Good morning, folks and happy hump day to you all. We have another packed issue for you this morning, led by some good news on the energy front — the government has decided to delay the electricity price hike that was originally slated for this month. While we know the hike will come eventually, with the government working to completely phase out subsidies, the news of the delay is much welcomed.

Some more good news: The EGP inched higher against the greenback yesterday, with the USD losing some 0.6%. The USD was changing hands at EGP 48.15-48.29 at the Central Bank of Egypt and at EGP 48.20-48.30 at the National Bank of Egypt and Banque Misr.

This comes after a week of choppy trading that saw the greenback stretch gains. Bankers continue to frame such swings — up or down — as normal short-term volatility, tied to shifts in FX flows and the USD weakening against its peers.

TO BALANCE OUT THE GOOD NEWS- Ethiopia has officially inaugurated the Grand Ethiopian Renaissance Dam, bringing our water security under the spotlight.

^^ All that and more in the news well, below.

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Hosted by ‘Synthetic Salma’ — an AI-powered version of our Executive Editor Salma El-Saeed — you get our rigorous journalism that’s always on point, delivered on time in a consistent voice every morning.

Stay tuned for the first episode drop on 14 September.

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PSA-

WEATHER- Cairo is in for another sunny, humid day, with a high of 32°C and a low of 23°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which is looking at a high of 30°C and a low of 22°C.

WATCH THIS SPACE-

#1- Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) during the early hours of the morning after more than a decade of construction and negotiations with downstream nations, Egypt and Sudan, that never went anywhere. While relations between Egypt and Ethiopia have been tense for some time now, “they can still get worse,” Sahan Research’s Matt Bryden told Reuters.

The Egyptian response: “Egypt would continue to closely monitor developments on the Blue Nile and exercise its right to take all the appropriate measures to defend and protect the interests of the Egyptian people,” Foreign Ministry spokesperson Tamim Khallaf told the newswire yesterday before the official inauguration. We’ll be on the lookout for an official statement from the cabinet, Foreign Ministry, or Ittihadeya in the days to come.

What kind of impact could the dam have on us? GERD casts uncertainty over Egypt’s future water supply, according to a report from Fitch Solutions’ research unit BMI out earlier this year. The report warned that the dam could have profound implications for irrigation, potentially leading to lower yields.

BACKGROUND- Egypt, Sudan, and Ethiopia have been unable to agree on how to divvy out the Nile’s water resources following the construction of the dam, which Egypt says presents an existential threat to its water security. Central to the dispute was Ethiopia unilaterally filling the reservoir over the past three years without a binding agreement.

#2- Investment Minister Hassan El Khatib pitched Egypt as an attractive destination for European investors during his time in Brussels, highlighting the country’s low-cost business environment, skilled labor, and competitive energy prices. This came during a meeting with EU Trade Commissioner Maros Sefcovic, which saw the two discuss ways to achieve trade balance between the two sides and double trade between them.

El Khatib highlighted priority sectors for EU participation including solar panels, wind turbines, desalination components, power grid projects, and programming. The minister also pushed for the launch of negotiations on the Sustainable Investment Facilitation Agreement (SIFA), which the EU side welcomed.

AND- El Khatib also met with representatives from Belgium’s developing countries-focused investor BIO Invest, which has grown its Egypt portfolio in recent years through a mix of direct and indirect investments.

#3- Sawiris to consolidate his companies? Egyptian bn’aire Naguib Sawiris is planning to merge all his companies in Egypt under the umbrella of EGX-listed Orascom Investment Holding, he said yesterday. The move aims to reduce risk and boost the holding company’s market value.

#4- We could start seeing more hotels on the Nile pop up, now that the government has completed its inventory of Nile-front land suitable for hotel development, Prime Minister Moustafa Madbouly said yesterday. The plots will soon be offered to private sector players for development.

FROM THE SOAPBOX-

The local real estate market is at a turning point, as surging prices, high interest rates, and regulatory delays have drained demand and profitability from a sector that delivered strong returns over the past decade, bn’aire and Ora Developers CEO Naguib Sawiris said yesterday during the Think Commercial conference (watch, runtime: 1:14:03). Sales have slowed, cancellations and unit returns are on the rise, and many buyers can no longer keep up with installment payments.

He warned that developers are taking on the role of financiers, offering payment terms that burden both buyers and companies. Extended payment plans of 12-15 years are unsustainable, he said. Instead, he called for activating mortgage finance, lowering interest rates, and cutting license approval times, which currently stretch to 6-12 months.

