Gov’t looks to finalize long-term LNG contacts for 160 shipments through June 2026

Tuesday, 10 Jun 2025

Gov’t looks to finalize long-term LNG contacts for 160 shipments through June 2026

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Today at a glance

Energy

Egypt to finalize long-term LNG agreements with global suppliers this week.

Economy

Inflation rises once again in May to reach 16.8%.

Economy

Remittances from Egyptians abroad continue to rise in March, reaching USD 3.4 bn.

Banking

Net foreign assets fall in April for the first time in four months.

Trade

Morocco slaps temporary anti-dumping duties on Egyptian PVC imports.

WHAT WE’RE WATCHING TODAY

Talaat Moustafa Group eyes regional IPO for subsidiary.

Also on our Radar

Aspire Capital to roll out money market, gold investment funds in 2025.

PLANET FINANCE

Emerging market bond sales surge amid opportunistic rush to debt markets.

Going Green

How is Egypt fighting single-use plastic bags?

What We're Tracking Today

Talaat Moustafa Group eyes regional IPO for subsidiary

Good morning, folks, and welcome back. As we settle into our desks post-Eid, we’re kicking off the workweek with news and macroindicators — good and bad. While remittances are up 82.7% y-o-y in 9M and the long-awaited launch of 5G has finally come, inflation picked up in May much faster than expected and net foreign assets dip in April for the first time in four months. We’ve got this and more in today’s issue, so let’s jump right in.

PSA-

Egypt kicked off Eid with the launch of 5G services, which will see the country’s four telecom operators begin rolling out the service nationwide, Prime Minister Moustafa Madbouly announced on Wednesday evening in a televised event in front of the Giza Pyramids.

5G is about a lot more than just faster internet speeds, as the service establishes “a smart infrastructure capable of supporting digital industries, artificial intelligence, the Internet of Things, smart cities, cyber systems, and everything related to the future of the knowledge economy," Madbouly said.

Don’t worry if your phone is yet to connect to your local 5G tower — your time will come. We were previously told that the rollout will follow a phased geographic plan starting with major cities, economic zones, and strategic areas with industrial and commercial density. The new administrative capital and key business districts are among the first areas to receive the service.

WEATHER- Cairenes are in store for another hot and sunny day today, with a high of 37°C and a low of 23°C, according to our favorite weather app.

Temperatures are a lot more manageable in Alexandria, with a high of 30°C, a low of 20°C, and partly cloudy skies.

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

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WATCH THIS SPACE-

Talaat Moustafa Group is mulling a regional IPO for one of its subsidiaries as it looks to deepen its regional footprint, Al Arabiya reports, citing a company conference call with analysts. There’s no publicly available information about the said company, timeline, size, or avenue of the potential listing.

The EGX-listed developer has become an increasingly familiar name across the region, with the once Egypt-focussed company now working towards building a USD 10 bn project in Iraq, two mixed-use developments in Oman totalling USD 3.9 bn, and its USD 17.3 bn Benan City project in Saudi Arabia that is already under construction. The company’s combined land portfolio across the three nations totals 29 sq km.

DATA POINT-

Red Sea traffic has climbed up 60% to about 36-37 ships per day since August 2024, a bump in numbers compared to a low of 20 to 23 recorded by August last year, Reuters reported last week, citing the EU’s Red Sea Aspides naval mission’s Rear Admiral Vasileios Gryparis. Gryparis said that the uptick followed the US’ ceasefire agreement with the Houthis and the group’s more concentrated targeting of only Israeli, Israeli-linked, and previously Israel-docked-vessels. “If you have a vessel that does not correspond to this criteria... there is a huge possibility - more than 99% - that you're not going to be targeted by the Houthis,” he said.

Despite the improvement, daily traffic is still well below previous rates before the beginning of Houthi attacks in November 2023 in response to Israel’s war on Gaza, which stood at around 72 to 75 vessels.

