House committee approves package of tax hikes

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WHAT WE’RE TRACKING TODAY

Qatar “committed” to its Egypt investment pledge — but no more deposits

Good morning, dear readers — and a very happy Thursday to you all.

HAPPENING TODAY-

It’s the penultimate day of the AfDB annual meetings: The African Development Bank (AfDB) annualmeetings in Sharm El Sheikh continue today.

Avior — HC Egypt Conference: HC Brokerage and Avior Capital Markets’ virtual conference concludes today. The four-day event brings representatives from 29 EGX-listed companies together with financial institutions from the US, Canada, Europe, South Africa, the UAE, and Egypt to discuss investment opportunities.

Another four sessions are taking place at the National Dialogue: Two discussing pre-university education — including a draft decision to establish a National Council for Education — and two on ways to improve housing, according to the dialogue’s agenda. You can catch the full sessions on the dailogue’s Facebook page.

It’s deadline day for Telecom Egypt employees to subscribe to the company’s share offering: The government is selling 0.5% of its stake in the state-owned company (8.5 mn shares) as part of its 10% stake sale. If the employee tranche is undersubscribed, the government has the option to sell any remaining shares to investors. Share transfers to employees will be executed by 1 June.

Remember: The government sold 9.5% of the company to investors earlier this month, raising almost EGP 3.75 bn.

HAPPENING NEXT WEEK-

IEF-IGU Ministerial Gas Forum: The International Energy Forum and the International Gas Union will hold its Ministerial Gas Forum on Monday, 29 May.
Deadline for 1Q financials: Listed companies have until Tuesday, 30 May, to report and publish their 1Q results.

We’ll know who’s going to leading Turkey for the next five years: Turkish voters will head to the polls on Sunday for the run-off vote after the two leading candidates — President Recep Tayyip Erdogan and rival Kemal Kilicdaroglu — failed to receive 50% of the votes needed in the country’s elections earlier this month.

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

Qatar “committed” to Egypt investment: Qatar is “committed” to fulfilling its pledge last year to invest USD 5 bn in Egypt, Qatari Finance Minister Ali Al Kuwari told Bloomberg yesterday, without providing a timeline.

But deposits are a thing of the past: “Just giving grants and charities are no longer the case for Qatar … When it comes to grants and cash and just checks, it’s becoming very difficult,” he said, speaking during the Qatar Economic Forum.

Remember: The oil-rich nation has deposited some USD 3 bn into the Central Bank of Egypt over the past year as part of a wider Gulf effort to prevent Egypt from sliding into an economic and financial crisis triggered by tightening financial conditions and the war in Ukraine.

FinMin wants to take out more loans: The Finance Ministry is looking to secure more long-term concessional loans from regional and international development banks to fund healthcare, education, and food spending, Finance Minister Mohamed Maait said yesterday during a meeting with Citibank officials, the ministry said in a statement.

Debt to multilateral lenders has surged in recent years: The amount of money owed to multilateral lenders has more than quadrupled over the past decade, rising from USD 11.4 bn in 1Q 2012-2013 to USD 49.7 bn at the end of 1Q 2022-2023, according to central bank data. Multilateral institutions accounted for a third of Egypt’s USD 155 bn external debt as of the end of September.

THE BIG STORIES ABROAD-

How not to announce your bid for the presidency: Florida governor Ron DeSantis’ courting of Elon Musk and Twitter to launch his presidential campaign went badly wrong yesterday when glitches plagued the live stream. The audio of the hour-long conversation between DeSantis and Musk went down, and thousands of viewers were either dropped from the stream or were not able to join. (Associated Press | Reuters | Financial Times | New York Times | Washington Post | Wall Street Journal)

US could face rating downgrade as debt ceiling impasse continues: Rating agency Fitch warned yesterday that the US could lose its AAA credit rating due to the ongoing standoff over the debt ceiling. Republicans and Democrats both said yesterday that talks have been productive but that several issues remain unresolved. (Reuters | Bloomberg | Financial Times | Wall Street Journal | CNBC)

THE REALIGNMENT-

Egypt + Iran to normalize ties this year -The National: Cairo and Tehran will appoint ambassadors in the coming months under a mediation process led by Oman, the National reported yesterday, citing Egyptian officials. The news outlet also reports that a meeting between President Abdel Fattah El Sisi and Iran’s Ebrahim Raisi has been agreed on in principle, and is likely to take place before the end of the year.

