El Khatib to announce revamped privatization program this month

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What We're Tracking Today

Egypt set to expand PPP offerings with 11 new projects

Good morning, friends, and happy Thursday to you all. We have another busy issue for you this morning as we wrap up one very eventful week, between Egypt’s fourth IMF loan review kicking off, promises of an imminent announcement of a revamped privatization program, and Trump’s reelection.

WATCH THIS SPACE-

Gov’t set to expand PPP offerings with 11 new projects: The government is planning to launch 11 new tenders for investments under the public-private partnership (PPP) model, with targeted investment costs totaling EGP 62 bn, a government source told EnterpriseAM. The offerings come as the government seeks to expand private sector involvement in projects prioritized in the government’s investment plan, the source added.

Five projects have already gotten the greenlight: The PPP Supreme Committee has approved five projects with investments totaling EGP 35.4 bn, with tenders set to be launched soon. These projects include electricity distribution networks, a wastewater treatment plant, a wholesale markets project, and the second phase of the PPP education program.

The rest are pending approval: The six remaining projects are awaiting committee approval. These include projects for water recycling and industrial wastewater treatment.

Adding to our existing slate of PPPs: The source noted that ten contracts with a total of EGP 20 bn in investment costs have been signed this year under the mechanism, including a project to develop strategic goods warehouses, the Tenth of Ramadan dry port, and a solid waste recycling project.

Remember: The government is targeting USD 3.2 bn worth of infrastructure PPPs by year-end.

CAPITAL MARKETS-

Egypt’s first SPAC submits request to list: Impact investor Catalyst Partners’ SPAC, Catalyst Partners Middle East (CPME), has officially submitted a request to list its shares on the EGX, the bourse said yesterday. The SPAC plans to list 1 mn shares with a nominal value of EGP 10 per share — bringing its total issued capital to EGP 10 mn. The SPAC is in the process of finalizing its paperwork ahead of presenting it to the EGX’s listing committee.

Remember: CPME became Egypt’s first SPAC, after receiving the greenlight from the Financial Regulatory Authority (FRA) in late September. CPME will reportedly target fintech firms and NBFS players, with plans to acquire three firms upon receiving the license, according to unconfirmed reports out in July when Catalyst Partners applied for the SPAC license.

IN THE HOUSE-

Madbouly to meet with heads of House committees: Prime Minister Moustafa Madbouly is set to meet today with the heads of the House's 25 committees to discuss the fourth review of our IMF loan program currently underway, upcoming parliamentary elections, and efforts to address the ongoing drug shortage.

FROM YESTERDAY- The House’s Transport Committee approved a government-drafted amendments to the Maritime Trade Law that aim to boost Egypt's commercial maritime capacity by rebuilding and expanding the national fleet. The amendments will enable Egypt’s fleet to handle 25% of Egypt’s foreign trade and generate greater FX revenues.

DEBT-

CBE to issue USD 1.6 bn in USD-denominated t-bills next week: The Central Bank of Egypt plans to auction USD 1.6 bn in USD-denominated t-bills next week, unnamed sources told Al Arabiya.

Remember: The last time the CBE issued USD-denominated t-bills was in June when it raised just over USD 500 mn with an average yield of 5.149%.

FACT CHECK-

No official offers for Ezz Steel shares: Steel giant Ezz Steel denied receiving any official offers or ongoing negotiations for the purchase of its free-floating shares on the EGX, the company said in a disclosure (pdf) to the EGX. The company confirmed that while it received inquiries from investment banks, portfolio managers, and fund managers, no formal offers were made.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 27°C and a low of 19°C, according to our favorite weather app.

It’s a little colder in Alexandria, with a high of 26°C and a low of 17°C.

And over the weekend, expect to see a high of 27°C and a low of 18°C in the capital.

** 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-

With Trump elected for another term, it’s a very politics-heavy morning in the international press. After the US presidential election results were called earlier than initially expected yesterday, Kamala Harris conceded the race to Donald Trump The current vice president’s concession is getting ink in the New York Times, Politico, CNBC, and the Wall Street Journal, among many others. The race to form the 47th US president’s cabinet is now on, with Trump vetting candidates to form his administration. The Financial Times and Politico have more.

