to weigh on global growth, OECD says.

Going Green

Why is geothermal energy yet to catch on in Egypt like in Turkey and Kenya?

What We're Tracking Today

Could we finally resume LNG exports from liquefaction plants?

Good morning, all. We lead today’s issue with investment news, courtesy of Investment Minister Hassan El Khatib’s trip to India and his many meetings with big names in the Indian market — a meeting with representatives from chemicals producer TCI Sanmar saw them unveil plans to invest USD 300 mn in the local market. We also have news of bakery brand TBS expanding abroad, with a strategic partnership that will see it set up shop in KSA.

So, when do we eat? Maghrib prayers are at 6:05pm in the capital, and you’ll have until 4:33am tomorrow to hydrate and caffeinate ahead of fajr.

PSAs-

#1- Want a direct line to get your industrial investment inquiries answered? There’s an app for that. The Industry Ministry launched its Investor Support application to streamline the process for industrial investors to submit inquiries and complaints to the ministry and the agencies under its wings. The application is live on Android and coming to iPhones soon.

#2- Start planning now — Mother’s Day is coming up on Friday, 21 March.

WEATHER- It’s another sunny day in Cairo, with a high of 29°C and a low of 17°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 22°C and a low of 14°C.

Don’t let the sun fool you, it’s still winter and temps are expected to fall 3-5°C starting Wednesday, according to the Egyptian Meteorological Authority. Some areas of the nation will also be in for heavy winds and some rain.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

Could we finally resume LNG exports from liquefaction plants? Feedgas deliveries to the Damietta and Idku liquefaction plants have been recently increasing, with unnamed sources with knowledge of the matter telling Bloomberg that Egypt could export its first LNG shipment from Idku within a year.

REMEMBER- After becoming a net exporter of LNG in 2018 and signaling its intention to become an important energy exporter to the region and Europe, production falls and rising domestic demand led to Egypt having to ramp up imports to bridge the supply gap. Egypt has been looking to return to its status as a net LNG exporter — the Middle East Economic Survey sees that happening by 2027 after its Nargis and Nour fields come online.

HAPPENING TODAY-

#1- The Investment Ministry to hold talks with EU over steel anti-dumping duties: A delegation from the Investment Ministry will meet with EU representatives to discuss the EU's recently announced a temporary 15.6% dumping duties on Egyptian steel exports, set to come into effect on 7 April, Tarek Al Gioshy, a member of the Chamber of Metallurgical Industries, told Asharq Business. The EU announced it will be imposing temporary dumping duties ranging from 6.9-33% on hot-rolled steel coils arriving to the bloc from Japan, Vietnam, and Egypt until it settles on definitive measures by October.

Meanwhile, Ezz Steel — Egypt's sole exporter of hot-rolled flat steel to the EU — is preparing to submit a formal objection to the European Commission regarding the approach used to calculate the duties, an unnamed company official told Asharq Business.

Refresher: The European Commission last August initiated an anti-dumping investigation into hot-rolled flat products of iron, non-alloy or other alloy steel imports from Egypt, India, Japan, and Vietnam.

#2- Egypt’s Integrated National Financing Strategy will be out later today: The Planning and International Cooperation Ministry will launch the country’s Integrated National Financing Strategy (E-INFS) today. The strategy — first announced by Minister Rania Al Mashat last September — aims to increase sustainable financing to minimize funding gaps and investment risks. It was developed in partnership with the UN and the UNDP.

THE BIG STORY ABROAD-

Israel breaks ceasefire agreement: Israel launched several strikes across Gaza earlier this morning, breaking the fragile ceasefire agreement. The attacks killed at least 200 and marked the “most violent air attacks” since mid January when the ceasefire came into effect. The Israeli army and the Shin Bet said in a joint statement that they kicked off attacks on what they claimed to be Hamas targets.

