Inflation accelerates for first time in months

Tuesday, 11 Nov 2025

Inflation accelerates for first time in months

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Today at a glance

Economy

Inflation accelerates for first time in four months.

Logistics

Breaking down the many agreements signed during day two of TransMEA.

What We're Tracking Today

A global grain hub rising in Port Said?

EARNINGS WATCH

Juhayna, Edita report earnings.

Also on our Radar

EBRD invests another USD 40 mn in Infinity.

PLANET FINANCE

Buffett signs off with a message about mistakes, legacy, and the Golden Rule.

Going Green

Is pumped storage hydropower the key to supplying round-the-clock renewable energy?

What We're Tracking Today

A global grain hub rising in Port Said?

Good morning, friends, and happy hump day. In today’s issue we dive into October’s inflation reading, which saw the headline figure accelerate for the first time in months, the many agreements inked during the second day of TransMEA, and Warren Buffett's last annual report.

PSA-

WEATHER- It’s another cool day in Cairo, with the capital in for a high of 27°C and a low of 18°C, according to our favorite weather app.

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

WATCH THIS SPACE-

#1- A global grain hub rising in Port Said? Egypt is mulling plans to establish a logistics center for grain storage and distribution in East Port Said — part of the government’s plans to enhance strategic commodity infrastructure and secure food supplies by improving supply and distribution chains, according to a statement. Plans also include expanding into food processing and integrating Egypt’s grain networks with Arab and African markets.

East Port Said is silo central: Elsewedy Electric subsidiary Rowad Modern Engineering indicated that it is building a grain silo project in East Port Said. In addition, the Egyptian arm of Polish grain silo company Feerum was in talks with Banque Misr and Banque du Caire earlier this year to help finance its planned EGP 2.5 bn silo factory in East Port Said.

Egypt has long hinted at a bigger integrated grain hub: Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone earlier this year as a potential hub for Ukrainian grain storage and re-export to Africa. Egyptian officials also met with a Belarusian delegation last year and proposed establishing a logistics center for grain import.

#2- Housing Minister pitches a real estate fund for Gulf investors: Housing Minister Sherif El Sherbiny proposed launching an investment fund offering a portfolio of premium land plots and housing units in Egypt to Gulf investors yesterday during the Egypt-Gulf Trade and Investment Forum.

DATA POINT- Gulf investment in Egypt has surged in recent years, with trade between Egypt and GCC countries rising to USD 14 bn in 2024, up from USD 9 bn in 2020, Investment Minister Hassan El Khatib said during the forum. Total Gulf FDI inflows climbed to USD 41 bn in the fiscal year 2023-2024, representing the largest share of Egypt’s foreign direct investment, El Khatib added.

REMEMBER- We have two mega Gulf projects in the works, with Qatai Diar signing an agreement with the Madbouly government last week to set up a USD 29.7 bn integrated urban development along the Mediterranean in Alam El Roum and the Emirati ADQ setting up a USD 35 bn project in Ras El Hekma.

#3- Assembling Xiaomi EVs locally? Al Safi Group — Xiaomi’s local distributor — plans to allocate part of its new industrial complex in Ain Sokhna to assemble Xiaomi electric vehicles, with the first models expected to roll out by the end of 2027, General Manager at one of Al Safy’s factories Eslam Adel told EnterpriseAM at the sidelines of TransMEA yesterday.

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If you’re investing, trading, or scouting for your next big move in MENA or India, subscribe to EnterpriseAM MENA <> India by tapping here to get the strategic intelligence you need.

HAPPENING TODAY-

#1- It’s the last day of the parliamentary elections’ first round of voting. Results will be announced on 18 November, followed by runoff elections, whose results will come out on 11 December.

#2- Transport and logistics exhibition TransMEA is well underway at the Egypt International Exhibition Center. The exhibition, organized with the Transport Ministry, wraps up today after bringing together 500 global and regional players from 30 countries to showcase innovations in mobility, logistics, and smart infrastructure.

