Fifth review of our IMF program commences this week

Tuesday, 6 May 2025

Fifth review of our IMF program commences this week

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Today at a glance

What We're Tracking Today

IMF begins fifth review of our loan program this week.

Economy

Current account deficit rises to USD 11.1 bn in 1H FY 2024-2025.

Energy

Five renewable players inch closer to selling electricity to consumers.

FACT CHECK

Hassan Allam Holding isn’t planning to list a stake in its construction arm.

Fintech

Visa goes long on AI-driven commerce, and expands digital payment capabilities.

Energy

Gov’t increases gas purchase price for foreign partners in a bid to boost production.

Also on our Radar

La Poire eyes Saudi expansion.

PLANET FINANCE

Chinese exporters are looking to third countries to bypass US tariffs.

Going Green

The country’s EGP 200 bn scrap sector could be a sleeper hit.

What We're Tracking Today

IMF begins fifth review of Egypt’s loan program this week

Good morning, all. We have another busy issue for you this morning to ring in the first hump day of May. Leading today’s issue is the central bank’s balance of payments report for the first half of the current fiscal year. Meanwhile, Egypt is inching closer to the liberalization of the electricity market, and a team from the IMF is inbound as the institution prepares to kick off its fifth review.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 32°C and a low of 21°C, according to our favorite weather app.

It’s almost as sunny in Alexandria, with a high of 31°C and a low of 17°C.

** DID YOU KNOW that we cover Saudi Arabia and the UAE?

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FACT CHECK-

Our friends at Hassan Allam Holding aren’t planning to list their construction arm, contrary to a report making the rounds in other media yesterday. A company official tells us that the regional construction, engineering, and infrastructure giant has no intention of taking Hassan Allam Construction. A report had claimed the company planned to execute the transaction this month via a SPAC listing on the Egyptian Exchange.

WATCH THIS SPACE-

#1- A team from the IMF is en route to Egypt: “A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week. Further details will be communicated at the conclusion of the mission,” IMF Press Officer Angham Al Shami said in a note seen by EnterpriseAM.

What to expect: The preliminary mission from the Fund is set to touch down in Egypt at some point this week to begin reviewing data ahead of a two-week visit from a full mission in preparation for a staff report later down the line, three government sources told EnterpriseAM.

We’re told that the Finance Ministry will present reports detailing reform progress, the draft budget for the upcoming fiscal year, and updated versions of the state's debt and tax policy documents. Also in the schedule are meetings with officials from the investment and international cooperation ministries and the central bank to discuss expected FX inflows, upcoming investment agreements, and the plan to boost FX reserves.

Once the mission reviews and analyzes the data, a full IMF delegation will arrive to complete the review and issue its report on whether Egypt has passed the fifth review, which will be passed on to the IMF’s Executive Board for approval.

The government expects to unlock a USD 1.3 bn disbursement from the review. While no timeline has been confirmed yet, we can expect the next disbursement in June, one of the sources told us.

#2- A tranche of the EUR 4 bn grant from the EU could land in state coffers within weeks, EU Ambassador to Cairo Angelina Eichhorst told MENA news agency. The financing — part of a broader EUR 5 bn macro-financial assistance package agreed in March 2024 — was approved by the European Parliament last month.

Talks are still ongoing: Egyptian-EU discussions regarding Egypt’s reforms agenda under the assistance package are still ongoing, Planning Minister Rania Al Mashat told EnterpriseAM. Egypt is following up with the European Commission on the structural reform measures tied to the second phase of the package, she said.

#3- The state is considering a proposal to allow every family to purchase a residential unit with affordable mortgage terms, including a subsidized interest rate and a repayment period of eight years at most, according to a cabinet statement. The initial plan prohibits selling the properties for a certain period of time.

HAPPENING TODAY-

#1- We will get our first insight into how Trump’s tariffs are affecting the country’s private sector later today with the release of Egypt’s PMI data for April from S&P Global. The country’s PMI slipped back into contraction territory in March after two months of modest growth, dragged down by weakening demand and slower output.

#2- President of the European Bank for Reconstruction and Development (EBRD) Odile Renaud-Basso will conclude her two-day visit to Egypt today. While in Egypt, Renaud-Basso’s agenda includes meetings with President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, some other members of the Madbouly cabinet, and private sector players.

Renaud-Basso hailed Egypt as one of the EBRD’s most strategic markets, saying the bank is “fully committed to supporting inclusive and sustainable economic growth, unlocking the vast potential of Egypt’s green economy, and creating opportunities through private sector development, investment in critical infrastructure and job creation.”

