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Tuesday, 22 Apr 2025

What We're Tracking Today
Tax
Economy
Food
A Message From Vodafone
Ipo
Egypt In The News
Also On Our Radar
Planet Finance
Going Green
Calendar

Gov’t to replace long list of fees, charges with single unified additional net income tax

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Today at a glance

1

Tax

Madbouly gov’t preparing to roll out fresh tax reforms to improve investment climate.
2

Economy

CBE cuts rates for the first time since November 2020
3

Food

B Laban’s reopens in Saudi Arabia, and could follow suit in Egypt if it mends health and regulatory lapses.
4

IPO

Saudi-owned Rakhaa wants to go public on EGX with 30% stake.
5

Also on our Radar

Chevron makes its Red Sea exit official.
6
The international press gears up for the official opening of the Grand Egyptian Museum)
7

PLANET FINANCE

China's rare metals restrictions threaten car manufacturers.
8

Going Green

Checking in on the Green Economy Financing Facility program in Egypt.

Tuesday, 22 Apr 2025

What We're Tracking Today
Tax
Economy
Food
A Message From Vodafone
Ipo
Egypt In The News
Also On Our Radar
Planet Finance
Going Green
Calendar
1

What We're Tracking Today

Tariffs and economic uncertainty hang over day two of the IMF and World Bank’s spring meetup

Good morning, friends, and welcome back. Leading the issue today is news that the government is working to replace the plethora of fees and charges many companies face with single unified additional net income tax. Also shaking up the world of local business is the central bank’s decision to cut rates — the first time it’s done so since 2020.

PSA-

#1- We’ll all be losing an hour of sleep this Friday as daylight saving time returns. Our timezone will shift to GMT+3 from GMT+2 at midnight on Thursday, 24 April — meaning the official time will jump from 12am to 1am on Friday, 25 April.

#2- Be ready for more scrutiny from the US when applying for a visa, as the US Embassy Cairo posted on social media that the country’s immigration authorities would “continuously check visa holders to ensure they follow all US laws and immigration rules — and… will revoke their visas and deport them if they don’t.”

The announcement follows the US immigration authority beginning to screen “alien’s social media activity for antisemitism” earlier this month — which has been shown by the case of Columbia University student Mahmoud Khalil and others to also include legitimate criticisms of Israel's war on Gaza under the Trump administration's definition.

#3- The second phase of the Hub for Advisory, Finance, and Investment for Enterprises — better known as Hafiz — is live, expanding its offering of financing and technical support tools for private businesses, according to a ministry statement. The platform now provides access to more than 90 financial and non-financial services — up from 62 at launch in December 2023 — through 44 bilateral and multilateral development partners.

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WEATHER- It’s heating up in Cairo today, with a high of 39°C and a low of 27°C, according to our favorite weather app.

Alexandria is also in store for some sooner-than-expected summer temperatures, with a high of 34°C and a low of 21°C.

** DID YOU KNOW that we now 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-

The African Development Bank (AfDB) plans to funnel USD 300 mn into Egypt’s private sector this year, Planning and International Cooperation Minister Rania Al Mashat said in a statement. The funding will focus on SMEs and large enterprises through a combination of project financing, corporate funding, and lines of credit.

HAPPENING TODAY-

It’s day two of the IMF and World Bank’s spring meetup, taking place amid the global economy grappling with mounting trade tensions and tariff escalations. The six-day 2025 Spring Meetings of the IMF and World Bank Group will bring together policymakers, central bankers, economists, private sector leaders, and others to discuss what the year ahead holds.

The themes of this year’s meetup are already starting to become clear, as the Trump administration’s aggressive tariff regime continues to shake confidence in the post-WWII trade order, Bloomberg writes. With fears of a prolonged trade war mounting, finance chiefs gathering in Washington will be looking for ways to preserve multilateral cooperation — or at least find workarounds as the US doubles down on bilateralism. Against this backdrop, the relevance of global institutions like the IMF and World Bank in an increasingly fragmented world is once again up for debate.

Once the go-to forum for synchronized policy responses, the G-20 is now seen by many as drifting into irrelevance, as Washington’s pivot toward unilateral action has further weakened the group’s ability to manage global economic shocks. “The cost of not having the G-20 is that you won’t have a level of economic policy coordination, and that should be terrifying people,” said Center for Global Development’s VP Clemence Landers.

Planning and International Cooperation Minister Rania Al Mashat will be taking the stage alongside World Bank head Ajay Banga and others for the World Bank flagship event Jobs — The Path to Prosperity. The meeting will dissect how “to meet the stable employment aspirations of the developing world's fast-growing youth population.” You can watch the event live at 8-9:30pm Cairo local time or catch the recording afterwards on World Bank Live — both of which will have Arabic translation available.