The details: Trump secured 295 electoral votes as of this morning, way above the 270 needed to declare a winner, while Harris received some 226 votes. He is also leading the popular vote, with 71.9 mn votes, while Harris is hot on his heels with 67 mn votes.

The Republicans have also taken over the US Senate after securing majority, meanwhile the race for the House is still underway with the Republicans in the lead.

What does a second Trump administration look like? Critically, the Republican Party looks set to secure the two chambers of the Congress in addition to landing the White House, the Wall Street Journal notes. Meanwhile, the Financial Times looks at what Trump’s foreign policy will look like, as Reuters notes that the next few years is looking uncertain for some countries like Ukraine — which is unlikely to receive much support from Washington once Joe Biden’s current term in office comes to a close. The Wall Street Journal, Bloomberg, and the New York Times also get into what the second Trump presidency will likely mean for the economy and the US Federal Reserve.

Egypt to unveil revamped privatization program before December

The revamped privatization program is around the corner: Investment Minister Hassan El Khatib will unveil the revamped privatization program before the end of the month, Prime Minister Moustafa Madbouly told journalists following his weekly presser (watch, runtime: 20:23) yesterday without elaborating any further.

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

Remember: Bloomberg quoted Madbouly in late October saying that his government will be taking another look at its plan to sell off stakes in state-owned companies and assets, and that the sectors and sizes of the stakes of offered companies may be re-evaluated.

Prepare for constant reviews: Madbouly had also said that “current circumstances require us to review it continuously,” rather than once every three years per the policy’s initial guidelines.

We have a rough idea of how the revamped program will operate: El Khatib told us in September at the EnterpriseAM Finance Forum that he’s “not fixated on privatization,” explaining that he instead approaches the topic as “an investor.” El Khatib explained that instead of selling assets quickly and cheaply, “I want to talk about maximizing their value and the returns we get for them, move them to a sovereign wealth fund, have them be run by the private sector, and monetize them to generate more value.”

ON ANOTHER NOTE- Could we get some more time to implement the IMF’s reforms? Egyptian officials and the International Monetary Fund mission in town for the long-awaited fourth review are in discussions over how they can extend the timeline of implementing some of the reforms previously agreed upon with the Fund, Madbouly said. “A very large part of our discussions with the Fund revolve around how we can postpone some of the targets so that we do not put pressure on the citizens in the coming period,” he said.

Remember: President Abdel Fattah El Sisi last month stated that the country might need to revisit the IMF agreement in light of the economic pressures the country is facing as it undergoes agreed-upon reforms. The IMF has expressed willingness to revisit the terms of the agreement, with IMF managing director Kristalina Georgieva saying last week that the Fund has “been very open to adjust the Egyptian program or any other program to what is best to serve people.”

IMF showed a flexible attitude: Madbouly highlighted that Georgieva showed understanding of the economic situation and has directed the mission in charge of the fourth loan review to maintain an open dialogue with the government on the best way to implement these updated targets. “The original targets were agreed upon during different economic conditions, which did not anticipate the current regional crisis,” Madbouly explained.

The EGP is a “truly flexible” currency, Madbouly said, adding that Georgieva applauded Egypt’s commitment to a flexible exchange rate. His comments follow recent reports that investors have been pressing the IMF for an explanation regarding the EGP’s stability amid regional shocks and in light of Egypt’s pledges to maintain a flexible exchange rate.

ICYMI- The USD has been rising against the EGP throughout the week, starting the week at EGP 49.10 is now exchanging hands at up to EGP 49.30.

Fuel subsidies up 232% in first quarter of FY 2024-25 despite price hikes

Fuel subsidies soared in 1Q FY 2024-25: The Madbouly government spent EGP 28.5 bn on fuel subsidies in 1Q of the current fiscal year, marking a 232% increase from the EGP 8.6 bn spent during the same period last year, according to an official document seen by EnterpriseAM. This spike comes despite two rounds of fuel price hikes implemented since the start of the fiscal year — and three rounds throughout the calendar year.

