5G services are almost here

Tuesday, 8 Oct 2024

5G services are almost here

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

LEGISLATION WATCH

MPs preliminarily approve amendments to the law regulating SFE.

Telecom

Three more telecom firms secure 5G service licenses.

What We're Tracking Today

A new investment incentive package will be announced within a week.

Startup watch

Local startup funding rose 219% m-o-m in September.

Also on our Radar

Suez’s coal and diesel production complex should be complete next year.

Also on our Radar

Hassan Allam to expand footprint in KSA.

What We're Tracking Today

Analysts divided on September’s inflation forecast.

PLANET FINANCE

Derivative-backed ETFs are taking off with retail investors.

Going Green

Too much water, or not enough? Rising sea levels and water scarcity’s effect on Egypt's soil fertility.

What We're Tracking Today

New investment incentive package will be announced within a week

Good morning, all. We have another packed issue for you as the news flow shows no sign of slowing down.

WATCH THIS SPACE-

#1- A new investment incentive package will be announced within a week, Investment Minister Hassan El Khatib said at the Private Sector Engagement Annual Conference, according to Asharq Business. We first heard about the package last month from Prime Minister Moustafa Madbouly, who said that it would encourage and incentivize both new and current investors to pour more investments into various sectors.

It includes: The Investment Ministry is working with a number of other ministries including the Finance Ministry to introduce the first phase of the two-phase program to ease tax burdens on investors, according to El Khatib.

Also in the pipeline: The ministry is working on a number of policies to help the Madbouly government reach its growth target of 6-7%, up exports to USD 145 bn by 2030 by drumming up private investments worth USD 240 bn. The policies will be inflation-oriented and will prioritize increasing the private sector’s involvement in the economy. They will also aim to support foreign trade.

El Khatib also laid out some of the state's investment priorities at the conference, pointing to industry, healthcare, agriculture, energy, and tourism. The minister also highlighted hydrogen production and energy storage as a priority, along with solar technology, microchip production, data centers, and outsourcing services.

#2- Efforts to split the Egyptian Electricity Transmission Company from the Egyptian Electricity Holding Company are still ongoing, with the committee in charge meeting yesterday, according to a Electricity Ministry statement. Electricity Minister Mahmoud Esmat highlighted that the move aims to encourage private investment in the energy sector, particularly in renewable energy, while maintaining the stability and efficiency of the national electricity grid.

#3- Fertilizer makers are looking at foreign investors to help them secure FX: Several fertilizer manufacturers are reportedly looking to offload stakes to foreign investors in an effort to secure the needed FX to carry out expansion plans, Al Borsa reports, citing Chemicals and Fertilizers Export Council Deputy Head Tarek Zaghloul.

INFLATION WATCH-

Analysts divided on September inflation forecast: A CNBC Arabia poll of 10 economists revealed a split outlook for Egypt’s September inflation figure, with half of those surveyed penciling in an up to a 1.5 percentage point dip in inflation due to a favorable base effect. CI Capital’s Sara Sadaa expects annual inflation to remain flat at 26.2% in September and monthly inflation rising to 2%. Some 40% of surveyed analysts see annual inflation rising 3 percentage points on the back of the impact of fuel price hikes.

From the crystal ball: Some 70% of those surveyed believe that inflation will dip in 4Q, as the EGP stabilizes and expected foreign investments start rolling in.

Remember: Annual urban inflation has accelerated 0.5 percentage points to 26.2% in August after having fallen to 25.7% — its lowest level since December 2022.

SMART POLICY-

The Entrepreneurship Ministerial Committee held its first meeting yesterday, during which chair Planning and International Cooperation Minister Rania Al Mashat highlighted the need to “to reconsider existing laws and regulations to ensure alignment with international standards and the needs of startups,” according to a statement. She also pointed to the need to reform regulatory frameworks to bring in more private investment and provide equal chances for women and youth.

ICYMI- Last month, Prime Minister Moustafa Madbouly issued a decision to form a committee that aims to support the startup ecosystem in a bid to accelerate economic growth and job creation — dubbed the Entrepreneurship Ministerial Committee. It was tasked to propose policies and legislation to support the entrepreneurial ecosystem, and help startups access international markets and expand globally.