The International Monetary Fund is also set to release the full biannual World EconomicOutlook today at 5pm CLT. The fund’s Kristalina Georgieva indicated last week the report will feature “notable markdowns” in growth projections due to rising trade tensions and instability in the trading system.

You can check out the full schedule on theevent’s official website.

THE BIG STORY ABROAD-

The global foreign press is split between two stories this morning: Pope Francis’ death and the latest sell-off on Wall Street.

Obituaries for Pope Francis, who died at 88 due to a stroke and cardiac arrest a day after Easter Sunday, are pouring in, with many looking at his role in reforming the Catholic Church. Focus is also turning to who will succeed him among his 252 cardinals, Reuters reports. Obituaries are everywhere: FT | Reuters | CNN | The Independent | Washington Post

President Abdel Fattah El Sisi described Pope Francis as “an exceptional global figure” in a letter of condolence, praising his lifelong dedication to peace, justice, and standing with the Palestinian cause and efforts to end the conflict, according to an Ittihadiya statement. The Coptic Orthodox Church also mourned the pope, calling him “a true example of Christian humility,” while Al Azhar Grand Imam Sheikh Ahmed El Tayeb released a statement describing the head of the Catholic Church as a “distinguished humanitarian and dear friend” and paying tribute to his “powerful defense of Palestine and the ‎oppressed people of Gaza.”

Also getting plenty of ink this morning: A sell-off hit Wall Street on the first day back from the long weekend after US President Donald Trump renewed his criticism of US Federal Reserve Chair Jerome Powell, saying on his social media platform Truth that he must lower interest rates “NOW” to give the economy a boost. The S&P 500 ended the day down 2.4%, while the tech-heavy Nasdaq fell 2.6%. The USD also took a beating, falling 1.5% to a three-year low against a basket of major trading partners. (FT | Bloomberg | CNBC | WSJ | Reuters)

ALSO- It’s earnings week: Tesla will today kick off a more tense earnings season than usual for Big Tech as companies grapple with the impact of tariffs on their businesses and margins in their forecasts. Alphabet will follow with its earnings report on Thursday, while Apple, Meta, Microsoft, and Nvidia are expected to file earnings reports next week.

*** 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 check in on the EBRD-funded Green Economy Financing Facility program to see what’s accomplished so far and still has in the pipeline.

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Somabay; every reason to fall in love.

2

Tax

Egypt working to replace long list of fees, charges with single unified additional tax on net income

The Madbouly government is preparing to roll out a fresh set of reforms to simplify procedures for investors and position Egypt as a more attractive destination for local and foreign investors, according to an Ittihadiya statement. The state is currently surveying fees imposed by 67 administrative bodies with the goal of consolidating and reducing them, two government sources told EnterpriseAM. We were the first to pick up news of the plan back in December.

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

The government is planning to replace many of the various fees charged by different entities with a single unified additional tax on net income, which aims to streamline the tax system and reduce the administrative burden on businesses. A digital platform will also be launched to consolidate fee and tax collection under two or three entities, with all payments funneled through the new system to simplify compliance and increase efficiency, we were told.

This additional tax on net-income is expected to come in at around 2-3%, our government sources told us. The final figure, however, will be worked out by soon-to-be-formed committees that will attach themselves to government bodies that interact with investors to try to catalogue and rationalize the many fees that investors face.

Some could see the amount of fees and charges they cough up fall by 50%, as many investors are currently charged twice for certain permits or services by different government bodies. The new system will be administered by the finance and investment ministries and oversee the issuance of commercial and industrial registrations, environmental and fire safety certificates, importers’ licenses, chambers memberships, traffic permits, economic hardship funds for workers, and more.

But despite the reduction in fees, the government thinks the new plan could double its annual turnover rate, as the new system will encourage more investment and help projects increase earnings, one of our government sources told us.

A shake-up to how direct taxes are calculated is also part of the plan, with income tax, taxes on unlisted shares, and the stamp duty to be unified as a single tax, our source told us. This would unify some 55% of taxes, our source added.

The new plan will increase transparency and tax policy stability — two important factors that currently persuade many not to invest — we were told. “This is a positive and well-timed step,” Food Export Council head Ashraf El Gazayerli told EnterpriseAM, adding that he expects the move to lower costs and boost food exports by 15%. Federation of Chambers of Commerce’s Internal Trade Committee of the Importers Division head Matta Bishay also told EnterpriseAM that the SME economy could also witness growth on the back of the fairer and more predictable tax system. The new system should be good news for exports, according to Cairo Chamber of Commerce’s Exporters Division head Ahmed Zaki, who told us that a “stable and clear tax system” would increase exports.

