Gov’t extends electricity price freeze until January 2024

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What We're Tracking Today

The EGX is inching closer to a record high

Good morning, wonderful people, and welcome to a new workweek. August may be one of the slowest months of the year in business terms, but you wouldn’t know it from the amount of news in this morning’s issue.

There’s still no single BIG STORY driving the agenda here at home (other than FX, of course), but two themes run through this morning’s issue:

#1- Banking: Hassan Abdalla will lead the Central Bank fo Egypt for another year, our friends at Banque Misr’s MDI have applied for a license to become the nation’s first challenger bank, and the National Dialogue wants to find a way to convince the CBE to get banks to make faster credit decisions (and to give more credit to manufacturers).

#2- Energy: Cabinet has signed off on a delay in planned electricity price hikes, the EBRD looks like it’s pushing forward plans to open the national electricity grid to the private sector through a wheeling framework, and our green economy just got a boost after OCI refuelled a Maersk ship fired by green methanol.

^^ We have all of this and more in this morning’s issue.

A nice boost for our nascent green economy: It was smooth sailing for the world’s first green-methanol-powered container ship, which successfully refueled in East Port Said after docking at the port on Monday, according to a Suez Canal Economic Zone (SCZone) statement on Friday. The still-unnamed vessel started its maiden voyage in Asia and passed through the Suez Canal on its way to Europe. It was fuelled by our friends at OCI Global under a partnership announced in June with shipping and logistics giant AP Moller-Maersk.

SOUND SMART- OCI produces the green methanol in the US using captured biogas from landfills. You can get the lowdown on the process here. Maersk is aiming to transport at least 25% of its ocean-borne cargo using green fuels by 2023.

What’s the ship called? The vessel, which can haul some 2.1k shipping containers called “TEUs” in industry-speak, doesn’t have a formal name yet — it will get its name at a ceremony to be held in Copenhagen in late September. The 172-meter-long ship sails at a speed of a little over 17 knots.

MARKET WATCH-

#1- The EGX is inching closer to a record high: The EGX30 is close to its 2018 peak after rising by more than 70% since October as local investors hedge against inflationary pressures and the weakened EGP, Bloomberg reports.

What analysts are saying: “Local investors in Egypt are currently facing one of the highest negative real rates in the world. This has made fixed deposits unattractive as an asset class and leading investors to pile into equities to protect their purchasing power,” said a fund manager at Daman Investments, a Dubai-based non-banking financial services firm.

#2- What the rest of 2023 has in store, according to S&P Global: Higher inflation, a weaker EGP and higher interest rates will define the macro picture here in the final months of the year, according to the latest assessment by S&P Global in a report picked up by Asharq Business. Among the key takeaways:

Inflation is likely to peak at close to 39% in October, the rating agency says. Consumer prices climbed at their fastest-ever rate in July, rising 36.5% on an annual basis as the cost of food continued to soar.
The EGP: S&P Global expects the value of the EGP to fall to 37.00 against the USD by the end of the year should authorities go ahead with an anticipated fourth devaluation (which may or may not be dependent on the IMF signing off on its delayed review of our USD 3 bn loan program later this year). A full currency float is likely to cause the currency to fall even further, it said.
Interest rates: S&P’s base case is for two 100-bps rate hikes in the central bank’s September and November meetings, though it warned that it could be forced to raise them by 300 bps in the event of a full float. This would take the bank’s overnight rate to 22.25%, its highest level in more than 30 years. The central bank has increased rates by 11% since March 2022.

INFLATION WATCH- Medication prices up 15% this year: The prices of around 2k types of medication have risen 15% so far this year on the back of production input shortages and the rise in the prices of shipping, raw materials and electricity, Asharq Business reports, quoting Ali Ouf, head of the pharma division in the Federation of Egyptian Chambers of Commerce.

FX WATCH- The New Urban Communities Authority (NUCA) has sold state-owned plots of land to corporate buyers with payment terms in USD, a cabinet statement said. The companies will receive plots in New Cairo, New Damietta, Obour City, Sheikh Zayed, Sixth of October and El Shorouk City. The statement did not put a value on the land sales or specify the names of the buyers.

HAPPENING TODAY-

A final chance to apply for tansik: The Education Ministry has ex tended the deadli ne for the second phase of tansik — the public university enrollment system — by one more day to give students who still haven’t applied a chance to do so. Students should apply before 7 pm today through the tansik website.