The Sultan of Oman was in Cairo this week: Haitham bin Tarek held talks with President El Sisi in Cairo this week about what the Oman Foreign Ministry said was “various regional and international developments.”

And now he’s going to Iran: Bin Tarek will travel to Iran on Sunday for a two-day visit, the Oman News Agency said yesterday.

This hasn’t come from nowhere: Recent optimistic statements from Iranian officials and media reports have heightened speculation that the two countries are seeking to normalize relations. Foreign Minister Sameh Shoukry has played down the rumors, calling them “unfounded speculation” in a recently televised interview.

An Egypt-Iran would be the latest in a series of of shock rapprochements in the region:Previous arch-foes Saudi Arabia and Iran are getting ready to reopen embassies, Syria has been welcomed back into the Arab League, and Egypt and Turkey are talking seriously about ending years of hostilities.

Ever better friends: Russia and China solidified economic ties through a set of agreements during a visit to Beijing yesterday by Russian PM Mikhail Mishustin, who said relations between the two countries “are at an unprecedented high level.” (Reuters)

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The TriFactory's Somabay Endurance Festival returns for the fifth time from 25-27 May,bringing together Egypt's multi-sport community for an amazing weekend filled with swimming, cycling, and running throughout the beautiful scenery of Somabay. Select from six different races, Sign up now, and get ready to Experience Endurance.

House committee approves package of tax hikes

The 2021 tax hikes are back: A raft of tax, duty and development fee hikes that have been on the legislative agenda for 18 months were given the OK by the House Planning and Budgeting Committee yesterday after the government amended some of the changes, according to Al Shorouk.

Refresher: The tax hikes have been in limbo since December 2021 when the Madbouly government pulled it from the House following its rejection by the House General Assembly.

OFF THE TABLE-

The amended legislation has scrapped provisions that would have impacted people on lower incomes: The proposed 2% development fee on finished durable goods and the 5% fee on local and imported soft drinks have both been removed in the new bill.

STILL IN PLAY-

The fun tax is staying: Entry to theaters, parks, clubs, sports events, and other entertainment venues will be subject to a 5-20% tax.

And duty-free is still in for a duty-not-free rebrand: Purchases from duty-free shops will now be subject to a 3% tax, while a 10% charge will be applied to purchases of alcohol of more than 1 litre.

Expect higher stamp tax on ins.: The amendments also raise the stamp tax on most ins. premiums to 1% and double the existing EGP 50 exit tax to EGP 100.

Luxury goods are getting more expensive:The more “luxurious” imported goods are getting hit with a development fee equivalent to 10% of their custom fee: that includes salmon, shrimps, caviar, chocolate, electric shavers, headphones, watches, certain kids toys, and blue cheese.

** You can read up on the details of some of these measures in our initial coverage of the story.

The state is in need of additional revenues: Rising commodity prices, higher interest rates and additional borrowing this year means the government is now expecting the budget deficit to widen to 8.0% by the end of June from 6.1% in FY 2021-2022. The draft budget forecasts revenues to rise 41% to EGP 2.14 tn in the coming fiscal year thanks to higher tax receipts. It isn’t clear whether this new package of tax hikes were factored into the equation.

Entertainment and stamp tax to add EGP 10 bn to the public purse:The entertainment tax is expected to generate some EGP 5 bn in revenues a year, which will go towards the state’s EGP 529.7 bn subsidy bill for the coming fiscal year, committee deputy chairman Yasser Omar told reporters yesterday. Meanwhile, the stamp tax hike will bring in some EGP 5 bn, Deputy Finance Minister Ramy Youssef told MPs.

What’s next? The amendments will be passed to the House General Assembly where they will be discussed and voted on in an upcoming session. MPs will reconvene on 28 May.

ALSO FROM THE HOUSE-

Tougher penalties for harassment? The House Legislative Committee gave initial approval to draft amendments to the penal code that would introduce harsher penalties for harassment and assault, especially in the workplace and public transportation, according to Al Shorouk. One MP highlighted the need for regulatory amendments to protect witnesses and those who come forward about harassment cases.