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

Oil prices and a weak EGP hit the fuel subsidy bill hard: The surge in subsidies comes on the back of a global spike in oil prices and the EGP’s depreciation, which have both amplified the cost of fuel imports, a government source told EnterpriseAM. The Oil Ministry has ramped up imports to meet soaring summer demand, especially for mazut, gas, and other petroleum products.

FinMin stepped in to cover dues: The Finance Ministry provided an additional EGP 53 bn to the Oil Ministry to help it settle payments to foreign partners and secure imports for strategic stockpiling, the document showed. This process was expedited during August’s oil price dip, allowing state-owned Egyptian General Petroleum Corporation to lock in lower prices ahead of expected hikes from global production cuts, the source confirmed.

Remember: The government allocated EGP 154.5 bn to fuel subsidies for the current fiscal year in the budget for the FY 2024-25.

The government is negotiating with the International Monetary Fund to delay the fuel subsidy phase-out. Talks are currently underway to adjust the timeline and targets of previously agreed reforms as the Fund begins its much-anticipated fourth loan review, set to conclude in a little under two weeks.

Alas, we’re trying our best: The government is ramping up support for programs to shift vehicles to run on natural gas and electricity, as well as expanding residential gas connections. The report shows plans to convert 455k vehicles over the next four years, averaging 113k per year, and connect 1.2 mn homes to natural gas as a cheaper alternative to gas cylinders. Switching to natural gas could save citizens EGP 30k-49k annually, with added savings for the state budget, according to the document.

Efforts are already underway: Earlier this week, Finance Minister Ahmed Kouchouk told MPs that the government is currently looking into a new initiative that aims to replace gasoline-fired car engines with electric motors or dual-fuel engines that primarily use natural gas.

Central Bank of Egypt eases import restrictions on vehicle

CBE resumes USD access for car importers: The Central Bank of Egypt has instructed banks to begin processing car importers’ requests for USD-denominated letters of credit, ending a six-month halt, two sources familiar with the matter told EnterpriseAM. This policy shift comes as the CBE seeks to lift all remaining USD restrictions, with banks reportedly beginning to reach out to clients on Tuesday.

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

We had an inkling that this was coming: Earlier this week we heard that the government was loosening restrictions on bank financing for non-essential imports including vehicles, which have seen continued import restrictions. Import backlogs have seen auto sales drop in September and August.

It comes with conditions: Imported cars by non-authorized agents will need to have at least two airbags, comply with local safety and security standards, offer aftersale services, and have its essential spare parts available in the market, according to one of the sources. Member of the Federation of Egyptian Chambers of Commerce’s automotive division Montasser Zeitoun argues that these rules are too restrictive, adding to EnterpriseAM that the division is working on a memorandum to be forwarded to the Investment Ministry calling for halting the decision under which these specifications are required.

Another obstacle: Some importers are having difficulty issuing new ACID numbers — a unique ID number that importers obtain for their shipments. Authorities in August resumed the issuances exclusively for car dealerships and diplomats.

A look at the local automotive market at the moment: Rising prices on the back of the float of the EGP have caused the local market to shrink greatly, with vehicle imports falling from an annual 250k to 100k.

Egypt’s foreign reserves continue their upward cruise, coming in at USD 46.9 bn in October

Net foreign reserves reached a new high of USD 46.9 bn at the end of October 2024, up USD 205 mn from September’s USD 46.7 bn, according to data from the Central Bank of Egypt.

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

Here’s the breakdown, according to CBEdata:

FX reserves fell to just under USD 35.5 bn in October, down from nearly USD 36 bn in September.
Gold reserves rose by around 431 mn to USD 11.2 bn, up from USD 10.7 bn in September.
Special drawing rights rebounded over the month, rising to USD 293 mn from USD 20 mn in September.

Sound smart: Special drawing rights — also known as SDRs — are international reserve assets created by the IMF. While not a currency, they are a form of international money that can be used by countries to supplement their official reserves. They are primarily used for IMF transactions, such as repaying loans or increasing quotas.