Planning Minister Rania Al Mashat emphasized Egypt’s efforts to scale back public investment and make room for private capital during her meeting with Renaud-Basso yesterday, according to a statement. Al Mashat noted that Egypt’s private sector development financing hit a five-year high in 2024, surpassing government financing for the first time. The two also discussed preparations for the EBRD’s 2025 Annual Meeting and Business Forum in London on 13-15 May, set to foster further cooperation.

#3- It’s the second and final day of the D-8 ministerial meeting on tourism taking place in Cairo. The meeting discussed increasing sector cooperation between member states — Bangladesh, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey, and Egypt — and who the group will choose as its tourism capital, according to a statement.

#4- It’s the final day of Siemens Mobility’s two-day Mobility Talk student summit held at Cairo University, a company statement (pdf) reads. The summit brings together over 2k engineering students and fresh grads for panels, workshops, and front-row seats to Egypt’s high-speed rail project — part of Siemens’ drive to localize talent and build out the country’s rail workforce.

HAPPENING TOMORROW-

The 2025 Pan Arab Junior and Ladies Golf Championship is kicking off tomorrow at Madinaty and Katameya Dunes. The four-day tournament is open to players from members of the Arab Golf Federation across multiple age groups and includes a ladies’ category. The event will be open to spectators with a golf festival and other activities to draw in new audiences.

CIRCLE YOUR CALENDAR-

One for the F&B professionals: Fi Africa and ProPak MENA will take place between 2-4 June at the Egypt International Exhibition Center. The annual conference (pdf) — which focuses on the food, beverage, and packaging industries — will bring together over 400 exhibitors from Egypt, the Middle East, Asia, and Europe, as well as over 16k attendees. It will feature talks and workshops for F&B and consumer goods manufacturers and showcase new technologies in a bid to promote potential investments and encourage sustainability and food waste reduction. You can register for the event through the link available on the Fi Africa and ProPak MENA websites.

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

THE BIG STORY ABROAD-

Gaza campaign intensifies: Israel’s cabinet approved plans yesterday to control large parts of Gaza indefinitely and relocate Palestinians to “sterile zones” all across the strip, while taking over aid distribution. Israeli officials signalled the intensive plan will be implemented only if a ceasefire failed to materialize by the time US President Trump leaves the region after his anticipated gulf summit in mid-May.

Houthis are not backing down: Despite intensifying strikes by the US and allies, the militant group announced a “comprehensive” aerial blockade on Israel, promising to repeatedly target key airports and urging international airlines to cancel all flights to Israeli airports.

ALSO- OpenAI listened to widespread criticism and decided to halt plans to turn for-profit. The plan would have spun the ChatGPT maker into an independent entity from the nonprofit that currently holds a controlling stake, which raised concerns of subverting governance safeguards that are supposed to keep AI tech development in check.

AND- Trump is threatening tariffs (what else is new?) that could reach 100% on films made outside of the US, a move that could significantly hurt movie production in many regions, including the Middle East.

*** 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 at Egypt’s EGP 200 bn crap sector and what some businesses are doing to utilize it.

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IMF What We're Tracking Today

Somabay Sports Arena steps up as a leading sports destination by welcoming new partnership with S Tennis Academy and expanding its partnership with Oneflow to manage Football Courts and the Aquatics Center. With global training camps, elite facilities, and stunning surroundings, Somabay continues to shape the future of sports tourism on the Red Sea.

Economy

Egypt’s current account deficit rises to USD 11.1 bn in 1H FY 2024-2025

Egypt’s current account deficit widened to USD 11.1 bn in 1H FY 2024-2025, up from USD 9.6 bn in the same period last fiscal year, driven by an increase in the trade deficit and a drop in Suez Canal revenues, according to central bank figures (pdf).

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

BoP still in the red: The overall balance of payments recorded a deficit of USD 502.6 mn during the six-month period, compared with a USD 409.6 mn deficit a year prior.

DRIVING THE RISE-

#1- Suez Canal revenues tumbled: Transit receipts from the Suez Canal dropped 62.3% y-o-y to USD 1.8 bn on the back of Red Sea disruptions that pushed ships to reroute away from the canal. Net tonnage fell 69.2% and vessel transits were down 52.2%.

#2- Non-oil trade deficit widened: The non-oil trade deficit grew 33.8% y-o-y to USD 20.8 bn as non-oil imports rose 26.9% to USD 36.6 bn due to increased spending on wheat, soybeans, pharma products, and car parts imports. This increase was slightly offset by a modest increase in non-oil exports, which were up 18.8% y-o-y, reaching USD 15.7 bn, driven by exports of wires and cables, clothing, aluminum, and fruit.