PSA-

WEATHER- We’re in for another cool day in Cairo, with a high of 33°C and a low of 23°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 30°C and a low of 22°C.

** DID YOU KNOW that we now 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-

Israel, Hezbollah, and Hamas exchanged fire on the anniversary of the October 7 attack, with Israel launching air raids on 120 sites in southern Lebanon, and Hamas and Hezbollah both firing rockets at Israel, most of which the Israeli military said it had intercepted. Dozens of people in Lebanon were killed, including 10 firefighters, and two Israeli soldiers. Around 12 people were injured in Israel from Hamas’ and Hezbollah’s airstrikes. (Bloomberg | Reuters | The Guardian)

Oil prices rose to their highest levels since August, settling at USD 80.93 a barrel, as violence intensified and speculation over Israel’s retaliation with strikes on Iranian oil facilities continues, the Financial Times reports.

IN THE BUSINESS PRESS- Another antitrust defeat for Google is making headlines, after a US judge ruled that Google parent Alphabet open up its Play store to its competition and distribute rival third-party app stores within its Play store. The ruling comes following a jury decision last year that was in favor of Fortnite maker Epic Games, which had argued that Google had made it impossible for other app stores to establish themselves. (Reuters | FT | The Verge)

ALSO- It’s Nobel Prize season. The Nobel Prize in physiology or medicine was handed to Victor Ambros and Gary Ruvkun for their discovery of microRNA and the role it plays in gene regulation. Up next: The prize for physics will be handed out today, followed by chemistry tomorrow, literature on Thursday, peace on Friday, and economic sciences next Monday.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’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 look into rising sea levels and water scarcity’s effect on Egypt's soil fertility.

Tags:

investment ministry What We're Tracking Today

Somabay, every reason to fall in love.

Telecoms

Three more Egyptian telecom firms secure 5G service licenses

5G licenses for all: The National Telecom Regulatory Authority (NTRA) inked USD 450 mn worth of agreements granting 5G service licenses to Vodafone Egypt, Orange Egypt, and e& Egypt, according to a statement.

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

And then there were four: The companies that secured the USD 150-mn licenses will join Telecom Egypt, which secured its license at the start of the year. Overall, Egypt secured a total of USD 600 mn from 5G licenses. Payment is due in USD within the coming 90 days, NTRA Head Mohamed Shamroukh told Al Arabiya.

We’re nearing the launch of the service: Mobile operators will kick off trial operations in three months and officially launch 5G services within six months, Shamroukh added. Telecom Egypt announced that it would launch pilot operations earlier this year and that it aimed to roll out its 5G services by the end of the year.

Why this matters: 5G can deliver speeds up to 100x faster than 4G with ultra-low latency that could allow everything from remote surgeries to super-fast downloads and a “true” internet of things. It’s slowly rolling out in developed markets, and when it works (and it’s not chewing up your battery), it will be a game changer.

That’s not all: NTRA and Telecom Egypt inked the specifications and controls for launching 5G services. The nation’s telecom services providers inked 15-year agreements — worth a combined USD 75 mn — renewing their licenses for previous generations without receiving new frequencies.

Tags:

5G National Telecom Regulatory Authority Orange Egypt Telecom Egypt TELECOMS Vodafone Egypt

This publication is proudly sponsored by

LEGISLATION WATCH

MPs preliminarily approve amendments to the law regulating Sovereign Fund of Egypt

SFE is in line for a shakeup: In its first session back, the House of Representatives preliminary approved government-drafted amendments to the law regulating how the Sovereign Fund of Egypt (SFE) operates.

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

More power to Madbouly: If passed, the amendments will give the prime minister the power to appoint the minister in charge of the fund — the responsibility currently falls to the planning minister.

A cabinet-affiliated SFE: Under the amendments the fund will be directly under the cabinet’s control and deemed a cabinet-affiliated fund.

