Language
العربية

Sections

About

Privacy & Support

Get EnterpriseAM daily

Available in your choice of English or Arabic

Monday, 19 May 2025

What We're Tracking Today
Investment Watch
Energy
Poll
Energy
Startup Watch
Manufacturing
Earnings Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar

SFE veterans’s Morpho Investments reaches first close of inaugural fund

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

1

Investment Watch

Morpho Investments reaches USD 55 mn first close of its inaugural fund.
2

Energy

When can we expect electricity prices to increase next?
3

POLL

Majority of analysts see CBE continuing its easing cycle this week -EnterpriseAM poll.
4

Energy

Regional energy players put in offers to supply us with LNG.
5

Startup watch

Thndr lands USD 15.7 mn to expand product offering.
6

Manufacturing

Chinese firm GS Global to launch USD 15 mn garment factory in Qantara West.
7

Also on our Radar

Madinet Masr wants to unveil its first project abroad this year — likely in KSA or UAE.
8

PLANET FINANCE

China’s rare earth export delays are threatening global supply chains.
9

BLACKBOARD

Uptown 6 October brings GSM to Egypt with EGP 1.3 bn international school.

Monday, 19 May 2025

What We're Tracking Today
Investment Watch
Energy
Poll
Energy
Startup Watch
Manufacturing
Earnings Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

What We're Tracking Today

It’s the second and last day of the IMF’s MENA Research Conference

Good morning, friends. We have a pretty heavy news day for you led by investment news — Sovereign Fund of Egypt’s Ayman Soliman and Ihab Rizk’s newly-launched Morpho Investments reached USD 55 mn first close of its inaugural fund. We also dive into the latest on the anticipated electricity price hike and what analysts think will happen when the central bank’s Monetary Policy Committee meets later this week.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 32°C and a low of 18°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 26°C and a low of 17°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.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how global trade tensions are fueling local industries. Check out the story here.

HAPPENING TODAY-

Today is the second and last day of the IMF’s MENA Research Conference in Cairo. The two-day conference, organized by the IMF and the Onsi Sawiris School of Business at the American University in Cairo, is bringing together academics, researchers, and policymakers to discuss regional and global economic issues. The forum also aims to bolster economic research skills in finance ministries and central banks in the region. You can check out the full agenda on the IMF’s website.

THE BIG STORY ABROAD-

Israel launched an extensive ground operation in Gaza, following days of intense airstrikes across the territory that killed hundreds. The IDF will work on dividing the territory and forcibly moving Gazans in the coming weeks, while allowing “a basic amount of food” for the starving population to prevent a hunger crisis from developing.

Not many details have been announced on the ground offensive, framed as a way to pressure Hamas into agreeing to release captives. The attack comes after weeks of Israel shattering a fragile ceasefire in March and blocking all aid shipments, with continuous bombardment killing some 3.2k people in Gaza in the span of two months.

ALSO- Former US President Joe Biden has been diagnosed with an aggressive form ofprostate cancer. The 82-years-old politician was the oldest-serving president in American history.

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

In today’s issue: We dive into Uptown 6 October’s plans to bring GSM to Egypt with EGP 1.3 bn international school.

Tags:

The Somabay Endurance Festival returns for its 7th edition from Thursday, May 29 to Saturday, May 31, 2025, at the Red Sea. Organised by The TriFactory, the event features Super Sprint, Sprint, Olympic, Youth, 1K Kids, and 10K races—uniting athletes of all ages for a weekend of competition, fitness, and fun at Somabay.

2

Investment Watch

Ayman Soliman, Ihab Rizk’s Morpho Investments reaches USD 55 mn first close of its inaugural fund

Private equity firm Morpho Investments’ inaugural fund has reached a first close of USD 55 mn, almost double its initial target, according to a statement (pdf). The fund — dubbed Morpho Fund I — was supported by a group of local and regional “high-net-worth” family offices and institutional investors. The fund will target companies across the Middle East and Africa, with around 60% allocated to Egyptian companies, Co-Founder and Managing Partner Ihab Rizk told EnterpriseAM.

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

A fast close: The firm reached first close in less than half the time originally projected — it initially aimed to raise USD 30 mn in 18-36 months, but it hit its first close in six months, Co-Founder and Managing Partner Ayman Soliman told EnterpriseAM.

