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Gov’t doubles upcoming export support program budget to EGP 45 bn

1

WHAT WE’RE TRACKING TODAY

Analysts agree annual inflation will accelerate in May — but not by how much

Good morning, y’all. In today’s packed issue, we’ve got the lowdown on the government’s new export support program set to come into effect next month, our PMI reading inching back to the green, news that VW is still serious about setting up shop here, and more.

BUT FIRST- Happy Eid, everyone. Today is the last day of the workweek before we all take a break for Eid Al Adha. Private and public sector workers, as well as banks and the EGX, will be off starting tomorrow and until Monday in observance of Eid Al Adha.

And that includes us too at EnterpriseAM Egypt HQ, who will also be taking a break from your inboxes for the Eid break, but we’ll be back bright and early on Tuesday.

PSA-

WEATHER- The sun is out in force in Cairo today, with a high of 33°C and a low of 21°C, according to our favorite weather app.

Our friends over in Alexandria are also in store for a sunny day, with a high of 27°C and a low of 19°C.

While those that have already ventured up to the North Coast will be treated with sunny skies, a high of 26°C, and a low of 18°C.

** DID YOU KNOW that we 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.

INFLATION WATCH-

Analysts we spoke to are in agreement that annual inflation will accelerate in May — the question is by how much. Ahly Pharos’ Hany Genena sees headline annual inflation rising just over 1.0 percentage point from April’s 13.9% y-o-y reading to sit at around 15.25% y-o-y, while HC Securities’ Heba Mounir expects inflation to accelerate only 0.3 percentage points to 14.2% y-o-y.

But on a monthly basis, the two see inflation falling, with Genana expecting a 0.8 percentage drop to 1.3%, while Mounir expects a more modest 0.4 percentage point drop.

So why is annual inflation accelerating, while monthly inflation falls? Genena explained that the devaluation in May of last year led to a fall in prices as we got rid of the parallel market that had overvalued the USD and undervalued the EGP, which is bound to be heavily reflected as base effect on this May’s reading. Mounir explained that the more rosy picture on a monthly basis is reflective of an expected 2.0% m-o-m drop in food and beverage prices and a slowdown from April’s 9.9% m-o-m transport price inflation to a more manageable 1.7% m-o-m.

We will all hear the real figures when we get back to our desks after the Eid break, with state statistics agency Capmas expected to publish May’s inflation data next Tuesday.

HAPPENING TODAY-

It’s the third and final day of Fi Africa andProPak MENA the Egypt International Exhibition Center. The three-dayannual 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.

THE BIG STORY ABROAD-

No one story is dominating the world’s digital front pages this morning, but one personality is — and I think you know who. On day 135 of Trump’s second term, his administration is once again turning up the heat on trade partners, sending out letters this week to trade partners,demanding that they submit their best tariff offers by today — or risk the return of sweeping duties next month with the end of the 90-day trade war pause. So far, only a limited agreement with the UK has been reached, while talks with the EU, India, Vietnam, and other nations drag on. (Bloomberg | Reuters)

Also headlining many of the world’s press outlets is Elon Musk’s chaotic split with this former boss at the White House. Despite Musk’s claims to be standing back from politics, it seems he can’t quite resist the limelight, taking to X to issue a fiery tirade torching Trump’s signature tax-and-spend bill as a “disgusting abomination” and a “pork-filled” disaster. “It will massively increase the already gigantic budget deficit to USD 2.5 tn,” Trump’s former bn’aire backer said, adding that it will lead to “crushingly unsustainable debt.” (Associated Press | Guardian | Financial Times)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at how Egypt’s internet speed compares to its neighbors’ and what it is being done to ensure speedy internet.

For the first time in the region, Somabay proudly presents rock legend Dave Evans — the original voice of AC/DC — in a once-in-a-lifetime performance. Experience the electrifying legacy of AC/DC as Evans delivers high-voltage rock and timeless classics under the stars.

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TRADE

Egypt doubles upcoming export support program budget to EGP 45 bn

The new fiscal year is fast approaching — and with it a new and expanded export support program. Investment Minister Hassan El Khatib and Finance Minister Ahmed Kouchouk held a joint presser to go through some of the main points of the new export support program that will begin with the start of the new fiscal year on 1 July. We put together the main points to keep you up to speed:

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

#1- The program this time round will nearly double in size to EGP 45 bn, up from last year’s EGP 23 bn, the ministers noted, confirming what EnterpriseAM reported a month ago. This doubling of the allocated budget is reflected in an increase in all basic ratios by 50% — a significant change of course from the current year’s program that slashed payout rates by up to 70%.

