IMF Board approves our fourth review

Tuesday, 11 Mar 2025

IMF Board approves our fourth review

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Today at a glance

Economy

USD 1.2 bn are coming our way within days after the IMF Board completed fourth review of our loan program.

Economy

Inflation slips to its lowest level in nearly 3 years in February.

M&A WATCH

Banque Misr wants USD 1.2 bn in exchange for 45% of Banque du Caire.

M&A WATCH

Al Organi Group subsidiary snaps up 26% of Ataqa for EGP 1.9 bn.

What We're Tracking Today

Gov’t is hoping to attract USD 12 bn in FDI this FY.

Also on our Radar

An EGP 1 bn healthy food factory incoming?

EARNINGS WATCH

Price increases helped push Rameda’s revenues up in 2024.

PLANET FINANCE

US trade war could spark expansionary monetary and fiscal policies globally.

Going Green

Africa is looking toward Egyptian companies to help achieve its solar ambitions.

What We're Tracking Today

Egypt is hoping to attract USD 12 bn in FDI this FY

Good morning, all. We lead today’s issue with news that the IMF Executive Board has completed the fourth review of our USD 8 bn loan program, allowing for the disbursement of USD 1.2 bn, which should land in state coffers within days. We also have February’s inflation figures — the headline reading dropped over 10 percentage points to 12.8%, marking its lowest level since March 2022.

So, when do we eat? Maghrib prayers are at 6:01pm in the capital, and you’ll have until 4:42am tomorrow to hydrate and caffeinate ahead of fajr.

PSA-

WEATHER- It’s warming up in Cairo, with the capital in for a high of 25°C and a low of 16°C today, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 25°C and a low of 14°C.

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

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WATCH THIS SPACE-

#1- Tax evaders, beware. Transport and Industry Minister Kamel El Wazir asked the Finance Ministry to prepare a “comprehensive” set of recommendations to confront tax evasion, according to an Industry Ministry statement. Tax evasion has long been in the sights of the Finance Ministry, with a senior government official previously telling EnterpriseAM that clamping down on the practice is an important part of its efforts to bolster tax revenues.

An anti-dumping plan is also in the works, with the Investment Ministry instructed to conduct a report on imports that are dumped in the local market.

#2- Hearing out the Export Development Committee: Prime Minister Moustafa Madbouly yesterday met with the newly-formed Export Development Committee to hear its recommendations to help the country hit its target of reaching USD 100 bn in exports by 2030. The committee called for offering competitive interest rates tied to inflation, streamlining tax and customs procedures, and faster disbursement of payments under the export subsidy program.

What’s next? Starting next week, government officials will hold meetings with representatives from export sectors to discuss their demands, so they can be met as quickly as possible, Madbouly said.

IN THE HOUSE-

MPs approved the Egypt-Saudi Agreement on Promotion and Mutual Protection ofInvestments that is expected to help protect Saudi investors as they ramp up investment in Egypt. The agreement is expected to bring upwards of USD 10 bn in bilateral investments over the next three years. It got the green light from the Saudi cabinet last week.

DATA POINT-

#1- The government is hoping to attract USD 12 bn in FDI during the FY 2024-25, the General Authority for Investment and Freezones (GAFI) head Hossam Heiba told CNBC. GAFI is working on an investment policy with the World Bank with the aim of releasing it in the fourth quarter of the current fiscal year.

#2- Tax revenue in Egypt increased by 38% y-o-y during 1H FY 2024-25, marking the highest growth rate in years, Finance Minister Ahmed Kouchouk said during the Egyptian Private Equity and Venture Capital Association’s (EPEA) suhoor attended by EnterpriseAM.

#3- Egypt’s pharma market is valued at EGP 308 bn, with 12k pharma products on offer and annual sales of 3.6 bn units, Egyptian Drug Authority Chairman Ali El Ghamrawy said during a conference.