And speaking of exports, faster customs clearance is also part of the plan, with the aim to cut customs clearance times to six days from eight. To facilitate that, customs offices will remain operational during weekends and public holidays, and businesses will be able to pay fees after banks’ working hours.

But for the new plan to work, it has to be implemented well, industry insiders told us. Export Council for Building Materials head Walid Gamal El Din said enforcement is key, warning that some agencies may try to add new fees later.

We should know more soon with the long awaited and much anticipated tax policydocument set to be unveiled by the Finance Ministry. The initially outlined plan — which shares a lot of similarities with this most recent iteration — is part of a wider package of measures aimed at attracting foreign investments and changing the overall investment climate in Egypt.

The plan received extensive — and positive — coverage on the airwaves last night, with the initiative widely welcomed as an important step to improving the country’s investment climate by hosts and guests alike. Federation of Egyptian Industries’ tax committee head Mohamed El Bahy told Kelma Akhira’s Lamees El Hadid that the directive addresses one of main issues facing investors in Egypt — the lack of transparency and clarity about the true costs of a project. “Egypt’s core challenge today is attracting more FDI — and that won’t happen unless investors know the full cost upfront,” El Bahy said.

El Bahy also stressed that small companies won’t be taxed like larger ones, as “every [business] will pay based on its income. Someone making EGP 100 mn isn’t the same as someone making EGP 1 mn. The rate is fixed, but the outcome reflects the size of the business” (watch, runtime: 1:42).

Less paperwork and more investment was the message on Azza Moustafa’a Al Sa’aa Al Sadesa’. Egyptian Tax Society head Yasser Maharem told Moustafa the unified tax system will mean that investors can focus on launching projects and not dealing with bureaucracy (watch, runtime: 4:25). National Dialogue private investment committee member Samir Sabry similarly told Al Hayah Al Youm’s Lobna Assal that the move responds to a long-standing call from the private sector and will help boost production, exports, and job creation (watch, runtime: 6:50).

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3

Economy

CBE cuts rates for the first time since November 2020

The Central Bank of Egypt cut interest rates by 225 bps in its second meeting of the year on Thursday, the bank said in a statement (pdf). The move marks the Monetary Policy Committee’s (MPC) first change to the policy rates since March 2024, following seven consecutive meetings where rates were held steady. It is also the bank’s first rate cut since November 2020. The decision was supported by cooling inflation in the first quarter of 2025.

Where rates currently stand: The overnight deposit rate now stands at 25.0%, the overnight lending rate at 26.0%, and the main operation and disc. rates at 25.5%.

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

Most economists and analysts we polled last week saw this coming, with most expecting the MPC to cut rates by at least 200 bps, while others gave a more conservative estimate of a 100 bp cut.

“The sharp decline in annual headline inflation” in 1Q 2025 created “ample room for commencing the easing cycle,” the MPC said, noting that inflation during the quarter dropped by nearly 9 percentage points. Additionally, inflation is expected to continue to fall throughout this year and 2026, “albeit at a slower pace” than that of 1Q, the committee said. “Improvements in economic indicators despite recent global developments prompted the CBE’s decision, with the bank seeing that it could still meet its goals this year as inflation continues to decline,” Thndr Securities Brokerage’s Chief Equity Strategist Amr El Alfy told EnterpriseAM.

However, inflation is still “vulnerable to upside risks” from recent global developments, including the US-China trade war and continued geopolitical tensions, the MPC said.

REMEMBER- Annual headline urban inflation hit 13.6% in March, marking a 0.8 percentage point increase from the 12.8% recorded in February and ending a four-month-long downward trend. Food and beverage price inflation drove the increase, with the segment rising 2.9 percentage points to 6.6% in March. On a monthly basis, inflation edged up by 0.2 percentage points to 1.6%.

The CBE is slowly changing its tune in response to the economic outlook. “What stood out for me was the shift in tone compared to the last meeting, which felt overly cautious at the time. Now, the central bank is clearly acknowledging the disinflationary trend,” economist Mona Bedair told us. “While the tone is more balanced this time — recognizing tighter real rates and easing inflation expectations — it’s still anchored in risk awareness, particularly around fiscal pass-through, regional geopolitics, and global trade dynamics,” she said.

The move was essential for economic growth and investment, Al Ahly Pharos’ Esraa Ahmed told EnterpriseAM. “The decision was a satisfying one — it stays within the realm of a cautious cut that the current economic situation needs. We believe the bank needed to begin its easing cycle to nourish the economy, lessen investment costs, encourage foreign direct investment, and potentially benefit from the trade war, as it could prompt countries to invest in less affected economies,” Ahmed said. “This cut isn’t big enough to create much of an impact on its own, but it is an indication that the bank is moving towards the needed easing cycle,” she added.