#2- The lion’s share will go towards targeted sectors, accounting for EGP 38 bn of the EGP 45 bn total, while EGP 7 bn will be used as part of a flexible reserve. The flexible component will be used to give additional support on top to complex, high-potential products — especially in engineering and chemicals — attract global players, and improve export-related infrastructure.

#3- Engineering industries are getting EGP 7 bn of the allocation, accounting for 18% of the program. Also among the recipients are the food industries with just under EGP 7 bn, agricultural produce with EGP 6.2 bn, the chemical industry with EGP 6.1, and ready-made garments with EGP 4.9 bn.

#4- Small and emerging companies will get 60% of the support, while those classes as major exporters will receive the remaining 40%, according to a set of infographics from the ministry.

#5- The program’s allocation model weighs four factors — with 50% of the weight assessing value-added content, 30% for export growth, 10% for production capacity, and 10% for job creation.

#6- Those really pushing export rates will also be rewarded for their efforts, with a 9% bump for those increasing export rates 15-25% annually and a 15% increase for those exceeding the 25% y-o-y benchmark.

#7- As will those who use a larger local component ratio, with the greater the sector’s local component ratio, the larger its share will be of the support program, El Khatib told Al Arabiya.

#8- Speedy disbursements will continue, with the government committing to a policy of paying receivables within 90 days without deductions for outstanding taxes — a first for the program.

#9- The government will settle EGP 60 bn of overdue subsidies dating back to before July 2024 over a four-year period. Half — or EGP 30 bn — will be paid out in hardcash to exporters, while the rest will be cleared through offsets against taxes, customs dues, and utility bills.

#10- Exports opening up access to Africa and businesses in Upper Egypt will also be given more support, with the increase in rates for both factors increasing from a 15% addition to a 25% addition in the new program.

#11- The new program will retain the requirement that exporters give up a percentage of their USD proceeds — currently stands at 50% in this fiscal year’s revamped program — El Khatib

This publication is proudly sponsored by

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ECONOMY

Egypt’s non-oil private sector activity inches closer to the green in May

Non-oil private sector activity declined at a slower pace in May, with fewer firms reporting cutbacks to customer sales, according to S&P Global’s latest Purchasing Managers Index (PMI) report (pdf) for Egypt. The country’s headline figure rose by 1.0 percentage point from April to 49.5 in May, marking the slowest pace of contraction in three months.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction. Egypt’s non-oil private sector has now been in contraction for three straight months and has only been in the green for three of the 55 months since November 2020.

New orders and overall output continued to fall during the month, albeit at a slower pace. The new orders sub-index came in at 49.1, up from 47.4 in April, Reuters reports. Output levels also continued to decline at a slower pace than the previous month, with the output sub-index rising to 49.5 from 47.4 in April. Firms that were surveyed attributed the continued decline in output levels to a decrease in order book volumes amid weaker customer demand.

Firms’ input purchases continued to drop, which survey panelists attributed to the lower levels of new work as well as an effort to ensure that stocks “remained streamlined.” The decline was a “modest” one but was the fastest since last October. Total employment saw a decline for the fourth consecutive month; however, job losses remained mild during the month, with firms mostly opting not to replace voluntary leavers.

Meanwhile, input costs rose at their highest pace in five months, with the acceleration driven by a rise in purchase prices for items like fuel, cement, and paper. Firms also cited volatile exchange rates (particularly with the USD) as a factor for the rise in input costs. This reflected in output prices this time around, with selling prices increasing at their highest level in seven months. “Companies were particularly hit by an increase in purchasing prices, leading them to pass on at least part of this increase to customers. Uncertainty in currency markets and concerns towards future global trade conditions amid US tariffs were noted as factors behind higher supplier prices,” S&P Global Senior Economist David Owen said.

REMEMBER- The Oil Ministry’s fuel pricing committee raised vehicle fuel prices by 11.8-14.8% in April, in what was the government’s first fuel price hike since October 2024. Analysts we spoke to at the time agreed that the hike will add to inflationary pressures — and even push up the headline figure.