#3- Oil imports surged: Oil imports jumped 53.3% y-o-y to USD 9.7 bn due to higher imports of natural gas, oil products, and crude oil. Meanwhile, oil exports fell 7% y-o-y to USD 3 bn on the back of lower crude and gas exports. This pushed the oil trade deficit to USD 6.7 bn from USD 3.1 bn last year.

#4- Portfolio investments reversed: Portfolio investment in Egypt registered a net outflow of USD 3.7 bn, compared to a net inflow of USD 253 mn a year earlier.

EASING THE PRESSURE-

#1- FDI inflows grew: Net FDI inflows rose to USD 6 bn from USD 5.5 bn a year ago. The bulk of the figure came from non-oil sectors, led by greenfield investments, real estate purchases by non-residents, and reinvested earnings.

#2- A jump in remittances: Remittances from Egyptians abroad soared 80.7% y-o-y to USD 17.1 bn, as flows returned to official channels after the float of the EGP put an end to the parallel market that had pushed remittance flows through unofficial channels.

** READ MORE- We dive into the latest remittances figure and the reason behind their continued upward pace in a story published last month. Check it out here.

#3- Tourism revenues on the rise: Tourism revenues rose 12.4% y-o-y to USD 8.7 bn, driven by a 12.4% y-o-y increase in tourist nights to 93.5 mn.

#4- Investment income deficit eased: The investment income deficit narrowed 17.2% y-o-y to USD 7.9 bn as investment income payments fell 10.7% to USD 9.2 bn while receipts rose 70.9% to USD 1.3 bn.

REMEMBER- Egypt’s current account deficit more than quadrupled to USD 20.8 bn in FY 2023-24, driven by a significant increase in trade deficit and a decline in Suez Canal revenues. The country recorded an overall balance of payments surplus of USD 9.7 bn during the fiscal year, supported by structural reforms introduced during the second half of the year that brought in net inflows of USD 29.9 bn.

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Energy

Five renewable players inch closer to selling electricity to consumers

Another step toward electricity market liberalization: The newly independent Egyptian Electricity Transmission Company (EETC) has approved five private renewables players for electricity sale licenses, a government source told EnterpriseAM.

The selected five: The companies approved to obtain the licenses operate five solar and wind plants, each with a 100 MW capacity.

The details: The Electricity Ministry will establish fair pricing mechanisms to be regularly reviewed; electricity producers will pay the Egyptian Electricity Holding Company (EEHC) licensing and transmission service fees; and the Egyptian Electric Utility and Consumer Protection Regulatory Agency will oversee agreements.

ICYMI- The EETC separated from the EEHC last month as part of a broader plan to liberalize the electricity market by turning the state’s electricity companies into market regulators and opening the door for the private sector to both produce and buy electricity from each other.

Mark your calendars for 2026: Government sources previously told us that the state is working to liberalize the country’s electricity market by 2026.

A long time coming: Liberalizing the country’s electricity market has been on the government’s agenda since at least the 2015 Electricity Act, which gave the state’s electricity companies eight years to complete the transition to market regulators by 2023 and proposed separating power generation from transmission and distribution to boost private sector participation. This was extended another two years to 2025 back in 2020 — and now appears to be working toward a 2026 deadline instead.

More to private sector involvement in electricity distribution? The Madbouly government plans on partnering with a number of private players, the source tells us, adding that some 105 private companies are already producing electricity to supply to remote areas, but this latest move will allow them to produce, distribute, and transmit power directly to clients nationwide.

Private players have been waiting for this move: Some 20 private sector energy players — including Infinity, KarmSolar, and Norway’s Scatec — voiced their interest last year in supplying electricity to other private sector companies through renewable energy projects under the peer-to-peer (P2P) system. The system enables private sector companies to produce and sell renewable energy via the national grid to companies in the private sector.

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Egyptian Electricity Transmission Company electricity energy

Fintech

Visa goes long on AI-driven commerce, and expands digital payment capabilities

Imagine a world where your personal AI agent is able to help you plan, book and pay for everything from a highly-customized weekend getaway, to a business trip, or even your child’s birthday party — all in a matter of minutes. That’s the future the financial services giant imagines with a suite of products and services it unveiled at a global product drop in San Francisco last week.

Welcome to what Visa is calling “Visa intelligent commerce,” which it said will allow AI agents to find and buy products and services for their human masters. EnterpriseAM was there as Visa CEO Ryan McInerney and Chief Product and Strategy Officer Jack Forestell showcased the products they think will drive the next wave of AI-driven commerce and money movement.