It’s an all-European final at this year’s Women’s World Cup: Spain take on England in the final of the Women’s World Cup this afternoon at 2pm CLT.

HAPPENING THIS WEEK-

BRICS summit: Expect plenty of talk about de-dollarisation when the leaders of Brazil, India, China and South Africa (but not Russia) meet in South Africa for the annual BRICS summit this week.

Remember: Egypt wants in. Egypt has reportedly submitted a bid to join the loose alliance of emerging economies, having earlier this year became a member country of the group’s multilateral lender.

The financial markets will have their eyes on Wyoming this week when global central bankers, economists and policymakers head to Jackson Hole for the annual central bank meet. US Federal Reserve Chairman Jerome Powell’s speech will be the headline event as investors try to gauge where interest rates are heading in the coming months.

HAPPENING SOON-

The National Dialogue: The National Dialogue will hold a new round of public sessions in the coming days to discuss the remaining issues on its agenda, the Dialogue’s General Coordinator Diaa Rashwan said over the weekend.

On the agenda: Laws regulating professional syndicates, pretrial detention, political parties, and pre-university education, Rashwan said.

** The dialogue published its first batch of recommendations over the weekend: We have full coverage in this morning’s news well, below.

THE BIG STORY ABROAD-

It’s a mixed bag on the global front pages this morning: The Financial Times thinks Arm’s upcoming Nasdaq listing could give a shot in the arm to the US IPO market, Bloomberg and the Wall Street Journal both lead with continuing sell-off in the US bond market, while Reuters and the Washington Post have the latest from Ukraine.

Ukraine grain shipments down by a third on Russia blockade: Ukraine exported only 3.2 mn tons of food commodities since Russia quit the Black Sea grain pact on 17 July through 15 August, down from 4.8 mn in June, Bloomberg reports. Ukraine’s grain and oilseed exports are projected to fall 25% during the second half of the year due to Russia’s blockade of its Black Sea ports, resulting in a 3% decline in GDP in the six-month period.

SIGN OF THE TIMES- Courtesy of FirstMark’s Matt Turck: “It’s easy to get a good night’s sleep! All you need: no caffeine after 12pm, dinner 3 hrs before sleep, meditate, work out (but not before bed), dry sauna, temperature-controlling Eight Sleep mattress, no blue light, Melatonin/L-theanine/Valerian Root, no alcohol, no water too close to sleep time, Navy SEAL sleep techniques or 4-7-8 breathing if you must, earplugs, blackout shades, humidifier. Oh and read Why We Sleep and listen to 12 podcasts from Huberman about sleep. See? Easy.”

THE REALIGNMENT-

The Saudi-Iran rapprochement continues: Iranian Foreign Minister Hossein Amirabadollahian praised “frank, blunt, advantageous and fruitful negotiations” following an unscheduled meeting on Friday in Jeddah with Saudi Crown Prince Mohamed bin Salman, Iranian state news agency Tasnim reports. Amirabadollahian also met with his Saudi counterpart Prince Faisal bin Farhan a day before.

REMEMBER- The meetings mark the highest-level talks between the two countries since they agreed to restore diplomatic ties in a pact brokered by China in March.

CHECK OUT OUR AGENDA-

The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

This is our first two-day event,which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS.

Our full agenda will be out at month’s end. Among the topics we’ll be discussing:

Looking into the crystal ball: Top industry CEOs will join us on stage to answer tough questions on where we are as an industry, the forces that will shape all of our businesses going forward, and their views on dealflow in the year ahead.

Surviving nuclear winter: We discuss how private equity and venture capital players are tackling challenges including fundraising and deployment in an environment in which it’s awfully difficult to price your local asset in USD terms.
The robots are coming: We explore what the coming AI and big data means for the industry in our part of the world and what can bankers, NBFI, and fintech players do to capitalize on them.
What do you do when nobody wants to be a banker — and when those who are already (investment or commercial) bankers are either (a) dreaming of doing their own startup or (b) moving to Dubai (or, increasingly, Riyadh)? We go deep into the weeds with industry leaders on how they’re building talent for tomorrow.
NBFIs are a bubble. Prove me wrong: We chart the explosive rise of NBFIs and ask whether the industry is ready for a wave of consolidation. We’ll dive into whether consumer finance is starting to mature as a segment — and ask which sector is next.
Handicapping the winners and losers in fintech in 2024: We dive deep into which categories are getting traction, where the untapped opportunities are, what business they would start today if they could, and what we can expect of the sector in the year ahead.
What’s a bank, anyway? Wherein we talk challenger and neobanks with the players looking to shake up the brick-and-mortar industry.