What’s next? The committee will continue discussing the amendments at a later session before granting them final approval and forwarding them to the general assembly.

Chinese consortium wants to build USD 300 mn ironworks in SCZone

A Chinese consortium has offered to establish a USD 300 mn ironworks in the Suez Canal Economic Zone, the zone said in a statement yesterday. The two companies — state-owned Sinoma and private metals manufacturer Xinfeng — discussed the project yesterday with SCZone CEO Walid Gamal El Din, who is currently in China to meet with local investors and business leaders.

What we know so far:The proposed two-phase complex project will stand across 750k sqm, and it will provide 1.2k jobs. The statement did not disclose the production capacity of the plant, but said that output would initially be directed to the local market rather than exported overseas.

What’s next: The statement said that the SCZone is currently studying the offer, and that the companies will soon visit Egypt to survey the proposed site for the plant.

Remember: Gamal El Din and a SCZone delegation have been in China this week to gin up interest in the zone among local business leaders. This is the latest roadshow in a global tour this year which has seen SCZone representatives travel to Japan, the Netherlands and Vietnam. It plans to head to India next month.

ALSO FROM CHINA-

Producing hydrogen electrolyzers in Egypt: Gamal El Din met with representatives of heavy equipment manufacturer Sany Heavy Industry to discuss setting up a factory to produce electrolyzers, a key component needed to produce hydrogen.

Remember: Egypt wants to capitalize on the growing global interest in green hydrogen as a low-carbon energy source by establishing itself as one of the region’s leading suppliers. The government signed nine framework agreements for green hydrogen plants on the sidelines of last year’s COP27 climate summit which it hopes to soon convert into final investment decisions.

There will soon be a tenth: In a meeting with Walid this week, Energy China said it will sign a framework agreement for its proposed green hydrogen plant within the next two months.

Speaking of which- The Dutch are exploring green hydrogen in Egypt: Dutch government officials and an unnamed green energy company were at the SCZone yesterday to discuss Egypt’s potential as a green hydrogen hub, according to a statement. Gamal El Din visited the Netherlands earlier this month to discuss investment opportunities in the zone.

Egypt to relax free zone regulations to boost investment

Ministers have approved relaxing rules on freezones under government efforts to attract more private-sector investment. Amendments to the executive regulations of the 2017 Investment Act would allow the cabinet to exempt companies from having to comply with most of the rules currently in place for setting up freezones, cabinet said in a statement following its weekly meeting yesterday.

This would mean no local component, export quotas: To establish a private freezone, investors currently have to source at least 30% of their raw materials and equipment from local suppliers, and are required to allocate at least 80% of output to exports. The regulations also stipulate that a minimum of USD 20 mn has to be invested into the project and at least 500 people have to be employed.

This will be done on a case-by-case basis: Cabinet will be able to waive the provisions for a freezone on the proposal from the relevant minister. Ministers may also choose to retain any number of the original provisions if it deems them necessary for a specific project.

The move marks the latest in a series of measures taken by the government aimed at boosting foreign investment. Prime Minister Moustafa Madbouly last week unveiled a package of 22 regulatory reforms to reduce red tape and improve transparency.

Also agreed at yesterday’s cabinet meeting:

IDSC revamped: Cabinet approved a draft decision to restructure the Information and Decision Support Center (IDSC) to enhance its role supporting the government, providing the required data, analysis, and outlooks.

More responsibilities for the MSMEDA: Cabinet has approved amendments to the decision establishing the Micro, Small and Medium Enterprise Development Agency (MSMEDA), in light of the agency’s increasing list of responsibilities.

Exemption of airport fees for foreign airliners extended: Extending foreign operators’ exemption from airport fees until March 2024 as part of the state’s efforts to boost tourism. The exemption was set to end last month.

Land reallocation: Ministers approved several draft decisions reallocating state owned land, including a 16-feddan land plot to an international real estate developer.