CIRCLE YOUR CALENDAR-

Investors now have until 15 June to apply online for 1.8k industrial land plots across 20 governorates via the Egypt Industrial Digital Platform after the offering was extended, according to a statement from the Industry Ministry.

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-

Headlining the world’s digital front pages across the globe are reports of 700 US Marines to be deployed to LA in response to anti-immigration raid protests, which are soon to enter their fifth day. The additional troops will join the already deployed California National Guard in the country’s second-largest city to protect federal personnel and property, US Northern Command said.

Governor Gavin Newsom accused Trump of staging a “manufactured crisis” and has vowed to sue over what he called an abuse of the president’s authority. The state governor also posted that he was told an additional 2k National Guard troops will be deployed, despite the majority of the already 2k mobilized “sitting, unused, in federal buildings without orders” or food and water. “This isn’t about public safety. It’s about stroking a dangerous President’s ego,” he said. (Reuters | Bloomberg | Financial Times | Associated Press | New York Times | BBC)

And in our corner of the world, Israeli naval forces seized the Freedom Flotilla Coalition vessel trying to break the Gaza blockade and detained all 12 passengers including climate activist Greta Thunberg and French MEP Rima Hassan prior to deportation. The UN recently labeled the besieged strip as “the hungriest place on Earth,” and warned that its entire population is at risk of famine. (Reuters | Financial Times | CNN | Associated Press | BBC | Guardian | AFP)

While in trade war news, the Trump administration is considering easing chip export restrictions to China in exchange for accelerated rare earth shipments as part of trade talks underway in London. Top White House official Kevin Hassett said he expects an agreement that would see US controls lifted “immediately” in return for China releasing rare earths in volume — resolving what Washington claims is a “slow roll” breach of its Geneva ceasefire agreement. (Financial Times)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We look at how Egypt is working to reduce dependence on single-use plastic bags.

Tags:

IPO watch Talaat Moustafa Group What We're Tracking Today

Somabay; every reason to fall in love.

Energy

Egypt to finalize long-term LNG deals with global suppliers this week

The Madbouly government is reportedly looking to finalize long-term LNG supply agreements with up to six companies this week for deliveries through June 2026, Bloomberg reports, citing unnamed sources. The agreements would secure more than 160 shipments of LNG and could be followed by additional contracts covering 2027–2028 to reduce reliance on the spot market, which has been both volatile and often expensive, the sources said.

The companies include Saudi Aramco, Trafigura Group, Vitol Group, Hartree Partners LP, and BGN, according to the sources.

REMEMBER- The government is preparing for a surge in demand over the summer months by booking in LNG shipments — and the necessary infrastructure to process the deliveries — to close the gap between demand and supply. Adding pressure to keep the lights on — and for Egypt to potentially overprepare — are repeated pledges from the government that the dreaded days of blackouts won’t return.

In preparation for the uptick in LNG deliveries, the 750 mcf/d-Energos Eskimo has now arrived in Egypt, according to shipping data. The vessel will join the recently received Energos Power, the soon to be replaced 750 mcf/d-Hoegh Galleon in Ain Sokhna and be followed soon by a unit from Turkish state-owned energy firm BOTAS.

DATA POINT- Egypt needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes roughly 4.4 bcf/d.

Tags:

energy oil and gas

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Economy

Egypt’s inflation rises once again in May to reach 16.8%

Annual headline urban inflation rose for the third month running in May to 16.8%, up from the 13.9% recorded in April, according to data from state statistics agency Capmas. On a monthly basis, inflation rose 0.6 percentage points to 1.9%.

The inflation reading came in higher than forecasts set by experts we spoke to, as Ahly Pharos’ Hany Genena saw headline annual inflation coming in at 15.25% in May, while HC Securities’ Heba Mounir expected inflation to accelerate only 0.3 percentage points to 14.2% y-o-y.

The central bank has been optimistic about the overall trajectory of inflation, predicting last month that inflation would further dip throughout the remainder of 2025 and 2026.

