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Monday, 19 Aug 2024

What We’re Tracking Today
Energy
Automotive
Earnings Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar

Government eyes eight waste-to-energy projects worth up to USD 1.2 bn with local-foreign consortiums

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Today at a glance

1

Energy

Waste-to-energy projects worth up to USD 1.2 bn could be coming our way soon.
2

WHAT WE’RE TRACKING TODAY

Electricity prices set to rise by an average of 30% in September -ministry source.
3

Automotive

Nissan Egypt wants to invest USD 56 mn in Egypt through 2026.
4

EARNINGS WATCH

Beltone continues profitability streak in 1h 2024 on the back of investment bank, NBFIs performance.
5

LAST NIGHT’S TALK SHOWS

In an unwelcome throwback to 2020, the airwaves were once again consumed by news of a virus spreading across the globe.
6

ALSO ON OUR RADAR

Local security systems manufacturer Ahram Security eyes Saudi expansion.
7

ALSO ON OUR RADAR

Suez Canal Bank exits El Sherif Markets.
8

PLANET FINANCE

Investors lose access to key data as China stops sharing daily flows data.
9

BLACKBOARD

Tuition fees at private and international universities expected to increase as the country welcomes a new academic year.

Monday, 19 Aug 2024

What We’re Tracking Today
Energy
Automotive
Earnings Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

WHAT WE’RE TRACKING TODAY

Electricity Ministry reportedly eyeing electricity price hikes starting next month

Good morning, friends. Once again, energy news, efforts to localize industry, and earnings from some of the country’s biggest companies are driving the local business news cycle. Many of you will soon be setting off for the office, so let’s jump right in.

WATCH THIS SPACE-

#1- Electricity prices to rise by an average of 30% next month: The Electricity Ministry has completed its study on increasing electricity prices, with plans to introduce the hike in September following cabinet approval, a ministry source told Enterprise. Prices will rise by an average of 30%, with higher consumption households set for larger increases and lower consumption households in line for smaller price hikes. Production cost has risen from EGP 1.65 per KW to EGP 2.35, the source added.

Remember: Earlier this summer, an Electricity Ministry source told us that the government had decided to postpone any hikes to electricity prices until September as it wanted to put off any price hikes until it had resolved the electricity crisis. The government is working on a plan to phase out electricity subsidies over the course of the next four years.

#2- WiFi calling coming soon to a mobile phone near you: The country’s mobile network operators are testing out the WiFi calling services, which would allow mobile phone owners to make calls using their WiFi connection, ahead of its expected launch before the end of this year, two sources with knowledge of the matter told Asharq Business. The WiFi calls will have the same rate as the rate set for regular calls by each network operator.

HAPPENING TOMORROW-

The second phase of tansik will kick off tomorrow and run until Saturday: The Higher Education Ministry will run the second phase of tansik — the public university enrollment system — from 20-24 August, it said in a statement yesterday. Students hoping to apply will need to have scored at least 64.64% in the sciences and 56.09% for literature.

The first phase of tansik is well under way: The Higher Education Ministry also announced the minimum thresholds for tansik’s first phase in a ministry statement yesterday.

PSA-

WEATHER- It’s another summery day in Cairo today, with a high of 36°C and a low of 26°C, according to our favorite weather app.

It’s not much cooler in Alexandria and along the North Coast, with a high of 33°C and a low of 24°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 the steps taken by the Madbouly government to streamline procedures, cut back on red tape, and provide more support for both local and foreign investors. Check out the story here.

CIRCLE YOUR CALENDAR-

#1- BEBA is on a mission to lure investors from the UK: The British Egyptian Business Association (BEBA) will be joined by Finance Minister Ahmed Kouchouk, Investment and Foreign Trade Minister Hassan El Khatib, CBE Deputy Governor Ramy Aboulnaga, FRA chairman Mohamed Farid, SCZone head Walid Gamal El Din, and Administrative Capital for Urban Development chairman Khaled Abbas for an upcoming three-day business mission to the UK. The mission set to take place between 18-20 September will hold events and seminars on renewables, green financing, the SCZONE, industrial parks, logistics, and more.