Hamas and Israel won’t see eye to eye: Hamas on Monday accused Israel of violating the agreement — brokered by Egypt,Qatar, and the US — and failing to hold its end in the first phase. Israeli Prime Minister Benjamin Netanyahu’s office said that resuming the war came after “Hamas refused time and again to release our hostages and rejected all the proposals it has been given by US envoy Steve Witkoff and by the Qatari and Egyptian mediators.” (Bloomberg | Reuters | Axios | AP)

AND- Trump threatens Iran over Houthi attacks: US President Donald Trump warned that any further Houthi attacks will be seen as an Iranian assault, vowing to hold Iran responsible. “Every shot fired by the Houthis will be looked upon, from this point forward, as being a shot fired from the weapons and leadership of Iran,” Trump said in a post on his social media platform Truth, vowing that Iran will “suffer the consequences, and those consequences will be dire.” (Bloomberg | Reuters | AP)

ALSO MAKING HEADLINES- Trump to discuss Ukraine ceasefire with Putin today: Trump is set to speak with his Russian counterpart Vladimir Putin about a potential ceasefire in Ukraine. “What's happening in Ukraine is not good, but we're going to see if we can work a peace agreement, a ceasefire and peace, and I think we'll be able to do it,” Trump told reporters yesterday. The talks come after Ukraine accepted a 30-day, US-backed ceasefire proposal last week. (Reuters | New York Times | BBC | The Guardian | Washington Post | AP)

*** 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 look at why geothermal energy is yet to catch on in Egypt like in Turkey and Kenya.

Tags:

oil and gas What We're Tracking Today

Celebrate Eid with unforgettable moments at Somabay. From storytelling and upcycling to thrilling adventures, live music, and beachside yoga — there’s something for everyone. Join us for a season of joy, movement, and magic by the sea.

Investment Watch

Indian chemicals player TCI Sanmar to invest USD 300 mn in Egypt

TCI Sanmar has big investment plans for Egypt: Indian chemicals producer TCI Sanmar has plans to invest an additional USD 300 mn into its Egypt operations, bringing its total investments in the country to around USD 2 bn, chairman PS Jayaraman said during a meeting with Investment Minister Hassan El Khatib. The investments are expected to trickle in “over the coming period,” Jayaraman said without elaborating further.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

What kind of projects is the company looking to invest in? The chemicals player is looking to set up a marine terminal for importing ethylene, a key raw material for polyvinyl chloride (PVC) production, one of its staple products. The company is also working to boost the production capacity of its Port Said plants to meet growing local and international demand.

That’s not all: The company is seeking to set up cold storage facilities to support Egypt’s storage capabilities and improve supply chain. Company representatives will soon kick off discussions regarding the project with the relevant local authorities, Jayaraman said.

** We spoke with Jayaraman back in 2023 when he was featured in our Inside Industry vertical as our Manufacturer of the Month.

The meeting was one of many held between El Khatib and representatives from Indian companies, during his visit to the country.

ALSO FROM EL KHATIB’S TIME IN INDIA-

#1- Supermarket giant Lulu Group International is looking to expand in Egypt, company officials told El Khatib during a meeting. Lulu is looking to open up new branches to add to already existing nine across Egypt. The Abu Dhabi-based, Indian-owned company is also planning to set up cold storage facilities to support exports from Egypt.

#2- More renewable investments from Ocior? India’s Ocior Energy is looking to increase its investments in Egypt over the coming period, company officials told El Khatib, adding that the company is looking to leverage the country’s geographical location to develop renewable energy and green hydrogen projects. The renewables player is setting up a USD 4.3 bn green ammonia plant at the Port of Ain Sokhna under an agreement inked last year.

PLUS- El Khatib took part in a roundtable alongside senior Indian executives and industry leaders, during which he highlighted potential investments in the local market and touted Egypt as a regional hub for investment and manufacturing. He called on Indian companies to look into potential investments, namely in the renewables, manufacturing, tech, and logistics sectors. The minister also participated in the Raisina Dialogue — a multilateral conference New Delhi hosts annually — where he named even more areas for potential Indian investments, drug manufacturing and smart agriculture.