But despite everything, businesses are growing slightly more hopeful. “When assessing the 12-month outlook, non-oil businesses in Egypt were slightly more upbeat compared to April, although the level of optimism remained weak by historical standards. Some firms indicated that stubborn price pressures and low demand had weighed on output expectations,” the report reads.

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Automotive

Volkswagen’s plan to make cars in Egypt is still in the cards

Global automobile manufacturing giant Volkswagen is once again talking up its Egypt expansion aspirations, with its Africa Managing Director Martina Biene telling Bloomberg that “we are very interested in Egypt as a production hub and hopefully we can announce a business case anytime soon.”

This is good news for the country’s auto localization efforts, which saw the German automaker announce its interest in helping develop a shared production facility in the East Port Said Industrial Zone all the way back in July 2024 — before disappearing from the news cycle and leading some to think that project may have since been shelved.

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

But it’s still unclear to us — and maybe the folks over at Volkswagen too — what they mean by made in Egypt. While Egypt is no stranger to big international car manufacturers locally assembling their vehicles here, we’ve got much less experience hosting factories that manufacture cars. Although the German automaker’s talk of a “production hub” sounds promising, it doesn’t give complete clarity as to whether this will involve manufacturing. What we do know is that VW “could first establish an assembly unit by using existing facilities”, then the possible next step laid out is a plan to build a factory, Biene said — but we will have to wait to see if this will just be for assembly or actually manufacturing vehicles.

A fully fledged manufacturing project seems more likely now than it did a few years ago, as the company closes factories in Germany for the first time in its nearly 90-year history as it struggles with cheaper competitors and shrinking demand in some parts of the world. In addition to expanding access to the Middle East and Africa, moving manufacturing to Egypt also brings with it significantly lower labor costs.

And it wouldn’t be the first in Africa, with the company already operating a manufacturing plant in South Africa alongside assembly projects in Ghana, Rwanda, and Kenya. The company is planning to open up to five new “production facilities” on the continent in the next 10-15 years, according to the business news information service.

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Manufacturing

China’s Comfily to set up USD 20 mn luggage factory in Egypt’s Qantara West

Chinese bag and luggage manufacturer Comfily Hong Kong will open a USD 20 mn factory in the Qantara West Industrial Zone by the end of 2026 under a contract inked with the Suez Canal Economic Zone (SCZone), according to a statement from the zone. The factory is estimated to generate some 2k direct jobs.

Export is the name of the game, with 80% of the 22 mn pieces of expected annual output earmarked for customers overseas. The project will primarily manufacture luggage, alongside associated bags, fabric materials, and accessories.

Comfily’s sister company Hangzhou Henneway Travel Goods is also in the process of setting up a Qantara West project, with the company — whose client bands include Samsonite, Swissgear, Travelite, and Delsey — currently building a USD 50 mn luggage factory that is set to officially begin operations in 1Q 2026.

DATA POINT- The new project brings Qantara West’s total number of contracted projects to 22, with a combined investment cost of USD 623.5 mn and the expectation that 32.6k new jobs will be created.

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Energy

Egypt could allocate LNG shipments to fertilizers, petrochemical players this summer

The Oil Ministry is looking into allocating three LNG shipments per month to fertilizer and petrochemical factories for four months starting in July, government sources told Al Arabiya. Each shipment is expected to carry between 70k-90k cbm of LNG, and the factories would cover their cost.

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

REFRESHER- After having their gas supply cut by 50% for a 15-day period — during which imports of Israeli gas were cut by 20% due to scheduled maintenance — fertilizer manufacturers submitted a formal request to the government to import natural gas directly from global markets last month. Some producers said the lower gas supplies would lead to a 30% drop in production.

Fertilizer producers formally asked the Egyptian General Petroleum Corporation to import additional shipments on their behalf under its existing contracts, two sources in the fertilizer sector told EnterpriseAM, citing the corporation’s ability to secure more competitive prices. The move is still under study and is yet to be greenlit, our sources said.

The proposal includes full payment in USD for the shipments, freight, and liquefaction costs, our sources added.

Despite recent improvement, gas flows to fertilizer and petrochemical factories are still down, with the two sectors receiving 450-500 mn cubic feet per day (mcf/d) since the start of this week — well below the 770 mcf/d the sector typically requires, Al Arabiya’s sources added. Deliveries partially resumed on Saturday after a two-week disruption, Egyptian Chamber of Chemical Industries head Sherif El Gabaly told Al Arabiya.