The promise: Give the bot your credit card, your size, and the cut and color you want, and it will go find that perfect pair of jeans for you. “As new ways to pay emerge, they need to run on a network that is always on — that is safe, secure, scalable and relentlessly innovating,” said McInerney. “We are taking the power of our network and our decades-long expertise to bring new products and solutions that will transform commerce and bring trust and security to AI-enabled payments,” he added.

Roll-your-own AI commerce: A key focus of the gathering was Visa Intelligent Commerce, through which Visa is opening its payments network to developers and engineers building the first generation of AI commerce.

Visa thinks AI commerce could have an impact on the same magnitude as e-commerce itself: “We believe that the shift to AI driven-commerce will rival the level of impact that e-commerce had,” said Forestell. “E-commerce relieved us of the burden of having to physically go out and find merchandise, but we still have to find ways to comb through and compare every available product on earth before making a purchasing decision.”

How? AI agents. “AI agents have the potential to remove that cognitive burden and to save the user an extraordinary amount of time, but in order for AI driven commerce to work, we have to solve the payment problem which is largely rooted in trust.”

SOUND SMART- Boosters of the technology see an AI agent as smart software “unleashed”: It can “see” its digital environment, roam the web, make decisions, and act on its own to achieve specific goals you set for it.

The promise? Big boosts in efficiency by automating complex workflows 24/7, hyper-personalized customer interactions at scale, and freeing up people for higher-value work. Imagine streamlining everything from logistics to financial analysis.

The catch? AI agents are very much in their infancy. They’re complex and costly to build and integrate. Ensuring they operate safely, ethically, securely, and reliably — without going off-script — is the key challenge. Then there’s managing data privacy and figuring out who’s responsible if things inevitably get complicated or go awry.

Visa says its network is key to getting businesses and developers to build AI commerce on a foundation of trust. “Visa will bring trust to AI commerce by providing a simple way for our partners — AI platforms, tech players, banks, fintechs, merchants and more — to access the Visa network. This is the next step in Visa’s journey to connect even more buyers and sellers through seamless, secure digital payments,” explained Forestell.

Also in Visa’s pipeline: AI-ready cards, which involve upgrading Visa cards with tokenization and authentication to ensure secure transactions with AI agents. Simple and secure AI payments will be facilitated through new services like payment instructions and payment signals, providing trust, transparency, and control for all parties involved, the company says. And AI-powered personalization could inject insights from bns of payment transactions — provided the privacy implications can get sorted out.

Also in the news: The San Francisco event also featured updates on Visa's broader product roadmap, including advancements in digital identity, flex credentials, and stablecoins. The company also launched Visa Pay and Visa Accept, two new products designed to expand access to the Visa network for consumers and sellers.

In context: Visa’s tech is still in the early testing phase. Mastercard says it’s working on something it is calling “Agent Pay” that will also integrate payments into AI chatbots, and PayPal showed off an agentic AI toolkit last week

Want a taste? Catch Visa’s teaser for the event here.

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AI Fintech Mastercard PayPal Visa

A MESSAGE FROM EZZ ELARAB

Ezz Elarab redefines luxury with Ferrari takeover

When iconic Italian horsepower meets the stunning Red Sea coastline and Egypt’s premier automotive group, it results in a historic weekend.

This April, Ezz Elarab orchestrated an unprecedented event in Egypt: a full-scale Ferrari takeover of Sharm El Sheikh. This ultra-exclusive, high-octane getaway brought Ferrari owners from across the country together for an experience that was nothing short of cinematic.

The weekend kicked off with a curated Ferrari parade through the heart of Sharm, seamlessly blending modern design with timeless scenery. The following day was dedicated to pure adrenaline: a private track day featuring time trial races, offering participants a chance to qualify for an upcoming Ferrari road trip.

This event was more than just a display of luxury; it was a celebration of community — a Ferrari family. With flawless execution, supported by Sharm El Sheikh’s local governance, Ezz Elarab once again demonstrated that when they promise luxury, they deliver it.

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A MESSAGE FROM EZZ ELARAB Ezz ElArab Automotive

Energy

Egypt increases gas purchase price for foreign partners in a bid to boost production

Egypt hikes gas purchase price for foreign partners: The Madbouly government has agreed with Italian energy player Eni to raise the purchase price of new natural gas from onshore areas by 60%, a government official told Asharq Business. The hike will apply to output from sites managed by Agiba — a JV between Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC).

How much are we talking? The purchase price will more than double to USD 4.25 per mn British thermal units (BTU), up from USD 2.65 per mn BTU, the official said.

