El Sisi says Egypt may reevaluate IMF agreement

Monday, 21 Oct 2024

El Sisi says Egypt may reevaluate IMF agreement

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

LAST NIGHT’S TALK SHOWS

Egypt may reevaluate IMF loan agreement as reform program amps up the pressure -El Sisi

M&A WATCH

Raya Foods’ mystery suitor is Helios Investment Partners.

WHAT WE’RE TRACKING TODAY

The IMF and World Bank annual meetings kick off today.

Manufacturing

Poland’s Feerum allegedly pulls out of grain silo factory.

EGYPT IN THE NEWS

WHO declares Egypt malaria-free.

ALSO ON OUR RADAR

Redrafted Labor Act receives provisional approval from House committee.

WHAT WE’RE TRACKING TODAY

Brics state leaders gather in Russia tomorrow.

PLANET FINANCE

Global economy on the edge: High stakes at the World Bank / IMF annual meetings.

BLACKBOARD

What are the Egyptian public and private sectors doing to bridge the gender gap in education?

WHAT WE’RE TRACKING TODAY

IMF, World Bank annual meetings kick off today

Good morning, all. All eyes are on Washington this morning where the world’s finance ministers and central bank governors are gathering for the IMF and World Bank Group Annual Meetings.

Mashreq Egypt unveils the “most attractive saving option on the market:” Our friends at Mashreq Egypt are offering a 23% interest rate on their Mashreq NEO and e&Mashreq NEO accounts for balances starting from EGP 5k, the company said in a press release (pdf). Users have until 31 December to take advantage of the offer where “interest will be calculated daily with monthly payouts, which is the highest daily interest rate available.” Customers can open a Mashreq NEO or e&Mashreq Neo account through the Mashreq Egypt app or My Etisalat app.

Remember: Mashreq Egypt launched Mashreq NEO — a banking segment that fulfills clients’ on-the-go banking needs — in March.

HAPPENING TODAY-

#1- The IMF and World Bank annual meetings kick off today: Finance ministers, central bank governors, and other big names in the worlds of finance and policy are in Washington DC for the International Monetary Fund and World Bank Group Annual Meetings that run until Saturday. The event will “reflect on where we are, where we are headed, and what to do about it,” IMF Managing Director Kristalina Georgieva said in a speech in the run-up to the event.

What to expect? We have more on what can be expected from this year’s meetings in this morning’s Planet Finance.

Among those representing Egypt at the event will be Planning, Economic Development, and International Cooperation Minister Rania Al Mashat, who will join World Bank President Ajay Banga and others on stage on Wednesday to speak on Agri-Food Systems as an Engine of Sustainable Growth and Job Creation.

You can check out the full schedule on the event’s official website.

#2- Civil Aviation Minister Sameh Elhefny is joining BEBA for lunch today: The British Egyptian Business Association (BEBA) is hosting a luncheon under the title Egypt’s Aviation Sector: A Key Catalyst for Investment, Tourism, and Economic Development with Civil Aviation Minister Sameh Elhefny delivering the keynote address. The event will be held later today at the Conrad Hotel.

HAPPENING TOMORROW-

Brics state leaders gather in Russia: President Abdel Fattah El Sisi will reportedly join the leaders of other Brics nations in Kazan tomorrow for the three-day Brics Summit to discuss economic collaboration, trade, and global governance. During his time in Russia, El Sisi is expected to meet with his Russian counterpart Vladimir Putin and with Iranian President Masoud Pezeshkian, Iranian state news agency IRNA reported.

De-dollarization is expected to be high on the agenda: Russia is pushing for the nine-member bloc that includes Egypt to adopt changes to how local currency transactions are made between member nations to bypass the world’s dominant financial systems. The country argues that by more closely linking and enabling local currency transactions between commercial banks and also central banks in a network, in addition to using distributed ledger technology or a token system, they will be able to bolster bilateral trade between member nations and “ring-fence its participants from any external pressures such as extraterritorial sanctions.”

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 29°C and a low of 21°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 27°C and a low of 20°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.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how Egypt could revive its foil manufacturing industry to reduce its annual USD 120-140 mn import bill for the much-in-demand material. Read the story here.

