Hello folks, and happy Monday. We have a brisk issue for you this morning, so without further ado, let’s jump into it.

THE BIG STORY TODAY

Fresh details on state enterprises’ move to the SFE: The first phase of the Madbouly government’s plan to transfer all public enterprises to the Sovereign Fund of Egypt (SFE) will see some 370 firms out of an estimated 709 brought under the fund’s umbrella, a senior government source told EnterpriseAM, citing a recent tally of state firms. The SFE is currently looking into the companies’ ownership structures as it prepares to select the top performers for the strategy’s first phase.

The first phase will target firms that were profitable in FY 2024-25 and have simple ownership structures — avoiding the many companies whose ownership is tangled between government agencies and banks, or whose assets are tied up in complex arrangements. The fund may hold off on selecting the companies until the end of the current fiscal year, our source noted, to confirm the firms’ profitability and account for the full impact of the EGP float on their finances.

Manufacturers and real estate firms top the agenda: The SFE will start by taking over administration of state-owned industrial players, with a particular focus on primary manufacturers that support other industries, given that their production capabilities can be leveraged to attract investments needed in the strategy’s early stages, our source explained. Real estate companies will take second priority after industry.

Further down the line: The 138 state-owned companies operating at a loss will be targeted in a later stage that might involve repurposing their assets or changing their line of business, the source said, adding that the studies needed to establish how this process will take place will take time.

THE BIG STORY ABROAD

It’s a light newsday for the int’l presses, with headlines continuing to be dominated by the Russia-Ukraine war and last night’s Oscars.

French President Emmanuel Macron has presented a supposedly joint British-French proposal for a one-month ceasefire between Russia and Ukraine that would halt all air, sea, and energy infrastructure attacks but not on-ground fighting, Reuters reports. The proposal — which would see European troops deployed to Ukraine in a later, second phase — follows a meeting between European leaders yesterday in London aimed at crafting a ceasefire proposal to present to the US. The move comes after a tense and acrimonious meeting between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump in Washington on Friday that saw Trump refuse to offer the Ukrainian president requested security guarantees.

The UK, for its part, has distanced itself from the proposal, with UK Armed Forces Minister Luke Pollard saying, “That's not a plan that we currently recognize,” according to the newswire. "Certainly there are a number of different options being discussed privately between the UK, France and our allies at the moment,” Pollard reportedly told the BBC. “It's probably not right for me … to comment on each individual option as they occur.”

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

• Net foreign assets in Egypt’s banking sector rose to USD 8.7 bn in January, marking a monthly hike of 65.8% from USD 5.2 bn in December.
• Motherbeing secures USD 200k in pre-seed funding for reproductive health app: Local startup Motherbeing was chosen as one of four early-stage startups to receive an investment of up to USD 200k and 18 months of support from Africa-focused pre-seed investment program Madica.
• Egypt is in line for a EUR 90 mn loan from the EU and European Investment Bank, which will go towards the Egypt Food Resilience project.

☀️ TOMORROW’S WEATHER- Temperatures will be the slightest bit cooler in the capital tomorrow, with a high of 22°C and a chilly low of 12°C, according to our favorite weather app.