What about core inflation? Annual core inflation — which excludes volatile items like food and fuel — rose to 13.1% in May from 10.4% in April, according to data from the Central Bank of Egypt (CBE). On a monthly basis, core inflation stood at 1.6% in May, compared to 1.2% the month before.

Driving the trend: Food and beverage price inflation, the largest component of the basket of goods and services used to calculate headline inflation, rose by 11.0% y-o-y. Fruit inflation saw the steepest annual increase during the month, rising 61.8% y-o-y. “On a seasonally-adjusted annualised basis, we estimate that prices rose by 24.2% y-o-y, which was the strongest pace since September,” Capital Economics’ James Swanston said in a note. “Meanwhile, our measure of energy inflation increased to a four-month high on the back of the hikes to local fuel prices towards the end of April that continued to filter through in May,” Swanston added.

The effects of the rise in fuel prices may be starting to show: “We partially attribute the acceleration in inflation to a delayed pass-through effect of the 11 April c.12-15% increase in gasoline and diesel prices since it took place almost mid-month, which may have impacted food and beverage and transportation prices in May,” HC Securities’ Nemat Choucri told EnterpriseAM.

ICYMI- The Madbouly government hiked vehicle fuel prices by up to 14.8% in April, a move analysts told us would have a direct and indirect impact on inflation.

There’s also the base effect: Genena previously told us that the float of the EGP back in March of last year led to a fall in prices, after it drove the end of the parallel market that had overvalued the USD and undervalued the EGP. This, he said, was bound to be heavily reflected as a base effect on last month’s reading.

Seasonal factors are also at play: The rise in inflation “does not reflect extended or primary dynamics that suggest the emergence of new inflationary waves that might require a return to further monetary tightening,” banking expert Mohamed Abdel Aal told EnterpriseAM. “We see this rise as a result of seasonal increases in the prices of food items in particular, as well as the residual cumulative effect of fuel price hikes,” he said.

REMEMBER- The CBE cut interest rates by 100 bps in its third meeting of the year in May, in a move that marked the Monetary Policy Committee’s (MPC) second consecutive change to policy rates since March 2024, following seven consecutive meetings where rates were held steady. “The moderating trend in headline and core inflation, coupled with easing underlying dynamics, suggests an improvement in inflation expectations,” the MPC said last month.

Upcoming price hikes could push inflation up further: Expected hikes to the fuel prices could push inflation up to around 17-18% across June and July, before falling to around 16% by August, Genena told us.

The figure could encourage more caution from the CBE moving forward: “The latest bump up in inflation coupled with global uncertainty may prompt officials to maintain this cautious approach [to monetary loosening]. We have pencilled in a further 600 bp of interest rate cuts this year, to 18% — this is more dovish than other analysts expect, although the risks are skewed to the upside,” Swanston wrote. Meanwhile, Genena told us that he sees the MPC keeping interest rates unchanged until August, citing the upcoming fuel price hikes as a reason.

Some corners of the int’l press also took note of the figures: Bloomberg | Reuters

Tags:

CAPMAS economy inflation

Economy

Remittances from Egyptians abroad continue to rise in March, reaching USD 3.4 bn

Remittances from Egyptians residing abroad continued their steady rise in March, increasing 63.7% y-o-y to around USD 3.4 bn, according to a statement (pdf) from the Central Bank of Egypt. This marks the thirteenth consecutive month of y-o-y remittance growth.

Remittances reached a record high in the first nine months of the current fiscal year, with Egyptians abroad sending in some USD 26.4 bn, up 82.7% y-o-y. In 3Q FY 2024-2025, remittances saw a y-o-y increase of 86.6%, reaching around USD 9.4 bn.

“March’s figures were strong, and they imply a 13% m-o-m increase compared to February’s USD 3 bn,” HC Securities’ Nemat Choucri told EnterpriseAM.

REMEMBER- Remittance inflows began to return to official channels after the float of the EGP back in March 2024, which effectively put an end to the parallel market that had pushed remittance flows to unofficial channels. Remittances are expected to continue their upward trajectory throughout the year, with Morgan Stanley forecasting USD 32 bn in inflows during the current fiscal year.