CIRCLE YOUR CALENDAR-

The annual Carerha Summit is fast approaching: Female-focused edtech platform Carerha will host its annual summit on 8-9 November in Sheikh Zayed’s Capital Business Park, it said in a statement (pdf). The USAID- and DAI-backed event is expected to host 5k attendees and feature “engaging panels, talks, and fireside chats on topics such as empowering women in fintech, success stories of Egyptian brands, leveraging various platforms for business growth, and building businesses at a young age.” Find the link to register on the platform’s Facebook page.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

ENTERPRISEAM IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. EnterpriseAM — the essential morning read on all the important news shaping business and the economy in Egypt, GCC, and the wider region — is looking for writers, reporters, and editors to help us build out new publications.

Never worked in a newsroom before? We have the EnterpriseAM Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the EnterpriseAM Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing EnterpriseAM stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

PLUS- We’re also looking for our first dedicated audience development professional. Someone who loves the challenge of helping us reach new readers in new markets — Saudi, the UAE, and lots more to come —using a range of digital channels and tools. You’re someone who thrives on working in a small, focused team. You’ve got proven digital skills (more likely than not on the performance marketing side). And you want to be part of what we immodestly think is the region’s most exciting media, advisory, and business intelligence company.

Interested? Tell Patrick and Moustafa why and send us your resume on newjobs@enterprise.news. We’d love to hear from you today. The position is based in Cairo, offers two days a week working anywhere you please, and offers a competitive package. (We’re also pretty nice people to work with, if we don’t say so ourselves.)

THE BIG STORY ABROAD-

Israel’s ongoing battering of Lebanon and Gaza is still getting top billing in the foreign press, as it shifts its focus to sites it says are linked with Hezbollah’s financial operations in Lebanon, Reuters reports. Israel launched the bombing campaign yesterday, sending hundreds of Beirut residents fleeing from their homes.

The attacks come a day after a drone reportedly exploded near Prime Minister Benjamin Netanyahu’s home and only a few days after Israel killed Hamas leader Yahya Sinwar. Sinwar’s killing is also fueling speculations over where the war could go next, with some expecting more attempts towards a ceasefire, despite Hezbollah vowing more retaliation against Israel, Semafor reports.

OVER IN EUROPE- Moldovan President Maia Sandu is accusing “foreign forces” of interfering with a crucial vote to decide if the country will join the EU, after most votes were counted showing a 53% majority voting “no” to the referendum. Still, the decision remains too close to call due to the tight margin and the impact of votes among the large Moldovan diaspora. (Financial Times | The Guardian | Reuters)

AND FURTHER EAST- Indonesian ex-military general Prabowo Subianto was sworn in as president yesterday, vowing to tackle corruption and accelerate economic growth in the country during his time in office. (Reuters | France24)

AND IN THE BUSINESS PRESS- US stocks are expected to continue their rally through to the end of the year despite the impact of US elections, with the latest Bloomberg Markets Live Pulse survey forecasting the S&P 500 to end the year at a new record.

*** 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 Egyptian public and private sectors are doing to bridge the gender gap in education.

Tags:

Somabay, every reason to fall in love.

M&A WATCH

Raya Foods’ mystery suitor is Helios Investment Partners

Raya gives preliminary greenlight to Helios Investment Partners’ acquisition bid: Africa-focussed PE outfit Helios Investment Partners ’ offer to acquire 49% of Raya Foods for USD 40 mn has been approved and initially accepted by parent company Raya Holding’s board, the group said in a disclosure to the EGX (pdf). The news follows Raya’s announcement on Thursday that an undisclosed bidder had made an offer for the company.

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

The wheels are already in motion: The company’s board also approved appointing Financial Advice Corporate Transactions (FACT) as the independent financial advisor to determine the fair value of Raya Foods’ shares. Helios Investment’s offer puts the company’s valuation at some USD 65 mn.

Where is the money going? The USD 40 mn investment will go towards developing Raya Foods’ manufacture and export of frozen foods, increasing its production capacity in line with the Raya Holding’s plan to expand internationally, according to a company statement (pdf). The plan is to turn the company from the country’s second largest frozen produce exporter — with an annual production capacity of 50k tons — to the country’s largest through establishing a second factory dedicated to freeze-dried fruits and vegetables.

Market reax: Raya Holding’s shares fell 7.6% during yesterday’s trading to close at EGP 3.18 per share, reversing some of the gains seen during Thursday’s trading — the company’s shares jumped 12.8% when the news first broke out on Thursday.