Tags:

green hydrogen India investment watch renewables

This publication is proudly sponsored by

EXPANSION

Egypt’s TBS Holding to set up shop in KSA alongside Saudi’s Shahia Investments

TBS’s baked goods are headed to Saudi Arabia: Homegrown TBS Holding is set to open a commercial-scale bakery in Saudi Arabia in partnership with Saudi food and beverage player Shahia Investments after the two companies inked a strategic partnership, according to a joint statement (pdf). The project, whose first phase is slated to kick off in 2026, aims to capture growing demand for baked goods in the Kingdom.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Some details are still under wraps: Company representatives were not immediately available to discuss the project’s value, how it would be phased out, or the respective roles of each partner.

What’s cooking? Baked goods produced by the factory will include frozen products. Under the agreement, TBS will supply Shahia brands — such as Dunkin’, which it franchises in the Kingdom — as well its clients in the food and beverage sector.

The Saudi market as a hotbed of growth: “We consider our entry into the Saudi market as the beginning of a new phase of growth, as we seek to provide high-quality bakery products that meet the needs of the Saudi market,” said TBS Holding Chief Investment Officer and co-founder Sameh El Sadat. Shahia is looking to grow its market share in the Kingdom and outside as it expands in the Saudi bakery sector.

Further expansion in the cards? The partnership is a stepping stone for future expansion into the Gulf and European markets, according to the statement.

BACKGROUND- TBS was an overnight sensation back in 2008 after its summertime pop-up in Diplo opened by three partners (the brand is named for Tamer, Basel, and Sameh) created a new market for high-end baked goods. It now employs more than 7k people and operates a portfolio of four brands. Its primary shareholder is Ayman Abbas, who invested in the company through his Intro Group in 2017.

ADVISORS- Our friends at Beltone Holding were financing partner on the transaction, while Gen-X acted as financial advisor and Bayt Alnomow Capital served as the intermediary between the two companies. K&L Gates provided legal counsel to TBS Holding, while Al Zamil & Al Kharashi Law Firm offered counsel to Shahia Investments.

Tags:

expansion Shahia Investments TBS Holding

Energy

Energean’s USD 945 mn asset sale to Carlyle is at risk of termination as regulatory approvals lag behind

Energean’s USD 945 mn asset sale to Carlyle is at risk of being scrapped: LSE-listed oil and gas company Energean’s USD 945 mn agreement to offload assets in Egypt and other countries to global investment firm Carlyle is at risk of falling through as some regulatory approvals remain outstanding just days before the sale’s 20 March deadline, according to a statement (pdf). With no agreement reached to extend the longstop date stipulated in the sale and purchase agreement, Energean indicated that the agreement could be terminated.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

REMEMBER- Energean inked an agreement with Carlyle in June to sell its assets in Egypt, Italy, and Croatia for up to USD 945 mn, expecting the sale to go through by the end of 2024. The acquisition would allow Carlyle to form a new Mediterranean-focused oil and gas company chaired by former BP CEO Tony Hayward.

Loose ends to be tied: Carlyle has yet to secure regulatory approvals in Italy and Egypt, as well as antitrust approvals in the two countries and the Common Market for Eastern and Southern Africa.

Energean is not throwing in the towel just yet: Despite the hurdles, Energean remains “committed to closing the transaction,” said CEO Mathios Rigas. The company will explore alternative strategic options for its assets should the transaction get scrapped.

Market reax: Energean shares fell 7.97% yesterday to close at GBP 8.66.

The news got ink in the foreign press: Reuters.

Tags:

energy oil and gas

EARNINGS WATCH

Banque du Caire saw net income jump 86% in 2024

Banque du Caire (BdC) saw its net income rise 86% y-o-y in 2024 to about EGP 12.4 bn on the back of improved results across its segments — retail banking, treasury, corporate services, and SME banking, the state-owned lender said in a press release (pdf).

The details: BdC’s operating revenues climbed 56% y-o-y to reach EGP 34.7 bn during the year. Its gross loan portfolio expanded 26% to EGP 227 bn by year-end, driven by a EGP 33 bn increase in corporate and bank loans and a EGP 14 bn uptick in retail loans.

The deposit portfolio also saw steady growth: Customer deposits also saw a 17% y-o-y rise to EGP 352 bn at the end of December. Retail deposits accounted for 56% of total deposits, while corporate and institutional deposits made up the remaining 44%.