This could also be the year remittance flows surpass their pre-FX crisis peak. Last fiscal year saw remittances hitting only USD 22.1 bn — as the parallel market pushed remittance flows to unofficial channels — down from a USD 31.4 bn peak in FY 2020-2021.

Money sent from abroad is expected to have made up around 8% of the country’s entireGDP in 2024, up from 5% in 2023 and 6.1% in 2022. In terms of current account inflows, remittances from Egyptian expats are expected to have accounted for 35% of inflows in 2024, up from the 25% recorded the year prior, but still a long way off from the 45% recorded in 2020.

Tags:

economy foreign exchange remittances

Banking

Egypt’s net foreign assets breaks a three-month streak, falling to USD 13.5 bn in surplus in April

Net foreign assets in Egypt’s banking sector fell for the first time in four months in April, coming in at USD 13.5 bn, down 10.0% m-o-m from USD 15.0 bn recorded for March, according to data (pdf) from the Central Bank of Egypt. The decline comes despite a continued uptick in foreign assets, as rising liabilities across the sector dragged down the overall balance.

Commercial banks maintained a surplus — albeit narrower — for the second month running, with their net foreign assets coming in at USD 1.6 bn in April, down from USD 2.5 bn the month prior. Foreign assets rose to USD 31.3 bn, up from USD 30.6 bn in March, but liabilities also jumped to USD 29.7 bn, up from USD 28.1 bn.

The central bank’s net foreign assets surplus also narrowed, coming in at USD 11.9 bn, down from USD 12.5 bn a month earlier. Foreign assets inched up to USD 46.7 bn compared to March’s 46.4 bn, while liabilities rose to USD 34.8 bn — a USD 1.0 bn increase from March.

The contraction in net foreign assets surplus follows March’s record high, which surpassed the previous peak of USD 14.3 bn recorded in May 2024 — courtesy of the second and final tranche of the USD 35 bn Ras El Hekma agreement, which brought in some USD 14 bn in fresh inflows. Before that, Egypt had been in a prolonged net foreign asset deficit since February 2022, when the outbreak of the war in Ukraine triggered capital outflows of around USD 20 bn.

Tags:

banking Central Bank of Egypt foreign exchange. foreign reserves

Trade

Morocco imposes temporary anti-dumping duties on Egyptian PVC imports

Morocco has imposed temporary anti-dumping duties on Egyptian polyvinyl chloride imports, Moroccan news outlet Hespress reports, citing a circular from the country’s Customs and Indirect Tax Administration. The move will see duties on the material — known more commonly by its acronym PVC — of up to 92.2% imposed on shipments from Egypt for a four-month period starting last Friday.

REFRESHER- The news comes following a recent flare-up in trade tensions that spurred on efforts to rebalance the lopsided trade relationship between the two countries in favor of Egypt, alongside Moroccan anti-dumping investigations into certain Egyptian goods. In February, Morocco held up some 150 containers of Egyptian goods in Moroccan ports in an attempt to rebalance the two countries' trade relationship.

Imports from the state-owned Egyptian Petrochemicals Company will be subject to a lighter duty of 74.9%, while all other Egyptian PVC producers and exporters face a higher rate of 92.2%, according to the circular. The decision was enacted under a joint decree issued on 22 May by Morocco’s Industry and Trade Ministry and Economy and Finance Ministry. All sums collected under the anti-dumping measure — including VAT on the applicable amount — will be held by Moroccan customs authorities until further notice, the circular states.

Rabat already has import restrictions and anti-dumping measures on some Egyptian goods — and more could be on their way. Our North African neighbor already has restrictions on Egyptian air conditioning units due to a lack of local components, a 35% anti-dumping duty on Egyptian carpets, and a five-year 35% anti-dumping duty on canned tomatoes exported from Egypt. Moroccan authorities also launched an anti-dumping investigation into imports of galvanized wire from Egypt and the UAE.