About Morpho: Morpho Investments is a firm focused on supporting “transformative growth” in the Middle East and Africa. It offers businesses minority growth capital to expand across markets, diversify their revenue streams, and manage economic risks.

Key sectors: The PE focuses on “sectors underpinning real economic growth, such as manufacturing, food, logistics, healthcare, and enabling industries that facilitate crossborder trade and integration,” the release said.

Big names in the driver’s seat: Regular readers of EnterpriseAM will recognize both names — Soliman was the founding CEO of the Sovereign Fund of Egypt (SFE), prior to that he held roles at Gemini Holding and EFG Hermes and Rizk was the investment director of education, agriculture, and food at the SFE.

More than just financing: Besides financial investment, the firm provides businesses with strategic support, operational insights, and access to sector expertise. The firm identifies entrepreneurs who have successfully built businesses in emerging markets and helps them replicate their models in new markets or verticals. “We leverage the know-how of successful business owners who became champions and benchmarks in their sectors,” Soliman said, adding that they “provide them with growth capital to replicate that cookie-cutter approach,” which enables expansion with minimal additional investment by monetizing talent and knowledge.

The exit strategy: Morpho’s preferred exit strategy is through public markets, but it’s also open to strategic sales, for example, by helping a local player expand into Saudi Arabia or from Saudi Arabia to Morocco, and then exiting through listings in those markets, Rizk told us.

What’s next? The PE will get started on Morpho Fund I’s second close in 4Q 2025, Rizk told us. It also plans to expand its limited partner base after 3Q this year, with a focus on attracting investors from across the MENA region.

What they said: “At Morpho, we are committed to a hands-on partnership approach. Growth capital must go beyond financial investment to help founders and management teams build capabilities, expand intelligently, and prepare businesses to thrive across diverse markets. Our goal is to support companies in creating sustainable value and writing regional success stories that endure through cycles,” Rizk said.

Tags:

This publication is proudly sponsored by

3

Energy

When will Egypt next raise electricity prices again?

The Madboully government could push back the electricity prices hike planned for this summer, two government sources told EnterpriseAM. They explained that the decline in global oil prices, a more stable EGP-USD exchange rate, and the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company going after long-term contracts provide the grounds to push the anticipated price hike back.

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

We had marked our calendars for July: A government source told us in March that electricity prices hikes for both residential and industrial sectors are set to take effect by July.

ICYMI- Last year’s July hike was postponed, with the government waiting until the electricity crisis at the time got resolved. The Electricity Ministry raised electricity prices by 14-40% between August and September.

Are we in for a summer without blackouts? The dreaded rolling blackouts will not be back this summer, the two sources said, adding that the government has been working to prepare power stations to accommodate the anticipated uptick in demand. That being said, heightened demand may result in a dip in efficiency in some stations. The electricity and oil ministries are working together to ensure power plants can accommodate the increased demand during the hot summer months, one of our sources said. The two sides will also integrate new renewable energy capacities into the national grid to enhance efficiency and lower costs.

Renewables are slowly entering the playing field: While gas-reliant power plants continue to produce the largest percentage (over 60%) of the electricity consumed, the increasing number of solar stations will help gradually reduce dependence on gas, one source said.

Electricity spending is going up next FY: The Finance Ministry has allocated EGP 75 bn in electricity subsidies spending for the fiscal year 2025-2026.

REMEMBER- The cost of electricity production soared after the float of the EGP last year, becoming more of a burden on the state budget, especially after a dip in domestic natural gas production pushed the country from being a net exporter to a net importer of LNG last year. The electricity sector consumes EGP 18 bn worth of fuel each month, the source added.

The IMF is watching: Adjusting energy prices is part of the structural reforms mandated by the International Monetary Fund under our USD 8 bn loan program in a bid to “create space for more productive spending.

Tags:
4

POLL

Majority of analysts see CBE continuing its easing cycle this week -EnterpriseAM poll

Most analysts see the MPC cutting rates this week: A slim majority of analysts surveyed by EnterpriseAM expect the Central Bank of Egypt to once again cut interest rates when its Monetary Policy Committee (MPC) meets on Thursday. Five of the eight experts we spoke to see the committee press ahead with its easing cycle, with most penciling in a 100-200 bps cut.

REMEMBER- The CBE cut interest rates by 225 bps in its second meeting of the year back in April. The move marked the MPC’s first change to policy rates since March 2024, following seven consecutive meetings where rates were held steady, and 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%.