What they said: “This investment strengthens our diversified investment portfolio and supports our expansion plans into international markets, positively impacting the Egyptian economy and our company’s performance on the Egyptian Stock Exchange, creating added value for our Shareholders,” said Raya Holding CEO Ahmed Khalil.

Helios Investment has big investment plans in Egypt: The company is gearing up to invest some USD 250 mn in Egypt in the near future, with a particular focus on potential investments in the food, consumer, healthcare, and fintech sectors, Al Borsa quotes the company’s Head of Consumer and Healthcare Raed Barkatis as saying.

New investments could take place soon: The firm is currently studying several potential investments in Egypt and aims to invest in multiple companies by next year, he added.

ARLA CAN START ITS EVALUATION OF DOMTY-

Denmark-based Arla Foods can start its due diligence of EGX-listed dairy company Domty after its board greenlit the move, the local cheesemaker said in a statement (pdf). Domty last week postponed allowing Arla to conduct its due diligence until the company responded to board members’ inquiries regarding the potential acquisition.

Remember: Arla last week submitted a non-binding offer to acquire up to 100% of Domty in a transaction that values the home-grown dairy company at some USD 183 mn.

TRIQUERA TO WELCOME NEW SHAREHOLDER-

Minapharm majority shareholder to sell minority stake to unnamed bidder: Triquera — which owns a 79.59% stake in local drugmaker Minapharm — has signed a preliminary agreement with an unnamed investor looking to buy a minority stake in the firm through a capital increase, the company said in an EGX disclosure (pdf). The transaction will help Triquera and its subsidiaries grow in the biotech field and support future investments in similar companies.

What’s next? The mystery bidder will conduct their due diligence of Minapharm and await the necessary approvals.

Tags:

Domty healthcare M&A Watch Minapharm Raya Holding

Manufacturing

Poland’s Feerum allegedly pulls out of grain silo factory

It looks like Port Said’s EGP 1.6 bn grain silo factory has lost its foreign partner: The Egyptian arm of Polish grain silo company Feerum has reportedly pulled out of an agreement to set up a factory to manufacture grain silos with with Egyptian construction and engineering firm Samcrete and the state-owned Egyptian Holding Company for Silos and Storage, an unnamed Feerum Egypt official told Al M al.

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

The why: The company official pointed to the Supply Ministry canceling an order for a silo — which hampered the negotiations with local banks over financing — among other undisclosed reasons.

Feerum was the project’s main shareholder: Feerum holds a 50% stake in the project, Samcrete a 26% share and the Egyptian Holding Company for Silos and Storage a 24% share.

Remember: For years, the state has been working to boost its wheat storage capacity, building more silos and taking out loans to invest in silo development, all with the aim of ensuring none of our local harvest goes to waste due to lack of sufficient silo capacity and increasing wheat reserves. The Supply Ministry has a plan to increase the country’s silo capacity to 5.3 mn tons from its current 2.1 mn tons and cut down on the percentage of wheat that is wasted in the harvest and storage process.

** We did a deep dive into the government’s efforts to build more silos to reduce wheat waste in a Going Green earlier this year. Check out the story here.

Tags:

commodities Manufacturing Samcrete wheat

LAST NIGHT’S TALK SHOWS

Egypt may reevaluate IMF loan agreement as reform program amps up the pressure

El Sisi’s latest remarks dominated last night’s talk shows: The nation’s talking heads honed in on President Abdel Fattah El Sisi’s statements regarding the economic pressures the nation is enduring as the country undergoes reforms as part of its loan agreement with the IMF. “Egypt is implementing the current economic reform program amid very difficult regional and international circumstances,” El Sisi said.

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

Egypt may reevaluate its agreement with the IMF as a result: “If this challenge forces me to place unbearable pressure on the public, we must review the situation with the IMF,” El Sisi said (watch, runtime: 1:45). The president also stated that Egypt has lost between USD 6-7 bn in the past 7-10 months alone — and said that such losses “may continue for another year because of the fallout that we’re seeing.”

Remember: The delayed fourth IMF loan review will focus on reforms like further subsidy cuts, building monetary reserves, capping tax breaks, and boosting revenues.