EFG revenue, earnings more than double y-o-y in 1Q 2023

EFG Holding reports strong growth in 1Q 2023: EFG Holding reported a net income after tax and minority interest of EGP 885 mn in 1Q 2023, up 157% y-o-y, according to its earnings release (pdf). Revenues were up 129% y-o-y to EGP 4.5 bn, underpinned by growth in treasury operations as well as a strong performance generated by its investment bank and commercial lender aiBank.

The breakdown: Revenues at EFG’s investment bank more than tripled to EGP 3.0 bn in 1Q 2023, driven by a 238% y-o-y surge in investment banking revenue to EGP 216 mn and a 44% y-o-y increase in brokerage revenues to EGP 621 mn. The NBFI platform delivered EGP 689 mn in revenue in 1Q 2023, up 15% from the year before — largely thanks to a 78% rise in revenues to EGP 254 mn at valU, the company’s BNPL arm. Meanwhile, aiBank’s revenues rose 65% y-o-y to EGP 727 mn on the back of higher net interest income. EFG acquired51% of the bank in November 2021.

What they said: “Our core operational platforms supported our performance for the period, especially on the sell-side of the house,” Group CEO Karim Awad said in a statement (pdf). “Our investment banking division executed a strong pipeline of [transactions], concluding two equity and seven debt transactions worth an aggregate of USD 2.9 bn. These included the landmark IPOs of Abraj Energy Services on the Muscat Stock Exchange and Adnoc Gas on the Abu Dhabi Securities Exchange — the largest listings on their respective stock exchange.”

EFG Holding?The company’s shareholders yesterday voted to change the company’s name from EFG Hermes Holding to EFG Holding, according to a press release(pdf). Shareholders approved a proposal to raise its issued and paid-in capital by 25% to EGP 7.3 bn and to increase its authorized capital from EGP 6 bn to EGP 30 bn.

IBNSINA EARNINGS RISE-

Ibnsina Pharma’s net income after minority interest rose 22% y-o-y to EGP 72.6 mn in 1Q 2023, according to the company’s earningsrelease (pdf). Ibnsina booked revenues of EGP 6.8 bn, up 28% y-o-y. Revenue growth was driven by the company’s wholesale segment, while efficiency savings protected its bottom line from the impact of inflation and the EGP devaluation.

Ibnsina’s “conservative” strategy reaped rewards: Ibnsina grew revenues in its wholesale business by 63% to hit EGP 2.4 bn, and in its hospital and tenders segment by 30% to reach EGP 1.3 bn. The company pursued a “conservative sales policy” in its core retail business, reducing its credit lines with some pharmacies to mitigate risk amid economic headwinds. That led to more modest growth in the retail segment, which increased 11% to EGP 3.3 bn — meaning its core business accounted for 47% of overall revenues, down from 54% the previous year.

And limited cost inflation: Ibnsina also implemented “conservative” policies to limit growth in operational expenditure to 7% even as input costs increased at a much higher rate, making efficiency savings on salaries, electricity, packaging, and printing, among other areas.

Ibnsina says it's now the country’s top pharma distributor, citing an IQVIA report that put its market share at 24% in 1Q 2023. “We take great pride in being recognized as the top pharma distributor in Egypt, and we are committed to maintain this position by continuing to innovate, invest, and provide exceptional services,” CEO Omar Abdel Gawad said. “We target in FY23 to restore our revenue growth to reach high teens levels with a significant EBITDA margin enhancement,” he added.

CIB’s Hisham Ezz El Arab recognized by African Banker magazine

CIB Chairman Hisham Ezz El Arab has received the Lifetime Achievement Award from the African Banker magazine in recognition of his achievements during his three decades working in the banking sector, according to a release (pdf) from CIB. Ezz El Arab was awarded during a ceremony in Sharm El Sheikh yesterday. Ezz El Arab recently resumed his position as non-executive chairman of CIB.

Omar Khairat recognized by Emirati literary award: Egyptian musician Omar Khairat was named cultural personality of the year by the Sheikh Zayed Book Awards “in recognition of his remarkable talent and artistic output, which has been tremendously popular in the Arab world,” the award panel saidlastweek. The Sheikh Zayed Book Awards recognizes Arab writers, intellectuals, and publishers in various categories.

National Dialogue in focus on Egypt’s talk shows

A calm night on the airwaves brought us coverage of what to expect from today’s National Dialogue sessions and the latest from the House.