And an assembly shakeup: The amendments state that the fund’s general assembly includes the minister named by the prime minister, along with the ministers of finance, investment, planning and international cooperation, in addition to the central bank deputy governor and seven financial experts.

The rationale: The amendments come in line with the July’s cabinet shuffle and with the aim to boost the SFE’s contribution to the country’s economic development and optimize the use of its affiliated assets.

For or against? Some MPs argued against the amendments, claiming that they would impact the fund’s independence, while others argued that making the PM in charge of appointing the minister responsible for the fund “is just a political move which will not impact SFE’s independence.”

What’s next? The amendments will be up for a final vote in an upcoming session.

MPs also approved:

A presidential decree approving increasing our subscription to the IMF by 50% — which will be worth some USD 1.4 bn and EGP 48 bn.
An agreement eliminating dual taxation between Egypt and Oman.
A USD 15 mn USAID grant to help us fight climate change, with a specific focus on conserving coral reefs in the Red Sea and reducing pollution.

Tags:

House of Representatives legislation Legislation Watch Sovereign Fund of Egypt

A MESSAGE FROM VODAFONE

Strengthening Egypt’s telecommunications landscape: How our partnership with El Sewedy will boost local manufacturing

As global networks expand and technology excels, the need for reliable, high-quality infrastructure has become increasingly critical. In response to the dynamic shifts in global networks, we at Vodafone have joined forces with El Sewedy Group, signing a strategic partnership aimed at localizing advanced telecommunications equipment manufacturing in Egypt.

The partnership aims to bolster Egypt’s position as a global telecommunications leader, spearheading the manufacturing of advanced telecommunications equipment and kickstarting a new benchmark in both Egypt and Africa. By leveraging El Sewedy Group’s technological expertise with our commitment to supporting local economy, we are poised to establish a robust production ecosystem that boosts local manufacturing. With extensive experience in manufacturing a diverse range of advanced products and equipment for this vital sector, innovative solutions will be provided to seamlessly integrate new industries into the local market, driving significant growth and development.

A suite of homegrown telecom products is on the way, including cutting-edge fiber and copper cables and cyclic and high cyclic lithium batteries. Antennas will also be manufactured, marking their debut into the Egyptian and African market. Customer Premises Equipment (CPEs) are also set to be produced, further enhancing the telecommunications industry in Egypt.

By boosting industry localization, we will also cut down our import needs. Our endeavor will slash down reliance on imported telecommunications equipment, enhancing the country’s self-sufficiency, establishing a stable supply of needed telecommunications technology and driving growth in the sector.

This isn’t the first time Vodafone champions local production. We joined forces with Samsung to manufacture and distribute locally produced mobile phones offering affordable price points and flexible financing plans, marketing Egyptian products, and pulling in global companies to localize their manufacturing processes in Egypt. We also recently collaborated with El Safi Group and Green Packet International to manufacture high-speed routers, boosting industrial investment in the country, slashing down the import bill, and fueling the growth of the nation’s electronics industry all at once.

With a steadfast dedication, Vodafone Egypt’s set to revolutionize the country’s telecommunications landscape. The collaboration also falls in line with our group strategy to fortify the local smart telecommunications equipment domain, paving the way to groundbreaking advancements in industry standards, playing a pivotal role as the sector becomes one of the most vital fields.

Rasha El-Azhary, Chief Financial Officer at Vodafone Egypt

Tags:

A MESSAGE FROM VODAFONE Elsewedy Electric Vodafone Egypt

Startup watch

Egypt’s startup funding rose 219% m-o-m in September, but still lag behind GCC startup scene

How did Egypt’s startup scene fare in September? Local startups raised USD 25.1 mn across eight transactions last month, a sharp 219% rise from the USD 7.9 mn raised in August across five transactions, Rasmal’s MENA startup funding report reads.

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

Cairo-based startups dominated the funding landscape, accounting for six of the eight transactions, pulling in USD 24.8 mn, primarily driven by fintech and cleantech ventures, according to the report.

Who pocketed the largest investment in September? Local fintech startup Paymob closed September's largest transactions, closing a USD 22 mn series B extension round led by EBRD Venture Capital.