Updates on the lender’s privatization plans: Emirates NBD tapped Matouk Bassiouny & Hennawy as counsel for its potential acquisition of BdC, Al Shorouk reports, citing unnamed sources it says have knowledge of the matter. The Emirati lender also appointed an undisclosed financial advisor, according to the sources.

We have an idea about the value of the sale: We reported last week that BdC is looking to put a 45% stake on offer for USD 1.2 bn, and that Emirates NBD is conducting its due diligence of the state-owned lender.

BACKGROUND- Plans to sell part of Banque du Caire have been floated — and repeatedly delayed — since 2018. The government has continued to position BdC as a prime privatization target, with Prime Minister Moustafa Madbouly highlighting it in December as one of ten state-owned companies — including fellow banking sector stalwart Alexbank — slated for stake sales in 2025.

Tags:

Banque du Caire earnings earnings watch Emirates NBD

Moves

GlobalCorp taps Ahmed El Tobgy as CEO of leasing

GlobalCorp saw the return of Ahmed El Tobgy (LinkedIn) to head its leasing segment as CEO, according to a statement (pdf) from the financial services firm. El Tobgy left his role as chief business officer in the company in 2023 to join Egylease as CEO and managing director. He brings over 37 years of experience in banking and business development, including 26 years in the banking sector and five in leasing. He assumed various roles at Mashreq Bank, Union National Bank, and Piraeus Bank.

What they said: “Ahmed El Tobgy’s appointment as CEO of leasing … marks a pivotal step in our strategy to reinforce our leadership in the non-banking financial services sector,” Group CEO Hatem Samir said.

Tags:

GlobalCorp moves

Also on our Radar

AliExpress expands local payment options to include Egypt

RETAIL-

Global online retail marketplace AliExpress expanded its local payment options to include Egypt, among several other African countries like South Africa, Algeria, Ethiopia, Morocco, and Tanzania, effective March of this year, the company said in a statement. “We recognize that cross-border online shopping can be overwhelming due to payment and logistics complexities. Our commitment is to simplify these processes, making global e-commerce more accessible and enjoyable for consumers in this vibrant market,” AliExpress Business Director Bonny Zhao said.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Many of us will be hoping that other foreign companies will follow AliExpress’ lead, with numerous streaming services, online stores, and essential subscription-based workplace services still not accepting EGP payments. The pre-EGP float economic climate made it incredibly difficult to repatriate earnings outside of Egypt, but with the EGP proving to be more stable than many had feared, inflation now under control, and the easing of many barriers complicating exchanging EGP for FX, many are hoping the lack of EGP payment options will soon be a thing of the past.

M&A-

Elsewedy Electric upped its stake in subsidiaries Pyramids for Industrial Development (PID) and Pyramids Zona Franca (PZF). It now holds an indirect 100% ownership in PID, up from 50%, and 93% in PZF, up from 47%, Al Arabiya reported. The transactions — executed through Elsewedy Utilities — are valued at EGP 1.15 bn, according to the company’s financial statement (pdf). The move is expected to “allow the group to strengthen its presence in the industrial real estate development sector, expanding its portfolio and market reach,” the document reads.

RENEWABLES-

Arabian Cement to purchase clean energy from IRSC: Local renewables player IRSC has signed a 30-year Power Purchase Agreement with the Arabian Cement Company (ACC) to supply it with “clean, reliable electricity generated from renewable sources,” according to a press release. IRSC will develop, finance, construct, own, maintain, and operate the second phase of ACC’s solar plant under the agreement. The plant will have a total capacity of 17.6 MWp to generate some 32.5 GWh of energy annually.

Not IRSC’s first venture into the cement industry: IRSC partnered with Misr Beni Suef Cement in January to launch a solar project.

ACC is upping its green efforts, most recently securing a EUR 25 mn financing package from the EBRD to expand its use of alternative fuel and improve energy efficiency, reducing some 130k tons of emissions annually.