This isn’t the first time the president has made such comments: El Sisi has previously made similar comments on the impact of the IMF reform program and its conditions on citizens, with the Fund’s demands often facing criticism for being one-size-fits-all, Youm7 chairman Akram Elkassas told Salaat El Tahrir’s Faten Abdel Maaboud (watch, runtime: 7:50). The reforms have been particularly harmful to Egypt’s middle class, which has been significantly impacted by the shocks to the economy, he added.

The goal is to achieve balance: The president’s directives aim to find a balance between reforming Egypt’s economy in order to tackle issues caused by global tensions while also taking into account citizens’ ability to endure these reforms, professor of finance and investment Hisham Ibrahim said on Hadith El Akhbar (watch, runtime: 4:59).

International attention: El Sisi’s comments caught the attention of Bloomberg.

Tags:

Abdel Fattah El Sisi economy IMF LAST NIGHT’S TALK SHOWS

EGYPT IN THE NEWS

Egypt is officially malaria-free

WHO declares Egypt malaria-free: Egypt has been declared malaria-free following a 100-year effort to battle the disease — an achievement that the World Health Organization called “truly historic.”

Egypt is among a handful of countries in the region that have eradicated the disease: Among the 44 countries and one territory that have received the designation, Egypt is only the third in the Eastern Mediterranean Region after the UAE and Morocco. Countries must “demonstrate the capacity to prevent the re-establishment of transmission” in order to be certified, WHO said.

The foreign press took note: Reuters and the BBC took note of the news.

Tags:

healthcare World Health Organization

This publication is proudly sponsored by

ALSO ON OUR RADAR

Redrafted Labor Act receives provisional approval from House committee

LEGISLATION WATCH-

Redrafted Labor Act receives provisional approval from House committee: The House’s Manpower Committee yesterday provisionally 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 told MPs on Sunday, adding that he hopes to see the new Labor Act last for more than 30 years.

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

What’s next? The redrafted bill will be sent to the cabinet for approval and then referred back to the House for a final discussion and vote, Gobran said.

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.

ENERGY-

Gov’t signs MoUs with international firms on energy cooperation: State-owned oil and gas firms and international energy companies inked a number of MoUs on the sidelines of the Mediterranean Offshore Conference and Exhibition (MOC) to enhance cooperation in areas such as operational safety, carbon capture and storage, and decarbonization, according to a statement from the Oil Ministry.

The agreements signed: Both EGAS and the Egyptian Natural Gas Company (Gasco) signed agreements with Greek national gas system operator DESFA, with EGAS’ agreement focused on carbon capture and storage technology and Gasco’s on natural gas transport, carbon capture, and renewable energy. Gasco also signed a cooperation agreement with American risk management firm BakerRisk focused on improving operational safety and energy efficiency. And the Egyptian General Petroleum Corporation (EGPC) and Shell inked an agreement to develop leadership training on health, safety, and environmental issues within EGPC’s subsidiaries.

INVESTMENT-

#1- Titan Capital owner mulls moving some of his investments to Egypt: Japanese real estate mogul and Titan Capital owner Kanazawa Kiyokyo is considering moving a portion of his USD 8 bn in investments to the Egyptian market, he said during a meeting with Housing Minister Sherif El Sherbiny. Kiyokyo added that he hopes to form an investment alliance based in Egypt that will serve as a jumping-off point for broader investment in Arab and African markets.

#2- Egypt’s B-Well eyes USD 20 mn in Gulf investments: B-Well Holding Company — a healthcare firm recently established by Shark Tank’s Ahmed Tarek and Mohamed Farouk — is in talks with investors from Saudi Arabia and the UAE over a USD 20 mn investment for 20% of the company, Tarek told Al Arabiya. The fresh investment will help fund the company’s planned USD 100 mn investment in the healthcare sector over the coming six years, with plans to open 200-300 clinics initially and eventually expand to 1k clinics.

The company also plans to launch a medical tourism platform catering to patients from Europe and the Arab region, with Tarek telling Al Arabiya that the platform should be ready in March or April of next year.

HOUSING-

Gov’t issues new income requirements for subsidized mortgages: The Housing Ministry has published new income limits for low- and middle-income citizens wishing to apply for subsidized housing under the new offering by Social Housing and Mortgage Finance Support Fund, according to a ministry statement.