^^ We have the details of what went down during day two of the event in the news well, below.

#3- It’s the second and final day of the Egypt-Gulf Cooperation Council Trade and Investment Forum. The two-day forum in Cairo — held under the theme A Roadmap to Strengthening Egyptian-Gulf Economic Cooperation — features panel discussions, B2B meetings, and B2G sessions.

FROM THE DEBT MARKETS-

CBE is holding a USD t-bill auction today: The Central Bank of Egypt (CBE) will auction USD 1.5 bn in USD-denominated, one-year t-bills today, according to its website. The auction will mark the first USD-denominated t-bill auction for the current fiscal year and comes as similar bills taken to market this time last year mature.

SUKUK WATCH-

Weekly sukuk roundup: The yield to maturity on our sovereign sukuk maturing in February 2026 dipped slightly to 6.61% last Friday, down from 6.64% the week before, according to the Egyptian Financial Company for Sovereign Taskeek’s weekly report (pdf). Egyptian sovereign sukuk prices inched down to USD 101.24, compared to USD 101.31 a week earlier.

CIRCLE YOUR CALENDAR-

Egypt’s Entrepreneur Awards will take place on 21 November at the Grand Egyptian Museum. The event will celebrate leading entrepreneurs across several sectors, with a guestlist that includes ministers, business leaders, and regional innovators.

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

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

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

THE BIG STORY ABROAD-

The US Senate approved a funding measure to reopen the federal government, a major step towards ending the longest shutdown on record. The bipartisan bill — passed 60-40 — includes three full-year funding measures for parts of the government, as well as stopgap funding for the rest until 30 January. The date potentially sets the stage for another shutdown next year if negotiations fall through on key issues like the Affordable Care Act.

The measure will now head to the House, where it’s poised to pass as soon as Wednesday, then land on President Trump’s desk to be signed into law. (Washington Post | Reuters | CNN)

ALSO IN WASHINGTON, DC- Ahmed Al Sharaa became the first Syrian President ever to visit Washington, DC, after he met with US President Trump yesterday at the White House. The landmark talks saw Trump vow to help Syria’s economy after years of war and international isolation, while the Treasury department extended its waiver of the so-called Caesar sanctions by 180 days. A full removal of sanctions on Syria would need to be passed in the Congress. (Reuters | Semafor)

ALSO-

Visa and Mastercard revised up their settlement with merchants to USD 38 bn, seeking an end to 20 years of disputes over collection of swipe fees. (Reuters)
Two data centers are sitting empty in California, as greater demand on AI services highlights the energy bottleneck. (Bloomberg)

*** 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 dive into pumped storage hydropower and the role it will play in our efforts to increase renewables share in our energy mix.

Tags:

logistics What We're Tracking Today

The Opening of The Kaktus Hotel marks a new destination in Somabay, inspired by active lifestyle and culinary destination offerings. The Kaktus has finally bloomed on the Red Sea.

#Lovesomalivekaktus

Economy

Inflation in Egypt accelerates for first time in four months

Inflation rises again after four-month deceleration: Annual headline urban inflation rose by 0.8 percentage points in October to end the month at 12.5%, largely on the back of higher fuel and food and beverage prices, according to data from state statistics agency Capmas seen by EnterpriseAM. October’s reading marks the end of a four-month streak of easing price inflation.

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

The rise was mostly expected, with some forecasts closer than others. “October's inflation came slightly lower than our estimate of 12.6% y-o-y and 1.9% m-o-m,” HC Securities' Heba Mounir told us. The reading was also below the 13.0% figure Al Ahly Pharos had expected, as the decline in food items was offset by an increase in transportation and fuel prices, Head of Research Hany Genena told EnterpriseAM. Meanwhile, the reading was higher than forecasts from Capital Economics and Reuters ’ poll, both of which had expected inflation to land at 12.0%.