Egypt’s net foreign reserves have increased by around USD 11.6 bn in the six months since the government announced the USD 35 bn Ras El Hekma agreement, which was followed by the float of the EGP and FX liquidity returning to the official banking system, paving the way for more international funds. In February — the month immediately before the float — foreign reserves stood at USD 35.3 bn.

Madbouly cabinet approves redrafted Labor Act during its weekly meeting

The Madbouly cabinet approved a raft of new decisions during its weekly meeting yesterday, including new legislation, new projects, and two new golden license issuances.

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

#1- Redrafted Labor Act receives cabinet approval: The Madbouly government approved the redrafted Labor Act. The 267-article bill underwent several rounds of discussions with workers and businessmen over the last year, Labor Minister Mohamed Gobran said last month, adding that he hopes to see the new Labor Act last for more than 30 years. The redrafted act received provisional approval from the House’s Manpower Committee last month.

What’s next? The redrafted bill will be referred back to the House of Representatives for a final discussion and vote, Gobran said at the time.

Remember: The government pulled the bill from the House last year after the legislation received backlash from the business community, many of whom claimed that the original version’s terms were lopsided in favor of workers. The new law will include provisions that protect and support irregular workers — who currently make up between 60-80% of Egypt’s total workforce.

#2- Green agribusiness skills development project gets approval: The cabinet approved a presidential decree on a USD 7.1 mn (CAD 9.9 mn) grant agreement for the Egypt Green Skills for the Climate-smart Agribusiness Network Program (EGYCAN) project between the Egyptian and Canadian governments. The project looks to develop employment opportunities in the agribusiness sector by improving climate-smart programs and industry-related skills in the governorates of Beheira, Gharbiya, and Menoufia, and is set to directly benefit over 24k students over its five-year implementation period.

#3- MAFI granted a golden license: Cabinet approved granting MAFI Agricultural Produce Industries a golden license for its agri-food industrial project in Sadat City. The project, which is expected to begin operations in March 2026 and will see investments of just over USD 180 mn, is expected to produce USD 200 mn worth of agri-food products annually during its first phase, and double that when its second phase is up and running, all of which will be exported.

#4- And another one for Coficab: Cabinet also approved granting the Tunisian automotive cable manufacturer Coficab the golden license for its up to USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City. The project is scheduled for completion by the end of June 2025, according to the statement, with the plant set to span some 30k sqm in the Tenth of Ramadan industrial zone and create 267 jobs. The factory is expected to earmark 100% of its output — made using 60% locally-sourced materials — to exports to global markets, including Tunisia, the UAE, Turkey, and Eastern Europe.

CI Capital’s micro-financing arm raises EGP 884 mn in second securitization issuance

CI Capital has closed an EGP 884 mn securitized bond issuance for its micro-financing arm Reefy Microfinance, according to a statement (pdf) from CI Capital.

The details: The issuance was the second of a three-year, EGP 3 bn program. It came in three tranches with tenors ranging between six and 18 months, with two tranches rated Prime 1 and one rated A- by the Middle East Rating and Investors Service (MERIS).

Remember: Reefy kicked off its securitization program in August of last year with a EGP 700 mn issuance.

The plan for the funds: The issuance will provide Reefy with “additional financing capacity and lowers our financing costs. This allows us to offer competitively priced products, fostering sustainable growth for both the company and our clients, in line with the responsible finance principles set by the Financial Regulatory Authority,” CEO Ahmed Labib said.

Advisors: CI Capital acted as sole financial advisor, issuance manager, and lead arranger. Zaki Hashem & Partners provided legal counsel, while Baker Tilly was the auditor.

DATA POINT- This issuance brings the total value of securitized bonds issued in Egypt this year to EGP 27.3 bn, according to data tracked by EnterpriseAM Egypt.

Beltone recognized for its Train to Sustain initiative

Beltone recognized for sustainability and inclusion initiatives: Beltone Holding has won the ‘Best Sustainability Practices for Commitment to Inclusion’ award from the International Labour Organization in collaboration with the Federation of Egyptian Industries and the European Union, according to a press release (pdf). The award celebrates Beltone’s ‘Train to Sustain’ program, an initiative designed to train, upskill, and integrate 20 individuals with physical disabilities and down syndrome into Beltone’s workforce —- marking a significant step toward fostering a more inclusive work environment.