Efforts are already underway to address the trade imbalance between the two countries, inducing a plan to ramp up imports from Morocco to USD 600 mn over the coming period, Secretary General of the Federation of Egyptian Chambers of Commerce Mohamed Saada said last month. Saada added that the government is also exploring the import of Moroccan fish and securing a quota for Egyptian fishing in Moroccan territorial waters.

DATA POINT- Egyptian exports to Morocco reached some USD 1.0 bn last year, while Egypt imported less than USD 50 mn worth of goods from Morocco, according to data from state statistics agency Capmas seen by EnterpriseAM.

Tags:

Morocco trade

EGYPT IN THE NEWS

Egypt’s pyramids revamp is catching the attention of int’l press

Now that we’re weeks away from its completion, the foreign pages are shedding the spotlight on the overhaul of the Pyramids Plateau. Bloomberg is out with a piece highlighting Orascom Pyramids Entertainment’s plan to improve the visitor experience at the Giza Pyramids, which is set to officially wrap up on 3 July, coinciding with the grand opening of the Grand Egyptian Museum.

Among the most notable changes: Visitors will no longer get the chance to cruise around the plateau in their cars, and instead will get driven around by buses. The bus stops house facilities like restrooms, coffee shops, and souvenir stores.

Tags:

tourism

Also on our Radar

Aspire Capital to roll out money market, gold investment funds in 2025. PLUS: Modern Gas + Petromaint, Samco + Maurer

FINANCIAL SERVICES-

Aspire Capital (FKA Pioneers Holding) is planning to launch five new investment funds over the next two years with a total value of EGP 3 bn, Asharq Business reports, citing the company’s Managing Director for Investment Abdel Moneim Omran. Aspire submitted license applications to the Financial Regulatory Authority to begin issuing the funds. The company aims to roll out two funds by year-end — a money market fund and a gold investment fund. Three additional funds, including a real estate fund, an FCY liquidity fund, and an equity fund, are expected in 2026.

Aspire isn’t the only one trying to capitalize on the interest in gold funds, with local fintech startup Bokra Holding also looking to roll out an EGP 50-100 mn gold investment fund by 3Q, backed by shariah-compliant debt instruments. By the end of April, total investments in the only three gold funds in the domestic market reached EGP 2.1 bn. These include the AZ-Gold fund, Al Ahly Financial Investments Management's Dahab fund, and Beltone Holding's Sabaek fund.

EXPANSION-

Local energy players are eyeing the Iraqi market: State-owned Modern Gas and Petromaint are in talks with the Iraqi Oil Ministry over helping connect natural gas networks to power plants and brick and cement factories, according to an Oil Ministry statement. The talks, which took place on the sidelines of the Iraq Oil and Gas Technology Exhibition (Oigatech), also touched on the possibility of the Egyptian companies supplying gas to residential areas and hotels in Iraq.

MANUFACTURING-

#1- Gov’t to establish industrial complex for bridge, tunnel components: The government is in talks with local contractor Samco Egypt and German steel manufacturer Maurer to develop an integrated industrial complex to locally manufacture components for bridges and tunnels, according to an Industry Ministry statement. A joint technical committee will be formed to draft a roadmap and a timeline for the project’s implementation.

#2- Korean investment in Egypt’s textile industry? South Korean textile manufacturer Global SAE-A Group is looking into potential investments in the local textiles sector, company representatives said during a meeting with Public Enterprises Minister Mohamed El Shimi.

Tags:

ALSO ON OUR RADAR energy financial services gold infrastructure Iraq Korea Manufacturing oil and gas textiles

PLANET FINANCE

Emerging market bond sales surge amid opportunistic rush to debt markets

Emerging market borrowers have raised USD 331 bn in hard-currency debt so far this year, marking the fastest pace of borrowing in four years, as governments and corporates rush to tap global markets while demand stays strong, according to Bloomberg data. The total has already surpassed issuances from 1H 2024, driven by yield-seeking investors and a weaker USD.