The culprits: Housing, water, electricity, gas, and other fuel prices were the primary drivers of inflation this time, with prices rising 27.1% y-o-y during October, after Egypt raised fuel prices for the second time this year during the month. Inflation in rentals also climbed by 43% during October after amendments to the Old Rent Law were approved, according to Capital Economics. Prices of alcoholic beverages, tobacco, and narcotics rose by 26% y-o-y, while those of healthcare services rose by 28.4% y-o-y.

The prices of food and beverages — the largest component of the basket of goods and services used to calculate headline inflation — also inched up slightly, rising 1.5% y-o-y in October compared to 1.4% in September. This was fueled by a 4.8% y-o-y rise in bread and cereal prices and a 36.4% y-o-y rise in fruit prices.

It was the same story on a monthly basis, with urban inflation accelerating for the third consecutive month. Prices rose 1.8% m-o-m, which HC Securities attributed primarily to the rise in fuel prices, leading to higher transportation costs and food prices.

What about core inflation? Annual core inflation — which excludes volatile items like food and fuel — rose to 12.1% y-o-y in October from 11.3% the month before, according to data from the Central Bank of Egypt (CBE). On a monthly basis, core inflation came in at 2.0%, compared to 1.5% a month earlier.

The outlook: Inflation is expected to continue accelerating through the end of the year, with forecasts indicating that the average inflation rate will rise to 13% y-o-y in 4Q 2025, according to Capital Economics.

What does this mean for interest rates? The outlook is mixed: Capital Economics expects the CBE to push ahead with back-to-back rate cuts of 100 bps each at its upcoming meetings in November and December, before cutting interest rates by a cumulative 800 bps in 2025. Genena and Thndr’s Esraa Ahmed, on the other hand, expect the CBE to hold rates later this month, with Genena seeing room for a 100-200 bps cut in December. Ahmed agrees, telling EnterpriseAM that “the current inflation level allows good room for the CBE to cut [rates] by a further 100 bps” before the end of the year, but “as more inflationary pressures come from core items, we believe the CBE might prefer to hold rates in its upcoming meeting.”

Tags:

CAPMAS economy inflation

Logistics

Breaking down the many agreements signed during day two of TransMEA

Deals galore at TransMEA: Day two of transport, logistics, and infrastructure expo TransMEA was pretty eventful, with a long list of agreements inked covering a variety of sectors.

PORTS & LOGISTICS-

#1- Egyptian Group for Multipurpose Terminals will establish two terminals at the new Abu Qir Port and Gargoub Port for USD 230 mn, CEO Abdelkader Darwish told EnterpriseAM on the sidelines of TransMEA. The state-owned company inked an MoU for the projects with the Transport Ministry yesterday.

The two terminals are slated for completion within 18 months of signing the final contracts, once market studies have been finalized. The proposed terminal at the new Abu Qir Port is estimated to cost USD 110 mn, covering an area of 360k sqm and featuring quays with a total length of 800 meters. The Gargoub Port terminal is estimated to cost USD 120 mn, covering an area of 700k sqm with quays at a total length of 2k meters.

About the company: The holding company was established by the Transport Ministry in 2018 to design, construct, operate, and maintain multipurpose platforms.

#2- Cooperation with Italy on dry ports: The General Authority for Land and Dry Ports signed an MoU with Italy’s Technital covering technical cooperation on dry ports and logistics zones.

RAILWAYS-

#1- Laying the groundwork for new infrastructure: Egyptian National Railways (ENR) signed an agreement with Italy’s Salcef and TLC to establish a new joint-stock company, dubbed Salcef Track for Infrastructure, and to renew 300 km of track and 200 turnouts as part of its ongoing modernization drive.

#2- A luxury ride down the Nile: ENR inked an agreement with Italy’s Arsenale Group to operate the luxury tourist train Guardian of the Nile, which will offer upscale travel experiences along the Nile Valley.

#3- Premium service on the rails: ENR also signed heads of terms with Elsewedy Electric and Germany’s DRO to operate new premium passenger trains.

#4- Breathing new life into old locomotives: Canada’s Advanced Power Dynamics will rehabilitate 180 locomotives under a contract that also includes plans to localize spare-parts manufacturing in Egypt.