Not cutting rates could send mixed signals: Last month’s cut signaled a move toward an easing cycle, which, if brought to a halt without a clear justification, could “confuse markets and raise questions about the consistency of the monetary policy direction,” Zilla Capital’s Aya Zoheir told EnterpriseAM.

There is hardly any case for slowing down the easing cycle: “I don’t see the point in postponing the two percentage point rate cut, seeing as inflation will remain close to its current levels until the end of the year,” Ahly Pharos head of research Hany Genena told EnterpriseAM. In that sense, banking expert Mohamed Abdel Aal told us he expects the easing cycle to continue, this time with a 150 bps cut. “Most countries that go from the levels of inflation we experienced over the last few years to the comparatively lower rates we currently hover around tend to move towards monetary easing and gradually move away from tight monetary policy,” Abdel Aal added.

ICYMI- Annual headline urban inflation rose for the second month running in April to hit 13.9%, marking a 0.3 percentage point increase from the 13.6% recorded in March. On a monthly basis, inflation eased by 0.3 percentage points to 1.3%.

“The latest inflation data showed a noticeable deceleration, with projections indicating that average annual inflation could decline to around 15% in 2025, compared to 28.3% in 2024,” economist Ali Metwally told us. While this could give policymakers greater room to maneuver, the CBE will also take into account external risk factors, particularly those related to USD liquidity and currency pressures, Metwally said. “If the improvement in foreign investment inflows — boosted by the agreement with the IMF and Gulf countries — continues, we may see a gradual interest rate cut during the second half of 2025,” he argued.

But some see current elevated inflation levels keeping an additional cut at bay — at least for this month: “We don’t expect the CBE to cut interest rates in its upcoming meeting. Despite a slight decrease in the inflation rate, its levels are still relatively high,” economist Hany Abou El Fotouh told us. “Additionally, the IMF’s warning against rushing to cut interest rates reflects real concerns about inflation rising once again if monetary easing occurs too early. In my opinion, the most likely scenario is that the MPC keeps rates unchanged to monitor developments and ensure price stability,” he said. Thndr Securities Brokerage’s Amr El Alfy similarly sees the CBE keeping rates unchanged.

The economy could be well-suited to weather the inflationary storm: “Our carry trade is still attractive, and there is a noticeable improvement in the net foreign assets position of the banking sector, facilitating FX liquidity and availability,” HC Securities’ Heba Mounir told EnterpriseAM, adding that she expects the MPC to cut interest rates by 200 bps when it meets this week. The move would help “stimulate economic growth, given a relative stability in the domestic and international economic conditions compared to the previous month,” she said.

There are other factors that could drive a second rate cut by the MPC: Genena told us that “real interest rates approaching 10%, global commodity prices remaining mostly stable, inflation rates remaining under control, the greenback depreciating against the EGP, and Suez Canal revenues coming in higher than expected” are all factors that could lead to a 100-200 bps cut. “This would help boost investments, encourage growth in the private sector to support growth — especially in export sectors — and conserve state funds in the government’s budget,” Genena said.

Cut now, hold later? “We think it seems more plausible for the CBE to cut rates at its next meeting before possibly taking a pause” when the MPC meets in either July or August, EFG Hermes’ Mohamed Abu Basha wrote in a note seen by EnterpriseAM. He added that this could take place given the implementation of upcoming fiscal measures that include adjustments in the VAT rate on a yet-unknown number of goods and services, as well as upcoming fuel price hikes.

Tags:

5

Energy

Regional energy players put in offers to supply Egypt with LNG

Regional energy players could help us close the gas supply gap: A number of regional energy firms have put in offers to supply Egypt with LNG this year, a government source told EnterpriseAM confirming news first picked up by Asharq Business. Saudi Aramco, UAE’s Adnoc, Algeria’s Sonatrach, and QatarEnergy have submitted technical and financial offers to the Egyptian Natural Gas Holding Company (EGAS), Asharq’s source said, adding that EGAS is currently reviewing the offers.

Egypt is likely to continue importing LNG until 2030, a government source in the energy sector told EnterpriseAM. The contracts will likely cover a period of five years and offer favorable pricing and flexible payment terms, the source added.