REMEMBER- The Oil Ministry is planning to spend up to USD 2.5 bn to import 60 LNG shipments through early September to meet the expected high electricity demand during the summer period.

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Startup watch

MSMEDA and Egypt-active VCs to launch Egypt’s first unified startup portfolio platform with World Bank backing

Tired of inconsistent and often confusing VC reporting standards? Don’t worry, things are about to change. The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) is launching a unified portfolio reporting platform in partnership with American startup reporting platform Visible.vc and a consortium of local VCs, Foundation Ventures’ Managing Partner Mazen Nadim told EnterpriseAM. Backed by the World Bank, the initiative aims to set a standard for venture capital reporting across the country in a bid to attract more foreign investment into Egypt’s startup ecosystem.

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

The new platform will standardize how metrics are defined and calculated, giving both companies and investors improved visibility and transparency, Nadim told us. Metrics are tailored by sector — such as logistics, e-commerce, and fintech — each with its own “north star” indicators and standardized formulas. The unified system enables apples-to-apples performance comparisons and eliminates time lost to duplicated efforts or misaligned calculations. “This initiative will support Egypt’s startup ecosystem by streamlining reporting for startups, enabling them to deliver clear, consistent data without sacrificing focus on their core operations,” Algebra Ventures Managing Partner Karim Hussein told EnterpriseAM.

The new standardized system will also establish consistent formats to address the fragmented startup reporting landscape, where different requirements from investors force startups to prepare customized reports, while creating inefficiencies and inconsistent data across the market. These reports will then be on the platform, which will serve as a central hub that offers startup portfolios and performance reports to general partners and potential investors.

This a big step improvement from Egyptian startups relying on Excel to report performance, often laboriously building custom KPI sheets for each investor — a fragmented system that made comparisons difficult. “The biggest problem was that the type of reporting varied from one fund to another and from one company to another” and “each investor had their own metrics and calculations,” Nadim explained.

Coordination efforts are being led by local VC fund Foundation Ventures, who are liaising between all the parties and negotiating with Visible.vc, to coordinate platform design and standardize performance metrics across industries. Alongside Foundation Ventures are other familiar faces to the local startup scene, including Algebra Ventures, Sawari Ventures, Shorooq, Endure Capital, Camel Ventures, Climate Resilient Africa Fund, DenVC, DisrupTech Ventures, and LoftyInc Capital, according to Waya.

And financial backing is coming from the World Bank and MSMEDA, with the two co-sponsoring the initiative by subsidizing part of the subscription costs for participating general partners, Nadim told us.

It’s hoped that the new system will help attract investment at home and abroad. With consent from GPs, anonymized data collected via the platform will be used to generate bottom-up research reports — created in collaboration with a third party. These reports will be distributed both locally and internationally to boost investor confidence and attract foreign direct investment, we were told. “Fostering transparency and consistency, enhances trust and credibility with international investors,” Husein told us.

It will also free up time for startups to concentrate on building up their company, as startups are currently often “juggling varied reporting requirements,” Hussein said. “This standardization enables all startups to focus more on their growth and core business goals rather than managing multiple reporting channels,” he explained.

Looking ahead, Nadim believes the program could serve as a model beyond Egypt. “We think there’s going to be a flywheel effect across other markets,” he said, particularly in regions looking to improve internal governance and attract capital through transparency.

The platform is expected to fully launch by the end of the month, with the first ecosystem-wide data report planned for release a year after standardized collection begins.

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Moves

Vodacom taps Mohamed Abdallah as international markets CEO

Vodacom Group appointed Mohamed Abdallah (LinkedIn) as CEO of international markets while maintaining his current role as CEO of Vodafone Egypt, according to a company statement. Abdallah, who joined Vodafone Egypt in 1998, held a number of leadership roles at the firm, including consumer business director, enterprise business director, and head of enterprise corporate sales. He is taking over from Diego Gutierrez (LinkedIn), who stepped down at the end of April after leading the international business for seven years.