Egypt is looking to incentivize foreign players to boost production by increasing the purchase price for their share of natural gas in a bid to meet the local market demand. Eni currently produces some 110 mn cubic feet per day (mcf/d) of gas in Egypt — with the move set to increase the value of its share of natural gas output in the country even further, the official added.

REMEMBER- We have big energy plans for the year, with unconfirmed reports last year saying that the government is looking to see domestic production rise by 30% to 6 bn cubic feet per day by the end of 2025.

Not the first we’ve seen: Egypt agreed to increase the purchase price of newly extracted gas from US-based Apache in March.

Behind the push: Most mid-to-smaller-size firms have significantly downscaled operations due to lack of cashflow receivables — even accepting payments to be made in EGP — which in recent times has been “very scarce,” an industry source told Mees.

The solution: “The [oil] minister is offering them improved contractual terms, in the hope that better future cash-flows convince them to stay and invest, but they cannot go [spending in excess of revenue] beyond a certain limit,” the source noted.

Eni has a lot in the pipeline: Eni is reportedly in talks with a Baker Hughes-led consortium to deploy USD 300-400 mn to boost output from its Zohr concession through the drilling of two new wells. The energy player is set to launch development work on a new onshore site in 2Q 2025, after the price of the gas produced is bumped up, the official added. The Italian player also plans to begin producing 100 mn cf/d of gas from its Noor field off Egypt’s northern coast by mid-2026.

Background: Eni earmarked EUR 8 bn in investments for the country’s energy sector over the next four years as part of a wider EUR 24 bn plan across North Africa, CEO Claudio Descalzi said last month. “Internal demand in these countries — because of demographic growth — is increasing at about 7-8% every year, this means they need gas ... they need investment,” he said.

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energy Eni oil and gas

Startup watch

Egypt’s Money Fellows secures USD 13 mn in latest round

Local fintech startup Money Fellows raised USD 13 mn in a new funding round, bringing the company’s total funding to USD 60 mn, the company said in a statement (pdf). The investment was secured in a pre-series C round, according to TechCrunch. The round follows the company’s USD 31 mn series B funding round closed in 2022.

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

The backers: The round was led by Al Mada Ventures and VC fund Nclude. It also drew investments from existing investors Partech and CommerzVentures.

Money Fellows will use the funds to support its expansion into new markets, including Morocco — where the company plans to launch by year-end, according TechCrunch. The company is also exploring comparable markets in Africa and South Asia.

Scaling up the platform is on the agenda: Money Fellows plans to upgrade its digital platform to support its growing user base of over 8.5 mn users. This includes rolling out investment, payroll, ins., and remittance products at a later stage, according to the news outlet.

REMEMBER- Money Fellows earlier this year launched a new prepaid card for collaborative lending associations or “money circles” in collaboration with Banque Misr and Mastercard.

What does MoneyFellows do exactly? MoneyFellows creates digital rotating savings and credit associations (ROSCAs) — known in the region as a gameya — using a scoring model, as a way to offer peer-to-peer, no-interest lending. The members of each circle commit to paying an installment into a pool every month, with a different member taking the whole pool as a payout each month.

More funds are coming in 2026, according to TechCrunch, which reports that a “much larger series C round” is slated for next year.

FORAS SNAGS 10% STAKE IN UAE-BASED CANATER-

AI-focused investment firm Foras acquired a 10% stake in UAE-based logistics and supply chain startup Canater in a USD 1 mn transaction, a press release reads. The investment will help Canater solidify its position in the market, broaden its service offerings to more industries, and enhance its digital platform to “offer a more comprehensive and seamless experience for its clients.”

What they said: “Our investment in Canater reflects our confidence in its leadership team and their ambitious vision to empower local companies to compete on an international scale,” Foras CEO Mohamed Aboulanaga said.

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MoneyFellows Startup watch

DEBT WATCH

Tasaheel closes Egypt’s largest-ever corporate bond issuance

Tasaheel closes EGP 2.5 bn bond issuance: MNT-Halan microfinance subsidiary Tasaheel closed a EGP 2.5 bn corporate bond issuance — Egypt’s largest to date — the company said in a press release (pdf). The issuance came in two tranches with tenors of 12 and 36 months and received a BBB+ investment-grade rating from Middle East Ratings and Investors Service (MERIS).

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

What they said: “This issuance supports our ability to meet growing demand for business loans and reinforces the scale and efficiency of our lending operations. It reflects confidence in our business model and our commitment to serving more small and medium-sized businesses across Egypt,” Tasaheel Managing Director Islam Ayyoub said.