Why now? Borrowers are securing financing before further market instability hits, after the first wave of tariff threats was somewhat subdued. Growing doubts about the dominance of US markets — and growing suspicions of a potential US recession — as US policy remains unclear are also pushing investors to tap into international markets. Demand is still strong even after the extra yield required for USD-denominated bonds from EMs — rather than Treasuries — has dipped, as investors anticipate spreads to widen further if the US economy is hit with a recession.

Who’s borrowing? More than 70% of this year’s issuance has come from investment-grade names. Saudi Arabia raised USD 12 bn across three tranches, and activity out of China has picked up. In frontier markets, Kyrgyzstan raised USD 700 mn in its debut international bond sale, drawing USD 2.1 bn in demand for its five-year notes priced at 8%. High-yield issuers like Brazil, Peru, and Telecom Argentina have also returned to the market, but riskier frontier borrowers remain on the sidelines.

Regional outlook: The Middle East is expected to account for over 40% of CEEMEA issuance this year, said Stefan Weiler, head of CEEMEA debt capital markets at JPMorgan. The dip in oil prices and revenues has driven up the need to source alternative financing.

Bank of America and JPMorgan expect EM assets to gain further if the USD continues to slide, while Société Générale has called current conditions a “goldilocks” moment for local EM assets, with most investors viewing EMs as a safe haven. However, the US’ review of its tariff policy in July could spur more volatility.

What’s next? Upcoming sovereign transactions could come from Poland, Romania, Kuwait, and Kazakhstan, while Costa Rica and Guatemala may also enter the pipeline. “If anybody wants to issue, we still have probably a four- to six-week window now. Otherwise, you have to wait until September,” said Claudia Calich, head of EM debt at M&G Investments.

IN OTHER PLANET FINANCE NEWS-

Warner Bros. splits in two: Warner Bros. Discovery will separate into two publicly traded companies by mid-2026, according to a statement picked up by Bloomberg. The restructuring will see its streaming and studios operations split from its TV network operations, as consumer habits shift increasingly online and more traditional media outlets face stiff competition from streaming giants.

MARKETS THIS MORNING-

Asian markets are in the green this morning amid rising hopes for a trade agreement between the US and China following trade talks yesterday. Japan’s Nikkei leads the charge with a 0.8% uptick, while South Korea’s Kospi and China’s CSI 300 are also up.

Over on Wall Street, futures are flatlining after the S&P 500 and Nasdaq notched gains yesterday.

EGX30	32,678	+1.0% (YTD: +9.9%)
USD (CBE)	Buy 49.57	Sell 49.71
USD (CIB)	Buy 49.59	Sell 49.69
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	11,005	+1.6% (YTD: -8.6%)
ADX	9748	+0.1% (YTD: +3.5%)
DFM	5593	+1.0% (YTD: +8.4%)
S&P 500	6006	+0.1% (YTD: +2.1%)
FTSE 100	8832	-0.1% (YTD: +8.1%)
Euro Stoxx 50	5422	-0.2% (YTD: +10.7%)
Brent crude	USD 67.13	+1.0%
Natural gas (Nymex)	USD 3.64	-3.9%
Gold	USD 3354.90	+0.3%
BTC	USD 108,816.60	+2.3% (YTD: +16.3%)
S&P Egypt Sovereign Bond Index	EGP 876.44	+0.1% (YTD: +12.7%)
S&P MENA Bond & Sukuk	USD 143.93	-0.1% (YTD: +2.9%)
VIX (Volatility Index)	17.16	+2.3% (YTD: -1.1%)

THE CLOSING BELL-

The EGX30 rose 1.0% at Wednesday’s close on turnover of EGP 3.7 bn (23% below the 90-day average). International investors were the sole net buyers. The index is up 9.9% YTD.

In the green: GB Corp (+7.3%), Beltone Holding (+6.1%), and Qalaa Holdings (+3.6%).

In the red: Egypt Aluminum (-2.5%), Eipico (-1.2%), and Orascom Construction (-0.7%).