THE BIG STORY ABROAD-

A single story is dominating the headlines this morning: US President Donald Trump’s tariffs sent US markets plunging, the S&P 500 fell 2.7% yesterday, tech stocks saw their biggest day of losses since 2022 — thanks to Tesla shares falling 15%, seeing their worst performance in five years — with the Nasdaq dipping 3.8%, and the Dow Jones dropped 2.1%.

“This big sell-off feels ugly, it feels nasty,” Citigroup’s Drew Pettit said. “We were coming off very high sentiment and very high growth expectations. All of this is just recalibrating to the new risks that are in front of us,” he said. (Bloomberg | CNBC | FT | Reuters | AP | CNN | BBC)

*** 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 Egyptian companies can help African nations achieve their ambitious renewables targets.

Tags:

FDI What We're Tracking Today

Somabay partners with Marriott International to launch an Autograph Collection Hotel, opening in 2027 with 194 sea-view rooms, world-class dining, and wellness facilities. This marks its second collaboration with Marriott after Sheraton Soma Bay (1999). Somabay is home to a collection of renowned hotels, including Kempinski, The Cascades, Robinson Club, and The Breakers, offering a diverse range of luxury, wellness, and lifestyle experiences along the Red Sea.

Economy

USD 1.2 bn are landing in Egypt within days after the IMF Board completed fourth review of its loan program

That’s a wrap on the fourth review: The IMF Executive Board has completed the fourth review of Egypt’s USD 8 bn loan program, allowing for the disbursement of USD 1.2 bn — the biggest tranche of the program so far — Finance Minister Ahmed Kouchouk said during the annual ministry Iftar yesterday. We are still waiting on the IMF to release its statement.

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

REMEMBER- Egypt and the IMF reached a staff-level agreement on the fourth review in December. The two sides agreed “to recalibrate the fiscal consolidation path to create fiscal space for critical social programs benefiting vulnerable groups and the middle class, while ensuring debt sustainability.”

Expect the funds to land in state coffers within days, IMF executive director and former finance minister Mohamed Maait told Hapi Journal.

That’s not all: The Board also approved the USD 1.3 bn in funds under the Resilience and Sustainability Facility, Maait said. The additional climate financing will be disbursed in tranches rather than a lump sum, IMF Communications Director Julie Kozack previously said. The timeline of when we’ll get the first of the funds is yet to be determined, Maait said.

ALSO FROM KOUCHOUK-

More on the state budget for next fiscal year: The government will triple allocations for economic support in next fiscal year’s budget, including the funds going towards the export subsidy program and the Automotive Industry Development Program, the finance minister said. We got our first look at next year’s budget last month.

AND- The second phase of the tax reforms will be rolled out next year, he added.The first phase of the reforms was introduced in October and includes a simplified tax system for SMEs, a central clearing system, and measures to integrate the informal economy.

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debt economy IMF

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Economy

Egypt’s inflation slips to its lowest level in nearly 3 years in February

Annual headline urban inflation plunged to 12.8% in February, marking an 11.2 percentage point drop from the 24.0% recorded in January, according to data from state statistics agency Capmas. This figure marks the nation’s lowest inflation reading since March 2022 when inflation recorded 10.49% and has stayed above single digits since. On a monthly basis, inflation fell by 0.1 percentage points to 1.4%.

F&B price inflation saw a significant drop: Food and beverage price inflation — the largest component of the basket of goods and services used to calculate headline inflation — fell by 17.1 percentage points to 3.7% in February — its weakest pace since June 2021, Capital Economics’ James Swanston wrote in a note seen by EnterpriseAM. “Meanwhile, our measure of non-food inflation declined to a two-year low of 17.3% y-o-y with the largest falls recorded in health, recreation and culture, furnishings, and restaurants and hotels,” the note reads. On a monthly basis, food and beverages prices were up by 0.2%, marking the second consecutive monthly rise in prices.

Annual core inflation — which excludes volatile items like food and fuel — dropped by 12.6 percentage points from January’s 22.6% to record 10.0%, according to data from the Central Bank of Egypt. On a monthly basis, core inflation stood at 1.6% in February, compared to 1.7% in January.