We’re not bidding farewell to short-term contracts just yet: Heightened demand, price fluctuations, and geopolitical conditions mean the country will continue to depend on short- and medium-term contracts to secure gas needs, the source said.

We knew Qatari gas was on the table: Egypt has been mulling signing long-term contractswith Qatar to secure natural gas shipments for domestic consumption.

Another sign we’re looking at long-term reliance on natgas imports: EGAS inked a10-year agreement with global maritime energy infrastructure player Höegh Evi for an LNG regasification vessel last week.

Terms and conditions apply: Earlier this year, Asharq reported that Egypt has set a pricingand payment mechanism for securing LNG supply agreements for the summer months. EGAS sent the conditions to global LNG suppliers in a bid to secure direct contract offers instead of issuing public tenders — including a price cap, deferred payments, and overprice charges.

Egypt aims to import 155-160 shipments of LNG in 2025 to close the gap between demand and supply. Egypt needs around 6.2 bn cubic feet per day (bcf/d) — a figure that will likely go up to 7 bcf/d, according to Asharq — but domestic production only contributes 4.4 bcf/d.

Tags:
6

Startup watch

Egyptian investment platform Thndr lands USD 15.7 mn to expand product offering

Homegrown digital investment platform Thndr has raised USD 15.7 mn in a fresh funding round led by global tech investor Prosus, CEO Ahmad Hammouda announced earlier this week (watch, runtime: 32:06). The round also saw participation from Dubai’s Beco Capital, Y Combinator, JIMCO, Endeavor, and Onsi Sawiris.

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

A lot in the pipeline: While Hammouda didn’t get into the details of how the fresh funds would be used, he mentioned that the startup is currently looking to secure its asset management license. The license would allow the company to build and manage its own financial productsز

Two new products are rolling out: Hammouda also unveiled Thndr Alpha, a product catered to first-time investors, and ThndrX, a product for more seasoned investors.

THE WHITEGUARD RAISES SIX-FIGURE USD PRE-SEED ROUND-

Homegrown cybersecurity and AI startup The Whiteguard has raised a six-figure USD pre-seed round led by venture capital firm Den VC, the company announced in a statement.

The Whiteguard? The cybersecurity firm offers services that cover web infrastructure, mobile apps, and network security, leveraging technology and AI to help organizations safeguard their digital infrastructure. The company positions itself as a partner for organizations looking to build resilient digital systems in a fast-changing threat landscape.

Where the funds are going: The investment will be used to support the company's expansion into regional markets and to accelerate the development of its AI-powered cybersecurity products. The company is targeting entry into new markets across the Middle East and Africa, in addition to growing its presence in Egypt.

Tags:
7

Manufacturing

Chinese firm GS Global to launch USD 15 mn garment factory in Egypt

Yet another textile project is in the works in the Suez Canal Economic Zone, with GS Global Sourcing becoming the latest to sign a contract to build a new factory, according to a statement from the zone. The company will fully finance the construction of a USD 15 mn ready-made garment factory in the Qantara West Industrial Zone.

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

The details: The factory will have an annual production capacity of 12 mn pieces, all of which will be exported. The project is expected to create 2k direct jobs.

The project marks the latest in an influx of Chinese investments targeting the zone, which now number around 200, Suez Canal Economic Zone head Walid Gamal El Din previously said. In just the last few weeks, other recent entries into the Suez Economic Zone — and Qantara West in particular — include Kinlead Innovative Materials, Guangdong Hongxin Textile, Top New Garment Group, and Xinxing Ductile Iron Pipes — to name but a few.

Tags:
8

EARNINGS WATCH

Egypt Kuwait Holding, TMG, Raya report 1Q earnings

The earnings season is in full swing, with more players out with their 1Q earnings.

EGYPT KUWAIT HOLDING SEES NORMALISED NET INCOME RISE IN 1Q-

Our friends at Egypt Kuwait Holding (EKH) saw their attributable net income increase 44% y-o-y in 1Q 2025, coming in at USD 34.1 mn, according to the company’s latest earnings release (pdf). Revenues inched up 1% y-o-y during the same period to USD 195 mn, which the company said represents “recovering volumes and upward trending global urea prices, as well as operational growth across most segments.”

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

But it’s a very different picture when taking into account 1Q 2024 FX gains, with the EGP float in March 2024 pushing annual comparisons into the red. The USD 39.0 mn in FX gains recorded in the first quarter of the previous year pushed net income down 12.6% y-o-y in the first three months of 2025.