#2- The countdown to the EFG Hermes London Conference begins: EFG Hermes will be offering up its insights into “what is shaping and moving the region” and exploring important investments in our part of the world in its annual conference in London on 9-12 September.

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-

The international press’ attention is squarely split between US presidential elections and the latest on ceasefire talks between Israel and Hamas, with the US and key regional players lobbying for an agreement to bring an end to Israel’s war in Gaza.

US Secretary of State Antony Blinken landed in Israel overnight, where he is set to meet with Prime Minister Benjamin Netanyahu and other Israeli officials today to push for a ceasefire, amid concerns that both Hamas and Israel are undermining the probability of successfully reaching an agreement. Blinken will next be in Cairo tomorrow, where the US, Qatar, and Egypt will resume talks to broker a ceasefire and hostage agreement to end the war.

The latest proposal from the US, Qatar, and Egypt includes a three-phase approach, starting with a temporary truce and a swap of hostages, and followed by eventually rebuilding Gaza. Netanyahu is reportedly on maintaining Israel’s military presence on the Gaza-Egypt border, which remains a significant sticking point. (Reuters | Bloomberg | Washington Post | New York Times | BBC)

Over in the US of A: Vice President Kamala Harris gears up to formally accept her presidential nomination with Tim Walz as her running mate today at the 2024 Democratic National Convention in Chicago. The DNC will run through to this Thursday. The event will feature speeches from President Joe Biden, former presidents Barack Obama and Bill Clinton, former Secretary of State Hillary Clinton, and First Lady Jill Biden. Reuters has a handy primer on the convention, while the Financial Times is following the event with live coverage. The Associated Press and NPR also have more.

PLUS- Markets have an eye on Wyoming, where global central bankers, economists and policymakers will gather at Jackson Hole for an annual meeting of central bank officials from Thursday through Saturday.

*** 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 break down private and international universities’ tuition fees ahead of expected increases in the next academic year.

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Amidst the splendour of Somabay, your perfect summer tale unfolds. Tee off on our world-class golf courses, embraced by the tranquil allure of the Red Sea. #SummerStoriesBegin #OneParadiseAllSeasons #SomabayRedSea

2

Energy

Egypt to sign contracts for a bunch of waste-to-energy projects worth up to USD 1.2 bn

Waste-to-energy projects could soon play an important role in our energy mix: The government is set to sign contracts with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste across a number of governorates, Waste Management Regulatory Authority (WRMA) consultant Khaled Elfarra told Enterprise. The waste-to-energy (WtE) projects will come at a total cost of USD 900 mn-1.2 bn.

The companies in question: The firms and bodies involved in the projects include Infinity Power, Orascom Construction, Hassan Allam Holding, Taqa Arabia, Elsewedy Electric, the Arab Organization for Industrialization, the National Authority for Military Production, and Medaf Holding — all of which have linked up with foreign partners to implement the projects, Elfarra tells us.

The proposed projects will spread across the country: The WtE projects will be implemented in Giza, Alexandria, Gharbia, Beheira, Damietta, Fayoum, Sharqiya, and Menoufia, he added. The projects will collectively recycle around 3.5 mn tons of waste annually for energy production, Elfarra continued, adding that the government will be responsible for collecting and providing the waste for the firms to use in the production process.

To sweeten the waste-to-energy pot: The participating companies will be granted golden licenses from the government, as well as all the tax and non-tax incentives under the Investment Law. On top of this, the Environment Ministry is considering raising the feed-in tariff rate for WtE plants — the set price that the government pays for the electricity they generate — in a bid to make the sector more attractive to investors, Elfarra told us. The proposed price increase would see the feed-in-tariff rate rise to around EGP 2.35/Kwh — up from EGP 1.40/Kwh, which hasn’t changed since 2019. The tariff will fluctuate along with exchange rate fluctuations, he added.