STARTUPS-

GB Corp’s venture capital arm GB Ventures plans to invest up to USD 1 mn in three to five startups this year as part of its expansion plan across the Middle East and Africa, GB Corps’ Corporate Venture Capital Manager Nada Shaheen told Al Borsa. The first investment will go toward a local automotive startup this quarter, Shaheen said. Future investments will focus on startups operating in the fintech, logistics, and automotive sectors.

Tags:

ALSO ON OUR RADAR Arabian Cement e-commerce Elsewedy Electric GB Corp renewables retail startups

PLANET FINANCE

Brewing trade war to weigh on global growth, OECD says

The Organisation for Economic Cooperation and Development forecasts slashed its global economic growth forecast on the back of persisting inflationary pressures and the potential upheaval in trade policies brought on by US President Donald Trump’s trade war, according to the Organisation for Economic Cooperation and Development (OECD)’s latest economic forecast (pdf). The Paris-based organization revised down its prediction for global growth in 2025 by 0.2 percentage points to 3.1% in 2025 — down from 3.2% in 2024 — before slowing further to 3.0% in 2026.

There’s a number of factors at play: Weakening business and consumer sentiments in some countries, coupled with rising uncertainty over economic policy indicators, have collectively contributed to the lowered growth prospects for the year. Meanwhile, “higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty” are also weighing on investment and household spending.

The effects of slowed growth could appear soon: OECD sees global growth weakening in 1Q 2025, with consumer confidence having dipped early during the year, remaining “below long-run average levels despite strong growth in real incomes in many economies,” the report reads.

The big picture: GDP growth in the US is seen coming in at 2.2% in 2025 — down from a previous forecast of 2.4% growth this year — before slowing further to 1.6% in 2026. Growth in the euro area is projected to be 1.0% in 2025, down from a previous forecast of 1.3% growth, before rising to 1.2% in 2026. Meanwhile, China’s economy is expected to grow 4.8% this year, up 0.1 percentage points from the previous forecast, before slowing to 4.4% in 2026.

Closer to home, the OECD expects the Kingdom’s GDP to grow by 3.8% this year, up 0.2 percentage points from its previous prediction in December. Economic growth is expected to slow slightly in 2026 to 3.6%.

Inflation is also seen growing at a higher rate than previously expected, with annual headline inflation in G20 economies projected at 3.8% in 2025 and 3.2% in 2026.

And higher inflation means…: Persistent inflation could “prompt more restrictive monetary policy and could give rise to disruptive repricing in financial markets.”

MARKETS THIS MORNING-

Asian markets are on the rise, tracking gains on Wall Street yesterday after US retail sales data helped ease investor concerns over a potential recession. Japan’s Nikkei and Topix are up 1.6%, while South Korea’s Kospi is up 0.6% and China’s CSI 300 gained 0.25%. Hong Kong’s Hang Seng is also up 1.9%.

Meanwhile, Wall Street futures point to another good day for US indices, with the Dow Jones up marginally and Nasdaq and S&P 500 seeing no change from yesterday.

EGX30	31,459	+0.4% (YTD: +5.8%)
USD (CBE)	Buy 50.45	Sell 50.58
USD (CIB)	Buy 50.46	Sell 50.56
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,883	+0.3% (YTD: -1.3%)
ADX	9,451	+0.3% (YTD: +0.3%)
DFM	5,171	+0.6% (YTD: +0.3%)
S&P 500	5,675	+0.6% (YTD: -3.5%)
FTSE 100	8,680	+0.6% (YTD: +6.2%)
Euro Stoxx 50	5,446	+0.8% (YTD: +11.2%)
Brent crude	USD 71.07	+0.7%
Natural gas (Nymex)	USD 4.00	-0.4%
Gold	USD 3,009	+0.1%
BTC	USD 83,982	+1.7% (YTD: -10.2%)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 4.1 bn (16.1% above the 90-day average). International investors were the sole net buyers. The index is up 5.8% YTD.

In the green: Orascom Construction (+2.2%), Eastern Company (+2.1%), and Orascom Development (+2.0%).