The breakdown: For low-income citizens, the net monthly income from all sources must be no less than EGP 3.5k and no more than EGP 15k for families and 12k for individuals. Middle-income households’ net monthly income must be at least 12k and not exceed EGP 25k for a family and 20k for an individual.

AUTOMOTIVE-

Raya Holding’s automotive unit Raya Auto plans to invest over EGP 300 mn in EVs over the next three years, Taya Holding CEO Ahmed Khalil told Asharq Business. The investments will be directed toward establishing service centers and after-sales services for EVs. The company aims to sell 2k of its locally-assembled EVs annually.

EXPANSION-

#1- Kazyon to expand in Morocco: Budget supermarket chain Kazyon is investing USD 144 mn to expand in the Moroccan market — particularly in major cities — over the coming four years, Kazyon Morocco CEO told Asharq Business. The company — which currently operates over 1.3k stores across Egypt, Saudi Arabia, and Morocco — has opened 120 stores in Morocco since beginning operations in the country in October 2023, and plans to open an additional 150 stores in the coming year.

Remember:Kazyon stepped into the Saudi market in February of this year with its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction. The company — founded in 2014 by our friend Hassan Heikal, the former EFG Hermes CEO — plans to expand its portfolio to 5k stores across Egypt, Morocco, and Saudi Arabia within the next five years.

#2- Tez Tour eyes expansion into Asia in 2025: Russian tourism firm Tez Tour Egypt has plans to expand into the Chinese and Indian markets by next year, board member Hany Usama told Al Borsa.

#3- Fresh details on the new Huawei office: Chinese tech giant Huawei earlier this week inaugurated its new headquarters in Al Futtaim Real Estate’s Cairo Festival City’s Business District, according to a press release (pdf). The 9k sqm office “is designed and built on a foundation of advanced technological infrastructure, tailored to support its Egypt operations. The workspace promotes collaboration and innovation through cutting-edge design and resources.”

Tags:

ALSO ON OUR RADAR EGAS energy healthcare House of Representatives Housing Ministry investment watch Kazyon legislation mortgage finance oil and gas real estate

PLANET FINANCE

Global economy on the edge: High stakes at the World Bank / IMF annual meetings

Central bank governors, finance ministers, and policymakers are gathering in Washington, DC, today to kick off the World Bank / IMF annual meetings, where the conversation is expected to center on the most urgent challenges confronting the global economy — slow growth and rising debt. The meetings will wrap this Saturday, 26 October.

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

We’re one regional war up this year: While it’s been two years since Russia’s invasion of Ukraine and inflation is finally easing across much of the world, this year’s meetings take place amid sluggish economic growth and rising geopolitical tensions in the Middle East. It’s seen that the widening of Israel’s war could place pressure on global finances, while threatening financial markets, trade, and stability — given that it could involve major commodity exporters.

IN CONTEXT- World Bank President Ajay Banga estimated that damage from Israeli strikes on Gaza is now in the USD 14-20 bn range, adding that the World Bank had provided USD 300 mn, 6x what was normally given, to the Palestinian Authority to help it cope with the ongoing crisis. That amount was small compared to the “large number” that would be needed should the conflict spiral to the wider region, he explained.

The big themes in Washington: IMF Managing Director Kristalina Georgieva warned on Thursday (watch, runtime: 3:56) of a challenging economic outlook, stressing the need for fiscal discipline, Bloomberg reports. “Our forecasts point to an unforgiving combination of low growth and high debt — a difficult future,” Georgieva said, urging governments to rein in borrowing and avoid further fiscal deterioration. Check out our coverage of the World Bank’s semi-annual MENA economic outlook.

A sobering economic outlook: “Medium-term growth is forecast to be lackluster, not sharply lower than pre-pandemic, but far from good enough. Not enough to eradicate world poverty, nor to create the number of jobs we require, nor to generate the tax revenues that governments need to service heavy debt loads while attending to vast investment needs, including for the green transition,” the IMF chief said.

REMEMBER- Global public debt is on track to surpass USD 100 tn by year’s end, representing 93% of global GDP, the IMF said in a blog post ahead of the full release of its October 2024 Fiscal Monitor report this Wednesday. Emerging markets are also facing a wall of debt that many could struggle to repay, with a handful of countries at risk of defaulting over the next decade, S&P Global has said.