Advisors: CI Capital acted as the issuance manager and bookrunner. KPMG served as financial auditor, while Matouk Bassiouny & Hennawy acted as legal counsel.

Tasaheel has been active on the debt market: By our count, this marks Tasaheel’s third bond issuance of the year — the firm kicked off 2025 with a EGP 5.1 bn securitized bond issuance and a month later followed that up with a EGP 7 bn social sukuk issuance.

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corporate bonds debt debt watch MNT-Halan Tasaheel

Moves

Orange Group taps Yasser Shaker as CEO of Orange Middle East and Africa

Orange Group has appointed Yasser Shaker (LinkedIn) as CEO of its Middle East and Africa operations, effective 1 July 2025, the company said in a press release. Shaker has been the CEO of Orange Egypt since 2018, prior to that he was the CTIO of Orange Middle East and Africa. He brings over 25 years of experience to the role.

What they said: “I am also delighted with the appointment of Yasser Shaker as CEO of Orange Middle East and Africa. His extensive experience and deep knowledge of the region will be essential for continuing our growth momentum,” Christel Heydemann, CEO of the Orange group, said.

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moves Orange Egypt

LAST NIGHT’S TALK SHOWS

How are Old Rent Law discussions unfolding at the House?

The Old Rent Law was the main talking point on the airwaves for the nth night running, as parliamentary discussions over the proposed amendments to the law continued to unfold.

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

Skepticism over the data underpinning the law: Kelma Akhira’s Lamees El Hadidi had coverage (watch, runtime: 1:28) of growing debate in the House over the reliability of the 2017 data from state statistics agency Capmas used to draft the amendments. One MP told Al Hayah Al Youm’s Lobna Asal (watch, runtime: 6:10) that several lawmakers have requested updated figures from Capmas on the number of residential units still under the old rent system.

If the amendments don’t pass, contracts under the old rend system will be nullified, Parliamentary Affairs Minister Mahmoud Fawzy told MPs during their discussion of the amendments, explaining that the move would come as a result of the Constitutional Court ruling that deemed fixed rents unconstitutional. Al Hayah Al Youm had coverage (watch, runtime: 3:23).

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LAST NIGHT’S TALK SHOWS legislation

Also on our Radar

Elsewedy Electric snaps up 60% in Thomassen Service

M&A-

Elsewedy Electric acquired a 60% stake in Dubai-based Thomassen Service as the company expands its global footprint and diversifies its capabilities in the energy sector, according to a statement (pdf). The acquisition consists of Thomassen’s Middle East and Africa business unit, filters manufacturing, and its African business affiliate and marks Elsewedy’s expansion into the oil and gas industry.

What they said: “This acquisition is a strategic step toward delivering fully integrated, end-to-end solutions in the energy business. We are reinforcing our position as a comprehensive energy partner capable of executing projects from inception to long-term operation with unmatched efficiency and reliability,” said Elsewedy Electric Senior Vice President Wael Hamdy.

EXPANSION-

La Poire Patisserie is eyeing an entrance into Saudi Arabia as part of an expansion plan, parent company Pico Group CEO Salah Diab told Al Arabiya. The plan includes establishing a patisserie factory and commercial branches in the Kingdom. The expansion’s budget is still under study, while its timeframe hasn’t been disclosed.

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

CAPITAL MARKETS-

The voluntary carbon trading market branded as the Egyptian Climate Exchange (EGCX), according to an EGX statement (pdf). The rebranded market will now also accommodate more types of sustainability-linked financial instruments (not just carbon credits) — including energy attribute certificates (EACs), which track and verify the origin of renewable energy.

REMEMBER- The market launched in August of last year, becoming Africa’s first carbon market. The EGCX allows companies to issue, sell, and buy voluntary carbon certificates in Egypt and Africa to offset emissions.

EDUCATION-

Egypt is getting its first diploma in process safety management: The Oil Ministry, Methanex Egypt, and the American University in Cairo (AUC) have teamed up to launch Egypt’s first Process Safety Management (PSM) diploma, aimed at upskilling workers in the oil, gas, and petrochemical sectors, under a MoU the three sides inked yesterday, according to a statement from the university (pdf) and another from Methanex (pdf). Over the coming three years, 150 Oil Ministry professionals will take part in the program with Methanex providing funding and technical input and AUC overseeing the academic framework and certification. The initiative aims to embed stronger safety practices across Egypt’s energy sector.