** NEW: MORE NETWORKING TIME- Our agenda includes expanded networking time, including an expanded coffee break and a post-event networking room for you to interact with your peers and speak one-on-one with the team at Enterprise.

STAY TUNED for more detail about our exciting agenda in the weeks to come.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial.

LISTEN TO OUR PODCAST-

MISSED OUR PREVIOUS FORUMS? The EnterprisePodcast has you covered : The Enterprise Podcast’s forum series has been bringing you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum and the Enterprise Climate Forum.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami.

IN THIS WEEK’S EPISODE- In our second panel from the Enterprise Climate Forum, We dive deep into what the business leaders in the climate industry in Egypt and the region have to say about how the private sector is adopting greentech, where they see the opportunities and what they’d like policymakers to do to encourage further participation. We were joined by Amr Allam, co-CEO of Hassan Allam Holding, Mohamed Ismail Mansour, CEO and co-founder of Infinity, and Sherif El Kholy, longtime partner and head of MENA private equity at Actis.

Solasi Wellbeing Festival has been lovingly created by Yes Yoga and Osana Family Wellness and takes place at beautiful Somabay from 21-23 September. Solasi brings you sunrise yoga, sound healing, funky classes, morning runs, enlightening workshops, healing treatments, tai chi, meditation, kids’ activities, locally sourced food, and lots of dancing.

Don't miss your chance to take #ThreeDaysOff and flow with us at Solasi at Somabay. Head to solasifestival.com to find out more and book your pass today.

Egyptian gov’t extends freeze on electricity prices until January 2024

No change to household electricity prices for another 4.5 months: The Madbouly cabinet has approved a decision to leave household electricity prices frozen until 1 January, 2024, following a directive from President Abdel Fattah El Sisi, according to a c abinet statemen t. The decision is part of an “exceptional package of social protection” measures aimed at easing financial pressures on the public, the statement reads.

REMEMBER- Price hikes were due last month. The government in June 2022 fixed electric ity prices for a third time to protect households from the rising cost of living, a freeze that expired at the end of FY 2022-2023 on 30 June.

A pause on the plan to roll back subsidies: The government in 2020 laid out a roadmap to phase out subsidies by 2025. Had last year’s hikes come into effect, some households would have seen their electricity bills rise by as much as 21%.

The biggest consumers already foot their full electricity bills — and more: Subsidies were fully lifted for households that consume more than 650 KWh/month in FY 2020-2021. These high-consumption households are charged a high markup on their electricity prices, which is used to subsidize low-income and low-consumption households.

But subsidy reform remains a priority: The phase-out of various types of subsidies is a key pillar of the government’s fiscal reform efforts. Winding down fuel subsidies is a condition of our USD 3 bn loan program with the International Monetary fund (IMF).

An ill-lit backdrop: The move comes as the country remains in the grip of a power crisis, with the government implementing a schedule of rolling blackouts and other power-saving measures after a heatwave triggered a surge in electricity demand.

The news got ink in the international business press: Reuters.

EBRD could provide USD 125 mn loan for Damietta Port cargo terminal — and is pushing forward liberalization of Egypt’s electricity grid

The E uropean Bank for Reconstruction and Development (EBRD) is expected to approve a USD 125 mn loan on 4 October to finance the “superstructure and purchase of equipment” for Damietta Port’s second container terminal, according to a disclosure on the lender’s website.

This is a third of the total financing package: The loan is part of a USD 455 mn financing package involving the EBRD, the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions und Entwicklungsgesellschaft (DEG), the International Finance Corporation (IFC), and the French Development Agency’s private-sector investment arm Proparco, according to EBRD’s website.

A consortium of European companies are working on the project: Hapag-Lloyd, Eurogate Terminals, and Contship Italia signed an agreement with the Damietta Port Authority last year for the USD 665 mn project. The firms will establish the terminal under a 30-year build-operate-transfer framework. The terminal will have a final capacity of 3.3 mn TEUs and is expected to begin operating by 2024, raising the port’s total capacity to 4.7 mn TEU by the third year of its operation.

Where the money’s going: The loan will finance the construction of the terminal, the cargo handling equipment, and workforce training. The port authority is handling the dredging and quay wall constructions and are not being financed by the lender, according to the disclosure.