Egypt still lagged behind regional players securing their place in the region’s startup scene: Saudi Arabia dominated regional startup funding in September, securing USD 165.3 mn, followed by the UAE with USD 114.3 mn, which the report attributed to “favorable government policies, strong infrastructure, and a growing appetite for risk among investors.”

Regional snapshot: MENA startups raised a combined USD 328.3 mn across 60 startups last month, down from USD 566 mn in August. The region raised USD 1.1 bn across 143 startups in 3Q 2024. The lion’s share of investments in September — some USD 129.4 mn — was concentrated in late-stage VC funding. Meanwhile, seed-stage funding declined 17% m-o-m to USD 57.3 mn, while Series A funding grew 187.8% m-o-m to USD 54.7 mn.

The three most attractive sectors: Fintech startups secured USD 134.8 mn in September, up from USD 47.2 mn in August. They were followed by the logistics sector at USD 82.9 mn and the software development sector with USD 52.6 mn.

Tags:

Fintech Startup watch startups venture capital

Real estate

SODIC launches latest flagship commercial destination: New Cairo’s EDNC

Introducing SODIC’s EDNC: EGX-listed real estate developer SODIC has launched Eastown District New Cairo (EDNC), “its latest flagship commercial destination,” that it says (pdf) will “redefine New Cairo’s retail and leisure landscape.”

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

The development will include 14,765 square meters of gross-leasable area.

Confirmed retail partners include:

Food & beverage: Brunch & Cake, Bascota, Izmir Saraya, Canelé patisserie, Bittersweet, CLAY, Shogun Japanese Restaurant, Ahwet Mehanna, Coco, 3 Diner;
Retail: Concrete, Weaving Grace, KOG, BTC, Diamond Forever, Al Baraka Bank, Seoudi Market, Mohamed El Sagheer Salon;
Nightlife: Gigi Burger Bar and The Grand Theatre.

EDNC will also house Egypt’s first Nobu restaurant, which is set to open in early 2025, and a Nobu hotel

Nobu? A luxury hotel and restaurant company founded in the 1990s by celebrity chef Nobuyuki Matsuhisa and Robert De Niro.

** We were joined by SODIC General Manager Ayman Amer at this year’s EnterpriseAM Finance Forum to hear his insights on the country’s real estate sector. Check out our conversation with Amer and other industry heavyweights here.

Tags:

Nobu Hospitality real estate SODIC

LAST NIGHT’S TALK SHOWS

The one-year anniversary of Israel’s war on Gaza

One year of war on Gaza: Last night’s talk shows were all about the one-year anniversary of Israel's war on Gaza and its recent attacks on other areas.

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

The death toll: Some 42k Gazans have been killed by Israeli attacks over the past year, according to official figures from Gaza’s Health Ministry, Ala Masouleety's Ahmed Moussa said (watch, runtime: 4:57). Unofficial estimates put the figure at 100k — official figures put the number of people that have been injured in the attacks at 120k, while unofficial figures put the number at 200k.

The situation on the ground: Lebanese writer and political analyst Bechara Khairallah told El Hekaya's Amr Adib (watch, runtime: 2:24) that Lebanon has become “another Gaza” following Israel’s attacks. Khairallah pointed out that at the end of it, both sides are losers, with the war destroying everything.

PLUS- Egypt, Iran discuss regional tensions: Foreign Minister Badr Abdelatty discussed regional tension, particularly in Lebanon and Gaza, with his Iranian counterpart Abbas Araghchi, according to a statement. Abdelatty emphasized the need for an immediate ceasefire in Lebanon, Gaza, and the West Bank.

Tags:

DIPLOMACY Gaza Israel LAST NIGHT’S TALK SHOWS Middle East politics

Also on our Radar

Egypt’s coal and diesel production complex should be complete next year

ENERGY-

Suez’s USD 1.8 bn coal and diesel production complex should be complete by mid-2025, according to an unnamed government official speaking to Al Arabiya. The Suez Oil Company’s plant — which is being implemented by Oil Ministry-linked firms Enppi and Petrojet — will produce high-value petroleum products like butane and diesel, with its completion coming nearly three years after the project first broke ground in late 2021.

