Good morning, friends. It’s finally Thursday and the weekend is nearly upon us. But there’s still one whole work day to go that may be more eventful than the most with the Central Bank of Egypt set to decide on our interest rate path ahead later today and details of Egypt-bound investments from Turkey and China coming our way starting to filter through the local press.
HAPPENING TODAY-
#1- It’s decision time for the MPC: The Central Bank of Egypt’s Monetary Policy Committee is meeting later today to review rates. The committee delivered a 600 bps rate hike following a surprise monetary policy meeting in March in conjunction with the float of the EGP and a larger loan package from the IMF being approved soon after and has not changed them since, citing its commitment to sustaining the current trajectory of inflation moderation.
The polls are in: The central bank is once again expected to leave interest rates unchanged as persisting inflationary pressures keep potential rates at bay, according to all analysts and economists surveyed by Enterprise in a poll earlier this week. Those polled by Reuters agree, with 14 of the 15 that the newswire spoke to predicting that rates will be held steady and one penciling in a 100 bps rate cut.
#2- It’s day two of the Forum on China-Africa Cooperation and news of Egypt-bound investments have already been making the rounds: China National BuildingMaterial Company (CNBM) is interested in setting up a specialized 5 mn sqm industrial zone in Ain Sokhna, CNBM representatives told Suez Canal Economic Zone (SCZone) head Gamal Walid El Din yesterday. The proposed zone would focus on renewable energy industries — including wind turbine blades for electricity generation and solar energy systems.
And yet another Chinese auto manufacturer has signaled its interest in manufacturing their vehicles here, with officials from the privately owned Great Wall Motors — more commonly known as just GWM — discussing ways to localize our auto industry with El Din.
Watch this space for more investment news, courtesy of the Chinese public and private sectors: Prime Minister Moustafa Madbouly is also attending the three-day event and will apparently ink a number of MoUs and contracts related to — still as of yet unspecified — investments in the Suez Canal Economic Zone and the Egyptian telecommunications sector. The day before the forum kicked off, we got news that the country is extending a CNY 100 mn development grant — currently worth around EGP 681 mn or USD 14 mn — in order to implement a number of new joint projects.
#3- It’s the third and last of the Egypt International Airshow, which kicked off earlier this week in El Alamein. The event covers all things aviation, bringing together participants from over 300 companies from more than 100 countries. It also features exhibitions from 200+ companies, discussions from industry leaders, and even aircraft flyovers and displays.
#4- The two-day US-Egypt Joint Economic Committee wraps up in Washington today, with government and business representatives set to discuss improving partnerships between American and Egyptian private sector companies, according to an Investment Ministry statement out last month.
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CIRCLE YOUR CALENDAR-
#1- Kouchouk to address AmCham next Tuesday: Finance Minister Ahmed Kouchouk will be speaking at AmCham’s monthly luncheon on 10 September. The event — which will be moderated by Grant Thornton Managing Partner Kamel Saleh — will be held at Cairo’s Nile Ritz Carlton from 1-4pm. Register to attend here.
#2- Technology conference Tech Invest 5 is scheduled for Tuesday, 10 September with a long list of experts in the field set to attend — including CIT Minister Amr Talaat and Information Technology Industry Development Agency CEO Ahmed Elzaher. The event will bring together over 200 tech companies, 50 investors, and 20 incubators and accelerators. The conference is taking place next Tuesday in New Cairo. Get your ticket for the event here.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
PSA-
Your phone bill may be getting pricier: Authorities are looking into requests by local telecom players to hike their prices in response to increased operating costs following the float of the EGP and higher fuel prices, an anonymous government official told Asharq Business.
WEATHER- Temperatures are continuing to slowly down from their summer highs in Cairo today, with a high of 33°C and a low of 26°C, according to our favorite weather app.
It’s a similar story in Alexandria and along the North Coast, with a high of 32°C and a low of 24°C.
And over the weekend, expect to see temperatures remaining the same in the capital and likewise for our friends on the Mediterranean.
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SIGN OF THE TIMES-
Demand for Coke and Pepsi is fizzling out: Consumer boycotts of soda-makers Coca-Cola and PepsiCo have led sales of the quintessentially American soda brands to plummet in Muslim-majority countries, as consumers reject longtime symbols of US corporate and cultural hegemony in light of the US’ enabling of the ongoing Israeli assault on Gaza, writes Reuters.
Volumes of Coke sold in Egypt reportedly declined by double-digit percentage points in the first six months of 2024, the newswire added. By contrast, local soda manufacturer V7 exported three times as many bottles of its soft drinks as it did last year — a sign that Pepsi and Coke’s loss may be local soda producers’ gain. Across the region more broadly, market researcher NielsenIQ estimated that beverage sales of Western companies have declined by 7% across the MENA region in the first six months of 2024.
THE BIG STORY ABROAD-
With no one story dominating headlines in the business press this morning, we bring you a smattering of news at the intersection of business and US politics, alongside a heads-up on OPEC’s latest output hike deliberations.
White House may axe Nippon Steel’s acquisition of US Steel, with Joe Biden reportedly close to blocking the Japanese company’s USD 14.9 bn bid in light of “national security concerns” — a concern that many Washington insiders and experts in the field have privately ridiculed. Election year politics are truly glorious.
The timing of the news is far from coincidental, with the move — which Trump and Harris also say they support — understood to be a pivot to unionized workers in the swing state of Pennsylvania concerned about the takeover ahead of the November election.
For Trump, it’s not only his poll numbers that are slipping: Shares in the Republican nominee’s Trump Media & Technology Group took a tumble yesterday, wiping all the company’s gains since January. Under a lock-up agreement, Trump is unable to sell his shares until the end of this month and has had to sit tight as his majority stake in the company lose more than half its value since March.
ON WALL STREET– Nvidia’s terrible Tuesday may not have been as bad as we told, as the AI chip goliath rejected a Bloomberg report saying that it had been subpoenaed in an antitrust probe being carried out by the US Department of Justice.
IN THE OIL MARKETS- OPEC+ is considering delaying a planned 180k bpd output hike in October after prices fell to their lowest level in a year.