Everyone expected inflation to fall — the question was by how much: Analysts polled by EnterpriseAM were only divided over just how far the month’s annual headline urban inflation reading will fall, with some having correctly predicted that the figure could inch close to a single digit on the back of a favorable base effect. The median forecast of the ten analysts we polled last week was for annual headline urban inflation to fall to 14.3%. Meanwhile, a Reuters poll showed a similar median prediction of inflation falling to 14.5%.

Driving the drop: “First of all, the significant base year effect will be one of the driving factors to making inflation fall below 20%, and it will come despite seasonal pressures related to food inflation, with goods including poultry seeing an increase in prices with the beginning of Ramadan. Other factors include possible changes in the education and healthcare baskets, which could also influence the reading,” economist Mona Bedeir told EnterpriseAM last week.

The favorable base effect played a big role: “February inflation reading enjoyed a particularly strong base effect coinciding with a comparable period that was exceptionally cruel with respect to monthly inflation reading. February 2024 recorded more than 11% m-o-m, which was the highest increase for a single month on our records,” Al Ahly Pharos Senior Economist Esraa Ahmed told us.

Analysts react: “February inflation came lower than our estimate of 14.5% y-o-y and 2.9% m-o-m. We attribute the significant y-o-y drop to the favorable base year effect and the availability of lower-priced goods at government outlets in preparation for Ramadan,” HC Securities’ Heba Monir told EnterpriseAM.

Moving forward: “Over the coming months, we expect the headline rate will continue to slow and fall back within the CBE’s inflation target range of 7±2% in 2Q, where it is likely to hover for much of this year,” Swanston said.

WHAT THIS MEANS FOR INTEREST RATES-

Slowing inflation will have a big role to play in the next Monetary Policy Committee (MPC) meeting: Previous statements by the CBE have pointed at wanting to see a sharper and sustained fall in the headline inflation rate, and with earlier falls in the EGP now falling out of the annual price comparison, we suspect that February and March's inflation data will provide policymakers with the evidence to loosen monetary policy, Swanston told us.

A cut is not set in stone, however: Some of the analysts who spoke to EnterpriseAM indicated that the MPC could adopt a more cautious approach and keep interest rates unchanged temporarily to monitor conditions before initiating a gradual reduction later in the year. “We believe the CBE might prefer a relatively gradual easing path, maybe starting with a 200-bps cut in its coming meeting, with its eyes wide open given some expected inflationary pressures during some months and, equally importantly, global adverse factors including high uncertainties pertaining to Trump II policies as well as the surrounding geopolitics.” Ahmed said.

REMEMBER- The MPC decided to keep interest rates unchanged when it held its first meeting of the year in February, in what was expected by some to be the beginning of its long-awaited monetary easing cycle. The MPC deemed that “the current policy rates are appropriate to maintain a sufficiently tight monetary stance. This will ensure the realization of the projected disinflation path, and firmly anchor inflation expectations. Accordingly, the Committee’s decisions regarding the appropriate time for beginning the accommodative cycle will be assessed on a meeting-by-meeting basis.”

Tags:

CAPMAS economy inflation interest rates

M&A WATCH

Banque Misr wants USD 1.2 bn in exchange for 45% of Banque du Caire

One step closer to the Banque du Caire stake sale: Banque du Caire owner Banque Misr is seeking USD 1-1.2 bn from the direct sale of a 45% stake in BdC, a senior banking source told EnterpriseAM, implying that BdC boasts a valuation of c. USD 3 bn, according to our calculations. A separate stake could be debuted on the EGX while the parent company — Banque Misr — retains a non-controlling stake, the source told us, adding that BdC is also open to competing bids from strategic investors.

One suitor is in line: Emirates NBD is currently conducting its due diligence of the state-owned lender as the Dubai-listed lender looks to acquire an undisclosed stake in the state-owned bank. This comes after the government turned down a separate offer by an unnamed Kuwait-based bidder, Asharq Business reports, citing two unnamed sources it says have knowledge of the matter. The transaction is expected to reach a close in a matter of six weeks, according to the news outlet.