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

Also in the pipeline: “Our ambition is to expand the program through an employment forum where we will share case studies about ‘Train to Sustain’ as a benchmark that can be replicated by some of the biggest corporations to create as many job opportunities as possible for talents with disabilities and individuals with down syndrome,” Beltone’s Chief People and Corporate Sustainability Officer Sherry Bishara said.

AND- Madinet Masr will help restore Bayt Al Razzaz: Real estate developer Madinet Masr will contribute to the restoration of the roof of 15th-century Bayt Al Razzaz, a significant historical landmark in Darb Al Ahmar district, according to a company statement (pdf ). The restoration project — commencing in December — will be carried out in collaboration with the Egyptian Heritage Rescue Foundation and Kahhal Looms.

Amal Ammar to lead the National Council for Women

Amal Ammar appointed National Council for Women’s new head: Assistant Minister of Justice for Human Rights, Women, and Children’s Affairs and longtime judge Amal Ammar is now leading the National Council for Women (NCW) following her appointment by President Abdel Fattah El Sisi for a four-year term, the council announced earlier this week. Ammar was one of the first 30 female judges appointed to the Egyptian judiciary and has a long-standing history working at the NCW, whose helm she takes over from Social Solidarity Minister Maya Morsy.

Global firms are interested in Egypt’s oil sector

ENERGY-

Global firms want a piece of Egypt’s oil sector: China’s Anton Oilfield Services Group and the UAE’s Mubadala Energy are looking to explore investments and collaboration in Egypt’s oil sector, according to Oil Ministry statements. Anton expressed interest in learning more about potential investments in Egypt, while Mubadala said that it was considering participating in the Egyptian Natural Gas Holding Company’s tender launched in August. Discussions with the companies took place on the sidelines of the ADIPEC 2024 conference in Abu Dhabi.

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

PLUS- Energean’s USD 945 mn asset sale to Carlyle set to go through by year end: LSE-listed Energean confirmed in a meeting with Oil Minister Karim Badawi that the USD 945 mn sale of its Egyptian, Croatian, and Italian assets to global investment firm Carlyle is set to go through by the end of the year.

MINING-

New global mining tender to launch before year end: Egypt is set to launch a global tender for gold mining and exploration at approximately 200 sites in the Eastern Desert by the end of the year, Asharq Business reports, citing an anonymous government official. The tender will kick off once the House approves the pending contract for Centamin and Canadian company Barrick Gold’s mineral exploitation areas in the Eastern Desert, initially awarded in 2021.

Remember: We first heard about the tender back in August, with unnamed officials telling Al Mal that the government was preparing to launch an international tender for mineral exploration in Sinai, the Eastern Desert, and the Western Desert before the end of the year. The move comes amid a broader push to develop our mining sector, with Oil Minister Karim Badawi saying last month that the government is preparing a new mining strategy that it plans to unveil next month at the Mining World Conference 2024 in London. This follows July’s Egypt Mining Forum, which saw a number of protocols signed to explore and develop our potential mineral resources.

REAL ESTATE-

Bonyan plans to acquire additional office spaces next year: Compass Capital real estate subsidiary Bonyan is planning on purchasing new administrative buildings next year and acquiring warehouses to lease to companies across different sectors at an undisclosed timeline, CEO Shamel Aboul Fadl told Al Borsa. The company will fund the purchases using funds acquired from its recent capital increase.

M&A WATCH-

An offer for OFH’s fintech arm Klivvr: Orascom Financial Holding (OFH) has received an offer for its entire 98.99% stake in fintech player Klivvr, according to an EGX disclosure (pdf). The offer came from a company dubbed Klivvr Holding, which offered to buy OFH’s 59.4 mn shares at EGP 11.1 apiece, putting the total transaction value at EGP 658.7 mn.

ICYMI- Selling off OFH’s stake in Klivvr has been on the agenda since B Investments acquired 70% of the holding company earlier this year in a share swap agreement.