In the red: Juhayna Food Industries (-4.4%), Emaar Misr (-3.9%), and Rameda (-3.1%).

CORPORATE ACTIONS-

#1- Suez Canal Bank is set to increase its authorized capital to EGP 15 bn and its issued and paid-up capital to EGP 6.5 bn, pending approval of the Central Bank of Egypt, according to a disclosure (pdf).

#2- Edita Food Industries is set to double its issued and paid-up capital to EGP 280 mn after receiving the green light from the Financial Regulatory Authority (FRA), according to an FRA filing (pdf). The company will issue 700 mn shares with a nominal value of EGP 0.20 each in a bid to ramp up liquidity and strengthen the company’s financial position to support future growth.

#3- Mopco received the green light from the FRA to increase its issued and paid-up capital by EGP 7.9 bn to EGP 28.7 bn, according to a disclosure (pdf) to the EGX.

Tags:

economy Financial Markets GDP Planet Finance

Our weekly deep dive into the green economy and ESG issue in Egypt.

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Why is geothermal energy yet to catch on in Egypt like in Turkey and Kenya?

Three years since EnterpriseAM last examined Egypt’s geothermal potential, where do we stand? In short, Egypt still has no geothermal power plants in operation. Efforts since then signal an interest in tapping the heat beneath our feet, even as longstanding challenges — from resource limitations to policy gaps — continue to challenge the way forward.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Although no actual full-scale projects were launched, Egypt laid the groundwork for geothermal development through capacity building. A key effort has been the Geothermal Energy Capacity Building in Egypt project launched in late 2020 with EU support. It aimed to establish Egypt’s first geothermal engineering graduate diploma and an educational pilot plant by 2024. The final seminar was concluded in July 2024, but nothing has been publicized since then.

Officials also renewed efforts to assess Egypt’s best geothermal sites. In February 2024, the South Valley Petroleum Holding company — more often known by its acronym, GANOPE — inked an MoU with Schlumberger to identify prime locations and conduct feasibility studies for geothermal power generation. It represents the first significant government-led study of geothermal potential since an initial MoU in 2016.

REMEMBER- Egypt simply may not have abundant high-temperature geothermal reservoirs. Research indicates the “majority of geothermal resources in Egypt can be categorized as medium-to-low temperature potentials,” insufficient for large-scale power generation. The best prospects are in tectonic areas in the east of the country, like the Red Sea’s western shore and gulfs of Suez and Aqaba, and may also be discovered in some areas of Delta and Western Desert, National Research Institute of Astronomy and Geophysics Director Abdel Zaher told EnterpriseAM.

These initiatives mark tangible if modest steps forward. However, still no drilling has occurred yet, and any pilot plant remains on the drawing board, an informed source told EnterpriseAM.

But why hasn’t geothermal energy made more significant progress in Egypt? Egypt’s renewable energy plans and policies have largely bypassed geothermal energy so far. Investing in geothermal energy requires some encouragement and assistance, in the form of legislation and regulations that give facilities and incentives to geothermal energy investors, Abdel Zaher told us. There are no dedicated incentives, tariff schemes, tenders, and land allocation to increase the financial viability of geothermal projects, nor a clear framework for licensing and development. In contrast to rolled out feed-in tariffs for solar and wind over the past decade, even if a viable geothermal site were confirmed, an investor would have no guaranteed buyer or price for the electricity.

SOUND SMART- A feed-in tariff is a policy tool designed to attract investments in renewable energy by guaranteeing producers a fixed price for the electricity they supply to the grid, which is often above the market rate and for long contracts. The mechanism helps ensure price stability and predictable returns for investors. By setting a clear purchase rate for the clean power, the tariffs then help offset high upfront costs and de-risk projects, making renewables more attractive to private players.

Geothermal power tends to have a higher levelized cost, which likely exceeds Egypt’s current electricity prices. Pricing issues are therefore significant — a tariff that reflects geothermal’s true cost would be needed to entice developers, Abdel Zaher told EnterpriseAM. For perspective, Turkey’s government offered USD 0.105 per kWh as a purchase price for geothermal power to kick-start its sector. Kenya likewise set feed-in tariffs around USD 0.085 per kWh for geothermal with 20-year power purchase agreements. Until Egypt establishes a supportive regulatory framework with favorable pricing and the sharing of risk, geothermal will struggle to attract financing.