Looking ahead: “Our upcoming corporate rebrand will go beyond a mere change in visual identity; rather, it will reflect our shift towards a more agile, global investment company, better positioned to scale proven platforms across borders. We continue to optimize our organisation to render it fit for purpose as well as invest in our people, equipping them with the necessary tools and frameworks to consistently deliver exceptional results. As we look ahead, we remain focused on executing with discipline, investing for growth, and accelerating our transformation,” CEO Jon Rokk said in an accompanying statement (pdf).

TMG SEES HOSPITALITY DRIVE GROWTH IN 1Q-

Talaat Moustafa Group (TMG) saw its revenues rise 38.8% y-o-y in 1Q 2025 to EGP 9.4 bn, according to the EGX-listed company’s most recent financials (pdf). During the same period, the real estate giant’s net income rose 6.9% y-o-y to EGP 4.4 bn.

Hospitality was a big driver of revenue growth, increasing by half to EGP 3.5 bn and accounting for approximately 37.1% of the group’s total revenue by our math. Revenues from recurring income activities and service-related operations — think malls, sporting clubs, utilities, contracting, and other services — notched a 116.0% y-o-y increase to EGP 2.1 bn and accounted for 22.3% of the quarter’s total revenue.

Real estate sales were up 24.9% y-o-y in the quarter, reaching EGP 77.2 bn despite the lack of any new launches over the three-month period, the company noted.

RAYA HOLDING REPORTS STRONG 1Q RESULTS-

Raya Holding for Financial Investments saw a 12% y-o-y increase in its net income to EGP 370 mn in 1Q 2025, according to its earnings (pdf). The group’s revenues for the period saw a 24% y-o-y rise to reach EGP 12.9 bn, of which around 32% came from foreign currency sources. The results reflect a “significant growth across all sectors and reinforcing its position as a leader in the Egyptian market.”

The breakdown: The retail and distribution segment remained the largest contributor to revenues with EGP 5.4 bn, up 3% y-o-y. The group’s technology and infrastructure sector came in second with EGP 3.5 bn in revenues, marking a 40.4% y-o-y increase. Raya’s NBFS business recorded revenues of EGP 1.7 bn during the period, up 35.2% y-o-y. The manufacturing segment recorded EGP 1 bn in revenues (up 81% y-o-y) — Raya Auto recorded EGP 338 mn in revenues and Raya Foods EGP 530 mn.

Tags:

9

LAST NIGHT’S TALK SHOWS

IMF Deputy Managing Director’s visit dominated last night’s talk shows

It was a mixed bag on the airwaves last night, with a few stories capturing the attention of the nation’s talking heads.

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

Talks with the IMF: Prime Minister Moustafa Madbouly held a presser (watch, runtime: 12:41) with IMF Deputy Managing Director Nigel Clarke, who is in town along with an accompanying delegation as part of the fund’s fifth review of Egypt’s Extended Fund Facility Arrangement. During the presser, Clarke touched on efforts to bring down inflation and unemployment rates. Clarke also held talks with Finance Minister Ahmed Kouchouk and central bank governor Hassan Abdalla for further discussions on the fifth review.

REMEMBER- The fifth review has been underway for a couple of weeks now — a team from the IMF arrived in Cairo early May to kick things off. The date for the conclusion of the review and the subsequent disbursement of the USD 1.3 bn tranche is yet to be decided, but it could be agreed upon within the next month, our sources previously told us.

On the airwaves: Cabinet spokesperson Mohamed El Homsani joined Al Hayah Al Youm’s Lobna Assal (watch, runtime: 2:03) to discuss the loan program and Madbouly’s meeting with Clarke.

AND- President Abdel Fattah El Sisi met with Senior Advisor to the US President for Arab and Middle Eastern Affairs Massad Boulos to discuss ways to restore regional stability. El Sisi stressed the urgency of a ceasefire in Gaza and the delivery of humanitarian aid, while commending ongoing mediation efforts by Egypt, the US, and Qatar. They also touched on the situation in Libya, Lebanon, Sudan, and Yemen. Al Hayah Al Youm had coverage (watch, runtime: 2:42).