#5- Localizing rail components: The National Egyptian Railway Industries Company (Neric) and the Arab Organization for Industrialization's Semaf signed an agreement to localize the manufacturing of rolling-stock bogies.

METRO & HIGH-SPEED RAIL-

#1- High-speed rail operations secured: The National Authority for Tunnels (NAT) signed a contract with Germany’s Deutsche Bahn and Elsewedy Electric to operate Egypt’s new high-speed rail network.

#2- Localizing platform screen doors: The authority also signed an MoU with China’s Fangda to localize the manufacture of platform screen door systems.

#3- Expanding the light rail network: The authority signed a framework agreement with China’s AVIC and MBEC to implement phase four of the Light Rail Transit (LRT) project, extending the network’s reach to new suburban areas.

#4- Localizing rolling stock: Another MoU was signed with AVIC and CASCO Signal to localize the manufacturing of rolling stock.

#5- Linking Heliopolis to the airport: The authority inked a framework agreement with a consortium led by France’s Vinci to execute phase five of Cairo Metro Line 3, connecting Heliopolis with Cairo International Airport.

#6- Planning Alexandria’s transport future: A consortium including Logit Consulting and ITDP signed an advisory contract with NAT to prepare Alexandria’s sustainable urban transport plan.

PLUS- Going digital and greener: Homegrown TransIT signed a contract with the Arab British Dynamics Industries (ABD), a subsidiary of the Arab Organization for Industrialization, to locally manufacture electronic fare gates. TransIT also inked an MoU with another local player to implement and operate the initiative to replace white taxis with smart EVs, as part of the government’s broader shift toward sustainable urban mobility.

Tags:

logistics transport

EARNINGS WATCH

Juhayna, Edita report earnings

Earnings. Earnings. Dairy producer Juhayna and Edita are both out with their 3Q earnings.

EDITA’S NET INCOME ALMOST DOUBLES IN 3Q-

Snackmaker Edita Food Industries saw its net income increase 84.5% y-o-y in 3Q 2025 to EGP 659.2 mn, according to its latest earnings release (pdf). Revenues rose 40.4% y-o-y to EGP 5.5 bn, supported by a 17.4% increase in volumes sold to 972 mn packs and a 19.6% rise in average price per pack to EGP 5.65.

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

Segment breakdown: The cakes segment remained the main revenue driver, rising 43.5% y-o-y to EGP 2.7 bn and accounting for about half of total revenues. The bakery segment followed with EGP 1.7 bn, up 33.3% y-o-y, representing roughly 31% of total sales. Export sales stood at EGP 545 mn, representing 10% of total revenues, while Edita Morocco contributed EGP 132 mn, up 8% y-o-y during the quarter.

What about its Iraqi operations? “We plan to start operations in Iraq at the end of this year and have already, to that end, moved a bakery line there alongside existing cake lines already in Iraq as part of the acquisition announced in January 2025,” said Edita Chief Investment and Corporate Affairs Officer Menna Shams El Din. “The acquisition of 49% of TJA in Iraq via an USD 8 mn capital increase is now closed,” she added.

On a 9M basis: Edita reported EGP 1.6 bn in net income during the first nine months of the year, up 42.7% y-o-y, with EGP 14.7 bn in revenues, marking a 23.9% y-o-y rise.

What they said: “Our third-quarter results mark another milestone in Edita’s growth journey, with record revenues, robust volume recovery, and enhanced profitability across all key metrics. The strength of our performance demonstrates the agility of our organization,” Chairman Hani Berzi said in a statement (pdf).

JUHAYNA SEES NET INCOME FALL IN 9M-

Dairy giant Juhayna saw its net income dip 34% y-o-y in 9M 2025 to EGP 1.6 bn, excluding FX losses, according to the company’s latest earnings release (pdf). “Although profitability appears lower when compared to last year’s exceptional results — which were boosted by unprecedented orange concentrate prices — it remains ahead of historical levels,” the release read.