More and even larger rate cuts could be coming our way. “If these risks prove to be better contained — or at least measurable — we could see a broader easing cycle ahead, Bedair said. “In my view, there’s room for a cumulative policy cut of more than 600 bps in 2025, depending on how inflation unfolds. This isn’t a pivot to an expansionary stance. It’s a controlled, data-driven recalibration — one that protects monetary credibility while finally starting to support real growth.”

The central bank believes that economic activity can reach its full potential in the next fiscal year. “Estimates for the output gap indicate that actual economic activity remains below its full potential … but is projected to reach full potential” by the end of FY 2025-26, the bank said.

The rate cuts are good news for Egypt’s debt servicing costs, which could now fall by over EGP 100 bn, a senior government source told EnterpriseAM, noting that every 100 bp reduction saves around EGP 50 bn in interest payments. Interest spending is set to make up the majority of the government’s total expenses in its newly drafted FY 2025-26 budget with some 50.2% of its total spending, equivalent to EGP 2.3 tn.

But the easing cycle may take time to filter through the budget, the source added. But in the longer term, the central bank’s anticipated monetary easing cycle — alongside the new budget’s assumption of a 16% average rate — should help ease the state’s debt burden over time.

We should also see the launch of alternative debt instruments soon following the cuts, as the Finance Ministry had been waiting for the bank to move before issuing Islamic sukuk, retail bonds, and other products, which are now much easier to price fairly in a more moderate interest rate environment.

Banks are already gearing up to cut rates on savings accounts, with CIB announcing in a note (pdf) to customers that it will cut interest rates on its savings accounts and its certificates of deposits (CDs) by 225 bps, starting today. Other banks could follow suit, including the National Bank of Egypt, which is set to soon hold a meeting to review interest rates on CDs in line with the CBE’s new rates, CEO Mohamed El Etreby said. However, some banks may choose not to cut their rates the whole 225 bps as they have become an important source of funding that banks may want to maintain — even if it means having to shoulder narrower margins and increasing costs, banking expert Hany Abou El Fotouh told us.

Banks had already been cutting rates in preparation for the CBE’s decision. Banque Misr, CIB, and QNB Alahli — to name a few — all slashed rates on their certificates in recent months in preparation for the CBE’s easing cycle. But even with reduced rates, “certificates will remain the safest bank savings instruments available,” banking expert Mohamed Abdel Aal said.

Lenders are also expected to turn to bonds to lock in the highest possible yield and could move to issue variable-yield certificates of deposit instead of fixed-rate ones during the CBE’s easing cycle, a senior banking executive told EnterpriseAM previously. To main profitability, banks could also turn towards the high-demand SME sector, reduce costs by digitizing services, and by “diversifying revenues through service fees and investing in government debt instruments,” Abou El Fotouh said.

The international press also reported the rate cut: Reuters | Bloomberg

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4

Food

B Laban’s reopens in Saudi Arabia, and could follow suit in Egypt if it mends health and regulatory lapses

B Laban back in business — in Saudi, at least. Homegrown dessert chain B Laban is officially resuming operations in Saudi Arabia after all of its branches there were shut down last month due to suspected food safety violations, the company said in a statement. The news comes amid the chain’s continued closure in Egypt, but B Laban branches could reopen their doors after a week or so — provided they meet a list of food-safety and regulatory requirements, co-owner Abdel Rahman Ashmawy told Al Arabiya.

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

Last week, authorities shuttered all 110 of B Laban branches nationwide, affecting some 25k workers for the chain, the company said in a statement.The sweeping move also included several other sister brands of the dessert chain, including Kunafa w Basbousa, Karam El Sham, Whammy Burger, and 3m Shaltat. The closures also extended to the chain’s production facilities and affiliated outlets.

The action followed inspections by the National Food Safety Authority (NFSA) in the second half of Ramadan, after they received complaints about food safety concerns, NFSA chairman Tariq Al Hobi told eXtra News (watch, runtime: 7:16). “We found substances that are prohibited for use, such as certain colorants.” The inspection also found “expired products — and even the valid ones were marred and tainted by a set of changes in their sensory characteristics,” Al Hobi said.

The company was already told what to fix — but allegedly didn’t follow through. The NFSA had met with one of B Laban’s owners and a technical team from the company on 6 April to walk them through the corrective measures required to bring their factories and retail outlets in line with food safety regulations. However, the company “did not take the necessary steps to comply,” the authority said in a statement. Following that meeting, “we conducted an inspection of 47 establishments affiliated with this chain…in some branches, out of ten samples collected, eight were contaminated with pathogenic bacteria that pose a danger to consumer health.” Al Hobi also said that “some products contained insects and flies” and that “the sanitation systems in a large part of these establishments weren’t designed appropriately.”