ALSO- Lawyers are still on strike over court fee hikes, with court operations heavily disrupted as a result, adding pressure to an already overburdened judicial system, El Hekaya’s Amr Adib said (watch, runtime: 11:10).

Tags:
10

Also on our Radar

Madinet Masr wants to unveil its first project abroad this year — likely in KSA or UAE

REAL ESTATE-

#1- Property developer Madinet Masr is in talks with Saudi Arabia’s National Housing Company to launch real estate projects in the Kingdom, either independently or in partnership with a local player, CEO Abdallah Sallam told Asharq Business. The company aims to announce its first international project before the end of the year, with Saudi Arabia or the UAE as potential destinations, depending on which negotiations conclude first.

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

We knew this was coming: Madinet Masr announced its plans to expand into the GCC back in March, with Sallam saying that the company is in talks with several firms in Saudi Arabia and the UAE without sharing a specific timeframe.

#2- Hyde Park is expanding to KSA in June: Property developer Hyde Park Developments is launching a company in Saudi Arabia next month, CEO Amin Serag told Asharq Business. The company is currently studying three different projects with different partners in Saudi Arabia to select one as its first real estate project in the Kingdom, which it plans to launch this year.

#3- Alawaly eyes Egypt expansion: Saudi Arabia’s Alawaly Real Estate is looking to enter the Egyptian market through partnerships with local developers, with a focus on Cairo, the new capital, and the North Coast, CEO Sulaiman Alrumaih told Asharq Business.

EXPANSION-

Edita Food Industries is mulling an expansion into Ivory Coast following a comprehensive study of promising markets, CEO Hani Berzi told Al Arabiya. The local snack maker has not set an implementation timeline and did not disclose the value of the planned investment.

The company has set aside some EGP 1 bn in investments to expand production across its existing markets in Egypt, Morocco, and Iraq, Berzi said, giving color to the company’s statement (pdf) last month. Edita also aims to increase exports to 15-20% of revenues by year-end from a current 11% by leveraging its growing international presence.

M&A-

EGX gives NAS Investment Holding four-day extension for EgyFert offer: The Egyptian Exchange has given UAE-based NAS Investment Holding an additional four days to complete its mandatory tender offer (MTO) for up to 57.5% of EgyFert, according to an EGXbulletin. The offer — priced at EGP 95 per share — will now run through to the end of the trading session on Thursday, 29 May.

ICYMI- The offer, which was submitted by NAS in January and greenlit by the Financial Regulatory Authority last month, could raise NAS’ stake in EgyFert from 32.4% to up to 90% in a transaction valued at EGP 524.4 mn.

Tags:
11

PLANET FINANCE

China’s rare earth export delays are threatening global supply chains

China’s stranglehold on rare earths is putting global supply chains under pressure, as slow licensing approvals threaten deliveries of materials critical to everything from EVs to fighter jets, the Financial Times reports. Beijing imposed new export controls in early April on seven rare earth elements and the permanent magnets made from them, and has since been slow to issue licenses — raising alarm bells across European and US manufacturers.

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

The controls are widely seen as a direct response to US President Donald Trump’s April 2 tariff hike on Chinese goods. Exporters now need specific licenses from China’s Commerce Ministry to ship any of the seven targeted rare earths or related magnet products. Beijing’s move underscores its leverage over global mineral supply chains, as it dominates around 90% of global processing capacity for these materials.

Approvals have started — but far too slowly. Some export licenses have reportedly been granted to Europe in recent weeks, with Volkswagen also telling the salmon-colored paper that its parts suppliers secured “a limited number” of licenses and its rare earth supplies remain stable. However, manufacturers say approvals are not coming fast enough to meet demand, and the backlog of applications is growing by the day. “The window to avoid significant damage to production in Europe is rapidly closing,” said Federation of German Industries board member Wolfgang Niedermark.

But it seems like that approvals have so far yet to be given to US companies, but this may soon change with the agreed upon tariff war pause between the US and China, according to the paper.

American companies including Tesla, Ford, and Lockheed Martin flagged their concerns over the new regime in recent investor calls. Tesla’s CEO Elon Musk said during a recent briefing that China asked Tesla to guarantee its rare earth magnets for robot arms wouldn’t be used for military purposes. “That is an example of a challenge there. I’m confident we’ll overcome these issues,” he said.