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

The expanded role will see Abdallah heading operations in additional African markets, including the Democratic Republic of the Congo, Lesotho, Mozambique, and Tanzania. “His leadership will be instrumental as we continue to scale our international portfolio and embed our purpose-led strategy across the continent,” said Vodacom Group CEO Shameel Joosub.


Khaled Diaa (LinkedIn) has been tapped as a partner in Matouk Bassiouny’s Cairo office, according to a press release (pdf) from the firm. The move marks Diaa’s return to the legal firm after a year-long stint at Hill International as corporate counsel. He brings over 11 years of experience in corporate law and M&A across the MENA region.

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Kudos

Kouchouk named African Finance Minister of the Year

The African Leadership Magazine named our very own Finance Minister Ahmed Kouchouk Africa’s Finance Minister of the year. Kouchouk was recognized for “his visionary economic stewardship, bold fiscal reforms, and unwavering commitment to fostering financial stability and inclusive growth.”

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

Also recognized by the magazine: CIB was named as one of the best African brands for 2025.

PLUS- Acwa Power and HAU Energy’s 1.1 GW, USD 1.2 bn Suez wind power project was named the InfrastructureDealof the Year by the African Banker Awards. The project reached financial close earlier this year after securing funds from a group of institutions, including the European Bank for Reconstruction and Development, the African Development Bank, the British International Investment Corporation, the German Investment Corporation, the Opec Fund for International Development, and the Arab Petroleum Investments Corporation. The project was also named the Best Energy Deal in Egypt and Africa by EMEA Finance.

ALSO- Al Baraka Bank Egypt was named the Most Impactful Islamic Financial Institution of 2025 by the Islamic Development Bank, according to a statement. The bank was awarded for its role in supporting economic and social development, with particular recognition for its expansion in SME financing.

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LAST NIGHT’S TALK SHOWS

El Wazir takes Moussa and viewers on a cross-country infrastructure tour

Ala Masouleety dedicated the full night yesterday to a tour of Egypt’s transport and logistics infrastructure, with host Ahmed Moussa being led around the country’s ongoing projects by Transport and Industry Minister Kamel El Wazir (watch, runtime: 2:25:28). The minister showcased new and under-construction projects over the 2.5 hours televised tour — from BRT bus lanes in Greater Cairo to cargo railways and African trade routes — which he described as Egypt’s vision for integrated, export-led development.

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ALSO ON OUR RADAR

AMEA Power brings the continent’s largest windfarm online. PLUS: Hassan Allam Construction + Metito, Kima, Nawy + Safe + Farida

RENEWABLES-

UAE’s AMEA Power brought its 500 MW wind power plant in Ras Ghareb — called Amunet — online, making it the largest operational wind farm in the continent and bringing the company’s total capacity in Egypt to 1 GW, according to a statement.

The details: The plant will generate 2.5k GWh of electricity annually, powering over 500k homes and cutting 1.4 mn tons of CO2 emissions. The project, which was delivered 2.5 months ahead of schedule, was financed by a consortium including the Japan Bank for International Cooperation, International Finance Corporation, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Standard Chartered Bank.

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

CONSTRUCTION-

Hassan Allam Construction and UAE’s Metito secured a contract to upgrade and expand the Alexandria West wastewater treatment plant, according to a joint statement (pdf). The project will expand the plant’s capacity to 600k cubic meters per day and upgrade its capabilities from primary to secondary treatment. This will involve installing advanced sludge digestion and biogas generation systems, refurbishing existing facilities, and building new ones.

REMEMBER- The cabinet in May of last year approved additional funding from the European Investment Bank and the EU to expand and develop the plant.

REAL ESTATE-

Efforts to regulate fractional real estate investments are well underway, with proptech platforms Nawy, Madinet Masr’s Safe, and operator of the Farida platform Sakr have requested licenses from the Financial Regulatory Authority (FRA) to set up companies that manage real estate investment funds as well as legal entities that carry out promotion and underwriting services, according to an FRA statement. The platforms have submitted feasibility studies to the FRA and have already begun to adapt their operations to comply with investment fund regulations.

IN CONTEXT- The move is part of wider regulatory efforts to formalize the fractional real estate investment market, which allows multiple investors to collectively own shares of a single property, thus making real estate more accessible and affordable.

ICYMI- We heard back in January that the FRA was studying a new regulatory framework that would govern fractional investments. And Nawy CEO Mostafa El Beltagy told us earlier this year that his company has been working with the authority on legislation to enable fractional real estate investments.