Revenue increased 21% y-o-y to EGP 22.1 bn during the nine-month period, fueled by double-digit volume growth across the dairy, fermented products, and juice segments, along with price adjustments and record-high export sales of finished goods.

Zooming in: Net income fell 49% y-o-y during the third quarter of the year to EGP 491 mn, while revenues increased 16% y-o-y to hit a record high EGP 8 bn.

Looking forward: “We remain confident in the continued recovery of the Egyptian market and are proud of our deep connection with consumers. We are looking forward to opening additional foreign markets and expanding Juhayna’s global footprint,” the release read.

EGYPT OPERATIONS MAKE UP 27% OF VODACOM’S REVENUE-

Vodafone Group’s South African subsidiary Vodacom reported its strongest earnings growth in over a decade, with net income up 33.1% y-o-y to ZAR 9.1 bn in the six months ending 30 September, driven largely by strong performance in Egypt, according to the company’s latest results (pdf). “Egypt’s exceptional 42.3% local currency service revenue growth” was one of the company’s regional highlights for the period.

“Egypt produced yet another stellar performance that is largely all-encompassing with service revenue of ZAR 17.6 bn now contributing 26.8% to the group total. This was supported by a strong summer campaign, a 5.9% increase in Egypt’s customer base to 51.1 mn, NPS leadership, data traffic growth of 21.9% and the rapid adoption of Vodafone Cash,” CEO Shameel Joosub said.

Looking ahead: “As we roll-out this technology, we expect this will help sustain Egypt’s growth in the foreseeable future,” Joosub said.

Tags:

earnings earnings watch Edita Juhayna

Also on our Radar

EBRD invests another USD 40 mn in Infinity

DEVELOPMENT FINANCE-

The European Bank for Reconstruction and Development (EBRD) invested an additional USD 40 mn in renewables giant Infinity, bringing its total equity commitment to USD 141.5 mn, according to a joint statement (pdf). The fresh funds will support the company’s Infinity Power development of 3 GW of renewable capacity across Africa.

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

What they said: “This continued support from the EBRD underlines our shared vision of a sustainable, fast-growth future for Egypt and Africa. Together, we are helping to unlock immense renewable energy potential — delivering projects that create jobs, strengthen energy security and enable long-term economic growth,” Infinity Chairman Mohamed Mansour said.

CAPITAL MARKETS-

Beltone Holding’s subsidiary Beltone Asset Management launched a new investment fund tracking the performance of the low-volatility index EGX35-LV, Beltone Asset Management CEO and Managing Director Khaled Darwish told EnterpriseAM. The new offering — called Beltone-35 — broadens Beltone’s “product suite so that investors with different risk tolerances could find a fit within the same brand,” he added.

Beltone wants the fund to be the “go‑to option for conservative equity investors,” Darwish told us. This includes first-time and novice investors as well as seasoned investors that “are fundamentally risk averse and seek a stable, low-volatility exposure to the market.”

The launch follows its recently introduced EGX100-tracking fund, also known as Beltone Meya Meya, which Darwish says has “become the largest passive fund and best-performing equity fund in Egypt since its launch.” Looking ahead, Beltone Asset Management will launch the Beltone Alpha Fund, which he said will complement its EGX35-tracking fund by “catering to a slightly different investor profile with a much higher risk appetite.”

EDUCATION-

Beltone’s AI hackathon draws 3.5k students from 34 universities: Our friends at Beltone Holding brought together over 3.5k students from 34 universities for the second edition of its nationwide AI hackathon, powered by its data science arm Robin and hosted by the American University in Cairo, according to a statement (pdf). The competition — now one of Egypt’s largest AI innovation challenges — saw participation from more than 1k teams tackling a logistics optimization problem known as the Multi-Warehouse Vehicle Routing Problem.

DEBT WATCH-

Real estate giant SODIC inked a EGP 2.9 bn leasing agreement with EFG Finance’s EFG Corp-Solutions, the developer said in an EGX disclosure (pdf). The agreement will be presented to the company’s ordinary general assembly when it meets next.