What’s next? The proposed tariff increase has been sent to the Electricity Ministry to receive the greenlight and will then be forwarded to the cabinet, Elfarra added. Assuming the cabinet also greenlights the new tariff, the government will then ink the contracts with the companies.

But raising tariffs will strain the Electricity Ministry’s budget: While the tariff increase could help attract investors, it would mean that the Electricity Ministry will have to pay more for the energy produced. The tariff is shared between the Electricity Ministry and the governorate where each project takes place. The Electricity Ministry would need support from the Finance Ministry to bear the cost of the increase, if approved, one source at the Electricity Ministry told Al Mal.

Sounds familiar? The government has long been planning to boost electricity generation from municipal waste, initially setting a target back in 2020 of generating 300 MW of electricity from WtE projects by 2025. More recently, then Finance Minister Mohamed Maait said in April 2023 that the state has eight waste-to-energy projects worth EGP 10 bn in the pipeline.

** Want more? We did a deep dive into where our waste-to-energy ambitions stand in a Going we published last year. Check out the story here.

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3

Automotive

Nissan Egypt wants to invest USD 56 mn in Egypt through 2026

Nissan Egypt has big investment plans: Nissan Egypt is planning to invest USD 55.9 mn in the Egyptian market until 2026, according to a cabinet statement that came out following a meeting between Prime Minister Moustafa Madbouly and company representatives. We have the rundown on where these funds will go.

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

#1- A freezone company: The automotive player will invest some USD 2 mn to set up a freezone company in Alexandria Port to facilitate car and car parts exports, with implementation expected to begin in November 2024.

#2- A new locally-made model: The company plans to begin manufacturing a new car model locally, the statement said without disclosing which model. The company aims to produce 10k units for the local market and 7k units for export during the first year of production, with annual increases to come based on demand.

More to come? The company is also looking into producing more of its models locally, based on market needs.

DATA POINT- Nissan Egypt has exported over 15k locally manufactured Sunny car models, since August 2022, generating over USD 120 mn. Nissan aims to increase its exports more than 50%, the statement read.

#3- More renewables: Nissan Egypt is currently adding 1.8 MW of solar power capacity — set to come online in September — to its 2 MW solar power plant and could add another 2.2 MW to its capacity by the fiscal year ending in 2025, bringing its total capacity to 6 MW, Nissan Egypt Managing Director Mohamed Abdelsamad added.

#4- A new water treatment facility: Nissan Egypt is also planning to invest in a water treatment plant for agriculture, saving 28k cubic meters of water per annum.

ALSO ON THE AGENDA- A Nissan vocational school? The company is currently looking into a proposal put forward by Transport and Industry Minister Kamel El Wazir for Nissan to set up its own vocational school.

ICYMI- We’re getting serious about our local auto industry: The Madbouly government has taken a bunch of steps towards localizing the automotive industry. Most recently it was reported that it has plans to set up three factories for the production of car components at a cost of around USD 1.4 bn. It is also gearing up to carry out the Egyptian Automotive Industry Development Program and a bunch of automakers have already lined up.

KASRAWY GROUP ARE ALSO PLANNING TO EXPAND-

A new automotive factory incoming: Automotive player Kasrawy Group wants to set up a new car factory to produce a new car model, with plans to produce 23k units during the first five years of operation, according to a cabinet statement. The government will provide the company with land needed to set up the facility.

A whole lotta investments in the pipeline: The company plans to pump EGP 1.5 bn and USD 102 mn into a two-phase expansion plan of its manufacturing activities.

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4

EARNINGS WATCH

Beltone continues profitability streak in 1h 2024 on the back of investment bank, NBFIs performance

It’s earnings season: Beltone, Egypt Kuwait Holding, and Alexandria Container and Cargo Handling became the latest big name companies to release their earnings in an already busy month for releases.