M&A-

Zilla Capital estimated Misr for Entertainment Investments’ fair value at EGP 502 mn ahead of Orascom Investment Holding’s (OIH) potential acquisition of the firm, according to the fair value study (pdf). OIH’s board had approved the company’s plans to acquire Misr for EntertainmentInvestments late last year.

What’s next? OIH’s Shareholders will meet on Tuesday, 1 July to discuss and vote on the acquisition, according to an EGX disclosure (pdf).

13

PLANET FINANCE

Global growth is stalling as tariffs and uncertainty rise -OECD

Global economic growth is losing steam, and is expected to decelerate to 2.9% in 2025 and 2026, down from 3.3% in 2024, the Organization for Economic Cooperation and Development (OECD) warned in its latest Economic Outlook (pdf). The figures for this year and next would mark the first time since the pandemic that global growth would come in below 3.0%, the Financial Times reports.

The slowdown will be led by the world’s largest economies: US growth is forecasted to fall sharply to 1.6% in 2025 and 1.5% in 2026 from 2.8% in 2024, while China could see a slowdown from 5.0% to 4.7% and then 4.3%. In contrast, the eurozone will inch forward, with growth picking up slightly to 1.0% in 2025 and 1.2% in 2026, from just 0.8% in 2024. Despite this, “[weakened] economic prospects will be felt around the world, with almost no exception,” the OECD said.

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

The OECD attributed the downshift to tighter financial conditions, elevated trade barriers, and falling investment confidence. “The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path,” Secretary-General Mathias Cormann said in an accompanying press release.

In our neck of the woods: The OECD sees Saudi Arabia’s real GDP growing 1.8% in 2025 and 2.5% in 2026, up from 1.2% in 2024, outpacing the US, Germany, the UK, and France, while falling below average growth for G20 countries (forecasted to remain stable at 2.9% this year and next). Inflation is seen by the OECD rising slightly by 0.2 percentage points y-o-y to 1.9% in 2025, before easing to 1.8% in 2026, ranking among the top three lowest inflation rates among G20 countries.

Trump tariffs bite: The OECD cited President Donald Trump’s recently enacted tariffs as a major drag and risk for economies. The effective tariff rate has jumped from 2.5% to over 15% — the highest since WWII — and could keep US inflation elevated around 4% into 2025, the FT reports. That’s likely to delay any rate cuts from the Federal Reserve; however, policy rate cuts could follow in countries more shielded from trade tensions if inflation stays under control.

Global inflation is easing, but slowly: Inflation across G20 economies is expected to decline to 3.6% in 2025 and 3.2% in 2026. However, trade tensions could keep price pressures stubborn in some countries, although this will be tempered somewhat by lower commodity prices, the OECD said.

Trade recovery remains sluggish: Global trade growth is seen slowing to 2.8% this year and just 2.2% in 2026 — far below historical averages, the FT reports. Any further retaliatory moves in response to tariffs would also weigh on trade flows through supply chain disruptions.

What’s needed? The OECD called for renewed global cooperation to “[preserve] the economic benefits of rules-based global trade” and urged governments to enact structural reforms that could jumpstart investment, which has stagnated since the 2008 financial crisis.

MARKETS THIS MORNING-

Asian markets are firmly in the green this morning, led by South Korean markets, which are up on the back of the country electing the opposition party leader as president. The Kospi index rose to its highest level since last August, according to CNBC.

Wall Street futures indicate another day of markets opening in the red, despite consecutive days of gains buoyed by tech stocks.

EGX30

32,355

+0.1% (YTD: +8.8%)

USD (CBE)

Buy 49.62

Sell 49.75

USD (CIB)

Buy 49.62

Sell 49.72

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

10,832

-0.2% (YTD: -10.0%)

ADX

9691

+0.5% (YTD: +2.9%)

DFM

5522

+0.7% (YTD: +7.0%)

S&P 500

5970

+0.6% (YTD: +1.5%)

FTSE 100

8787

+0.2% (YTD: +9.6%)

Euro Stoxx 50

5376

+0.4% (YTD: +9.8%)

Brent crude

USD 65.63

+1.6%

Natural gas (Nymex)

USD 3.72

-0.1%

Gold

USD 3383.50

+0.2%

BTC

USD 105,449.20

+0.5% (YTD: +12.8%)

S&P Egypt Sovereign Bond Index

EGP 874.44

-0.1% (YTD: +12.5%)

S&P MENA Bond & Sukuk

USD 143.67

+0.1% (YTD: +2.7%)

VIX (Volatility Index)

17.69

-3.7% (YTD: +2.0%)

THE CLOSING BELL-

The EGX30 rose 0.1% at yesterday’s close on turnover of EGP 4.4 bn (6.6% below the 90-day average). Local investors were the sole net sellers. The index is up 8.8% YTD.