DIPLOMACY-

President Abdel Fattah El Sisi met with Russian Security Council Secretary Sergei Shoigu in Cairo yesterday to discuss strengthening ties between the two sides across several sectors, according to an Ittihadiya statement. Shoigu and his accompanying delegation — which included representatives from nuclear developer Rosatom, which is carrying out our first nuclear power plant — also met with a handful of Egyptian officials to discuss advancing key Russian projects in Egypt.

REAL ESTATE-

Egyptian-Saudi real estate consortium to set up EGP 4 bn mall in New Cairo: Redminds Development and Saudi Arabia-based food trading company Al Warda Group inked a strategic partnership agreement to establish a joint real estate company targeting EGP 20 bn in investments by 2026, the two sides revealed during a press conference. The joint venture is eyeing real estate projects in Egypt and abroad, starting with a mall in New Cairo — called Raq Mall — with EGP 4 bn in investments.

Tags:

ALSO ON OUR RADAR asset management Beltone Holding EBRD education. Beltone Holding EFG Hermes Infinity real estate

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PLANET FINANCE

Buffett signs off with a message about mistakes, legacy, and the Golden Rule

We’re thinking this morning not about IPO pipelines, gigaprojects, economic indicators, or interest rates, but about the stepping-down of an icon who has been a fixture of the global investing scene for more decades than 99.999% of EnterpriseAM readers have been alive.

Warren Buffett, the so-called Oracle of Omaha, has written his last annual report, saying in his customary Thanksgiving note that he won’t hold the pen on Berkshire Hathaway’s next annual report. (Buffett will step down at year’s end, handing the reins to top lieutenant Greg Abel.)

It’s the end of an era: Buffett’s annual letters were required reading in global finance — so closely read by many in the global business community that they’ve long been treated as market-event pillars. Fans praised Buffett’s folksy, down-to-earth wisdom and the insights he offered on everything from value investing to the allocation of capital and long-term business thinking. The release of a Buffett letter was an “event” for the global business press, which would invariably dissect his missives for witty insights on investment, management, and the state of the US (and global) economy.

Buffett’s concluding message is about forgiveness, second chances, and making the most of life. (Sure, he talks about Berkshire’s transition to Abel and his personal philanthropic plans — but the meat for readers in our corner of the world? It’s in the last couple of pages.)

The best quotes:

Forgive yourself — and learn from your damn mistakes: “I’m happy to say I feel better about the second half of my life than the first. My advice: Don’t beat yourself up over past mistakes — learn at least a little from them and move on. It is never too late to improve.”

Don’t be a jerk: “Remember Alfred Nobel, later of Nobel Prize fame, who — reportedly — read his own obituary that was mistakenly printed when his brother died and a newspaper got mixed up. He was horrified at what he read.”

*Actively* decide how you want to live your life: Nobel, Buffett writes, “realized he should change his behavior. Don’t count on a newsroom mix-up: Decide what you would like your obituary to say and live the life to deserve it.”

Cliché as it may sound from one of the world’s wealthiest men: It’s not all about the money. “Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior. … Keep in mind that the cleaning lady is as much a human being as the Chairman.”

Tap or click here to read Buffett’s full letter (pdf).

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning as investors react to signs that the end of the US government shutdown is upon us. The Nikkei and Kospi are in the green, looking at gains of 0.4% and 1.4%, respectively, and markets in China and Hong Kong are in the red.