Some are calling out the lack of preparedness by affected companies, including one unnamed European executive in China who told the paper that “what I’m witnessing on the ground is that there is really incompetence.” The executive explained that companies “underestimated what the impact would be and what you would need to prepare at the working level.”

Military-use bans — and confusion about how to confirm end use — are adding to the bottlenecks. One company running into difficulty is India’s Mahindra Group, with the company’s auto chief Rajesh Jejurikar saying that the process for obtaining end-use certifications — meant to confirm civilian use only — is still “not clear at the moment.”

Insiders are saying that this may be seen as a wake up call for the West to reduce its rare earth reliance on China, especially with the pause in US-China trade war escalations thought to be temporary at best. In the same way that stringent US tech export restrictions to China pushed the world’s factory to localize high-tech production and become an industry leader in only a matter of years, China leveraging its dominance in the rare earths supply chain could see new supply chains developed to serve Western markets.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning. Japan’s Nikkei is looking at losses of 0.5%, Korea’s Kospi is down 0.9%, the Shanghai Composite and the Hang Seng are also in the red, down 0.1% and 0.6%, respectively.

EGX30

31,714

-0.7% (YTD: +6.6%)

USD (CBE)

Buy 50.04

Sell 50.17

USD (CIB)

Buy 50.07

Sell 50.17

Interest rates (CBE)

25.00% deposit

26.00% lending

Tadawul

11,439

-0.4% (YTD: -5.0%)

ADX

9,654

+0.3% (YTD: +2.5%)

DFM

5,455

+1.1% (YTD: +5.8%)

S&P 500

5,958

+0.7% (YTD: +1.3%)

FTSE 100

8,685

+0.6% (YTD: +6.3%)

Euro Stoxx 50

5,428

+0.3% (YTD: +10.9%)

Brent crude

USD 65.41

+1.4%

Natural gas (Nymex)

USD 3.33

-0.8%

Gold

USD 3,187

-1.2%

BTC

USD 104,159

+1.1% (YTD: +11.2%)

S&P Egypt Sovereign Bond Index

868.1

+0.1% (YTD: +11.6%)

S&P MENA Bond & Sukuk

143.4

+0.3% (YTD: +2.4%)

VIX (Volatility Index)

17.24

-3.3% (YTD: -0.6%)

THE CLOSING BELL-

The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 3.4 bn (26.2% below the 90-day average). Local investors were the sole net buyers. The index is up 6.6% YTD.

In the green: EFG Holding (+2.8%), Emaar Misr (+1.8%), and E-finance (+0.5%).

In the red: Juhayna (-2.7%), Rameda (-2.5%), and Eastern Company (-2.4%).

Tags:

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard
12

BLACKBOARD

Uptown 6 October brings GSM to Egypt with EGP 1.3 bn international school

GSM is setting up shop in Egypt through a new partnership with Uptown 6 October: Uptown 6 October for Educational Investment and Development — a subsidiary of property developer Uptown 6 October — entered a strategic partnership with global K-12 school operator GSM, which is backed by Saudi investment fund Safanad, under which GSM will step foot into the local market, the companies announced at a press conference attended by EnterpriseAM last week. We spoke with key stakeholders from both sides to learn more about the project, their future plans, and what makes Egypt’s education sector attractive to foreign investors.

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

The goal: The partnership aims to launch a high-end international school within the Uptown 6 October development in West Cairo, with total investments exceeding EGP 1.3 bn. Uptown Chairman Moataz Shaarawy said the project reflects both partners’ commitment to delivering a world-class learning model that meets the aspirations of future generations and raises the quality of international education in Egypt. The school will integrate advanced edtech while remaining rooted in local culture, said Uptown’s education trustees head Mohamed El Ghor. GSM’s successful track record in Africa, the GCC, the US, and Europe has allowed it to reshape teaching and education management models across its markets, he added.

The first school under the partnership is slated to open in the 2027-2028 academic year, head of the Higher Education Ministry’s Supreme Council of Private Universities’ El Ghor told EnterpriseAM. The school will be built on a 14.3k sqm plot, with a built-up area of 20k sqm and a capacity of up to 1.7k students across 70 tech-enabled classrooms. The campus will feature science and tech labs, performing arts studios, athletic facilities, and collaborative learning spaces, “ensuring an inclusive educational environment that meets top international standards,” El Ghor said.

Who’s funding the project? The project will be self financed, Shaarawy told us.