This is a 100% private-sector venture: The three European companies will collectively own 98% of the joint venture, with Hapag-Lloyd holding 39%, and Eurogate and Contship Italia each owning 29.5%. Two Egyptian private sector firms — Middle East Logistics & Consultants and Ship & CREW Egypt — each hold a 1% stake.

GOOD NEWS FOR POWER PRODUCERS-

Have we just taken a step toward a proper “wheeling” framework? The EBRD is advising the Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) on opening the local electricity market to the private sector, the Electricity Ministry said Thursday. Funded by a grant, the multilateral lender is working with Egyptera to improve its regulatory framework to promote a more competitive market and increase the private sector’s role in producing, distributing and selling power, it said.

Why this matters: Private-sector players have long been asking for the ability to use the state’s electricity grid to transmit electricity to their end clients. Today, clients operating solar and wind facilities generate electricity and sell it to the state under a long-term offtake agreement. Energy producers wish they could effectively “rent” the state’s grid: Use it, for a fee, to green electricity directly to their end clients. In industry speak, that’s called “wheeling.” We’ve spoken of this before here and here.

Egypt cabinet approves fresh loans to support banking industry, fund Abu Qir metro

Cabinet greenlights fresh development finance: The Madbouly cabinet approved at its weekly meeting a number of loans and grants recently agreed with multilateral lenders and the Canadian government, it said in a s tatemen t.

AMF loan for the banking system: Cabinet approved a USD 615.8 mn loan from the Arab Monetary Fund (AMF) to support the banking sector. The loan will “provide the necessary foreign exchange resources to support structural reform efforts in the banking and financial sector,” according to the statement. It will help upgrade the nation’s payment systems infrastructure, support financial inclusion and improve the regulatory framework for the banking and financial sector, the AMF said in July.

Abu Qir metro money: Cabinet greenlit an agreement that will see the Asian Infrastructure Investment Bank (AIIB) provide EUR 250 mn in financing for the redevelopment of the Abu Qir railway in Alexandria. The project seeks to convert the railway into an electric, low-carbon, underground metro.

Canadian agriculture money: A Canadian grant of CAD 10 mn (USD 7.4 mn) for projects to enhance food security and combat climate change got the go-ahead from ministers. The funding will go to a program aimed at supporting sustainable agriculture and agricultural biodiversity in the Nile Delta and Upper Egypt.

PLUS- FinMin to offer temporary life ins. for gov’t employees at the new capital: The Finance Ministry will contract with Misr Life Ins. to provide temporary life ins. for employees working at the new administrative capital and beneficiaries of housing in Badr City, after approval from the cabinet.

Egypt’s National Dialogue puts forward its first batch of recommendations

National Dialogue signs off on first recommendations: The National Dialogue has produced its first set of recommendations for political, economic, and social reforms, three months after it kicked off discussions, it said in a statement on Friday. Drawn up by 13 separate sub-committees, the recommendations were last week presented to President Abdel Fattah El Sisi for consideration. The full list of proposals were published by the local press.

BUSINESS + ECON- Among the list of economic reforms put forward by the Dialogue are proposals to:

Bring back the Economy Ministry to supervise national economic policy;
Policy drafters also want to make it easier for businesses to access credit by having banks shorten their credit-decision times and by raising credit limits for industrial firms — policies typically left in Egypt (and any other economy we can think of) to individual banks and their internal processes. Drafters want the CBE to handle the change through a new directive;
Increase support for small businesses by launching an investment fund for startups and a national strategy to boost entrepreneurship ;
Introduce commodity futures trading ;
Strengthen the role of cooperatives by passing new legislation and setting up a new national body.

POLITICS- As part of the recommendations for political reform, the Dialogue has presented the president with three options for reforming the electoral system: keeping the status quo, which divides closed lists and individuals 50/50; adopting a proportional list system; or introducing a mixed system that combines closed lists, proportional lists, and individuals.

Other political reform proposals include:

Increasing the number of MPs and senator s in the House of Representatives and the Senate (we’re not entirely certain how more MPs is necessarily going to be productive…);
Reviewing the current cap on campaign financing during presidential elections in light of rising inflation;
Passing legislation to reform electoral rules for local councils.

SOCIETY- The Dialogue has recommended a number of social reforms, including:

The introduction of new subjects in primary education including entrepreneurship, creative thinking, simulation models, and practical activities;
Changing the guardianship law so that mothers would receive their children’s inheritance should the father die, rather than grandfathers;
Passing a law to establish anti-discrimination commissioners.