EGX30	40,427	-1.0% (YTD: +35.93%)
USD (CBE)	Buy 47.20	Sell 47.33
USD (CIB)	Buy 47.22	Sell 47.32
Interest rates (CBE)	21.00% deposit	22.00% lending
Tadawul	11,244	0.0% (YTD: -6.6%)
ADX	10,020	-0.5% (YTD: +6.4%)
DFM	6,008	-0.3% (YTD: +16.5%)
S&P 500	6,832	+1.5% (YTD: +16.2%)
FTSE 100	9,787	+1.1% (YTD: +19.8%)
Euro Stoxx 50	5,664	+1.8% (YTD: +15.7%)
Brent crude	USD 64.06	+0.7%
Natural gas (Nymex)	USD 4.38	+0.9%
Gold	USD 4,127	+0.1%
BTC	USD 105,776	-0.5% (YTD: +12.9%)
S&P Egypt Sovereign Bond Index	958.68	+0.1% (YTD: +23.3%)
S&P MENA Bond & Sukuk	151.95	+0.1% (YTD: +8.6%)
VIX (Volatility Index)	17.60	-7.8% (YTD: +2.1%)

THE CLOSING BELL-

The EGX30 fell 1.0% at yesterday’s close on turnover of EGP 6.5 bn (35.8% above the 90-day average). International investors were the sole net buyers. The index is up 35.9% YTD.

In the green: Raya Holding (+3.9%), Orascom Construction (+3.1%), and Mopco (+2.8%).

In the red: Eastern Company (-6.0%), Fawry (-3.1%), and Palm Hills Developments (-2.8%).

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Financial Markets Planet Finance Warren Buffett

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Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Is pumped storage hydropower the key to supplying round-the-clock renewable energy in Egypt?

Hydropower doesn’t seem destined to play a major role in achieving the country’s ambitious renewables production targets — but energy storage is another matter. In Egypt’s push to increase the share of renewables in its energy mix to 42% by 2030, hydropower’s contribution to the energy mix is expected to decrease from a current 7% to 5% in the same time frame as the state focuses more on wind and solar. But energy production is only one side of the renewables coin, as energy storage also plays an incredibly important role in ensuring a consistent and renewable energy network.

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

Enter pumped storage hydropower, an alternative to more traditional batteries that can keep the lights on even when the sun goes down and the wind stops. In essence, pumped storage hydropower works by using surplus electricity to pump water uphill into a reservoir in periods of low demand or high supply, releasing it downhill through turbines to generate electricity when demand rises or supply falls. This energy storage method allows networks that rely on solar and wind power to keep the lights on even when the wind drops or the sun goes down.

Pumped storage hydropower doesn’t just help store energy, it can play a vital role in stabilising the grid. Especially with the planned increase of renewables feeding the grid, our aging grid is subject to spikes that can overload the grid. Unlike conventional power plants, the turbines in pumped storage hydropower plants can instantaneously be powered up or down to maintain precise frequencies and maintain grid health.

The technology can also form the backbone of a more resilient energy infrastructure, due to what is called its black start capability. Unlike other energy production systems, pumped storage hydropower relies on the kinetic energy of stored water, which allows the plant to restart the system without the need for an external power source.

The government is serious about pumped storage hydropower, and is pushing to develop several projects. Just this week, Renergy Group Partners — which has the state’s National Organization for Military Production among the alliance — announced their interest in developing a landmark hybrid renewables project in the Sinai with a significant pumped storage hydropower element. The 4.4 GW pumped storage hydropower component will help produce 3.3 GW of sustained capacity night and day, powered by a 15 GW plant, implying a roughly USD 15 bn price tag for the solar farm alone at current construction rates in Egypt.

The government is also looking to retender its USD 2.7 bn pumped storage hydropowerproject at Ataka Mountain to investors, a government source told EnterpriseAM. The 2.4 GW project has already secured backing from some international financial institutions and is expected to be offered up next year, we were told. The government has also wrapped up studies for two pumped storage hydropower projects in Luxor and Qena with a combined capacity of 2 GW and price tag of up to USD 2.5 bn, according to unconfirmed reports earlier this year.

More traditional forms of hydropower like dams are still important sources of reliable energy output, but they have limitations. While legacy facilities like the High Dam, Aswan I & II, Esna, Nagaa Hammadi, and Assiut are undergoing upgrades, the growth potential for river-based hydro faces a fundamental constraint — the decline in Nile water flows due to the Grand Ethiopian Renaissance Dam, according to a paper from the AUC’s Alternative Policy Solutions.