REAL ESTATE-

Palm Hills Developments booked EGP 80.2 bn in new sales during the first quarter of the year, up 148% compared to the same period last year, the company said in a statement (pdf). The jump came on the back of strong demand across key projects, including Badya, Palm Hills New Cairo, P/X, and Palm Hills Alexandria.

EARNINGS-

State-owned Egypt Aluminum saw its net income increase 89.3% y-o-y in 9M FY 2024-2025 to EGP 9.9 bn, according to the company’s latest financials (pdf). The company’s revenues for the period were up 42.7% y-o-y, reaching EGP 32.1 bn.

Driving the growth: EgyptAlum attributed its strong results to adjusting its pricing strategy and improving its market share, as well as optimizing its import and export operations. It also cut production costs through better raw material sourcing and strict cost controls while adapting to global economic conditions.

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ALSO ON OUR RADAR Education Egypt Aluminum Elsewedy Electric healthcare Palm Hills Developments private equity real estate

PLANET FINANCE

Chinese exporters are looking to third countries to bypass US tariffs

Chinese exporters are rerouting shipments through third countries in an attempt to avoid the steep US tariffs of up to 145% imposed on incoming Chinese goods, the Financial Times reports. The tactic — known as place-of-origin washing — conceals where shipments actually come from by shipping goods to another country, repackaging them, and then issuing a new certificate of origin before being sent to the target market.

Social media sites in the world’s factory are full of posts advertising export washing services, indicating that this hard-to-quantify issue may be larger than we think. “The US has imposed tariffs on Chinese products? Transit through Malaysia to ‘transform’ into Southeast Asian goods,” the salmon-colored paper quotes one online advert as saying.

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

Some of these third countries are already fighting back, including South Korea, which uncovered USD 21 mn worth of falsely labeled products — the majority of which came from China — in the last month alone. Vietnam and Thailand are also ramping up efforts to introduce stricter measures to prevent this practice.

But the problem seems to be getting worse, with South Korea’s customs agency “seeing a sharp increase in recent cases…because of the US government’s trade policy change.”

There are also other schemes exporters are using to get around US tariffs, including putting higher cost items with lower cost items in a bid to falsely claim a lower overall shipment cost, a shipping consultant told the paper.

The practice is also causing concern for US importers, as they will be the ones having to pick up the tab if US customs picks up on a mislabeled shipment. One senior executive at a major Amazon seller said they had seen altered origin documents and are now reluctant to work with Chinese suppliers.

MARKETS THIS MORNING-

Asian markets are in the green this morning — the Shanghai Composite is up 0.6% and the Hang Seng is up 0.4%. Korea’s Kospi is closed in observance of Vesak Day and Japan’s Nikkei is closed as the country observes Greenery Day.

EGX30	32,212	-0.4% (YTD: +8.3%)
USD (CBE)	Buy 50.61	Sell 50.75
USD (CIB)	Buy 50.63	Sell 50.73
Interest rates (CBE)	25.00% deposit	26.00% lending
Tadawul	11,423	+0.1% (YTD: -5.1%)
ADX	9,566	-0.1% (YTD: +1.6%)
DFM	5,345	+1.0% (YTD: +3.6%)
S&P 500	5,650	-0.6% (YTD: -3.9%)
FTSE 100	8,596	+1.2% (YTD: +5.2%)
Euro Stoxx 50	5,283	0.0% (YTD: +7.9%)
Brent crude	USD 60.23	-1.7%
Natural gas (Nymex)	USD 3.57	+0.6%
Gold	USD 3,341	+0.6%
BTC	USD 94,898	+0.6% (YTD: +1.4%)
S&P Egypt Sovereign Bond Index	861.9	+0.1% (YTD: +10.8%)
S&P MENA Bond & Sukuk	143.7	-0.2% (YTD: +2.7%)
VIX (Volatility Index)	23.6	+4.2% (YTD: +36.3%)

THE CLOSING BELL-

The EGX30 fell 0.4% at yesterday’s close on turnover of EGP 4.7 bn (4.4% above the 90-day average). International investors were the sole net buyers The index is up 8.3% YTD.

In the green: Ibnsina Pharma (+4.1%), Oriental Weavers (+3.5%), and Alexandria Container and Cargo Handling (+2.0%).

In the red: Mopco (-6.8%), Egyptalum (-3.4%), and Eastern Company (-2.7%).

Tags:

China Planet Finance trade US

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

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Egypt’s EGP 200 bn scrap sector could be a sleeper hit

As industry and manufacturing continue to grow in Egypt’s business landscape, so does the scrap market. To get an insight into a sector routinely absent from the investment limelight, EnterpriseAM spoke to notable players in Egypt’s scrap sector to find out why one person's trash is another’s treasure.