EARNINGS-

Alex Container and Cargo Handling saw its net income rise 88% y-o-y to EGP 1.8 bn during the first quarter of FY 2024-2025, according to the company’s earnings release (pdf). The EGX-listed company’s revenues grew 75% y-o-y during the same period to EGP 1.9 bn.

ALSO WORTH NOTING-

#1- Medical Packaging Company is looking to invest up to EGP 140 mn to add three new production lines to its operations. The company is in advanced talks with three banks to secure the necessary funds for the new lines.

#2- Telecom Egypt and Alcatel Submarine Networks have completed the landing of the Africa-1 subsea cable system at the Ras Ghareb cable landing station. The second landing will be on Egypt’s Mediterranean and will “enhance global connectivity by providing diversity and resiliency while significantly bolstering broadband traffic capacity.”

#3- Helping KSA with its localization push: Elsewedy Electric partnered with KSA’s Abunayyan Holding to produce high and extra-high voltage power transformers in the Saudi market. The company also launched a procurement tender with Saudi Electricity Company for the domestic production of medium-voltage cable accessories.

Equities, currencies, and bonds react to Trump’s reelection

Markets react to Trump’s reelection: Donald Trump has been elected to his second nonconsecutive term at the White House leaving investors, traders, and policymakers speculating what that could mean for financial markets. The reaction to Trump’s win was immediate with equities, currencies, and bonds all seeing wild swings.

Want a recap of what went down yesterday? Wednesday’s issue of EnterprisePM dove into Trump’s victory and what we can expect from another four years of Trump in the White House. Check out the issue here.

Investor sentiment surged following Trump’s decisive win. “For now, investor sentiment is pro-growth, pro-deregulation, and pro-markets,” Bahnsen Group’s David Bahnsen told Bloomberg. “Finally, US stocks may see tailwinds from not only the election results but a retreat in volatility hedging, corporations moving out of their buyback blackout periods as the earnings season winds down, and strong fourth-quarter seasonality factors (particularly in election years),” said Ameriprise’s Anthony Saglimbene.

Stock markets hit record highs: US stocks soared to fresh highs — the S&P 500 climbed 2.5%, setting its 48th high of the year, the Dow Jones surged 3.6%, and the Nasdaq was up 2.7%. The Russell 2000 index of smaller companies outperformed all of its counterparts, rising 5.6% as investors banked on Trump’s stance in favor of domestically concentrated businesses.

The USD soars: The USD surged, posting its best one-day performance since 2022, with the Bloomberg USD Spot Index rising 1.3%. The greenback’s ascent sent major currencies reeling; the EUR fell 1.8%, marking its steepest one-day drop in over four years, while the JPY fell 1.9%. The GBP slipped 1.2%, marking broad pressure on non-USD currencies.

Not all is convinced the USD rally is here to stay: Trump’s policies on trade and tariffs are seen as “USD-positive,” Tradu’s analyst Nikos Tzabouras told Reuters. However, he argued that Trump “had essentially challenged the long standing strong USD mantra, because he prefers a weaker currency to help with exports and American economic activity,” which could temper this rally.

Bond markets brace for volatility: Treasury yields spiked, as investors reassessed the Federal Reserve’s path forward under Trump’s leadership. The 10-year Treasury yield hit its peak in five months, rising 21 basis points to 4.48%, driven by expectations of tax cuts and tariffs potentially triggering inflation.

Crypto rides the Trump wave: BTC soared nearly 9%, hitting a record high of over USD 76k as investors linked Trump’s victory to potential crypto-friendly policies. ETH followed suit, rising 10%. Trump’s support for digital assets during his campaign has fueled optimism in the sector, bolstering market confidence.

Mixed macro outlook as optimism meets caution: While markets are enjoying a wave of optimism, analysts caution that “the backdrop is complex.” Concerns about budget deficits, inflation, and fewer-than-expected Fed rate cuts are acting as counterbalances to the current bullish trend. Thierry Wizman at Macquarie advised traders to be mindful about pushing “the yield story much further,” as anticipated fiscal restraint could alter bond market dynamics.

The international press is abuzz with Trump’s victory and what it means for financial markets: Reuters | Bloomberg | FT | BBC | CNBC | NYT.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, as investors digest Trump’s reelection. The Nikkei is down 0.2%, while the Kospi is up 0.2%. The Shanghai is up 0.4% and Hang Seng is looking at gains of 0.8%.