In the green: Orascom Construction (+1.7%), Juhayna (+1.3%), and Eipico (+1.2%).

In the red: Beltone Holding (-3.3%), GB Corp (-2.8%), and Fawry (-2.3%).

CORPORATE ACTIONS-

#1- B Investments will pay out a dividend of USD 0.025 per share for its 2024 earnings, according to an EGX disclosure (pdf). Dividends will be distributed on 24 June.

#2- The EGX has approved the request submitted by Valu operator U Consumer Finance to hike its authorized capital to EGP 1.05 bn, up from EGP 750 mn, and its issued capital to EGP 210.6 mn, up from 199.6 mn, according to an EGX bulletin (pdf).

14

HARDHAT

Egypt leads Africa for top internet speed, but trails behind the Gulf

Egypt has nabbed the award for Africa’s fastest fixed internet — landing a 66.2 speed score, according to Ookla’s Africa Fastest Fixed Country report (pdf) for the second half of 2024. Over the past seven years, internet speeds have increased nearly 1400%, growing from 5.4 MB/s in 2017 to 80.3 MB/s as of January 2025 — backed in no small part by nearly USD 3.5 bn in digital infrastructure investment, according to a statement from the CIT Ministry.

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And within Egypt, Cairo ranked as the governorate with the fastest internet, followed by

Giza and Gharbia.

The country’s internet isn’t only fast for the continent — it’s cheap too. Egypt lays claim to having Africa’s second cheapest internet service and the fifth lowest in the world too, CIT Minister Amr Talaat said.

Pushing efforts forward was “growing demand for bandwidth-intensive applications such as video streaming, remote work, and cloud services,” a company representative from the state-owned Telecom Egypt told EnterpriseAM Egypt. As the way we live undertook a dramatic change, in response came “strategic investments, infrastructure modernization, and a supportive regulatory environment” to develop the country’s internet services.

But fast internet isn’t just important for Netflix, it’s an increasingly important part of any modern economy. With plenty of countries to choose from, investors often see internet speed and reliability as a key deciding factor, a representative from private telecoms operator Vodafone Egypt told EnterpriseAM, who explained that “It boosts productivity, reduces operational costs, and enables smarter, data-driven decisions.” Better internet “strengthens Egypt’s national competitiveness, reinforces its position as a regional technology hub, and enhances the country’s appeal to both businesses and investors,” Telecom Egypt told us separately. Alongside this, better digital access and literacy creates a “more skilled and digitally fluent workforce ultimately driving innovation, productivity, and sustainable economic growth,” they added.

“For businesses to scale, innovate, and compete globally, high-speed internet has become a fundamental necessity, not a luxury,” the state telecom operator told us. Our improved internet services are a big reason why there’s been a 180% jump in the number of outsourcing companies — an increasingly prominent source of FX — operating in Egypt since 2021 and an 80% rise in exports of outsourcing services over the past three years, CIT Minister Amr Talaat said at last week’s US-Egypt Policy Leaders Forum.

So what has Egypt been doing right? On the technical side, the country moved from ADSL to VDSL and towards the adoption of fiber networks, with fiber-to-the-cabinet connections increasing from 85% coverage in 2019 to complete coverage now, Telecom Egypt told us. This is also in addition to upgrades to its international, core, transmission, and backbone networks, and the deployment of fiber-to-the-home technology, which together with everything else increased the baseline internet speed offered by service providers from 5 Mbps to 30 Mbps.

Government policy was also important in bringing faster internet to less privileged and more rural areas, with the country’s Digital Egypt and Decent Life initiatives helping prioritize infrastructure development in these areas.

The private sector has also played a vital role in the push for better internet services, often in partnership with the public sector. Vodafone Egypt pointed to “robust collaboration between the public and private sectors, underpinned by strategic investments, infrastructure sharing, and technological innovation” as a driver of improved internet speeds, in comments to EnterpriseAM.

