Gov’t to boost private sector participation amid current regional crisis

Good afternoon, friends, and happy hump day. We have a war-heavy issue for you this afternoon as we examine the global energy crisis’ full toll and the international response. We also drop by one of Zamalek’s newest coffee houses for our afternoon fix and more.

First things first, the news…

THE BIG STORY TODAY-

📍 Prime Minister Mostafa Madbouly signaled the state is bracing for an “extended crisis” in a comprehensive address to the House of Representatives today, warning that even if the crisis nominally ends, its economic repercussions are “likely to persist at least until the end of this year.”

To anchor growth amid these headwinds, the government is targeting EGP 3.8 tn in total investments for the upcoming FY 2026/27 budget, with the private sector expected to lead 60% of all projects. The PM highlighted the heavy fiscal toll of the regional conflict, noting that Egypt’s monthly natural gas import bill has nearly tripled to USD 1.65 bn to prevent power outages, while regional tourism is losing an estimated USD 600 mn in daily revenue.

To offset these costs, Madbouly reaffirmed a strategic pivot toward energy security, fast-tracking the national renewable energy target to 45% by 2028 and pledging to fully settle the remaining USD 1.2 bn in arrears to international oil companies by June 2026 to revitalize domestic production.

^^ We’ll have more on this story in tomorrow’s edition of EnterpriseAM.

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THE BIG STORY ABROAD-

🌐 After 15 years at the helm of Apple, Tim Cook is set to stepdown as CEO of the tech giant this coming September, transitioning into the role of executive chairman. Taking the reins is John Ternus, the senior vice president of hardware engineering and a 25-year veteran at the company.

Who’s Ternus? Since joining in 2001, Ternus has been instrumental in Apple’s most significant tech milestones. Most notably, he oversaw the transition from Intel processors to Apple Silicon and led the development of core product lines including AirPods, Apple Watch, and the Vision Pro. In recent years, Ternus was the driving force behind the hardware engineering of the new MacBook Neo.

What’s next for Apple? The leadership change signals a definitive shift back to a product-centric strategy. By wagering on a hardware specialist with a profound understanding of product development, Apple aims to silence critics and analysts who argue the company has lacked radical innovation in recent years. The appointment suggests that Apple is doubling down on its engineering DNA to spearhead its next era of growth.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Institutional appetite for Valu remains high following a successful accelerated bookbuild that saw 53.8 mn shares (a 2.55% stake) placed primarily with institutional investors, EFG Hermes co-head of investment banking Maged El Ayouti told us;
• Edita Food Industries has snapped up funding to finance expansion lines at home and abroad. The EGX-listed snackmaker signed a seven-year, EGP 600 mn medium-term loan from Arab Bank Egypt to support its 2026 investment program;
• Fintech giant Fawry is officially entering the ins. space after securing approval from the Financial Regulatory Authority for its new subsidiary, Fawry for Microins., with a starting budget of EGP 60 mn, of which Fawry owns 90%.

☀️ TOMORROW’S WEATHER- The breezy weather streak continues, with temperatures in Cairo reaching a high of 28°C and a low of 15°C, according to our favorite weather app.