More responsibilities for the National Dialogue: Prime Minister Moustafa Madbouly has forwarded the draft decision to establish the National Council for Education to the National Dialogue, to discuss it during today’s sessions on pre-university education. The National Council for Education will be responsible for setting policies for pre-university education and supervising their implementation, journalist and member of the dialogue’s board of trustees Emad El Din told Masa’a DMC’s Ramy Radwan (watch, runtime: 6:32). The dialogue’s recommendations regarding the council will go to the board of trustees, then President Abdel Fattah El Sisi, who will then relay them to the House of Representatives for discussions and a vote. Salah Fawzi, a professor of constitutional law, joined Radwan (watch, runtime: 8:12) to weigh in on the future of political parties.

Harassment penalties could soon get harsher: The House Legislative Committee and the National Council for Human Rights (NCHR) yesterday gave their initial approval on proposed amendments to the penal code that could apply tougher penalties for those found guilty of harassment or assault. Society is ever changing and things that were once acceptable could now be seen as a form of harassment, hence the need for new regulations, NCHR head Moushira Khattab told Al Hayah Al Youm (watch, runtime: 7:36), adding that the council “sees that fines are more effective than jail time” when it comes to harassment. “For the law to be successful we need to establish regulations protecting victims and witnesses,” she said. Meanwhile, criminal law professor Mohamed Darwish joined Masa’a DMC (watch, runtime: 6:16) and highlighted the need to have a clear definition of what constitutes harassment.

You’re going to have to pay more to have fun: The new package of taxes approved by the House Budgeting Committee yesterday will introduce new taxes on all things entertainment if passed by the House, that includes a 15% tax on foreign circus shows, a 20% tax on ice skating, a 20% tax on diving, committee deputy chairman Yasser Omar told Ala Mas’ouleety (watch, runtime: 6:49). “These tax amendments don’t affect the simple citizen,” he said (watch, runtime: 2:50), implying that the proposed taxes and customs on foreign movie tickets, prawn, watches, kids toys, electric shaving machines, and much more will only affect the country’s wealthy. We have the details in this morning’s Legislation Watch, above.

Of sea urchins and sarcophagi

Red Sea environmental damage and ancient Egyptian artifacts feature in what is otherwise a slow morning for Egypt in the international press:Reuters on the findings of two new research papers (here and here) that suggest an epidemic has wiped out an entire species of sea urchins in the Gulf of Aqaba. Meanwhile, Arab News says that an official at Egypt’s Supreme Council of Antiquities has denied media reports that Pharaonic artifacts had been sent to Israel for CT scanning.

Orascom Construction, Metito to build USD 2.4 bn desalination plant in Abu Dhabi. PLUS: Standard Chartered eyes Egypt, FX crisis hits Arab Alloys industrial complex

INFRASTRUCTURE-

Orascom Construction + Metito to partner on Abu Dhabi desalination plant: Orascom Construction and Metito — in collaboration with the UAE’s state energy companies Adnoc and Taqa — will develop, own, and operate a USD 2.4 bn seawater treatment and water transportation project in Abu Dhabi, according to a joint statement (pdf). OC is leading the consortium working on the plant, which will process more than 500k cubic meters of seawater per day.

**Read the full story in this morning’s edition of Enterprise Climate.

BANKING-

#1- Standard Chartered Egypt is still in the works: Standard Chartered plans to open up shop in Egypt next year, CEO Bill Winters told Asharq Business yesterday. “We have strong relationships in Egypt and they are taking some painful steps to reform the economy and we will support them,” Winters said, speaking on the sidelines of Bloomberg’s Qatar Economic Forum. The bank received a preliminary license from the Central Bank of Egypt more than a year ago, with bank officials at the time saying it planned to open its first branch by September 2022.

#2- The Export-Import Bank of Korea is set to launch a regional office in Cairo in a bid to expand operations in Egypt and Africa, according to a statement from the International Cooperation Ministry.