Hydropower’s role historically in Egypt should also not be underplayed, with the Aswan High Dam having once provided about half of the country’s energy production in the 1970s when it reached peak output.

While hydropower seems set to play a less important role in production going forward, it still provides 2.8 GW of energy production, behind only wind energy in the renewables sphere with an output of 3.0 GW, according to data from the New and Renewable Energy Agency seen by EnterpriseAM. It also plays a sizable role in reducing emissions, cutting some 2.0k kilotons of carbon dioxide a year in the first quarter of the year, way ahead of wind’s 1.4k kilotons and solar’s 760 kilotons.

Geography also makes dams not the obvious choice for policymakers, given Egypt’s relatively flat topography along the Nile and the dispersal of the Nile through numerous waterways and canals in the Delta.

The government has also looked into wave and tidal current energy, but isn't convinced. The state has conducted several feasibility studies for the technology that has been pioneered by some northern European nations, but comparatively high costs and difficult geography along the Mediterranean have persuaded the government to not follow up the idea further, a government source told EnterpriseAM.

Your top green economy stories for the week:

Novastar Ventures’ Africa People and Planet Fund III will channel some USD 50 mn into Egyptian climate tech companies under a USD 200 mn program, set to focus on four other countries.
More renewable energy coming to the country’s energy mix: The Electricity Ministry and the Egyptian Electricity Transmission Company signed complementary agreements with Infinity Power and Hassan Allam Utilities Energy Platform for two solar power plants with a combined capacity of 1.2 GW and 720 MWh of battery storage.

Tags:

going green hydropower renewables

CALENDAR

NOVEMBER

9-11 November (Sunday-Tuesday): The sixth edition of the TransMEA 2025 forum and exhibition, Egypt International Exhibition Center.

16-19 November (Sunday-Wednesday): Cairo ICT 2025, Egypt International Exhibition Center.

16-19 November (Sunday-Wednesday): The 12th edition of the Digital Payments and Financial Inclusion Exhibition and Forum (PAFIX 2025), Egypt International Exhibition Center.

20 November (Thursday): Monetary Policy Committee meeting.

21 November (Friday): Egypt’s Entrepreneur Awards

23-25 November (Sunday-Tuesday): NEBU Expo 2025 gold and jewelry exhibition, Egypt International Exhibitions Center, New Cairo.

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

November: The Conference on Early Recovery, Reconstruction, and Development in Gaza.

DECEMBER

1-4 December: Egypt Defence Expo (Monday-Thursday), Egypt International Exhibition Center.

4-7 December (Thursday-Sunday): Egy Stitch & Tex Expo 2025, Cairo International Conference Center.

8 December (Monday): Egypt-UK Investment Conference, Cairo.

15 December (Monday): Neo Gen PropTech and Sustainable Smart Cities Conference, The St. Regis Hotel New Capital

25 December: (Thursday): Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

December: Germany’s North Rhine-Westphala business delegation to land in Egypt.

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

3Q 2025: Polaris Parks to finalize contracts for two new industrial zones in the new capital and Sadat City.

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

2H 2025: Potential visit by Chinese President Xi Jinping to Egypt

4Q 2025: The beginning of construction works on China’s State Grid two solar projects.

4Q 2025: GB Auto starts assembling one of China’s Great Wall Motor models in 4Q 2025.

4Q 2025-1Q 2026: Kasrawy Group to launch first Avatr EV models in Egypt.

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2025: Release of the government’s Startup Charter document.

Before 2025-end: The government will launch two ro-ro shipping lines with Saudi Arabia and Turkey.

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.

10-12 February (Tuesday-Thursday): Gitex Global’s AI Everything Middle East & Africa Summit

15 March 2026: IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

30 March - 1 April: Egypt International Energy Conference and Exhibition 2026 (EGYPES)

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

15 September 2026: IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

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.

2027: Egypt-EU Summit 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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