BELTONE RINGS OUT ANOTHER TERM IN THE GREEN-

Beltone Holding continued its profitability streak in 1H 2024, recording a net income after tax and minority interest of EGP 817 mn compared to a loss of EGP 146 mn in 1H 2023, according to the company’s latest earningsrelease(pdf) and an accompanying statement(pdf). The company’s operating revenue grew ninefold y-o-y to EGP 2.9 bn during the period.

On a 2Q basis: Beltone Holding recorded a net operating profit of EGP 998 mn, compared to just EGP 6.1 mn in the same period last year. The company’s operating revenue rose 822% y-o-y yo EGP 1.6 bn.

The growth was underpinned by a strong performance at its NBFIs: Operating revenue from its NBFIs segment grew nearly 13x y-o-y to EGP 2.4 bn during 1H 2024, contributing 81.3% of total operating revenues. Key drivers of this segment’s growth were the leasing and factoring as well as consumer finance business lines, whose portfolios grew sixfold and fivefold y-o-y, respectively. The segment was further buoyed by expanded offerings, including its mortgage finance business, which captured a market share of 22.3% in 1H 2024.

As well as its investment bank: Beltone Investment Bank’s operating revenue more than quadrupled y-o-y to EGP 471 mn in 1H primarily on the back of an expansion in securities brokerage operations. The platform accounted for 16% of the company’s consolidated revenue during the period.

What they said: “The growth reflects not only our financial success but also the strategic initiatives we’ve undertaken, such as expanding into high-impact areas like mortgage and venture capital. The transformation we’ve led goes beyond the numbers; it's about reinforcing our position as a market leader and establishing a new benchmark in the financial services sector,” said Beltone CEO Dalia Khorshid.

ICYMI- Beltone last year turned the boat around following three years of losses: Last year was a turning point for Beltone after Abu Dhabi-based investment firm Chimera acquired a majority stake in the company in October 2022 and brought in Dalia Khorshid as CEO. The turnaround has included a full new management team, a full book of new policies and procedures, a record rights issue to recapitalize the business, and its transformation into a data-driven organization.

EGYPT KUWAIT HOLDING SEES NET INCOME AND REVENUES FALL IN 2Q

Egypt Kuwait Holding’s (EKH) attributable net income fell 32% y-o-y to USD 27.5 mn in 2Q 2024, after it revenues took a hit due to declining urea prices and the float of the EGP, the company said in its latest earnings release (pdf). The company’s revenues were down 21% y-o-y to USD 128.4 mn during the quarter. .

In detail: Revenues from the company’s fertilizer and petrochemical segment recorded a 20% y-o-y decrease to USD 73.0 mn. Meanwhile, revenues from the company’s investments in the energy and energy-related segment were down 13% y-o-y to USD 36.7 mn.

On a semiannual basis: EKH’s attributable net income fell 10% y-o-y to USD 90.1 mn during 1H 2024, while its revenues were down 17% y-o-y to USD 321.4 mn.

What they said: “Our portfolio companies have reported strong performance in local currency terms, but the recent devaluation of the EGP has impacted our consolidated group financial results when translating the financials of our EGP-operating subsidiaries into USD,” CEO Jon Rokk said.

ALEX CONTAINER SEES TOP AND BOTTOM LINE GROWTH-

Alexandria Container and Cargo Handling saw its net income after taxes rise 40% y-o-y to EGP 6.1 bn during the fiscal year 2023-2024, according to the company’s latest earnings release (pdf). Revenues increased 30% y-o-y to EGP 6.4 bn during the same period.

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5

LAST NIGHT’S TALK SHOWS

The WHO’s declaration of an mpox global health emergency has caught the attention and concern of the nation’s hosts

In an unwelcome throwback to 2020, the airwaves were once again consumed by news of a virus spreading across the globe as the nation’s talking heads discussed the spread of mpox following the World Health Organization declaring the situation a global health emergency. A cholera outbreak in Sudan that killed at least 22 people also caught the attention of the talk shows.