El Sisi vows to take action: “I affirm that [the recommendations] will be referred to the concerned authorities for study and implementation within the scope of my legal and constitutional powers,” El Sisi said on social media last Wednesday, noting that anything that needs legislation (whether new or tweaks to existing acts) would be sent to the House of Representatives.

It’s not over: “More recommendations are to come after the National Dialogue holds another round of public sessions in the coming weeks,” the Dialogue’s General Coordinator Diaa Rashwan said.

On the agenda in the weeks ahead: On the political front, the dialogue will discuss challenges facing professional syndicates as well as laws regulating pretrial detention and political parties among other topics, Rashwan said. The economic agenda will tackle inflation and the future of the pharma industry, while the social agenda will look into issues with university education, he added.

BACKGROUND: The National Dialogue was launched in May, almost a year after it was first announced by President Abdel Fattah El Sisi. It brings together political parties and factions across the spectrum to discuss the country’s political roadmap and economic priorities moving forward. Over 7.2k individuals have so far participated, according to the statement.

Central Bank of Egypt governor Hassan Abdalla appointed for another one-year term

Hassan Abdalla ( LinkedIn ) has been reappointed as the acting governor of the Central Bank of Egypt (CBE) for another one-year term starting 18 August under a presidential decree published in the Official Gazette. The veteran banker was first appointed to the position in August last year following Tarek Amer’s surprise resignation.

A lot has changed at the CBE since Abdalla took the helm: In the year since Abdalla’s appointment, the central bank has devalued the currency twice in response to the FX crisis and reformed its subsidized loan program, helping the country secure vital financial assistance from the IMF. Under his leadership, the central bank has also raised interest rates by another 800 bps, as well as bumped up its reserve requirement, to tackle rising inflation.

Abdalla’s position remains temporary: The president can appoint an interim leader, but the House of Representatives would need to approve a nominee for a full four-year term. Bloomberg says the short-term reappointment is a source of uncertainty for investors.

PLUS: Sherif Sedky (LinkedIn) has been reappointed to his position as CEO of the Egyptian Space Agency under a presidential decree published in the Official Gazette.

Egypt’s talk shows cover El Sisi’s military academy speech, presidential pardons

President Abdel Fattah El Sisi dominated the agenda on the airwaves yesterday with the Al Hayah Al Youm and Masaa DMC covering his comments during a speech on Saturday and his decision over the weekend to pardon 30 prisoners, among them political activist Ahmed Douma.

Douma released: Al Hayah Al Youm (watch, runtime: 3:00) and Masaa DMC (watch, runtime: 2:34) both covered the president’s decision to pardon 30 prisoners, including political activist Ahmed Douma. More on this in Egypt in the News, below.

Gov’t to step up local food production: In a speech at the Egyptian Military Academy, the president defended the government’s economic record and attributed the ongoing crisis to the covid-19 pandemic and Russia’s invasion of Ukraine. In a bid to improve the country’s food security, the government will in the coming months begin cultivating another 3 mn feddans for agriculture, said El Sisi, qualifying that even with additional local production the country will still need to import large quantities of food to meet local consumption. Egypt’s annual consumption of wheat is expected to reach 20 mn tons, he said. Masaa DMC (watch, runtime: 3:46) and Al Hayah Al Youm (watch, runtime: 6:32) had coverage.

COVID WATCH- Masaa DMC (watch, runtime: 7:22) and Ala Mas’ouleety (watch, runtime: 16:05) both had updates on the new “Eris” covid-19 variant that is spreading across the world. The mutation, also known as BA.2.86, has not yet been detected in Egypt, Ittihadiya health advisor Mohamed Awad Tag El Din said.

Egyptian political activist Ahmed Douma granted presidential pardon

Leading the conversation on Egypt in the international press this morning: Ahmed Douma, a prominent political activist during the 2011 revolution, has been released from prison after spending almost a decade behind bars. Douma, who was serving a 15-year sentence for taking part in anti-government protests in 2011, was among a number of people pardoned by President Abdel Fattah El Sisi over the weekend. He is the latest high-profile prisoner to be released following human rights advocate Patrick Zaki and human rights lawyer Mohamed El Baqer last month. (Associated Press | Reuters | AFP | Washington Post | New York Times)

ALSO- Human rights are also getting attention from the Guardian(the family of Morsi-era official Salah Soltan want the Biden administration to pressure Egypt to release him) and the tenth anniversary of Rabaa (CNN | Guardian).