MANUFACTURING-

Arab Alloys put its SCZone industrial complex on hold amid FX volatility: MMC Holdingsubsidiary Arab Alloys is delaying its ferroalloys industrial complex in the Suez Canal Economic Zone (SCZone) as it looks to secure new bank financing in USD, Al Mal quoted Arab Alloys Chairman Medhat Nafei as saying. The initial EGP1 bncost estimate for the project was based on a USD-EGP rate of 18.00 and so has roughly doubled in the wake of the local currency’s recent depreciation, Nafei reportedly said. Arab Alloys has also struggled to secure FX to import equipment from India and is still negotiating with the Electricity Ministry on energy supply for the project, he added. Nafei didn’t give a revised timeline for the complex, the first two phases of which were slated for completion by 2024.

FINANCE-

CFI kicks off Egypt operations: Jordanian trading platform CFI Financial Group launched in Egypt yesterday, the company said. The company has inaugurated branches in Cairo and Alexandria and aims to expand even further throughout the year, Managing Director Hisham Mansour said, according to Al Borsa. The company currently operates in a number of countries, including the UK, Lebanon, the UAE, and Jordan.

DEFENSE-

Egypt is in the market for 12 Chinese fighter jets: Egypt is reportedly in talks with China’s Chengdu Aircraft Industry Group to purchase a dozen J-10C fighter jets, the South China Morning Post reported, citing a report from Tactical Report. A delegation from the Armed Forces is expected to meet company representatives this week on the sidelines of an international maritime exhibition in Malaysia. Saudi Arabia is also in negotiations to acquire Chinese drones and air defense systems, signaling that the region is diversifying its arms suppliers away from the US and Russia.

Federal Reserve “less certain” about further rate hikes

Federal Reserve officials were “less certain” about the need for further interest rate hikes after their last meeting though left the door open to additional tightening if necessary, according to the meeting minutes out yesterday. The central bank decided to raise rates by another 25 bps during the meeting but a number of officials thought it might be the final time they would need to do so amid signs that tighter financial conditions are bringing inflation under control.

Rate cuts though? Bond traders are dialing back expectations that the Fed could begin to reverse its aggressive stance later this year due to sticky underlying inflationary pressures and strong economic data, the Financial Times reports. Following April’s inflation figures — which dropped to their lowest level in two years of 4.9% — investors were expecting the Fed to cut interest rates to 4.2% by the end of the year but have since revised their forecast to 4.7%.

Confusion is in the air: “If you are feeling confused about the macro outlook, it is important to realize that you are not the only one,” one analyst wrote in a note. “I would not be surprised if the confusion continued for a while longer, with a global macro environment that continues to frustrate both the bulls and the bears.”

Also worth noting this morning:

UK inflation stays sticky: Inflation came in higher than expected at 8.7% in April, likely putting the Bank of England on course to hike interest rates again in June. (Bloomberg)
The bond market didn’t take this well: The inflation print triggered a sharp sell-off of UK gilts, sending yields soaring to their highest level since the country’s bond market crisis last September. (Financial Times)
It’s a different picture in the US: Institutional and retail investors are returning to the bond market to take advantage of higher yields resulting from the steep rise in US interest rates over the last year. (Financial Times)
Microsoft to fight UK decision to block Activision takeover: Microsoft has filed an appeal against the UK competition regulator’s decision to block its USD 69 bn acquisition of gaming firm Activision Blizzard. (Bloomberg)

EGX30	17,091	+1.8% (YTD: +17.1%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,236	-0.4% (YTD: +7.2%)
ADX	9,464	-0.3% (YTD: -7.3%)
DFM	3,530	-0.1% (YTD: +5.8%)
S&P 500	4,115	-0.7% (YTD: +7.2%)
FTSE 100	7,627	-1.8% (YTD: +2.4%)
Euro Stoxx 50	4,264	-1.8% (YTD: +12.4%)
Brent crude	USD 78.29	+1.9%
Natural gas (Nymex)	USD 2.40	+3.6%
Gold	USD 1,979.30	-0.7%
BTC	USD 26,438	-2.8% (YTD: +59.5%)

THE CLOSING BELL-

The EGX30 rose 1.8% at yesterday’s close on turnover of EGP 1.83 bn. Foreign investors were net sellers. The index is up 17.1% YTD.

In the green: Orascom Construction (+6.6%), Eastern Company (+6.5%) and Mopco (+5.2%).