US + China in the spotlight: With both high debt levels and modest growth on the horizon, the IMF is warning that spillover risks from the US and China could raise borrowing costs globally. “Governments must work to reduce debt and rebuild buffers for the next shock — which will surely come, and maybe sooner than we expect.” Georgieva said. China cut its loan prime rates by 25 bps today, with additional clarity on economic momentum coming from the 3Q industrial profit data later in the week.

Europe faces fiscal challenges: The UK has already been warned of potential market backlash if it fails to stabilize its debt, as Chancellor Rachel Reeves prepares to present the 30 October budget. In the Eurozone, key reports this week include inflation data and consumer sentiment surveys, with Moody’s poised to deliver a rating decision on France that markets are closely watching.

And Russia eyes further tightening: Russia is considering another rate hike this Friday to tame inflation, potentially restoring the benchmark rate to 20% — a level last seen during the emergency hike in 2022. Meanwhile, Hungary is expected to keep rates unchanged.

MARKETS THIS MORNING-

It’s a mixed start to the week in Asia-Pacific markets, as investors adopt a wait-and-see approach to gauge the effect of China cutting its loan prime rates. Meanwhile, Wall Street futures suggest US markets are set to open in the green.

EGX30	29,529	-2.0% (YTD: +18.6%)
USD (CBE)	Buy 48.54	Sell 48.68
USD (CIB)	Buy 48.55	Sell 48.65
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,883	-0.2% (YTD: -0.7%)
ADX	9,288	+0.1% (YTD: -3.0%)
DFM	4,469	+0.2% (YTD: +10.1%)
S&P 500	5,865	+0.4% (YTD: +23.0%)
FTSE 100	8,358	-0.3% (YTD: +8.1%)
Euro Stoxx 50	4,986	+0.8% (YTD: +10.3%)
Brent crude	USD 73.06	-1.9%
Natural gas (Nymex)	USD 2.26	-3.8%
Gold	USD 2,730	+0.8%
BTC	USD 68,687	+0.6% (YTD: +62.6%)

THE CLOSING BELL-

The EGX30 fell 2.0% at yesterday’s close on turnover of EGP 4.2 bn (2.9% above the 90-day average). International investors were the sole net sellers. The index is up 18.6% YTD.

In the green: Ezz Steel (+6.1%), Oriental Weavers (+4.5%) and Eastern Company (+2.0%).

In the red: Elsewedy Electric (-4.5%), Cleopatra Hospitals (-4.2%), and TMG Holding (-4.0%).

CORPORATE ACTIONS-

Palm Hills has bought back 4 mn treasury shares during Sunday’s trading, it said in a disclosure (pdf) to the bourse. Earlier this month, the property development giant’s board approved buying back 88.2 mn treasury shares, capped at 3% of the company’s issued shares, via the special operations market.

Tags:

Ajay Banga Annual meetings Financial Markets Kristalina Geogieva Planet Finance

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard

BLACKBOARD

What are the Egyptian public and private sectors doing to bridge the gender gap in education?

Egypt is pushing to close the gender gap in education: Egypt is stepping up its efforts to address gender disparities in education, with a clear focus on keeping girls in school and enhancing their learning experiences, according to the Global Partnership for Education (GPE). Despite reaching gender parity in enrollments, more than half of Egyptian girls — around 53% — drop out before completing secondary school, driven by early marriage and deep-rooted gender norms.

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

Why this matters: The fact that over half of girls drop out before finishing secondary school is a pressing issue. Early marriage and entrenched societal expectations are major obstacles, especially in rural areas where female enrollment lags far behind urban regions. Tackling these challenges is essential if Egypt wants to hit its Vision 2030 targets and build an inclusive education system — and by extension, the economy as a whole.

Progress has been made, but there’s still a long way to go: The Egyptian government has made it clear that addressing gender disparities in education is a cornerstone of its broader gender equality agenda. Egypt’s Vision 2030 lays out specific objectives to improve educational opportunities for girls, particularly in marginalized areas. Significant progress has been made in reducing school dropout rates by linking enrollment and access to healthcare with social support through the Takaful and Karama programs, a government source told EnterpriseAM. However, challenges remain, especially in rural areas where cultural traditions and early marriage hinder female education.