Other headlines with knowing about:

Reuters covers the daily power cuts that have been a feature of our landscape since last month.
Mystery plane: Zambian authorities seized a private jet carrying mns of USD, gold bars and weapons that had flown from Cairo. Six Egyptians were among 10 people detained for questioning. (Al Arabiya | The National | CNN Arabia)

MDI applies for digital banking license. PLUS: Sugar on EMX, Cairo Metro Line 3, B.TECH + outsourcing

BANKING-

MDI applies for digital banking license: Banque Misr subsidiary Misr Digital Innovation (MDI) on Thursday submitted an official application for a digital banking license to the Central Bank of Egypt (CBE), becoming the first local company to do so, it said in a statement (pdf) Thursday. The company expects to launch the digital bank “within months” should it receive approval from the central bank, it said. We expect it to go live some time in early 2024.

Remember: Local media reported earlier this month that Banque Misr plans to launch the country’s first digital bank in 1Q 2024. The CBE last month published new licensing rules for digital banks, prompting a number of local firms to announce their intentions to apply, including Orascom Financial Holding (OFH), Ostoul Securities Brokerage, and OPay.

DEBT-

Aman Microfinance eyes EGP 200 mn loan to expand lending portfolio: Raya Holding’s consumer finance arm Aman Microfinance is in talks to borrow EGP 200 mn from the the Micro, Small and Medium Enterprises Development Agency (MSMEDA), it said in a statement (pdf) Monday. The financing would be used to expand the company’s lending portfolio and obtain new low-income clients. Aman received an EGP 100 mn loan from MSMEDA in March 2022.

COMMODITIES-

Sugar is now trading on the EMX: Orders worth 4k tons of sugar were executed on the commodity’s first day of trading on the Egyptian Mercantile Exchange (EMX) on Thursday, according to Youm7. The addition of sugar on the exchange comes as part of the government’s efforts to “organize markets for strategic and basic commodities,” exchange head Ibrahim Ashmawy said in a statement (pdf) ahead of the start of trading. He called on food industries, distribution and packaging companies, and traders who want to trade sugar on the bourse to register on the exchange portal.

Sugar is the fourth commodity to trade on the EGX, following successful listings of wheat, yellow corn, and bran, Ashmawy said, noting that a study is underway to list other commodities in the future.

The story got international coverage: Reuters.

TRANSPORT-

Pilot for next phase of Metro Line 3 to start in October: The National Authority for Tunnels will start testing the 3C phase of Cairo Metro Line 3 in October ahead of opening it to the public in the first half of 2024, the chairman of the authority said Tuesday, according to Ahram Online. The 18-km phase will extend the city’s metro system to the Rod El Farrag axis west of the ring road, and link Kit Kat to Cairo University via a separate line. The previous phase running between Ataba and Kit Kat opened last year.

LOGISTICS-

Egypt plans to establish a logistics zone on the Libyan border as it looks to increase trade with its western neighbor, according to Asharq Business. The zone will be built on an area of 300 feddans near the port in Salloum, President Abdel Fattah El Sisi said in a speech in Marsa Matrouh on Wednesday.

E-COMMERCE-

B.TECH x Jumia: Consumer electronics retailer B.TECH is launching an online store on e-commerce platform Jumia, according to a joint statement (pdf)

SERVICES -

GIZ supports local outsourcing sector: German development agency GIZ will work with the Communications Ministry’s IT development agency to boost employment in Egypt’s outsourcing and IT industries under an MoU signed last week, according to a joint statement (pdf) on Wednesday. The agreement will see GIZ partner with ITIDA on initiatives to create new outsourcing jobs and increase the uptake of advanced technologies in the local electronics manufacturing sector.

Turmoil in China’s real estate sector could be morphing into a financial crisis

China’s property crisis deepens, threatening wider economy: New home prices in China fell last month for the first time in 2023, new data revealed, on the same day a major trust fund with real estate exposure said it had missed payments on investment products, Reuters reports. The missed payments by Zhongrong International Trust Company have investors worried that woes in the Chinese property sector could contaminate its USD 3 tn shadow financial services sector, which is heavily exposed to real estate. The country’s largest developer, Country Garden, is already scrambling to avoid defaulting on its debt next month.