BACKGROUND- Plans to sell part of Banque du Caire have been floated — and repeatedly delayed — since 2018. The government has continued to position BdC as a prime privatization target, with Prime Minister Moustafa Madbouly highlighting it in December as one of ten state-owned companies — including fellow banking sector stalwart Alexbank — slated for stake sales in 2025.

Last we heard: Sourced had told Al Shorouk last month that Emirati and Kuwaiti financial institutions have begun due diligence to acquire at least 60% of Banque du Caire. The state was said to be looking to exit the lender in 2Q 2025, with CI Capital reportedly appointed as the financial advisor for the sale.

Our take: Don’t hold your breath for an IPO. BdC is not just one of the nation’s largest lenders, it’s among the crown jewels of the financial system, and the central bank together with management has long invested in preparing it for sale. With the 2025 IPO climate shrouded in uncertainty, the odds of the state getting the best possible valuation (to say nothing of finding a good “corporate parent” for the bank) would be maximized by selling Banque du Caire to a qualified strategic — ideally an Emirati one.

The caveat: Unresolved issues over BdC’s Sinai-based assets — which under Egyptian law cannot be owned by foreign investors — are still being worked through, with options including selling those assets to a local investor or transferring them to a state-owned bank currently under review, Asharq Business reported.

Part of a wider privatization push: The transaction is unfolding against the backdrop of a broader government push to accelerate state asset sales and attract Gulf capital as part of efforts to shore up FX reserves and stabilize public finances. The potential sale would also reflect the deepening strategic alliance between Egypt and the UAE, which has already seen major investments like the Ras El Hekma project and Al Dahra’s agricultural expansion.

Tags:

Banque du Caire Emirates NBD M&A Watch privatization watch state privatization program

M&A WATCH

Al Organi Group subsidiary snaps up 26% of Ataqa for EGP 1.9 bn

Al Organi Group’s ODI has acquired a 26.25% stake in Misr National Steel (Ataqa) in a EGP 1.9 bn transaction, according to a statement (pdf). The acquisition, subject to regulatory approvals and due diligence, values Ataqa at EGP 7.2 bn.

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

The rationale: The acquisition comes as part of Al Organi Group’s efforts to expand its scope of activities through partnerships with industrial players like Ataqa parent company El Garhy Group. The two companies are also looking into potential cooperation in the fields of chemical industries and building materials as part of the state’s efforts to localize industry.

REMEMBER- Al Organi Group has been expanding its investment portfolio as of late, most recently acquiring a 50% stake in Rolling Plus Chemical Industries to restart its EUR 1 bn tire factory in the SCZone alongside Concrete Plus. The group is also setting up construction and infrastructure projects in Egypt and abroad, under a USD 5 bn strategic agreement inked with China’s CSCEC.

Tags:

M&A Watch Organi Group

EARNINGS WATCH

Price increases helped push Rameda’s revenues up in 2024

Local pharma player Rameda saw its net income rise 58.7% y-o-y in 2024 to EGP 401.8 mn, according to the EGX30 newbie’s latest earnings release (pdf). Rameda’s revenues rose 44.0% y-o-y to reach EGP 2.8 bn during the same period.

Driving the growth was a 55.7% y-o-y increase in private sales to EGP 2.2 bn, a 35.7% rise in toll manufacturing revenue to EGP 181.9 mn, and 24.8% y-o-y growth in tender awards to EGP 236.4 mn. However, export revenue dipped 21.1% y-o-y to EGP 142.2 mn.

The green light to raise prices played a big role: “Solid revenue growth from private sales was propelled by price increase approvals ranging from 40% to 50% across products that contribute 90% of the company’s top line. Additionally, we successfully repriced a portfolio of products representing 20% of our top line, implementing substantial increases to address historical price discrepancies,” the release read.

Remember: The Egyptian Drug Authority approved several price hikes last year in response to calls from local pharma companies that the prices reflect new FX rates following the float of the EGP in March.