Financial barriers to education are a big part of the problem: A key obstacle for girls from low-income families is the financial burden of continuing their education. The government aims to ease this pressure by providing targeted financial support in underserved rural areas, where the gap is widest.

And the private sector has an important part to play in solving this: The private sector should not just focus on setting up schools that cater towards the country’s wealthiest households, but should also be setting up more affordable schools open to a larger section of the population, industry insiders tell EnterpriseAM. Some companies, including CIRA Education, are already doing this, with the educational outfit expanding its affordable education offerings outside of Cairo.

There’s also a regional dimension to the problem that needs addressing: There’s a 12.5 percentage point overall difference for secondary school graduation levels between rural and urban areas in favor of urban areas, according to a working paper (pdf) from the Egyptian Center of Economic Studies (ECES). This disparity — which also affects male students — is something that needs to be addressed, Association of Private School Owners in Egypt head Badawi Allam told us.

Cheap land can help encourage investment into education outside of Cairo: While CIRA Education and others are already focussing on expanding their education projects in the south of the country and in more rural areas, incentives could help persuade many more to do the same. Allam highlighted the need for affordable land to enable the private sector to increase the number of schools, especially in rural areas, to relieve the pressure on public education services.

Bridging the digital divide can also help bridge geographical divides: Digital access is another focus area of the government and its partners, especially in rural regions where internet connectivity and device access lag far behind urban areas. Boosting digital infrastructure is seen as a cost-effective way to ensure all students have access to the same educational resources.

The country’s development partners are and will continue to play an important role in creating a fairer and more accessible education system: Collaborations with development partners are another essential part of Egypt’s strategy. Organizations like UNICEF, GPE, and GIZ are working with the Ministry of Education to make the education system more equitable — and that included being more gender-responsive. One of many programs offered by our development partners is USAID’s Local Scholarship Program that offers scholarships to students, particularly young women, from underserved communities to study at private Egyptian universities.

The government is also aiming for more gender-inclusive curriculums: Ensuring that curriculums are inclusive and relevant to all students is another major part of the reform agenda. The aim is to provide a balanced education for every child, regardless of gender or socio-economic background. According to the government source, a major priority is providing safe spaces for girls, training teachers on gender awareness, and addressing gender-based violence in schools. Creating a safe, inclusive, and gender-sensitive learning environment is a key priority for the government. This includes training teachers to be more aware of gender issues, developing support systems for girls, and addressing gender-based violence in schools.

There’s also a push for more girls to study STEM subjects: A notable aspect of Egypt’s education reform is the push to promote science, technology, engineering, and mathematics (STEM) subjects among girls. Encouraging girls to pursue studies in STEM is seen as a crucial step in closing the gender gap. Initiatives done to address this include the USAID-funded Higher Education Initiative (HEI) and ProGirls, which work to increase girls’ access to STEM education and leadership opportunities, training and encouraging them to pursue careers in technical fields.

But some of the challenges are much more entrenched — and will take more time to solve: Early marriage and entrenched gender stereotypes remain major obstacles to keeping girls in school. Through community outreach programs and legal reforms, the government is working to challenge these norms. The government source pointed out that despite strict penalties against early marriage, the issue remains deeply tied to cultural traditions in rural areas.

Your top education stories for the week:

Egypt once again misses out on making it into the top 10 of the QS Arab RegionRankings for 2025, with the American University of Cairo slipping two places from last year’s ranking to the 13th spot. Cairo University was also demoted a whole nine spots to place 21st in the regional rankings.
Boosting financial literacy: Equiti Group and Sigma Capital have opened a new financial education center in New Cairo, offering workshops and expert-led sessions to boost financial literacy.
The House gave its preliminary approval to establish the National Council forEducation, Research, and Innovation, which will outline and develop education policies. The bill will be put up for final approval from the House later today.

Tags:

Blackboard Education gender

CALENDAR

2024

OCTOBER

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

21 October (Monday): BEBA working luncheon with Aviation Minister Sameh El Hefny, Cairo, 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.

22-24 October (Tuesday-Thursday: 16th Brics Summit, Kazan, Russia

30 October (Wednesday): The CEO Women Conference, Cairo, Egypt.

NOVEMBER

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

7-9 November (Thursday-Saturday): FinExpo Conference and Exhibition, Cairo.

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.

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

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

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

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