Investment from the private sector has been sizable and impactful. Take Vodafone Egypt’s capital expenditure between 2017 and January 2025, which will total around USD 3.0 bn, helping to push the country’s overall internet speeds to the highest on the continent, the company told us. This includes network infrastructure upgrades, spectrum acquisitions, its acquisition of a 5G license, and also tapping in foreign tech leaders like China’s Huawei, who have deployed advanced tech to keep our internet competitive.

Private sector players are also fully behind the introduction of 5G — touted as the next big thing for internet speeds that will enable Web 3.0. All of the country’s four telecoms operators have secured 5G licenses for USD 150 mn a pop, with rollout expected to come very soon, with Vodafone Egypt CEO Mohamed Abdallah telling Cairo Weekend’s Zeina Soufan last month that it will launch the service in the next “coming weeks.” (watch, runtime: 14:51).

But despite Egypt leading in Africa, we’re still a long way away from our neighbors in the Gulf, with UAE ranked as having the world’s second fastest fixed internet, according to Ookla’s latest Speedtest Global Index for April. In contrast to the UAE’s 318.6 Mbps average download speed, Egypt is placed in 71st place globally with an average download speed of 85.6 Mbps — putting it a notch behind the global average of 101.4 Mbps.

It’s a similar story when it comes to mobile internet speeds, with Qatar in first place globally, followed by the UAE, Kuwait, and Bahrain as the world’s top four in Ookla’s April ranking. Egypt places 86th on the list with an average download speed of 39.9 Mbps, behind the global average of 92.3 Mbps and miles from Qatar’s astonishingly quick 521.5 Mbps.

Although, comparing vast countries like Egypt with tiny nation states in the Gulf is an unfair comparison. When it comes to the internet, most Gulf states with “compact, highly urbanized geographies and the availability of greater financial resources derived from higher national income,” the official at Telecom Egypt told us. This meant that these countries could quickly and cost-effectively lay down the needed fiber-optic infrastructure to enable the world-leading internet speeds it can boast about.

Egypt’s geography in comparison presents a much more difficult and costly infrastructure challenge, with its dispersed population — many of which in very out of the way areas — and very different types of terrain.

Looking ahead, we’re going to need to increase speeds even further — and that presents some big challenges. Next-generation internet technologies require a lot of money, especially if we want to develop the country’s internet infrastructure in an equitable way. But “prevailing economic constraints and the affordability gap for lower-income users” presents a problem with no easy fix, Telecom Egypt told us.

Although many remote areas in difficult terrain have seen improvements, there’s still a long way to go to expand and improve coverage. But it is these areas that are most costly and time-consuming, while also covering much smaller populations than in urbanized areas — which should be met with “innovative, scalable solutions,” Telecom Egypt told us.

But if Egypt is going to keep up the momentum, it’s going to need even more investment. The representative at Telecom Egypt suggested “elevating digital transformation to a national priority supported by dedicated funding frameworks and comprehensive long-term strategies for broadband development” to carry on the right track. Another part of the funding puzzle can be found in public-private partnerships, which “can play a vital role in easing the financial burden while enabling broad, cost-effective network expansion.”

Over the next two years, the government is aiming to attract USD 3 bn in network investments, a senior government source told EnterpriseAM. This will go towards network modernization and maintenance, its medium-term strategy, and to completing its targets under the Decent Life initiative, we were told.

But even though it can be expensive, “investing in internet infrastructure pays off in the long run,” Vodafone Egypt told us. The private sector operator explained that high-speed internet access improves productivity — and with it, growth — makes possible new types of businesses, and helps expand access to essential services like education and healthcare.


Your top infrastructure stories for the week:

  • Housing Minister Sherif El Sherbiny wants Egyptian and Saudi contractors to partner up for large-scale projects abroad, citing the Arab Contractors-CSCEC tie-up as a model for cross-border collaboration. (Statement)
  • Palm Hills, Mountain View, Nations of Sky, Mostakbal Misr inked partnership anddevelopment contract for EGP 1.5 tn Jirian project with the state, represented by the Egyptian Armed Forces-linked Mostakbal Misr Agency for Sustainable Development

JUNE

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

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.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

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

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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