But B Laban owner and founder Moamen Adel begged to differ, telling Al Hekayah’s Amr Adib that “what happened was odd and sudden — all of our branches were closed in one day…We asked what’s the problem, we were not notified of any violations” (watch, runtime: 52:33). Adel also stressed that there hasn’t been a single confirmed food-poisoning case.

The Health Ministry says the issues went far beyond just a few branches. The Health Ministry said it also found unlicensed outlets, and food items of unknown origin. Lab tests of 437 samples collected from the chain revealed that some “did not conform to Egyptian quality standards,” the ministry said. Health Ministry spokesperson Hossam Abdel Ghaffar also told Ala Masouleety’s Ahmed Moussa that 387 citations were issued over health requirement violations or staff lacking valid health certificates (watch, runtime: 24:00). Abdel Ghaffar also told Kelma Akhira’s Lamees El Hadidi that not all closures were due to food-safety related issues, as the dessert chain had “122 unlicensed establishments,” which also faced temporary closure (watch, runtime: 15:01).

The company appealed to President Abdel Fattah El Sisi, the cabinet, and regulators, arguing that the closures were sudden and left it in the dark about what triggered them, according to a statement. “We have not been granted clarity regarding the reasons behind these measures or the mechanisms for resolution, leaving the company and its employees in a state of total paralysis,” the company said. It added that the closure is affecting some 25k workers and disrupting its operations across nine Arab countries. “Whatever the doctors at the NFSA want, we will do…but don’t close the branches,” Adel told Adib.

The company now has five days to comply with a set of health and licensing requirements for it to reopen branches, which resulted from a marathon 8-hour meeting yesterday with representatives from officials from the Health and Supply ministries, NFSA, local administration, and veterinary services. The corrective measures outlined by the government to reopen the dessert chain include phasing out synthetic food colorants, updating infrastructure at restaurants and factories — including ventilation windows and sewage piping — and registering unlicensed branches. Local officials also required that any outstanding license paperwork be completed for locations with open regulatory files. Ashmawy said all the conditions were “straightforward” and praised the government’s “high degree of cooperation” in the process.

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5

A MESSAGE FROM VODAFONE

Vodafone Egypt becomes the first telecom operator to match 100% of its electricity with renewable sources, driving sustainable change in the telecom industry

As we celebrate Earth Day, it's the right time to reflect on the steps we are taking to protect our planet. At Vodafone Egypt, we know the path to net-zero carbon emissions is complex, but we are committed to navigating it through a clear, practical roadmap by 2035.

Significantly reducing our reliance on diesel-powered generators, deploying energy-efficient technologies, and integrating renewable energy directly into network infrastructure are all steps that can make a meaningful difference.

A major cornerstone of our commitment to relying on clean renewable energy is our long-term power purchase agreement (PPA) with the New and Renewable Energy Authority (NREA). The PPA agreement has enabled us to match 78% of our electricity consumption with renewable sources, with the remainder covered through direct and indirect sources. This achievement means we have met our 2025 goal of matching 100% of our electricity consumption with renewable sources, in addition to recording an overall energy usage consumption reduction of 12 GWh in FY 2025 compared to a 4.5 GWh decrease in the previous year.

On this note, I am proud to announce that our renewable electricity milestone, coupled with several other initiatives we have spearheaded this year, have resulted in a 68% year-on-year reduction in scope 1 & 2 emissions.

One of our most recent and more promising innovations in this space is the integration of solar energy directly into telecom site structures. In collaboration with Ashmand, Vodafone Egypt recently deployed a solar cladding solution on an access site structure – the first of its kind globally. The approach uses lightweight, flexible solar panels, which are 30% lighter than conventional models, integrated within a customized civil structure. This allows for 12 stacked panels to be installed on the palm tree body, an existing telecom site design. This new solution has expanded the number of telecom sites which can be converted to rely on solar energy, expanding our potential solar footprint nationwide.

The benefits of solar cladding are plentiful. Beyond increasing our renewable energy generation to 3.2 kWh, we have observed a 40% decrease in civil construction costs and an approximate 50% reduction in installation time, all while maintaining minimal impact on structural loads. This solution demonstrates how integrating renewable energy can also streamline infrastructure deployment.

The path to net-zero emissions is one that all telecom operators will need to take. However, it is not something we can do in isolation. To achieve sustainability at scale, collaboration between telecom operators, technology providers, and policymakers is needed now more than ever.

The question is not whether the industry will transform, but how quickly and effectively we can make it happen. At Vodafone Egypt, we are committed to leading the way.