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

Local factories and contractors generate roughly 10 mn tons of scrap per year, amounting to EGP 200 bn worth of scrap annually, scrap marketplace platform Mrkoon CEO Mohamed Shalabi told Enterprise AM. The amount of local scrap produced is linked to the nation’s rising industrial ambitions, with recent government-led expansions in industrial hubs set to drive up resulting scrap volumes, Shalabi said.

This is good news for many who rack up large bills importing waste materials that are used in production, especially considering the heavy transport costs incurred from heavy scrap materials like metals and their relative worth. The issue is often not that the waste materials are not produced, but that until recently, the collection, sorting, and logistics of connecting suppliers to buyers had not been that commonplace.

It’s also good news for some notoriously waste-producing industries, with industrial factories, pharma players, automotive, and equipment manufacturers being some of the most prominent suppliers facilitated by Mrkoon. Added to this, the production of waste is often not costfree, with the option of selling waste helping to turn an expense into an additional revenue stream.

Business models — especially by startups — involved in or adjacent to scrap collection have strong economic viability and potential, waste recycler Bekia CEO Alaa Afifi told EnterpriseAM. Whether these nascent firms grow sustainably comes down to their scalability and their ability to source materials of high and consistent quality. Bekia’s model opts for incentive models—like cashback options—available via its digital platform.

Metals account for a significant portion of valuable scrap traded via Mrkoon’s platform, with higher-priced copper, aluminium, and iron being particularly valuable, Shalabi said. While not as valuable by weight, paper, cardboard, and plastics are good candidates for stable and scalable recycling projects — and as such are in high demand locally.

But not all types of scrap are readily available or lucrative, as electronic waste (e-waste) and cooking oil can prove relatively difficult to source reliably, Afifi said. E-waste entails steep repair costs and unsteady resale prices, whereas cooking oil’s quality can vary drastically from one supplier to the next.

Mrkoon’s platform connects upwards of 100 sellers — with whom the startup signs contracts — to around 6k prospective buyers encompassing 13 main categories of scrap, Shalabi told us. After listing scrap products, they are typically sold via digital auction within five and seven days. Bekia has managed to secure business partnerships with corporates whose scrap output is especially high in the food and beverage, engineering consultancy, and food storage container sectors, according to its leaderboard.

But other companies, including Bekia, rely more on Informal scrap collectors. A great many Egyptians collect scrap informally, with Bekia relying immensely on them, but they are not integrated into formalized recycling infrastructure. Official steps are yet to be taken to ensure better logistics solutions, fair pricing, and safe working conditions for freelance scrap collectors, with Bekia doing its fair share in supporting that side of the scrap sector, Afifi told us.

Despite the success of some waste collection startups, regulation remains a hurdle. Although regulation in the sector is improving, a few hurdles remain, Afifi told us. One hurdle is permits, which often add a layer of red tape that can stifle businesses.

The absence of financial incentives from the government is also curtailing the sector’s potential. The startup-led sector on paper seems like a perfect candidate for state support, with the work done by the companies aligning with the government’s sustainability targets, helping lower the import bill, and promoting private sector participation.

Your top green economy story for the week: Chinese solar tech player TrinaSolar is looking to up its solar panel sales in Egypt by 20% y-o-y this year, to reach USD 600 mn.

Tags:

going green recycling waste management

CALENDAR

MAY

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

6 May (Tuesday): S&P Global to release PMI data for April recording non-oil private sector activity

7-10 May (Wednesday-Saturday): Egypt hosts the 24th Pan Arab Junior and Ladies Golf Championship

8-10 May (Thursday-Saturday): RiseUp Summit at the Grand Egyptian Museum

10 May (Saturday): Capmas expected to publish inflation data for April

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

18-19 May (Sunday-Monday): International Monetary Fund MENA Research Conference, Cairo, Egypt

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development

22 May (Thursday): Central Bank’s Monetary Policy Committee to meet to decide interest rates

25 May (Sunday): Social Education Summit 2025, Cairo, Egypt

30-31 May (Friday-Saturday): Africa Business Summit, London, UK

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

10 June (Tuesday): Capmas expected to publish inflation data for May

MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

EVENTS WITH NO SET DATE

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

1H 2025: EGX launches a sharia-compliant sustainability index.

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

Early 2026: Passenger operations on the New Administrative Capital–Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna–Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect

May 2026: End of extension for developers on 15% interest rates for land installment payments

2027

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

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

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

September 2028: First unit of the Dabaa nuclear power plant begins operations.

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