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

On a quarterly basis, net income reached EGP 157.8 mn during the fourth quarter of 2024, rising 180.6% y-o-y. Rameda’s revenue rose 84.3% y-o-y during the same period, reaching EGP 984.3 mn.

An increase in private sales once again pushed up the headline figure during the quarter, with the company recording an 88.9% y-o-y jump in private sales revenue to EGP 796.3 mn. Also helping the company’s top and bottom lines was a 173.3% spike in tender sales to EGP 120.3 mn alongside a 125.3% increase in toll manufacturing to EGP 64.7 mn, which helped drive down the cost per unit, the company said.

REMEMBER- Rameda was recently added to the EGX30, alongside Orascom Development, Eipico, EgyptAlum, Ibn Sina Pharma, and Qalaa Holdings, as part of the EGX’s latest semi-annual review.

What they said: “Looking ahead, we expect to fully capitalize on recent price adjustments, driving profitability and volume growth. We will continue to pursue strategic acquisitions and high-potential product launches while expanding beyond Egypt to diversify revenue and strengthen our business model.” CEO Amr Morsy said.

Rameda’s board approved paying out a dividend of EGP 0.107 per share on its earnings for 2024, totalling EGP 160 mn, the company said in a disclosure (pdf) to the EGX. The board also approved offering EGP 122.3 mn in the form of free shares for the shareholders — providing one free share for every three shares.

Tags:

earnings earnings watch pharma Rameda Pharma

Also on our Radar

An EGP 1 bn healthy food factory coming to Egypt?

MANUFACTURING-

Egyptian furniture manufacturer Mobica CEO Mohamed Farouk and an unnamed British partner plan to invest EGP 1 bn in a healthy food factory, he told Al Arabiya. The alliance plans to set up a joint-stock company with USD 20 mn in capital, with Farouk holding majority.

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

The details: The project — set to begin once the partnership agreement is signed — will be developed in the Sixth of October Industrial Zone and is expected to be completed within a year, with all production earmarked for export to the UK and France. The investors are in talks with local and international banks to secure EGP 500 mn in financing, with the remaining funds set to be self-financed.

AGRICULTURE-

Qalaa Holdings has requested 15k feddans for an agricultural and agro-industrial expansion project, focusing on herbs and aromatic plants, according to a statement from the Industry Ministry. The company will inspect available land in Sahl Baraka and Abu Zaabal.

FINTECH-

Turkish fintech player Fimple launched Fimple Egypt Digital Solutions, its Egyptian subsidiary with an office in Cairo Festival City, as it looks to tap into Egypt’s growing digital banking and fintech market, according to a statement (pdf). The company, which provides cloud-native core banking solutions, aims to support financial institutions across the Gulf, Africa, and Europe.

DEBT-

The National Authority for Tunnels lined up a EGP 3 bn loan from Emirates NBD to support public transport projects, the lender said in a st ateme nt (pdf). The long-term credit facility seeks to support the state’s plan to modernize public transportation.

Tags:

agriculture ALSO ON OUR RADAR debt Emirates NBD Fintech food Qalaa Holdings

PLANET FINANCE

US trade war could trigger more expansionary monetary and fiscal policies globally

The ongoing US trade war might push global economies to tweak their monetary and fiscal policies to account for tariff shocks, Fitch Solutions said. Last week, US President Donald Trump imposed 25% tariffs on Canada and Mexico and doubled tariffs on Chinese imports to 20%. He also announced plans to apply 25% tariffs on EU imports, and plans to place additional 25% tariffs on all steel and aluminum imports starting this week.

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

It’s all about inflation and interest rates: To counteract economic slowdowns caused by tariffs, central banks may consider lowering interest rates, but their ability to do so varies across countries. The flexibility of monetary policy depends on how closely inflation aligns with targets and whether interest rates have room for adjustment compared to pre-pandemic levels.