EGX30	31,045	+0.8% (YTD: +24.7%)
USD (CBE)	Buy 49.17	Sell 49.30
USD (CIB)	Buy 49.17	Sell 49.27
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,093	+0.6% (YTD: +1.1%)
ADX	9,425	+0.4% (YTD: -1.6%)
DFM	4,616	+0.5% (YTD: +13.7%)
S&P 500	5,929	+2.5% (YTD: +24.3%)
FTSE 100	8,167	-0.1% (YTD: +5.6%)
Euro Stoxx 50	4,801	-1.4% (YTD: +6.2%)
Brent crude	USD 74.92	-0.8%
Natural gas (Nymex)	USD 2.73	-0.7%
Gold	USD 2,669	-0.3%
BTC	USD 75,730	+8.8% (YTD: +79.0%)

THE CLOSING BELL-

The EGX30 rose 0.8% at yesterday’s close on turnover of EGP 4.2 bn (1.7% above the 90-day average). International investors were the sole net sellers. The index is up 24.71% YTD.

In the green: Cleopatra Hospitals (+5.5%), Edita (+5%) and Emaar Misr (+4.6%).

In the red: Telecom Egypt (-1.6%), Juhayna (-0.5%) and Heliopolis Housing (-0.5%).

CORPORATE ACTIONS-

Eipico will raise its authorized capital to EGP 6 bn from EGP 1.5 and its issued and paid-up capital by EGP 200 mn to around EGP 1.7 bn, distributed over 20 mn shares, according to an EGX disclosure (pdf).

My Morning Routine: Ahmed El Banna, founder and CEO, Lighthouse Construction

Ahmed El Banna, founder and CEO, Lighthouse Construction: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is founder and CEO of Lighthouse Construction, Ahmed El Banna (LinkedIn). Edited excerpts from our conversation:

My name is Ahmed El Banna. I’m the founder of Lighthouse Construction and the CEO of two companies, including Lighthouse, and the managing partner of a third. I’m 35, married, and a new dad to a baby boy.

All of our work centers around construction: We have a holding company, an aluminum factory, and Lighthouse Construction. The aluminum factory produces and fabricates aluminum products like facades and windows. Lighthouse handles all aspects of construction for our clients, providing a full turnkey solution from design to execution. Whether a client wants to develop an apartment, office, or commercial space, Lighthouse brings their concept to life.

My day job focuses on anything and everything strategy-related in the organization. My role focuses on strategy and overseeing every department to ensure we’re on the right track. I manage both current and future projects, and keep an eye on our finances to make sure we’re always moving forward.

Problem solving is something I have to do almost everyday, whether with issues that arise in the marketing, finance, or business development departments. My job is to guide the team toward a resolution and provide the direction needed to keep things running smoothly.

I didn’t start my career in construction. After college, I worked as an investment banker in Boston, jumping between a few banks before returning to Cairo. I continued in investment banking here, working for a firm under then-investment minister Ashraf Salman. But I struggled to find my footing in Egypt’s investment banking landscape — it was not the right time, given the revolution and political changes.

I strongly believe in ‘learning by doing.’ There are many people who study something in school and end up doing something completely different. I can say that I have already accomplished a lot by doing in my career — and of course I had my father’s backing and years of family know-how that helped me start my business.

My family has been in the real estate development business since the 1970s, and after leaving investment banking I was looking to get into the construction space. I started working with my father and then I found my own footing as the industry grew in Egypt. There was a lot of money being poured into infrastructure and construction projects, and with my family expertise in real estate, I decided to open a business that correlates with this sector, starting both Lighthouse Construction and the aluminum factory at roughly the same time. There were many opportunities in the market and a gap for real, professional, fit-out construction companies that could measure up to the high-end designers and large-scale projects that were coming out. I saw this market gap and that's what inspired my company.

Modernization is the biggest trend in the construction industry right now. The whole market is really being uplifted, with multiple local and international companies moving into the space and bringing modern takes on construction with them. We’re keeping up with these modernization trends in Egypt, with improvements to finishings and construction as a whole. All industry players are trying to move forward and are looking to use new materials.

