Good morning, friends. Our big story today dives into the Finance Ministry’s plans for the upcoming fiscal year and what it has in store for indebted state-owned enterprises and agencies.

We also have news that the IFC could soon greenlight a USD 100 mn loan for a hotel overlooking the GEM, and Hassan Allam has been awarded its latest Saudi project.

But before we dive in…

Night owls, rejoice: After a month of early nights, things will return to normal after the Cabinet’s crisis management committee decided to scrap the 11pm curfew on commercial operations introduced earlier this month as part of a wider package of energy rationing measures.

To keep energy use under control over the longer term, the Madbouly government will soon launch incentives to push factories and households to transition to solar energy.
We’ll be watching for the specific “carrots” the government will offer to make solar attractive to the average homeowner and manufacturers. To achieve scale, we expect the incentive package to include subsidized financing, duty exemptions on solar panels and inverters, or a more favorable net-metering framework that allows users to sell excess power back to the grid at a more profitable rate.

What about Sunday WFH? Mandatory WFH Sundays, another one of the measures introduced this month to help reduce energy consumption, will be extended indefinitely, cabinet spokesperson Mohamed El Homsani said.

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Hitting the brakes

A new cap on annual social ins. increases? Proposed amendments to the Social Ins. Law would cap the annual increase for social ins. contributions at 15%, according to a government document seen by EnterpriseAM. They also would introduce a cap on the annual increase of insurable wage and pension settlements at 15% — aligned with inflation — in a bid to keep costs predictable for both employers and the state.

Where do they stand? The cabinet-proposed amendments are currently with the Senate, and after they receive the green light from senators they will most likely head to the House, where lawmakers will discuss and vote on them.

Why you should care: The new framework gives CFOs the predictability they need to safely plan budgets while also shielding the state from a mismatch between payout rates and inflation.

Social ins. in Egypt provides comprehensive coverage for employees across the country, it covers pensions, work injuries, maternity leave, and unemployment support.

Rollin’ on the river

The Transport Ministry is inviting investors to bid for a network of river ports to move goods and containers along some 3k km of waterways — with European and US companies already in talks over potential investments in river and maritime logistics, a government source tells EnterpriseAM. The plan centers on developing smart ports along the Nile and its branches, with a direct link to seaports — especially Damietta.

What’s on the table? Investors will get access to land adjacent to river ports, a unified regulatory authority to cut through bureaucratic overlap, and eligibility for incentives tied to nationally strategic projects, the source added.

Why this matters: A single river barge can carry the equivalent of 40 trucks, cutting road congestion and costs, according to the ministry. The shift would also ease pressure on the road network, lowering maintenance needs and freeing up spending from the state budget.

Data point

USD 182.5 mn — that’s the amount of FDI that poured into the Suez Canal Economic Zone (SCZone) in April as a result of launching nine new factories. The new facilities bring the SCZone’s total investment to over USD 6.5 bn, according to a cabinet statement.

In numbers: Exports from operational factories have recently hit USD 2.5 bn, with the authority already eyeing a plan to double that figure in the coming years, SCZone Chairman Walid Gamal El Din says (watch,runtime: 06:13). The zone now houses roughly 700 companies, and over the current fiscal year alone, officials signed over 80 projects worth more than USD 6 bn. Total revenues are expected to surpass EGP 15 bn this year, Gamal El Din says.

PSA

Last call: The Egyptian Tax Authority has extended the validity of VAT registration certificates until 30 June, calling it the final extension, according to a statement. Failure to renew your certificate will see you suspended from the tax system, the taxman warns — read: no more e-invoice = no more revenues in for you, folks.

WEATHER- It’s another sunny day in Cairo, with a high of 26°C and a low of 15°C, according to our favorite weather app.

It’s a couple of degrees cooler in Alexandria, which is in for a high of 24°C and a low of 15°C.

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The big story abroad

While the latest developments from yesterday’s shooting at the White House correspondents’ dinner are dominating the front pages, a few other stories have caught our attention:

Our daily update on ceasefire negotiations: After the latest round of discussions between the US and Iran fell through, US President Donald Trump appears to have left the ball in Tehran’s court, saying Iran can reach out by phone to continue negotiations.

And in markets: Bullish sentiment over AI appears to have pushed equities to record highs. Since the outbreak of the regional war, 82 stocks, most of which are tied to the AI boom, have posted gains above 10%, which the Wall Street Journal attributed to investor confidence in data-center construction and infrastructure providers like Nvidia.

Speaking of AI: According to new reports, AI may end up costing businesses more than human labor, with computing costs exceeding salaries in some cases. Firms like Uber are seeing AI costs skyrocket, with some estimates placing global IT spending at USD 6.3 tn in 2026 — a 13% y-o-y jump.

In the (shrinking?) world of human achievement, Kenyan athlete Sabastian Sawe madehistory yesterday as the first runner to ever finish a competitive marathon in under two hours.

*** 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 take a look at what the upcoming FY 2026/2027 will mean for the education sector.