We may need a full, detailed exploration at a promising site to establish a proof-of-concept, to show investors at least one success story locally. Even a small fully operational power plant that feeds into the grid would be a landmark, demonstrating that geothermal can work here.

In countries that succeeded with geothermal, governments often shouldered the early risk. Without that early backing, geothermal remained untapped, not for lack of potential, but because no one was willing to take the financial risk into the unknown.

In our region, Turkey’s rapid geothermal boom was driven by policy support that mitigated risk, pushing the country to being the world’s fourth largest producer of geothermal energy. The government offered one of the world’s highest feed-in tariffs — USD 0.105/kWh — assuring premium returns that drew investors. Even after the tariff expired in 2020, Turkey maintained a lower-rate support scheme. To address the high risk of exploration, the General Directorate of Mineral Research and Exploration conducted early-stage drilling, confirming viable resources before auctioning the fields. This minimized uncertainty and encouraged developers to focus on production rather than costly, speculative drilling.

Beyond policy, Turkey leveraged financing tools to lower investment barriers. The World Bank invested USD 550 mn, setting up a risk sharing mechanism to cover part of the costs of failed wells. This model gave investors confidence to expand exploration. Turkey also deployed binary cycle power plants to harness moderate-temperature resources — which was cited by Abdel Zaher as promising for the Egyptian case — while incentives for local manufacturing helped build a domestic geothermal industry.

In our continent, Kenya leads Africa in geothermal development, leveraging its position along the East African Rift, with a capacity of 900 MW-1 GW, which supplies around 40% of its electricity mix. The government role was key, taking on the riskiest phases of development, by creating the Geothermal Development Company in 2008 to handle high-risk exploration and drilling, shouldering upfront costs that private developers typically avoid. Kenya’s main power generator (KenGen) had been investing in geothermal since the 1980s, with the first African plant at Olkaria. A crucial policy move was the introduction of feed-in tariffs in 2010, guaranteeing developers a rate of USD 0.085/kWh. Public-private partnerships further drove expansion — with the Menengai geothermal project, which adopted a steam-supply PPP model.

Your top green economy stories for the week:

Egypt has allocated EGP 99.9 bn for renewable energy projects in the current fiscal year, Planning Minister Rania Al Mashat said. The funds are being used to carry out 48 different projects.
The IMF has approved our request for USD 1.3 bn in climate funds under the Resilience and Sustainability Facility, in its fourth review of Egypt’s USD 8 bn loan program. The financing is set to be disbursed in tranches rather than as a lump sum.
Scatec inked a 25-year PPA with EgyptAlum for its 1.1 GW solar plant and 200 MWh battery energy storage system in Naga Hammadi. The project comes at a cost of USD 650 mn and is set to break ground in the next 12 months after reaching financial close.

Tags:

going green green energy renewables

CALENDAR

MARCH

Arla Foods’ deadline for Domty acquisition offer.

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

Egypt-Sierra Leone Business Forum.

Egypt to launch its Integrated National Strategy for Sustainability and Development Financing.

APRIL

7-9 April (Monday-Wednesday): Narrative PR Summit’s 9th edition, Somabay

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

10 April (Thursday): Capmas expected to release inflation data for March.

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

30 April (Wednesday): Deadline for Australia Awards Scholarships applications.

Business-to-business forum of Egyptian and Moroccan companies to promote bilateral trade, Cairo, Egypt.

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

MAY

10 May (Saturday): Capmas expected to publish inflation data for April.

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development.

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo.

JUNE

10 June (Tuesday): Capmas expected to publish inflation data for May.

June 2025: MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting.

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum.

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

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

December: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

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

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

1H 2025: EGX launches a sharia-compliant sustainability index.

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

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

May 2026: End of extension for developers on 15% interest rates for land installment payments

2027

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

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

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

Sections

About

Privacy & Support

Get EnterpriseAM daily