I wake up and I’m directly on the phone. My wife definitely doesn’t like it, but there are a lot of very early morning phone calls. I discuss any urgent issues and updates with the project managers on-site, and then I start setting up my day. I get ready, and then I take some time to play with my kid. I try to spend as much time as I can with him in the mornings before the office. It’s the best part of my day. At this age a couple of his smiles give me the biggest boost I need — knowing that I have this little guy to come home to at the end of the day really is a motivation of its own.

I then go through my important emails, including the EnterpriseAM newsletter. It's important to see what the news is like each morning, and I especially enjoy reading other people's stories.

Every work day in the construction sector starts with troubleshooting. I wake up to issues in different sites, and I have to manage the progress of each ongoing project and set daily to-dos with the respective project managers of each site. After that, I tackle any problems as they come in a timely manner. A lot of it also includes having meetings with representatives from companies we are currently working with.

Our biggest project now is with the Italian oil giant Eni, so if I am not on-site there I would be at the office tackling issues, setting up project milestones, and organizing progress meetings with our Italian counterparts. The latter part of the day is for planning the week ahead, including procurements and resource allocations across different projects.

From a business perspective, the one constant in my day is tackling problems with a cool head. As in life, I believe it’s important to keep your cool when trying to solve problems. It could be a delayed contractor, materials that are not coming in fast enough, or a milestone that we’re behind on, but we believe that whatever problems arise, we have to take them on calmly with the goal of fixing them in a timely fashion. As a CEO that’s my main focus everyday, and I believe that my job mainly relies on keeping everything harmonious, and everyone in the company aligned and focused.

A checklist is what keeps me focused and organized. I like to write down all the tasks I have to complete, and all the goals I need to focus on, and then just chip away at them one at a time. I set these daily, but I also have one for the week. That’s honestly how I keep myself sane.

On a personal level, I am looking to spend as much as I can with my family. I want to be there for my son and to try and give him the best life possible.

Professionally, I would like to grow all my companies going forward to become the market leader in aluminum fabrication and construction. The goal is to separate ourselves from the competition and to continue to expand into larger projects, improving our brand name and portfolio.

Work-life balance really is a challenge. When running a company you’re working almost 24 hours a day. I’m on the phone most of the time, even after my work day is over. Even weekends are a struggle because it’s not a nine-to-five, you have many responsibilities.

Spending time with my friends and family is how I like to switch-off. I enjoy going out with my family to have a nice meal, meet some friends, unwind and spend the day together.

A book that I believe has been very influential in my life is How to Win Friends andInfluence People by Dale Carnegie. I would recommend this book for anyone who wants to succeed. I believe a big part of success will always be how you deal with people, and no matter what business you are in, you will have to learn how to deal with colleagues, employees and employers.

The best piece of advice I’ve received came from my father, which was to always give 100% focus to what I do everyday. Work is extremely important for success and the most important thing is not giving up. He taught me that often things can be very tough as a business owner, you can have tough times like cash squeezes and problems at work, but what gets you through it is resilience.

CALENDAR

2024

NOVEMBER

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

8-9 November (Friday-Saturday): Carerha Summit 2024, Cairo, Egypt.

10-12 November (Sunday-Tuesday): Falak Startups’ Fund Manager Masterclass, Cairo, Egypt.

12-15 November (Tuesday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

17 November (Sunday): The House of Representatives reconvenes.

17-19 November (Sunday-Tuesday): Autotech Exhibition for Automotive Aftermarket & Feeder Industries, Cairo, Egypt.

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

25-27 November (Monday-Wednesday): Annual Digital Nation Conference, Cairo, Egypt.

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

28-30 November (Thursday-Wednesday): Cairo International Wood and Wood Machinery Show, Cairo, Egypt

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste.

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

DECEMBER

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK.

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

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja.

7-10 April 2025 (Monday-Thursday) : EFG Hermes One on One conference, Dubai, UAE.

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

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2Q 2025: Safaga Terminal 2 to start operations.

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors.

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.

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