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

A boon for the country’s import bill: The facility aims to boost Egypt’s production of diesel, gasoline, and other fuels essential for the local market, reducing our reliance on imports. The new complex’s mazut processing unit is expected to produce enough diesel to directly reduce Egypt’s monthly import costs by nearly 20%, according to the outlet.

RENEWABLES-

AMEA Power to launch its USD 800 mn Ras Ghareb wind farm in March 2025, Al Mal reports citing an unnamed source from the Electricity Ministry. The wind farm will launch with an initial capacity of 250 MW, before cranking up to its full capacity of 500 MW by the end of July. The project is built under a build-own-operate (BOO) contract — the Egyptian Electricity Transmission Company will buy the farm’s production under a 20-year power purchase agreement.

INFRASTRUCTURE-

Hassan Allam to expand footprint in KSA: Hassan Allam Holding plans to sign USD 500 mn worth of contracts for infrastructure projects in Saudi Arabia, CEO Hassan Allam told Asharq Business. The infrastructure development-focused contracts are ready to be signed with Saudi government entities. The new contracts are in addition to USD 1 bn worth of Hassan Allam projects currently being carried out in the kingdom, Allam added.

More expansions in Egypt: Hassan Allam is also looking to step into the agricultural sector with a project expected to be announced before the end of the year. “We are currently establishing a company for land reclamation and export, and contracting on a large piece of land, part of which will be dedicated to strategic crops,” Allam said.

COMMODITIES-

#1- Ezz Steel slashes prices once again: Steel giant Ezz Steel has cut prices of local rebar by EGP 2.5k per ton, bringing down its factory prices to EGP 38.2k per ton — inclusive of 14% VAT — marking the company’s third price cut since February.

#2- Sugar export ban extended again: The government has extended its ban on sugar exports for an additional six months, exempting only surplus quantities beyond local market needs, according to a decision published in the Official Gazette. This marks the fourth extension of the ban since December.

FINTECH-

Qsalary to offer on-demand salary payments: Saudi HRTech startup Qsalary is awaiting a license from the CBE to start offering salary transfer services and provide employees with the option to receive salary payments on demand, Project Manager Mariam Darwish told Al Borsa. This service will allow employees to access up to 50% of their salary at any time during the month, charging a fixed service fee as its revenue stream.

PAYMENTS-

Gas bill payments made easy: Egyptian electronic payment platform Sahl has partnered with Egyptian Natural Gas Holding Company and El Maasara Gas Metro Company to allow users to recharge their prepaid gas cards through the Sahl app, according to a statement (pdf).

Tags:

ALSO ON OUR RADAR AMEA Power commodities energy Enppi Ezz Steel Fintech Hassan Allam Holding Petrojet renewables wind power

PLANET FINANCE

Derivative-backed ETFs are taking off with retail investors — but high payouts come with risks

Derivative-enhanced ETFs, the next meme stocks? Derivative-backed exchange-traded funds (ETFs) are the latest financial instrument to be a day trading hit, luring amateur investors in droves with massive payouts, Bloomberg reports. These ETFs are gaining popularity in no small part thanks to “financial influencers” touting them on TikTok, Youtube, and other social media as an easy way to make big gains in a short time.

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

By the numbers: Derivative-backed ETFs boost returns on the stocks that they are linked to by overlaying them with options and other derivatives. Although usually sold as a defensive strategy, the options can be cashed-in, generating dividends with a 100% yield or greater. Both startup and legacy firms are piling in, with 164 derivative-based products launched in the US year-to-date. The category’s assets have also grown 6x over a five-year timeframe to some USD 300 bn, according to Bloomberg data. Their growth is contributing to a wider ETF boom, with the market now valued at USD 10 tn.