He also criticized the government’s decision to impose retroactive fees on land and North Coast projects, calling the move legally flawed and damaging to investor confidence. Developers had already fulfilled contractual obligations based on original land prices, he argued, and many now see margins reduced to just 1-2% as profits shrink under currency volatility and higher rates.

HAPPENING TODAY-

#1- Stay tuned for the government’s financing initiative to revive and restructure idle factories, set to be announced today. The plan will see the establishment of a dedicated fund with participation from the Central Bank of Egypt and local banks, which will provide financing in exchange for equity stakes of up to 25% in idle or struggling factories. The initiative targets some 6k factories across sectors, with the goal of restoring their production capacity, boosting industrial output, and creating jobs.

#2- It’s day two of EFG Hermes’ Annual London Investor Conference, which is being held at Emirates Stadium under the theme Investing Right in MENA, according to a statement(pdf). The four-day gathering brings together 710 participants from around the world, including 285 investors from 146 global institutions, alongside 131 companies. This year’s edition spotlights Saudi Arabia, with 82 Tadawul-listed firms in attendance.

Why does it matter: “As the MENA region undergoes structural reforms, technological advancement, and strategic policy shifts, we are proud to facilitate direct engagement between institutional investors and high-impact businesses. Our role is to ensure that clients, partners, and stakeholders are positioned to capitalize on emerging trends and equipped with the insights and tools needed to thrive as the region’s global influence expands,” EFG Holding CEO Karim Awad said.

HAPPENING TOMORROW-

Could we see inflation cool again? Capmas will release August’s inflation data tomorrow, and many are hopeful that inflation will stay on its downward trajectory. Annual headline urban inflation cooled by a whole percentage point in July to 13.9%, marking the second straight month of easing inflation and giving the central bank confidence to restart its interest rate easing cycle last month. The CBE expects inflation to continue its downward path to hit an average of 14-15% in 2025 and continue to make progress toward its 7% (± 2 percentage points) target for 4Q 2026 — an assessment most analysts seem broadly in agreement with.

CIRCLE YOUR CALENDAR-

#1- Want a piece of the new capital’s Business District? Investors will be able to snap up plots in the new capital’s business district soon, with the Administrative Capital for Urban Development offering up 40 plots before the end of the month, Chairman Khaled Abbas said during a roundtable yesterday. The plots will be earmarked for administrative, commercial, and hotel developments.

REMEMBER- A consortium of China State Construction Engineering Corporation (CSCEC) subsidiary Umi Group and IGI Holding will manage and operate the district under an agreement inked with the New Urban Communities Authority last year.

#2- We’re weeks away from this year’s Techne Summit Cairo, which will kick off on 29 September at Sultan Hussein Kamel Palace and Ghurnata Community Space. The two-day event is expected to bring together tens of thousands of innovators from over 70 countries and some big names in the local, regional, and global startup scene as speakers. The summit marks the official opening of Egypt Innovation Week and will be followed by its Alexandria edition, which will be held at the Alexandria Bibliotheca from 4 to 6 October.

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

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THE BIG STORY ABROAD-

The front pages are shining the spotlight on US President Donald Trump and his past ties to Jeffrey Epstein, after House Democrats released — in a post on X — what they say is a handwritten birthday note from Trump to the convicted deceased fund manager. The message, allegedly referencing a “wonderful secret” the two shared, appears in a birthday book compiled for Epstein by his former accomplice Ghislaine Maxwell. Trump denied writing the note, and his chief of staff Taylor Budowich claimed the image is fake. (Bloomberg | CNBC | New York Times | BBC | The Guardian | Axios | Reuters)

AND IN US MARKETS- Nasdaq hits a fresh high ahead of key inflation data: The tech-heavy Nasdaq closed at an all-time high yesterday as investors braced for fresh US inflation figures out later this week. Chipmakers Broadcom and Nvidia were up 3% and 1%, respectively, pushing the index up 0.45%. The S&P 500 and the Dow Jones also closed in the green. Analysts say markets are pricing in a Fed rate cut this month, especially after last week’s underwhelming jobs report, CNBC reports.

ACROSS THE ATLANTIC- France’s government collapses amid budget standoff: French Prime Minister François Bayrou’s nine-month-old government was toppled yesterday after losing a confidence vote in parliament, deepening France’s fiscal and political crisis. Bayrou’s unpopular austerity plan — including tax hikes, spending cuts, and scrapping two public holidays — was rejected by a wide opposition front. His ouster leaves President Emmanuel Macron scrambling to name his fifth prime minister in less than two years. (Financial Times | Reuters | BBC | New York Times)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’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 speak to the British Embassy in Cairo Senior Trade Advisor George Yunan to learn more about the embassy’s efforts to facilitate USD 500 mn in renewables investments in the run up to COP30.