Hedge funds are getting out: Global hedge funds have been “aggressively” offloading Chinese equities, Reuters separately quotes a Goldman Sachs report out this week as saying. Hedge funds were net sellers of Chinese equities in eight of the last ten sessions, with money managers unraveling both long and short positions.

ALSO WORTH NOTING-

KSA dumps US treasuries in search for higher returns: Saudi Arabia’s holdings of US treasuries have fallen to their lowest level in six years, as the country looks for higher returns on its investments amid a growing backlash against the supremacy of the USD. (Bloomberg)
Will EY try to split itself up again? PE outfit TPG Capital is reportedly eyeing astake in Big Four firm EY’s consulting business, potentially reviving earlier plans to spin off EY’s consulting arm from its auditing arm in what would be a major shakeup for the global accounting industry. (Financial Times)
UK inflation rises at slowest rate since February 2022: Inflation eased by 1.1 percentage points to 6.8% y-o-y in July, meeting expectations, as energy prices cooled. (Financial Times)

EGX30	17,969	-0.5% (YTD: +23.1%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	11,451	+0.5% (YTD: +9.3%)
ADX	9,801	+0.2% (YTD: -4.0%)
DFM	4,050	0.0% (YTD: +21.4%)
S&P 500	4,370	0.0% (YTD: +13.8%)
FTSE 100	7,262	-0.7% (YTD: -2.5%)
Euro St o xx 50	4,213	-0.4% (YTD: +11.1%)
Brent crude	USD 84.80	+0.8%
Natural gas (Nymex)	USD 2.55	-2.7%
Gold	USD 1,916.50	+0.1%
B T C	USD 26,071	-0.1% (YTD: +58.5%)

THE CLOSING BELL-

The EGX30 fell -0.5% on Thursday on turnover of EGP 1.75 bn (13.8% below the 90-day average). Foreign investors were net buyers . The index is up 23.1% YTD.

In the green: Heliopolis Housing (+1.3%), Beltone Financial (+0.9%) and B Investments (+0.8%).

In the red: Juhayna (-8.0%), Talaat Moustafa Group (-3.6%) and CIRA Education (-2.9%).

West African countries agree timing for potential Niger invasion

ECOWAS threaten Nigerien “D-day”: The ECOWAS group of West African nations has agreed on a timing for a potential invasion of Niger as it looks to overthrow the junta that seized power last month, Reuters reports. A coalition of military forces are “ready to go anytime the order is given,” a top official from the regional bloc said at a presser yesterday. “The D-day is also decided, which we are not going to disclose.”

Remember: Niger’s democratically-elected president Mohamed Bazoum was deposed in a military coup led by the head of his presidential guard last month.

Last ditch talks: An ECOWAS delegation traveled to the Nigerien capital yesterday to hold talks with coup leader General Abdourahmane Tiani and meet with Bazoum. In a televised address yesterday, Tiani said he remains open to dialogue and does not want war. ECOWAS have warned that it will intervene militarily should talks fail.

Also worth knowing this morning:

Lebanon is about to join the EastMed gas rush: TotalEnergies plans to begin exploring for oil and gas off the Lebanese coast later this month after a drilling rig arrived in the country on Wednesday. (Reuters)
Tech-xodus from Israel: A growing number of Israeli tech startups are setting up in the US in response to the political turmoil caused by the judicial overhaul being pushed by the country’s far-right government. (Reuters)

CALENDAR

JULY

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

16 August - 27 September: The start of the bidding process for the fifth phase of the investment map offered by the Industrial Development Authority (IDA).

20 August (Sunday): Deadline for second phase of tansik applications.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

23 August (Wednesday): Networking Summit and Industrial Service Providers Meeting, Green Desert Hotel, Sadat City.

24-26 August (Thursday-Saturday): Jackson Hole Economic Symposium.

28 August (Monday): The start of Flat6Labs’ inaugural 12-week contech accelerator program.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

1 September (Friday): Application deadline for the Smart Green Projects initiative.

3-5 September (Thursday-Saturday): Pharmaconex, Egypt International Exhibition Centre, Cairo.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

13 September (Wednesday): Deadline for settling outstanding military service in FX.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

20-23 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

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

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

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

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm ElSheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

30 September (Saturday): The start of the new academic year for Egyptian schools.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

October: Egyptian-Jordanian Business Council, Amman, Jordan.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

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

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

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

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

2024: Standard Chartered Bank to open a branch in Egypt.

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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