We’re in the clear, says the Health Ministry: No confirmed or suspected cases of mpox have been recorded in Egypt until this moment, Health Ministry spokesperson Hossam Abdel Ghaffar said in a phone call with El Sa’a El Sadesa’s Azza Mostafa (watch, runtime: 9:35). Precautionary measures that were already in place at sea, air, and land ports were reinforced and tightened following the WHO’s announcement, he said. Additionally, medical staff have been retrained for early detection, with the government implementing stricter and faster controls to minimize the possibility of mpox entering the country, Abdel Ghaffar added.

The country is also on guard to tackle worries of a cholera outbreak: Egypt has taken a set of strict measures on its ports following the outbreak of cholera in Sudan, Abdel Ghaffar told Ahmed Moussa the day before on Ala Mas’ouleety (watch, runtime: 2:33). The ministry is carrying out continuous monitoring of the situation and updating cholera prevention protocols, with Egypt having already taken precautionary measures since the start of the war in Sudan to guard against the spread of diseases, Abdel Ghaffar added.

ALSO ON THE AIRWAVES- The restructuring of Thanaweya Amma continued to get airtime for the nth time, with Ala Masouleety's Ahmed Moussa calling up Deputy Education Minister Ayman Bahaa Eldin, who provided a detailed explanation of the new system (watch, runtime: 57:46). Moussa also hosted several education experts to discuss the system and its impact on all stakeholders in the education sector (watch, runtime: 47:37).

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6

ALSO ON OUR RADAR

Ahram Security wants to become the latest Egyptian firm to set up shop in Saudi Arabia. PLUS: Suez Canal Bank + El Sherif Markets, Beltone + Raya, Olam, El Gouna

MANUFACTURING-

Ahram Security eyes Saudi expansion: Local security systems manufacturer Ahram SecurityGroup is looking to establish a new factory in Riyadh by 2025, with the company currently consulting with contracting firms to take care of the necessary studies ahead of launching the project, Al Arabiya quotes Chairman Samir Aref as saying. The company may partner up with a Saudi investor for the project, Aref said, adding that he expects the factory to begin operations in 2026.

M&A-

Suez Canal Bank exits El Sherif Markets: Suez Canal Bank has sold its entire 39.7% stake in El Sherif Markets to home appliances manufacturer Fresh in a EGP 95.2 mn transaction, the bank said in an EGX disclosure (pdf). The transaction will be carried out across two phases — the first has already been completed.

This isn’t Fresh’s only recent acquisition: The company in May acquired an 80% stake in air compressor manufacturer Misr Compressor for an undisclosed sum.

TECH-

Beltone to use Raya’s cloud and data hosting services: Beltone Holding will have access to Raya IT subsidiary Raya Data Center’s cloud hosting and outsourcing services and IT solutions under a partnership agreement between the two, the company said in a press release (pdf). The partnership will enable Beltone to provide its clients with “improved flexibility, scalability, efficiency, and security,” and will allow the company to “keep pace with rapid market developments and evolving technical requirements,” according to the press release.

INVESTMENT-

Singapore’s Olam wants to increase its investments in Egypt: Singaporean food and agri-business company Olam wants to invest an additional USD 22 mn in the Egyptian market, which would put its total investments in the market at USD 55 mn, according to an Investment Ministry statement. This came during an investment-centered meeting between Investment Minister Hassan El Khatib, Singapore's ambassador to Cairo, and Olam’s managing director.

REAL ESTATE-

#1- The “new heart” of El Gouna is in the works: Orascom Development Egypt’s El Gouna is set to launch Tuban, one of its largest real estate projects in recent years, next month, El Gouna CEO Mohamed Amer told Asharq Business (watch, runtime: 4:30). The project, which Amer describes as “the new heart of El Gouna,” will include residential and commercial developments as well as hotels. It will offer nearly 1k units, including villas and apartments.

The targets: The project targets EGP 45 bn in sales over a five-year period, with 40% of these revenues projected to come from outside the country. Tuban will target foreigners and Egyptian expats, with a focus on countries that have direct flights to Hurghada, such as England, Germany, Switzerland, and Gulf nations.