Tags:

debt emerging markets Financial Markets Planet Finance

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

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

How is Egypt fighting single-use plastic bags?

Egypt is ramping up efforts to reduce dependence on single-use plastic bags: The Environment Ministry launched a nationwide campaign this month — called Reduce It — to raise awareness about the dangers of single-use plastic bags, according to a ministry statement. The campaign was launched in cooperation with the Japanese government and the United Nations Industrial Development Organization (Unido).

The details: The campaign aims to raise awareness about the environmental and health dangers of single-use plastics and encourage behavioral change among consumers.

Why it matters: Reducing plastic bag production would cut down on raw material imports, support environmentally-friendly manufacturing, and encourage the use of reusable bags among consumers — a move that would reduce overall costs and waste. Reducing reliance on single-use plastic bags will also open the door for green industries to grow, creating new jobs as a result.

There’s also the environmental impact: Excessive plastic waste hurts marine life, Environment Minister Yasmine Fouad said. She also cited an example from the Red Sea’s Qulaan area, where large amounts of plastic waste were found in the stomachs of goats, causing damage to the wildlife and ecosystem in the area.

By the numbers: Egypt consumed nearly 5 mn tons of single-use plastic products during the fiscal year 2022-2023. A study (pdf) conducted by the UN Environment Programme’s SwitchMed initiative in 2020 found that the country generates 16.2 mn tons of waste annually, with plastic accounting for 6%, or around 970k tons, of which 45% is recycled and 5% is reused.

The breakdown: As of 2015, grocery stores accounted for the largest percentage of plastic bag consumption at 25%. They were followed by fruit and vegetable kiosks (20%), stores (17%), supermarkets (14%), and fast food and restaurant chains (6%). The annual consumption of plastic bags sat at 124 per capita.

The long-term plan: Egypt plans to cut the average annual consumption of plastic bags to 50 per person by 2030, according to targets set in 2022 per its national strategy to reduce the negative impact of single-use plastic bags’ consumption. The strategy is being carried out by the industry, environment, health, international cooperation, local development, tourism, finance, and supply ministries.

REMEMBER- The government announced a plan to ban single-use plastic bags in Sharm El Sheikh back in 2022, resorting instead to environmentally-friendly tote bags.

And it’s still going strong: Sharm El Sheikh is still pushing on with the initiative to limit plastic use as part of the governorate’s green strategy, aiming to ban single-use plastic in 50 hotels across the city by next fiscal year, foster community-led environmental initiatives, and collaborate with more private sector and international entities.

El Gouna tackles the issue a little differently: The Red Sea resort town of El Gouna operates a high-efficiency recycling plant that processes various types of waste, achieving 96% efficiency in processing various waste types. Plastic waste is recycled into new plastic bags. All waste is pre-sorted, and color-coded bins are placed across the city to make it easier for residents to contribute.

Other initiatives on the table: Alexandria-based social enterprise Banlastic Egypt is also working to tackle plastic pollution by supplying eco-friendly alternatives, running clean-up campaigns and workshops, and lobbying policymakers to ban single-use plastics.

Regulations are also being introduced to back this up: Earlier this year, the cabinet passed a draft decision extending the Extended Producer Responsibility — a policy that makes producers fully responsible for their products throughout their entire lifecycle — to plastic shopping bags. The draft decision requires manufacturers and importers of plastic shopping bags to track their sales through the National System for Waste Information and Data Management and enhance safe disposal methods. The draft decision will also introduce incentives for importing and producing eco-friendly alternatives.

Implementation won’t be without hurdles: Single-use plastic bags could be hard to recycle due to their low value and the high cost of recycling them, Executive Director of Greenish Mohamed Kamal told Business Monthly. Another issue will be ensuring that medium-sized businesses and distributors comply with the regulations, Kamal said, adding that it is essential to ensure compliance through penalties and transparency in fund collection.

Tags:

going green plastic sustainability

CALENDAR

JUNE

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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