In the red: Ibnsina Pharma (-5.3%), Taaleem Management Services, (-1.7%) and Juhayna (-1.7%).

Asian markets are mainly in the red this morning, though shares in Japan and Taiwan are bucking the trend with slight gains. It’s a similar picture in Europe and US, where equity futures are currently pointing to a mixed open.

Sudan ceasefire in jeopardy as clashes continue in Khartoum

Clashes between Sudan’s warring factions could be heard in Khartoum and elsewhere in the country yesterday, the second day of the week-long ceasefire aimed at facilitating aid delivery and establishing a lasting truce, Reuters reports. The ceasefire has provided some respite from the ongoing conflict, but there are limited signs that aid efforts have ramped up significantly, the newswire says.

The human cost of the conflict continues to grow: More than 1.3 mn people have now been displaced by the conflict, according to data (pdf) from the UN International Organization for Migration.

Around 260k people have fled into neighboring countries: Egypt has so far taken in 145k Sudanese refugees, according to latest UN data.

Death toll rises: Violence and clashes between the factions have so far killed 863 people and injured 3.5k others, according to the Sudanese Doctors’ Syndicate.

ALSO- Lebanon could get gray-listed for illicit money flows: Global financial crime watchdog the Financial Action Task Force (FATF) is likely to add Lebanon to its gray list of countries subject to increased monitoring for money laundering and terrorist financing, Reuters reports, citing sources it says are in the know. The listing could jeopardize the country’s ability to secure capital inflows, compounding its financial crisis.

My Morning Routine: Mohamed Hanafi, co-founder and MD at Lynx Strategic Business Advisors

Mohamed Hanafi, co-founder and managing director at Lynx: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mohamed Hanafi (LinkedIn). Edited excerpts from our conversation:

I’m Mohamed Hanafi, a diplomat who had the privilege of serving in the Foreign Affairs Ministry for almost 20 years. I had a wonderful ride at the ministry, serving in Washington D.C and Beirut, and as a private secretary to the minister from 2011 to 2013, two of our nation's most interesting, eventful years. I am now the co-founder and managing director of Lynx Strategic Business Advisors, a leading Egypt-based public policy and investment advisory consulting firm. I am also a senior advisor at Albright Stonebridge Group (ASG) — which is a leading commercial diplomacy firm and part of Dentons Global Advisors. Finally, I am married and a proud father to two beautiful children, Lina and Ismail.

I oversee Lynx’s day to day operations, ensuring that we are offering timely, top-quality advice and reports to our clients. I lead and support engagement with the government and clients and work closely with the business development team on new partnerships and expansion.

Lynx helps clients in the private sector make informed business decisions in Egypt and facilitates constructive engagement with government stakeholders. Our clients operate in areas including technology, manufacturing, healthcare, transport, F&B, retail and development. We provide strategic analysis of evolving policies and support clients on business facilitation and reputation management. We also work with the government to create platforms for deeper discussions with the private sector on Egypt’s policies, regulations, and national projects through our Lynx forum.

Egypt is at an important turning point in terms of the country's economic policy direction. I think it's clear that while we have achieved noticeable upgrades over the past 10 years in areas like infrastructure and social protection measures, we didn’t shield the economy from global shocks and challenges. But the good news is that the government is realizing it’s time to send the right signals regarding its new economic policy direction by prioritizing the role of private investment. I believe the recent decisions by the Supreme Investment Council create an enabling environment for investment and address several elephants in the room, including taxation policy, import restrictions, red tape, and the state's role in certain sectors of the economy.

Exceptional times require exceptional steps and decisions. We’re trying our best to help our employees while remembering that our clients are also dealing with higher costs, so we have to manage and price our services in a way that is aligned with our priorities and ability to navigate the current inflationary pressures.

I wake up at 5:30am to help my wife and kids prepare for school and the day ahead, as well as digest the morning news. I’m a big fan of Enterprise and usually read it around 6am. By around 7am, I'm at the gym or Gezira Sporting Club for two very important hours of daily oxygen, exercise, a Spanish latte, and an open-air breakfast. I’ve been waking up early and starting the day with fresh air and outdoor sports since 2008 — these daily habits are crucial to create the best mental state for a day of challenges and opportunities. At around 9am, I begin by my workday by writing emails and engaging with clients and government officials

A typical workday involves addressing clients’ questions and comments and engaging with government officials to brief them on the client's priorities. Of course, I spend a significant portion of the day sitting behind a laptop reviewing reports and responding to emails.