Catalin Buliga, Chief Technology Officer (CTO) at Vodafone Egypt

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6

IPO

Saudi-owned Rakhaa wants to go public on EGX with 30% stake

Saudi-owned agribusiness and Alkhorayef Group subsidiary Rakhaa for Agricultural Investment and Development is planning to list 30% of its shares on the EGX in a secondary offering in 2H 2025, Alkhorayef’s Managing Director Abdullah Alkhorayef told Cairo Weekend’s Zeina Soufan (watch, runtime: 16:00). “We’re fully ready for the IPO, both administratively and financially,” he said.

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

Rakhaa has been in Egypt for 20 years and controls 24k feddans of land in East Oweinat, of which 10k are currently cultivated with wheat, potatoes, and sugar beet and are producing at maximum capacity, Alkhorayef said. The company reports over EGP 500 mn in annual revenues, growing at 8–12% per year.

While the IPO won’t fund new farmland, proceeds will support a vertical integration strategy that includes a seed purification plant, onion drying facility, date processing factory, and cattle-fattening unit — echoing Egypt’s broader push to localize food production and increase value-added exports.

Rakhaa’s shareholders include major Saudi firms Tabuk Agricultural Development (21.61%), Al Jouf Agricultural Development (8.6%), Wafrah for Industry and Development (8.6%), and Jazan Development and Investment (21.61%), with additional undisclosed stakes held by Almarai and Alkhoraif himself.

The 2025 IPO pipeline: Several private companies announced plans to go public on the EGX this year, including Valu, El Attal Holding, Al Ahly Group for Modern Agriculture, Go Green for Agricultural Investment, Korra Energi, Smart Village, and Al Ahly Sabbour.

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7

EGYPT IN THE NEWS

The international press gears up for the official opening of Egypt’s Grand Egyptian Museum

“There is perhaps no institution on earth whose opening has been as wildly anticipated, or as mind-bogglingly delayed, as the Grand Egyptian Museum,” the New York Times noted in a photo essay in its travel pages. Ahead of the museum’s official (and full) opening on 3 July, the paper noted — to the delight of the Tourism Ministry — that “even the museum’s incomplete offerings [before the grand opening] — along with the building itself and its [bn-USD] views — are staggering.”

Good press around the Grand Egyptian Museum is what we like to hear, with the USD bn+ project being an important part of the state’s plan to increase tourist footfall from 15.7 mn last year to 30 mn tourists a year by 2030.

WHILE IN LESS WELCOME TOURISM NEWS- Environmental groups are raising alarm over plans to develop Ras Hankorab on the Red Sea, Reuters reports. The currently fenced-off beach, located 90 minutes from Marsa Alam International Airport, could soon be home to dozens of tourist huts and a restaurant that conservationists say could damage one of Egypt's last untouched marine habitats.

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8

Also on our Radar

Chevron makes its Red Sea exit official. PLUS: Saudi Gold Refinery, Raya Holding, Ora Developers, Microsoft

ENERGY-

Chevron’s Red Sea exit is now official, with statements from the US energy giant and the Oil Ministry confirming that it has withdrawn from its 45% stake in Red Sea Block 1, citing the lack of energy finds, according to Reuters. The announcements follow then-unconfirmed reports last week that the operator of the last active exploration block in the Red Sea was pulling back.

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

But a Red Sea exit doesn’t mean an Egypt exit, with both the ministry and Chevron saying that its resources will instead go towards its interests in Egypt’s Mediterranean. “Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,” the newswire quotes Chevron Spokesperson Sally Jones as saying.

TECHNOLOGY-

The CIT Ministry inked a MoU with Microsoft Egypt to train 100k youth and public sector employees on artificial intelligence as part of second edition of the government’s National Artificial Intelligence Strategy, according to a ministry statement. The partnership aims to support Egypt’s digital transformation and advance responsible AI use, with Microsoft providing tailored content and practical training paths to targeted cohorts.

The agreement also includes AI governance support and consultations on AI-driven solutions in key government sectors. Microsoft will help identify sector-specific use cases, co-organize workshops, and advise on policy frameworks aligned with the Egyptian Charter for Responsible AI. The two sides will also cooperate on establishing a multi-stakeholder dialogue on regulatory frameworks for AI governance.

MINING-

The World Mining Union — a Saudi Gold Refinery subsidiary — is seeking a mineral and gold prospecting license in the Eastern Desert within the concession area of Shalateen Mineral Resources Company, the parent company’s operations manager Yousif Abdulrahim told Asharq Business. Saudi Gold Refinery Group officials will visit Cairo in two weeks to discuss potential mining investments, Abdulrahim said.