Too good to be true? Experts and regulators are growing increasingly concerned that day traders are jumping on the trend without understanding the full risks involved. Youtube tutorials and other media promoting these strategies are often sponsored and tend to gloss over the risks involved. “The most important thing the industry can do is make sure clients understand what to expect in these strategies. That’s actually what keeps me up at night,” JP Morgan asset manager Hamilton Reiner — who helped pioneer the new class of ETFs — told Bloomberg.

It’s basic arithmetic: Funds bestowing yields of 30% or more will undoubtedly erode their net-asset value, Reiner said. If investors are not careful, erosion in their holdings’ net-asset value can see their portfolio values wither away.

Regulators are also raising flags: “The number of self-directed investors has multiplied at the same time that product complexity has increased and access to an almost unlimited menu of financial products has grown,” investor advocate at the US Securities and Exchange Commission Cristina Martin Firvida told Bloomberg, referencing the explosion in the number and variety of derivative-backed ETFs and their rapid uptake by inexperienced traders. A recent review of financial influencer activity found that the vast majority of that content — both about ETFs and other financial products and strategies — did not comply with US Financial Industry Regulatory Authority regulations, Bloomberg says.

On the flipside: The new wave of ETFs is “democratizing access to finance,” Bloomberg wrote citing advocates of laissez-faire policies, with the new products allowing mainstream online traders to access financial strategies that were previously restricted. “There is a breaking down of traditional barriers because ETFs are direct-to-consumer products,” chief revenue officer at Tidal Financial Group Gavin Filmore said. “The minute I launch a product, every trader at home can buy it. It's like a sneaker, it's like a potato chip,” he adds.

MARKETS THIS MORNING-

Mainland China’s markets extended their rally before paring gains on the first day of trading after the country’s Golden Week holiday, as the country’s top economic planner unveils more details on the government’s planned stimulus package in a morning press conference. Other Asian markets are down in early morning trading, led by the Hang Seng Index, which tumbled 6.3%. Across the pond, it’s a sea of red for US futures, with the Dow Jones, S&P 500, and Nasdaq all down in pre-market trading.

EGX30	31,819	+0.3% (YTD: +27.8%)
USD (CBE)	Buy 48.36	Sell 48.50
USD (CIB)	Buy 48.35	Sell 48.45
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,914	+1.2% (YTD: -0.5%)
ADX	9,147	-0.4% (YTD: -4.5%)
DFM	4,395	-0.3% (YTD: +8.3%)
S&P 500	5,696	-1.0% (YTD: +19.4%)
FTSE 100	8,304	+0.3% (YTD: +7.4%)
Euro Stoxx 50	4,970	+0.3% (YTD: +9.9%)
Brent crude	USD 81.06	+3.9%
Natural gas (Nymex)	USD 2.75	-3.8%
Gold	USD 2,666	-0.1%
BTC	USD 63,198	+0.9% (YTD: +49.0%)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 5.6 bn (37.5% above the 90-day average). Local investors were the sole net buyers. The index is up 27.8% YTD.

In the green: Orascom Construction (+12.7%), Juhayna (+12.3%), and Elsewedy Electric (+11.8%).

In the red: Palm Hills Development (-4.6%), E-finance (-3.2%), and Credit Agricole (-2.4%).

Tags:

exchange-traded funds Financial Markets Planet Finance

Our weekly deep dive into the green economy and ESG issue in Egypt.

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Too much water, or not enough? Rising sea levels and water scarcity’s effect on Egypt's soil fertility

Nile Delta at risk: As climate change accelerates sea level rise, the Nile Delta has ranked among the UN's Intergovernmental Panel on Climate Change (IPCC) top three most vulnerable regions worldwide since the 2000s. Supporting over half of the country’s agricultural land, the Delta faces growing threats of saltwater intrusion and loss of soil organic matter. These factors are putting Egypt’s most fertile region at risk of irreversible soil degradation.

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

Saltwater intrusion is the biggest threat to Egypt’s soil fertility: Rising sea levels are causing saltwater to seep further into the soil, reducing arable land and hindering plant growth. The Nile Delta is particularly prone to flooding and the intrusion of saltwater, with more than 30% of the area classed as a lowland area. This has contributed to our updated Nationally Determined Contributions (pdf) to warn that Delta could lose “up to a minimum of 30% of its food production by 2030.”