I have a great team: They’re always supportive, make sure everyone is doing what needs to be done, and step forward to take care of responsibilities. We are all glued to our Microsoft calendars that keep us in check and help structure our day.

I’m hoping to continue to witness the growth of Lynx and take it not only to the region but the world. Public policy is constantly evolving and there’s a lot we can do to support Egypt’s ability to attract new investment and contribute to public policy debates globally.

Honestly, there's no such thing as a work-life balance in my field. We talk the talk, but never walk the walk — work has been prioritized over a lot of things in my life. We always have to be accessible to our clients and partners, which makes it difficult to maintain a healthy work-life balance. The weekend has become a vehicle to try and achieve some parts of the balance and meet family needs.

There’s a couple of things I like to do when work is done. I love to play sports — I shifted from tennis to padel and play several times a week. I love playing chess with my son.

Coming from a political background, I'm a big fan of political series like House of Cards, Suits, and Designated Survivor. I recently watched The Diplomat — it may be a bit exaggerated but it’s definitely worth the watch.

I always remember the values instilled in me by my parents, which include never compromising on principles, speaking the truth to power, giving 100% to everything, and to treat others how you would like to be treated.

CALENDAR

MAY

17-31 May (Wednesday - Wednesday): Second round of applications for sixth phase of export subsidy program.

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

22-25 May (Monday-Thursday): HC Brokerage and Avior Capital Markets conference, virtual.

25 May (Thursday): National Dialogue session.

25 May (Thursday): Deadline for Telecom Egypt employees to subscribe to share offering.

28 May (Sunday): House to reconvene.

28 May (Sunday): Turkish election run-off vote.

29 May (Monday): IEF-IGU Ministerial Gas Forum, Cairo.

29 May (Monday): Egyptian-Rwandan Investment and Trade Day, Helnan Landmark Hotel, Cairo.

30 May (Tuesday): Listed companies have until this date to report and publish their 1Q results.

JUNE

June: Indian representatives to discuss prospect investments in the Suez Canal.

June: Egyptian-Saudi business forum.

1-3 June (Thursday-Saturday): Fintech Industry retreat, Hurghada.

3-4 June (Saturday-Sunday): OPEC+ meeting, Vienna.

4 June (Sunday): Senate back in session.

7-10 (Wednesday-Saturday): The second edition of Africa Health Excon.

10 June (Saturday): Thanaweya Amma examinations begin.

12 June - 15 July (Monday-Saturday): Thanaweya Amma exams.

13-14 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

19-20 June (Monday-Tuesday): The forum for insolvency reforms and corporate restructuring in the Middle East and North Africa.

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo, Egypt International Exhibition Center.

19-21 June (Monday-Wednesday): Big 5 Construct, Egypt International Exhibition Center.

22 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Egypt to exit Grains Trade Convention.

JULY

1 July: House of Representatives deadline to approve the FY 2023-2024 budget.

1 July: GAFI to launch the country’s first integrated electronic platform to facilitate setting up a business.

5 - 6 July (Monday - Tuesday): Gov’t to pay out subsidies to first wave of applicants under its sixth export subsidy program.

15 July (Saturday): Deadline for bids in EGPC’s mature oil fields tender.

18 July (Tuesday): Islamic New Year.

19 - 20 July (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

27 July (Thursday): National holiday in observance of Revolution Day.

Late July-14 August: 2Q2023 earnings season.

AUGUST

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

2 - 3 August (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

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

SEPTEMBER

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

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

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

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

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

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

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.

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

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

OCTOBER

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

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

6 October (Friday): Armed Forces Day.

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

Late October-14 November: 3Q2023 earnings season.

26 October (Thursday): Daylight saving time ends.

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

NOVEMBER

November: Cairo to hostIntra-African Trade Fair.

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

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

DECEMBER

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

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

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.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

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.

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

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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