#2- Government to fix prices of its land offerings: Housing Minister Sherif El Sherbiny has approved a fixed pricing system for land offerings, doing away with the previous competitive bidding process that resulted in pricing controversies, Al Arabiya reports, citing Federation of Egyptian Industries Real Estate Development Chamber head Tarek Shoukry. The news outlet did not specify when the new system would come into effect. The decision is part of a new package of measures aimed at supporting the real estate sector.

Remember: Under the current system, land prices start at a base rate set by the New Urban Communities Authority and then go up as investors submit competitive bids, becoming final only at the contract signing phase. This practice poses significant investment risks for real estate developers, as the fluctuating land costs impede accurate feasibility studies.

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7

PLANET FINANCE

Investors lose access to key data as China stops sharing daily flows data

Investors will no longer be able to get daily data about overseas fund flows in China's stock market after the world’s second largest economy’s stock markets stop sharing daily flows data starting today, in what Bloomberg called its latest attempt “to obscure information about overseas funds going into and out of its sagging stock market.”

This comes at a crucial time for China, which is expected to see its first yearly outflow from its bourse since 2016 as overseas fund flows continue to exit the market, Bloomberg writes. The country’s benchmark CSI 300 is down 2.5% for 2024 and is at risk of extending losses into a record fourth consecutive year.

The rationale: Analysts think of the decision as a way for Chinese authorities to reduce market volatility driven by “high-frequency data,” in hopes of making investors more concerned with long-term indicators. “Beijing stopped the release because the data hasn’t been looking good, and it’s volatile,” capital markets company abrdn Asia’s director of investment Xin Yao Ng said, adding that “they probably don’t want the data to amplify capital outflows [but] it doesn’t solve the root of the problem.”

Remember: China saw net capital outflows including net FDI outflows over 2022-2023, the IMF said last month. “Some of this may reflect multinational firms repatriating earnings. But it may also reflect shifting expectations about Chinese growth and geoeconomic fragmentation,” the Fund said.

ALSO FROM PLANET FINANCE- Libyan central bank halts operations after kidnapping of senior employee: The Central Bank of Libya suspended all operations after the head of its information technology department Musab Msallem was kidnapped by an unknown party in front of his home yesterday morning. The bank said it would only resume operations once Msallem is returned and condemned the threats leveled against the institution as different political factions vie for control of the bank.

MARKETS THIS MORNING-

Asian markets are mixed this morning after stock markets rallied last week following a global stock sell-off that triggered a market meltdown near the start of the month. The Kopsi is down 0.2% and the Nikkei is down 0.1%, while the Hang Seng is up 1.3%.

EGX30

29,460

-0.6% (YTD: +18.3%)

USD (CBE)

Buy 48.74

Sell 48.88

USD (CIB)

Buy 48.76

Sell 48.86

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,981

+0.6% (YTD: +0.1%)

ADX

9,286

+0.5% (YTD: -3.1%)

DFM

4,243

+0.6% (YTD: +4.5%)

S&P 500

5,554

+0.2% (YTD: +16.5%)

FTSE 100

8,311

-0.4% (YTD: +7.5%)

Euro Stoxx 50

4,841

+0.7% (YTD: +7.1%)

Brent crude

USD 79.68

-1.7%

Natural gas (Nymex)

USD 2.12

-3.4%

Gold

USD 2,538

+1.8%

BTC

USD 59,790

+0.6% (YTD: +41.4%)

THE CLOSING BELL-

The EGX30 fell 0.6% at yesterday’s close on turnover of EGP 3.6 bn (1.3% above the 90-day average). Local investors were the sole net buyers. The index is up 18.3% YTD.

In the green: Beltone Holding (+3.1%), Juhayna (+2.2%), and Ezz Steel (+2.1%).

In the red: Alexandria Containers and Cargo Handling (-3.7%), Elsewedy Electric (-2.9%), and Oriental Weavers (-2.2%).