Where do developed economies stand? The European Central Bank and central banks in Australia and Canada may have more capacity to cut rates due to inflation remaining near target. The US and UK stand in a middle position, with some ability to adjust rates but with inflation concerns potentially limiting aggressive reductions. Japan, facing an inflation rate of 4% — double its target — and a minimal policy rate spread, has little room for monetary easing. Meanwhile, China’s policy rate is already far below its 2015–2019 average, significantly reducing its ability to introduce further cuts.

For emerging markets, monetary policy flexibility is closely tied to economic stability. Countries with strong current account balances can lower interest rates with fewer concerns about currency depreciation or capital outflows. However, nations such as Brazil, Romania, and Poland face challenges due to above-target inflation and weaker external conditions, making interest rate cuts more difficult.

Governments looking to respond through fiscal measures such as increased spending or tax cuts face significant limitations. Resources have been strained by recovery efforts following the covid-19 pandemic and the surge in energy prices caused by the Russia-Ukraine war. Countries such as Germany, South Korea, and Australia, with relatively lower debt and manageable deficits, have more room to implement fiscal stimulus. In contrast, nations like France, Italy, Japan, and the UK, which are burdened with high government debt and fiscal deficits, have little flexibility to maneuver.

MARKETS THIS MORNING-

The sell-off on Wall Street extended to Asian markets, with Japan’s Nikkei falling 1.7%, while Topix fell 2%, and South Korea’s Kospi is down 1.5%. China was not spared, with the CSI 3000 falling 0.2% and Hong Kong’s Hang Seng index down 0.9% in early trade.

Wall Street futures indicate a lower open later today, as concerns over a potential recession continue to drag down stocks.

EGX30	31,137	0.0% (YTD: +4.7%)
USD (CBE)	Buy 50.54	Sell 50.67
USD (CIB)	Buy 50.55	Sell 50.65
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,746	-0.8% (YTD: -2.4%)
ADX	9,393	-0.6% (YTD: -0.3%)
DFM	5,136	-1.7% (YTD: -0.4%)
S&P 500	5,615	-2.7% (YTD: -4.5%)
FTSE 100	8,600	-0.9% (YTD: +5.2%)
Euro Stoxx 50	5,387	-1.5% (YTD: +10.0%)
Brent crude	USD 69.23	-1.5%
Natural gas (Nymex)	USD 4.46	-0.7%
Gold	USD 2,892	-0.2%
BTC	USD 79,442	-1.1% (YTD: -15.1%)

THE CLOSING BELL-

The EGX30 was flat at yesterday’s close on turnover of EGP 3.5 bn (0.5% below the 90-day average). International investors were the sole net sellers. The index is up 4.7% YTD.

In the green: Emaar Misr (+3.5%), Mopco (+2.5%), and TMG Holding (+1.6%).

In the red: Beltone Holding (-3.6%), Telecom Egypt (-3.3%), and Rameda Pharma (-3.0%).

Tags:

Financial Markets fiscal policy interest rates monetary policy Planet Finance trade

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

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Africa is looking toward Egyptian companies to help achieve their solar ambitions

African nations have ambitious renewables targets to meet, and they’re increasingly looking to Egyptian companies to help reach these goals, industry insiders told EnterpriseAM. As the effects of climate change amplify, African nations are expected to increasingly rely on solar power to meet their energy needs.

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

Big solar projects need big investments, with clean energy investments in Africa nearly doubling in the last five years, according to a recent joint op-ed by the International Energy Agency (IEA) and Power Africa. More recent data shows renewables investment increasing 12% y-o-y to USD 36.6 bn in 2023 across the continent.

And African interest in renewables is only expected to grow, with investments in the continent’s clean energy sector projected to increase 42% by 2030, according to the IEA’s World Energy Outlook 2024 (pdf). Annual investments of some USD 200 bn are needed through the end of this decade to hit Africa’s 2030 renewable energy goals, according to IEA.

Egypt is an important solar player on the continent, now ranking second for solar energy production with an installed capacity of 707.6 MW, according to the Africa Solar Outlook 2025 report by the Africa Solar Industry Association. Although the figure is nearly half of South Africa’s capacity of 1.2 GW, Egypt stands above those below it by a factor of at least ten, with Zambia in third place with 74.8 MW.