Traditional irrigation dependence exacerbates salinity risks: Egypt's reliance on traditional irrigation in farming practices heightens its vulnerability to salinization, with Saline Agriculture for Adaptation reporting that 30-40% of the Nile Delta's soils are now classed as salt-affected. This salinity is driving down crop yields and increasing farming costs due to the need for costly soil amendments, further threatening the economic viability of agriculture in the region. “I had hoped to continue what my father started, but the sea overwhelmed us. The land became saline, and there is no drainage to remove the salinity,” one farmer told the Earth Journalism Network.

The troubling decline of soil organic matter: Egypt is also grappling with a decline in soil organic matter due to rising salinity, higher temperatures, and irregular rainfall, all of which speed up soil decomposition and reduce microbial activity. This decrease in soil organic matter — particularly vital elements like phosphate, nitrogen, and carbon — impacts the growth of essential crops. Lower soil organic matter reduces the soil’s ability to support plant life and shortens the growth cycle of key crops such as rice, which requires high microbial activity and moist conditions. The loss of microbial activity further fuels a vicious cycle of rising temperatures, as dry, infertile soil releases more carbon and reduces the soil's capacity to store greenhouse gasses.

Water scarcity adds to the challenge: Another critical factor affecting soil health is the lack of sufficient water. Reduced upstream flow of the Nile, driven by higher temperatures and human-made projects like the Aswan High Dam and the Ethiopian Grand Renaissance Dam, means fewer Nile sediments reach downstream areas, leading to soil degradation. In response, local farmers are manually collecting Nile sediments and applying them to their fields in a bid to restore soil health.

Farmers are also adopting new technologies to deal with soil changes, including planting salt-tolerant crops that withstand increasing soil salinity, and adopting better irrigation methods that prevent water-logging, allowing them to manage salt accumulation in agricultural land.

What can be done? To combat soil salinization and restore farmland fertility in Egypt, strategies such as embracing soil salinization management and expanding farmland can be implemented in tandem with planting cover crops and incorporating agroforestry practices. Large-scale composting and Nile sediment collection initiatives can also help address the loss of soil organic matter and enhance soil efficiency. Additionally, monitoring coastal erosion, water supply, and soil salinization through innovative solutions is essential, aligning with Egypt’s National Climate Change Strategy.

Your top green economy stories for the week:

Egypt and Bavaria will cooperate in the field of green hydrogen — they will exchange knowledge regarding production capabilities, hydrogen technologies, market development, and R&D.
Taqa Arabia will set up two new solar plants with investments ranging between USD 25-30 mn. The company is negotiating with clients in the tourism, industrial and agricultural sectors about proposed projects to produce 150 MW of solar energy in Egypt.
More green ammonia will be produced in Damietta: Belgium engineering group John Cockerill is joining Norwegian firms Scatec and Yara International, the Egyptian Petrochemical Holding Company, and Misr Fertilizer Production Company (Mopco) in producing green ammonia in Damietta with investments exceeding USD 900 mn.

Tags:

agriculture Climate food going green

CALENDAR

2024

OCTOBER

5-8 October (Saturday- Tuesday): Techne Summit Alexandria, Biblioteca, Alexandria.

7-11 October (Monday-Friday): Egyptian-Romanian Business Council Forum, Bucharest, Romania.

10-12 October (Thursday-Saturday): Egy Health Expo, Egypt International Exhibition Center, Cairo.

10-12 October (Thursday-Saturday): The FinExpo Conference and Exhibition, Cairo.

10-12 October (Thursday-Saturday): The EVs Electricity Egypt Expo and Conference.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

20-22 October (Sunday-Tuesday): Mediterranean Offshore Conference (MOC), Alexandria, Egypt.

21-25 October (Monday-Friday): The second iteration of the Global Forum for Population, Health, and Human Development.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

11-15 November (Monday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2025

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

Sections

About

Privacy & Support

Get EnterpriseAM daily