Why GSM? The school will follow the British curriculum, offering British baccalaureate qualifications and modern tech-forward teaching methods that preserve Egyptian culture while balancing strong literacy in English and Arabic, with a focus on math and science, El Ghor told us. GSM’s strength lies in its holistic approach to school operations, teacher development, and pedagogy. “They don’t just teach a curriculum — they treat each student as a 12-year journey,” El Ghor said. GSM delivers 15k hours of student development to each student, covering academics, character building, values, and national heritage. “Ultimately, we will probably learn more from Egypt about the future of education than Egypt will learn from us,” GSM Vice Chair Ralph Tabberer said.

Teacher training: GSM is known for its robust international teacher development programs. The model helps Egyptian teachers refine their skills and stay focused on teaching, without being distracted by side gigs like private tutoring.

More to come: “This school is only the first step in a broader roadmap to establish multiple institutions in Uptown 6 October and beyond,” said Uptown 6 October Chairman Ahmed Abou Zeid. The partnership plans to expand into other locations, including East Cairo and Upper Egypt, with future rollout tied to land availability and demand for international education in new communities, El Ghor told us.

There are also plans to set up an American university: Uptown 6 October is looking into launching two international universities — specializing in business administration and medical sciences — in partnership with GSM, Shaarawy told us.

Uptown 6 October plans to enter the e-learnings and applied learning spheres in cooperation with GSM, Shaarawy said. The two aim to target a wide range of non-traditional learners and bridge the gap between academic education and labor market needs.

And an investment fund: Uptown 6 October is considering launching an education investment fund, Shaarawy said. “We believe that investment funds are the ideal mechanism to expand the shareholder base and stimulate local and foreign investment in the education sector, especially in governorates that suffer from a shortage of high-quality educational institutions,” he added. The planned fund will enable individuals to invest in the education sector with small amounts, opening the door to a wider range of investors compared to the traditional model, which requires large capital.

What GSM thinks of the Egyptian market: This partnership is a unique opportunity to shape the next generation of Egyptians and expats joining GSM schools, according to GSM CEO Ron Packard. “We’re excited to bring our expertise to Egypt — a country with a rich educational heritage and immense potential,” added Tabberer. “This school will deliver not just top-tier education, but also foster innovation, personal development, and a global mindset.”

Egypt is increasingly drawing global education players: A consortium of local, Emirati, US, and Canadian investors announced back in February plans to invest USD 100 mn to build five schools in Egypt under the St. Anthony International Schools name over the next five years. The schools will be located in key East and West Cairo neighborhoods, along with select coastal cities.

Competition in Egypt’s international education space is heating up, with many globally successful models entering the market, El Ghor said. He believes this outlook reflects a favorable investment climate, adding that Uptown’s project aligns with Egypt’s upward trajectory and rising demand for quality education, fueled by rapid population growth and expansion of new cities.

The fault in existing international models: The biggest shortcoming of many international schools in Egypt is the output, as they often focus excessively on English language proficiency at the expense of math, science, and the arts, neglecting the balance needed between disciplines and the cultural fabric of the community, according to El Ghor.

Your top education stories for the week:

  • The SAT college entrance exam will once again be offered in Egypt starting in June, following an agreement between the Education Ministry and the US-based College Board. The digital version of the standardized test — a key requirement for admission into many US universities — is returning after a four-year hiatus and will be offered through approved centers. (Statement)
  • The government is looking into including AI as a mandatory school subject under a directive from President Abdel Fattah El Sisi. The recently released second edition of the National Artificial Intelligence Strategy aims to leverage AI to drive economic growth and social development in a bid to position the country as a leading AI hub in the Middle East and Africa. (Statement)
Tags:

CALENDAR

MAY

18-19 May (Sunday-Monday): International Monetary Fund MENA Research Conference, Cairo, Egypt

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

22 May (Thursday): Central Bank’s Monetary Policy Committee to meet to decide interest rates

25 May (Sunday): Social Education Summit 2025, Cairo, Egypt

30-31 May (Friday-Saturday): Africa Business Summit, London, UK

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo

May 2025: Egyptian-US Investment Forum

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA and Fi Africa 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

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

IFC President Makhtar Diop to visit Egypt

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

Early 2026: Passenger operations on the New Administrative Capital–Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna–Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

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.

Now Playing
Now Playing
00:00
00:00