And Egyptian companies are being recognized for their expertise in the field, which Egyptian Green Energy Association head Ahmed Hegazy thinks makes Egypt well placed to become a clean energy and renewables hub in Africa.

Recent Chinese interest in manufacturing solar panels and parts here will support our regional solar ambitions, with Egypt positioning itself as China’s gateway to the African continent, Hegazy added. China’s Elite Solar kicked off construction on its USD 150 mn solar cell factory here back in December, China Electric Power Equipment and Technology signed an MoU with the government in January to study the construction of a 10 GW solar project in Upper Egypt, and China Energy is gearing up to set up manufacturing facilities for new and renewable energy technologies in Egypt.

There could be more than USD 5 bn worth of projects for Egyptian companies on the continent over the next five years, with local companies planning to take on projects in countries including Sudan, Nigeria, Uganda, Kenya, Chad and Morocco, informed sources told EnterpriseAM. Egyptian companies taking on the projects will increase the demand for solar components and will lead to local companies developing different techniques to suit different climatic conditions.

Many are looking to a post-civil war Sudan as an important market, including Beneshty Solar Chairman Romany Hakeem, who told EnterpriseAM that he had just signed at a USD 100k agreement for the first phase of a solar project with Sudanese investors. Contracts in the country for Beneshty could total USD 100 mn or more as the war hopefully comes to an end one day, according to Hakeem. Beneshty Solar is also among a number of local players working towards setting up shop in the country to supply solar cell parts, control systems, and other solar station installation equipment.

Egyptian interest in the region includes North African neighbors: Local renewable energy players, who have operated in North Africa for years — including in Morocco, Algeria, and Tunisia — are now also turning to northern Libya as a target for expansion, Hakeem told us. Egypt’s solar power push into surrounding countries comes as our North African neighbors ramp up investment in the green transition to address climate change, he explained.

Solar power isn’t the only kind of renewables project we’re focused on in Africa, with Arab Contractors and Elsewedy Electric’s construction of the 2.1 GW Julius Nyerere Hydropower Plant and Dam in Tanzania putting Egyptian infrastructure and renewables expertise on the regional stage for all to see. The USD 2.9 bn project, which is set to double Tanzania’s power generation capacity, kicked off construction in 2019. Elsewedy Electric began operating a 750 MW phase of the hydropower plant last July.

But for Egypt to become a regional solar player, the state needs to step up its support, Hegazy told us. Egyptian companies are already looking to the continent for solar contracts, but larger scale projects and local companies establishing themselves as a more prominent force in the region could be helped by state support.

Your top green economy stories for the week:

Egypt wants to attract more WtE investments: The environment and finance ministries are working to boost investments in waste-to-energy (WtE) projects by amending laws regulating public contracts and increasing the feed-in tariff rate. Land for WtE projects has already been allocated across eight governorates for completion over the next three or four years.
Electric cargo tricycle to soon hit Egyptian streets? Local manufacturer Engineering Industrial Group (INDE) plans to launch electric cargo tricycle production this year, targeting 2k units annually with over 65% local components.
Setting up a Ras Shukeir industrial zone: The cabinet approved the establishment of a green industrial zone for petrochemical and green hydrogen production in the Gulf of Suez’s Ras Shukeir.

Tags:

Africa going green renewables

CALENDAR

MARCH

Arla Foods’ deadline for Domty acquisition offer.

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

7-9 April (Monday-Wednesday): Narrative PR Summit’s 9th edition, Somabay

7-10 April (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

10 April (Thursday): Capmas expected to release inflation data for March.

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

Business-to-business forum of Egyptian and Moroccan companies to promote bilateral trade, Cairo, Egypt.

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

MAY

10 May (Saturday): Capmas expected to publish inflation data for April.

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development.

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

Egyptian-Russian Business Forum

JUNE

10 June (Tuesday): Capmas expected to publish inflation data for May.

June 2025: MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

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.

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: 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.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

December: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

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

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

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.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

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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