EXPANSION-

#1- Raya Holding plans to launch a consumer finance company in Saudi Arabia through its Aman Holding, likely via acquisition rather than establishing a new entity, Group CFO Hossam Hussein told Al Arabiya. Raya — which already operates call centers in Saudi Arabia and Dubai — also set out a Gulf expansion strategy that involves launching new fintech companies and data centers, with a focus on Saudi Arabia, Hussein added.

#2- Ora Developers has opened its regional headquarters at in Dubai, it said in a statement (pdf). The company plans to at least triple its workforce by the end of the year from its current 94 employees, as it accelerates development of large-scale projects in the UAE.

ORA is preparing to launch a 4.8 mn sqm beachfront development in Ghantoot, located between Abu Dhabi and Dubai. The company’s chairman and CEO Naguib Sawiris previously said the project would require some USD 10 bn in investments, and would be completed in 10-15 years, though at the time it was estimated to be around 15 mn square meter in size. The firm is also building a family luxury community with US operator Discovery Land Company with a private 18-hole golf course, we reported previously.

AGRICULTURE-

The Finance Ministry will disburse EGP 3 bn next week to settle overdue payments owed to cotton farmers, according to a cabinet statement. The funds will cover the remainder of the value of cotton delivered by farmers to the state earlier this year.

REMEMBER- A high guaranteed price of EGP 10-12k per quintar for the season — up 112% on the previous season — put prices out of step with global rates, which pushed private sector buyers out of the market. Private companies ended up skipping five out of eight state-held auctions this season, leaving the government on the hook for large volumes it hadn’t budgeted for.

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9

PLANET FINANCE

China's rare metals restrictions threaten car manufacturers

China’s export restrictions on rare earth metals could trigger disruptions for manufacturers of electric vehicles within a few months, the Financial Times reports. The full impact of these latest controls is still unclear, but carmakers are already raising concerns based on current stockpiles.

What’s happening? The new controls now encompass seven heavy and medium rare earths, such as dysprosium, terbium, and samarium, vital for manufacturing electric vehicles and wind turbines. These controls expand on measures that have been implemented by China since 2023 in response to US restrictions on chip technology, requiring exporters to obtain licenses for each overseas shipment and banning re-exports to the US.

The new controls came after US President Trump launched a probe into mineral and product imports last week, to assess the need for higher tariffs. Findings are due within 180 days, which could override the tariffs imposed last month.

Beijing’s strategy: The expanded measures are understood to be a response to the 145% tariff hike levied by the Trump administration on Chinese goods, in a bid to pressure US companies to lobby Washington into changing tariff policies, an unnamed senior automotive executive told the financial publication.

The implications could be severe: EV automakers were caught off guard, with suppliers holding only 2-3 months’ worth of magnets, causing “genuine problems” in the automotive supply chain, said Jan Giese, Frankfurt-based Tradiu’s Senior Manager for Minor Metals and Rare Earth Elements. An unnamed Japanese government official echoed the same concern, telling the salmon-colored paper that there’s not enough time to establish alternative supply chains before current stockpiles are exhausted.

“It’s really kind of tough all the way around,” S&P Global auto analyst Stephanie Brinley told Politico's E&E News. The projected 700k drop in US car sales this year makes it comparable to the tough markets of the 2009 recession and the 2020 pandemic, Brinely said.

IN CONTEXT- China holds a near monopoly on heavy rare earths processing, and the imposed export controls cover medium and heavy rare earths — materials that are difficult and costly to extract, both financially and environmentally — Giese told the Financial Times.

Breaking the monopoly: Japan and other nations are pinning hopes on Australia’s Lynas, as the rare earth mining company is set to expand its Malaysian processing site to produce dysprosium and terbium by mid-2025.

MARKETS THIS MORNING-

Asian markets are slightly inching down this morning, affected by Wall Street losses after Trump’s attacks on the Fed. Hong Kong’s Hang Send is down 0.6%, while Japan’s Nikkei is down 0.1%, and Shanghai Composite is slightly up 0.2%. Meanwhile, US futures are on the rise, signalling potential recovery when markets open.

EGX30

31,063

+0.1% (YTD: +4.5%)

USD (CBE)

Buy 51.05

Sell 51.19

USD (CIB)

Buy 51.06

Sell 51.16

Interest rates (CBE)

25.0% deposit

26.0% lending

Tadawul

11,549

-0.7% (YTD: -4.1%)

ADX

9272

-0.1% (YTD: -1.6%)

DFM

5104

+0.2% (YTD: -1.1%)

S&P 500

5158

-2.4% (YTD: -12.3%)

FTSE 100

8276

0.00% (YTD: +2.6%)

Euro Stoxx 50

4935

-0.6% (YTD: +0.8%)

Brent crude

USD 66.26

-2.5%

Natural gas (Nymex)

USD 3.04

+0.8%

Gold

USD 3442.90

+0.5%

BTC

USD 87,101.60

+2.7% (YTD: -7.0%)

THE CLOSING BELL-

The EGX30 rose 0.1% at Thursday’s close on turnover of EGP 3.1 bn (30.5% below the 90-day average). Regional investors were the sole net buyers. The index is up 4.5% YTD.

