Good morning, all. We have another busy issue for you this morning to ring in the first hump day of May. Leading today’s issue is the central bank’s balance of payments report for the first half of the current fiscal year. Meanwhile, Egypt is inching closer to the liberalization of the electricity market, and a team from the IMF is inbound as the institution prepares to kick off its fifth review.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 32°C and a low of 21°C, according to our favorite weather app.

It’s almost as sunny in Alexandria, with a high of 31°C and a low of 17°C.

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FACT CHECK-

Our friends at Hassan Allam Holding aren’t planning to list their construction arm, contrary to a report making the rounds in other media yesterday. A company official tells us that the regional construction, engineering, and infrastructure giant has no intention of taking Hassan Allam Construction. A report had claimed the company planned to execute the transaction this month via a SPAC listing on the Egyptian Exchange.

WATCH THIS SPACE-

#1- A team from the IMF is en route to Egypt: “A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week. Further details will be communicated at the conclusion of the mission,” IMF Press Officer Angham Al Shami said in a note seen by EnterpriseAM.

What to expect: The preliminary mission from the Fund is set to touch down in Egypt at some point this week to begin reviewing data ahead of a two-week visit from a full mission in preparation for a staff report later down the line, three government sources told EnterpriseAM.

We’re told that the Finance Ministry will present reports detailing reform progress, the draft budget for the upcoming fiscal year, and updated versions of the state's debt and tax policy documents. Also in the schedule are meetings with officials from the investment and international cooperation ministries and the central bank to discuss expected FX inflows, upcoming investment agreements, and the plan to boost FX reserves.

Once the mission reviews and analyzes the data, a full IMF delegation will arrive to complete the review and issue its report on whether Egypt has passed the fifth review, which will be passed on to the IMF’s Executive Board for approval.

The government expects to unlock a USD 1.3 bn disbursement from the review. While no timeline has been confirmed yet, we can expect the next disbursement in June, one of the sources told us.

#2- A tranche of the EUR 4 bn grant from the EU could land in state coffers within weeks, EU Ambassador to Cairo Angelina Eichhorst told MENA news agency. The financing — part of a broader EUR 5 bn macro-financial assistance package agreed in March 2024 — was approved by the European Parliament last month.

Talks are still ongoing: Egyptian-EU discussions regarding Egypt’s reforms agenda under the assistance package are still ongoing, Planning Minister Rania Al Mashat told EnterpriseAM. Egypt is following up with the European Commission on the structural reform measures tied to the second phase of the package, she said.

#3- The state is considering a proposal to allow every family to purchase a residential unit with affordable mortgage terms, including a subsidized interest rate and a repayment period of eight years at most, according to a cabinet statement. The initial plan prohibits selling the properties for a certain period of time.

HAPPENING TODAY-

#1- We will get our first insight into how Trump’s tariffs are affecting the country’s private sector later today with the release of Egypt’s PMI data for April from S&P Global. The country’s PMI slipped back into contraction territory in March after two months of modest growth, dragged down by weakening demand and slower output.

#2- President of the European Bank for Reconstruction and Development (EBRD) Odile Renaud-Basso will conclude her two-day visit to Egypt today. While in Egypt, Renaud-Basso’s agenda includes meetings with President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, some other members of the Madbouly cabinet, and private sector players.

Renaud-Basso hailed Egypt as one of the EBRD’s most strategic markets, saying the bank is “fully committed to supporting inclusive and sustainable economic growth, unlocking the vast potential of Egypt’s green economy, and creating opportunities through private sector development, investment in critical infrastructure and job creation.”

Planning Minister Rania Al Mashat emphasized Egypt’s efforts to scale back public investment and make room for private capital during her meeting with Renaud-Basso yesterday, according to a statement. Al Mashat noted that Egypt’s private sector development financing hit a five-year high in 2024, surpassing government financing for the first time. The two also discussed preparations for the EBRD’s 2025 Annual Meeting and Business Forum in London on 13-15 May, set to foster further cooperation.

#3- It’s the second and final day of the D-8 ministerial meeting on tourism taking place in Cairo. The meeting discussed increasing sector cooperation between member states — Bangladesh, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey, and Egypt — and who the group will choose as its tourism capital, according to a statement.

#4- It’s the final day of Siemens Mobility’s two-day Mobility Talk student summit held at Cairo University, a company statement (pdf) reads. The summit brings together over 2k engineering students and fresh grads for panels, workshops, and front-row seats to Egypt’s high-speed rail project — part of Siemens’ drive to localize talent and build out the country’s rail workforce.

HAPPENING TOMORROW-

The 2025 Pan Arab Junior and Ladies Golf Championship is kicking off tomorrow at Madinaty and Katameya Dunes. The four-day tournament is open to players from members of the Arab Golf Federation across multiple age groups and includes a ladies’ category. The event will be open to spectators with a golf festival and other activities to draw in new audiences.

CIRCLE YOUR CALENDAR-

One for the F&B professionals: Fi Africa and ProPak MENA will take place between 2-4 June at the Egypt International Exhibition Center. The annualconference(pdf) — which focuses on the food, beverage, and packaging industries — will bring together over 400 exhibitors from Egypt, the Middle East, Asia, and Europe, as well as over 16k attendees. It will feature talks and workshops for F&B and consumer goods manufacturers and showcase new technologies in a bid to promote potential investments and encourage sustainability and food waste reduction. You can register for the event through the link available on the Fi Africa and ProPak MENA websites.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

Gaza campaign intensifies: Israel’s cabinet approved plans yesterday to control large parts of Gaza indefinitely and relocate Palestinians to “sterile zones” all across the strip, while taking over aid distribution. Israeli officials signalled the intensive plan will be implemented only if a ceasefire failed to materialize by the time US President Trump leaves the region after his anticipated gulf summit in mid-May.

Houthis are not backing down: Despite intensifying strikes by the US and allies, the militant group announced a “comprehensive” aerial blockade on Israel, promising to repeatedly target key airports and urging international airlines to cancel all flights to Israeli airports.

ALSO- OpenAI listened to widespread criticism and decided to halt plans to turn for-profit. The plan would have spun the ChatGPT maker into an independent entity from the nonprofit that currently holds a controlling stake, which raised concerns of subverting governance safeguards that are supposed to keep AI tech development in check.

AND- Trump is threatening tariffs (what else is new?) that could reach 100% on films madeoutside of the US, a move that could significantly hurt movie production in many regions, including the Middle East.

*** 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 Egypt’s EGP 200 bn crap sector and what some businesses are doing to utilize it.

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