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

Published every Monday in EnterpriseAM.

Read Blackboard
8

BLACKBOARD

Tuition fees at private and international universities expected to increase as the country welcomes a new academic year

Universities are in line for a tuition hike: With private and public high school and international school results out, a new academic year is swiftly approaching. While universities have mostly held off on tuition hikes over the past couple of years in light of the exceptional circumstances generated by Russia’s war on Ukraine, tuition hikes are widely expected across most private and international universities this fall.

The stakes: Higher tuition fees reflect broader economic challenges facing the country, including a weakened EGP following March’s float and record-high inflation. However, higher prices could squeeze some students and families out of the market for higher education.

Remember: The Higher Education Ministry has not directly interfered in determining tuition fees at private universities, but set guidelines last year to avoid a significant spike in fees given the country’s economic circumstances.

Operational costs are on the rise, courtesy of the EGP float: Universities’ operational costs have jumped over 60% since the EGP float and the subsequent 600 bps rate hike — not to mention increases in wages, and the cost of laboratory supplies and other auxiliary costs, according to five private university heads who spoke to Enterprise. They also noted the increased cost of foreign partnerships in several technical colleges. Despite all of these factors, most fee hikes were capped at 20%.

These costly international partnerships are mandated: The Higher Education Ministry requires universities to form international partnerships with highly ranked universities as part of plans to internationalize Egyptian education and boost its efficiency.

Gov’t doesn’t interfere with private university tuition: Unlike schools, there is no limit set by the government on university fees, a source from the Higher Education Ministry told Enterprise. Pricing is left to market mechanisms and competition between private universities, with each institution adopting its own approach to providing educational services or obtaining higher rankings, the source told us. And like last year, the government advised private universities to hike their tuition fees by a reasonable amount to avoid further inflationary pressures on students and their parents.

There’s a lot of demand for university spots this year: Despite the fee hikes, our sources report a significant uptick in applications for university entrance exams this year, which they attribute to the sector's success in attracting more demand.

Scholarships still in play: University heads confirmed to us that they will maintain scholarships for outstanding students, offering free grants for admitted students that face exceptional circumstances.

A good share for foreign diploma holders: One of the private university heads told Enterprise that a significant portion of spots will be allocated to American diploma and IGCSE holders. This percentage varies between universities, but typically doesn’t exceed 20%.

Foreign students as a hedge: Private and international universities are working to attract more international students who pay fees in USD, helping to balance their FX obligations and maintain international partnerships and programs, according to our sources.

Your top education stories for the week:

  • Eight Egyptian universities make it onto the Shanghai Ranking in 2024, up from seven that made the list in the previous year’s Academic Ranking of World Universities — more commonly known as the ARWU or the Shanghai Ranking. While Beni Suef University was pushed out the rankings of the world top 1k universities, Suez Canal University and Tanta University joined the 2024 list. (Statement)
  • Thanaweya Amma gets a facelift: Education Minister Mohamed Abdellatif unveiled a plan to restructure high school education and Thanaweya Amma by extension for the 2024-2025 academic year
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CALENDAR

2024

AUGUST

20-24 August: Second phase of public university enrollment (tansik).

August 2024: Shalateen to announce gold exploration tender winner.

SEPTEMBER

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein International Airport.

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

9-12 September (Monday-Thursday): The annual EFG Hermes London Conference.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

24 September (Tuesday): Enterprise Finance Forum, Cairo, Egypt

25-26 September (Wednesday-Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

25-28 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

30 September (Monday): Ban on sugar exports expiration.

OCTOBER

1-3 October (Tuesday-Thursday): Cairo Sustainable Energy Week, Cairo, Egypt.

6 October (Sunday): Armed Forces Day.

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

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

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

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

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

NOVEMBER

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

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

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

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

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.

September 2024: Turkish-Egyptian Business Council meeting in Turkey.

September 2024: US-Egypt Strategic Dialogue, Cairo.

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

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

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.

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