In the green: GB Corp (+2.9%), Orascom Development (+1.3%), and CIB (+0.9%).

In the red: Ibnsina Pharma (-3.1%), Fawry (-2.1%), and Juhayna (-1.2%).

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

Published every Tuesday in EnterpriseAM.

Read going Green
10

Going Green

Checking in on the Green Economy Financing Facility program in Egypt

GEFF wraps up its first iteration: The European Bank for Reconstruction and Development (EBRD) and its partners – the European Union, the European Investment Bank (EIB) and the Agence Francaise de Developpement (AFD) – have wrapped up the first phase of the Green Economy Financing Facility (GEFF) in Egypt, and are now moving forward with the second and third phases of the program, as announced at an event attended by EnterpriseAM.

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

REFRESHER- GEFF Egypt was launched in 2017 to fast-track the green transition by offering concessional green finance and technical support to the private sector. Under the program, the EBRD channels funding through local partner banks to support energy efficiency, renewables, and climate-resilient technologies in businesses and households. The facility is supported by the EU, EIB, AFD, and the Green Climate Fund.

What has GEFF achieved so far? Since its launch, the program has disbursed some USD 154 mn in financing to four partner banks — National Bank of Kuwait (NBK Egypt), Qatar National Bank (QNB), Bank of Alexandria (AlexBank), and the Arab African International Bank (AAIB) — for on-lending to private sector players. These funds helped finance 130 projects worth a combined USD 184 mn, covering 15 economic sectors across 18 governorates.

The breakdown: The four banks helped deliver a combined USD 125 mn in green loans, with NBK Egypt and Alex Bank delivering USD 30 mn, AAIB with USD 25 mn, and QNB with USD 40 mn in an effort to help push forward Egypt’s green transition.

The environmental impact: The environmental impact of the GEFF program has been significant, as it led to annual energy savings of around 1.2k GWh which is enough to power more than 100k urban homes. The initiative also cut CO2 emissions by around 288k tons per year, which is equivalent to planting 4.8 mn trees. The supported projects span a wide range of green investments, including industrial equipment upgrades, rooftop solar installations, the use of sustainable building materials, and water-saving technologies.

El Gouna as a success story: Orascom and SolarizEgypt signed an agreement, supported by GEFF, to build a solar plant that will supply clean energy to the Red Sea town El Gouna for the next 25 years. The project cut electricity costs by 12% and reduced emissions by 8.4k tons annually.

Damfi is also worth noting: Food manufacturer Dough & More Food Industries (Damfi) also benefited from GEFF support, as it invested in a combined cooling, heating, and power system that reuses energy. This resulted in annual energy savings of USD 482k, improved product quality, and a nearly 5k ton annual cut in CO2 emissions, all of which boosted the company’s growth potential.

Other companies going green: Giza Spinning and Insutech are two examples of private sector players using GEFF support to cut energy use and grow. Giza Spinning replaced 22 old machines with new energy-saving ones, cutting its electricity use by 20% and reducing emissions by over 2.5k tons a year, while also boosting production. Meanwhile, Insutech upgraded its foam production line to a more efficient one, saving energy by 36% and cutting CO2 emissions by nearly 2.6k tons annually. The new line also increased output and created new jobs.

It’s not only about funding: The program also prioritized the technical assistance aspect and EU-funded financial incentives, helping businesses identify and adopt high-performing green technologies. MSMEs and households were among the key beneficiaries, supported in adopting efficient and renewable solutions.

What’s next? The second phase of GEFF is already underway, with USD 175.5 mn earmarked for further green projects, and a third phase in the pipeline. The next phases will expand support for rooftop solar, adaptation tech, and small-scale renewables under 5 MW, while continuing to strengthen Egypt’s green finance ecosystem.

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CALENDAR

APRIL

27 April (Sunday): Deadline for applications to MINT Incubator's 3-month equity-free startup program with Alex Angels.

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

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

Mid-April: Egyptian trade delegation to promote investments during an official visit to Canada

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

7-10 May (Tuesday-Saturday): Egypt hosts the 24th Pan Arab Junior and Ladies Golf Championship.

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

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo.

JUNE

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

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

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

Realme to open smartphone factory

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.

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

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.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

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

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

EVENTS WITH NO SET DATE

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

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

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.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect

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

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

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

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