Language
العربية

Sections

About

Privacy & Support

Get EnterpriseAM daily

Available in your choice of English or Arabic

Tuesday, 16 Jul 2024

What We’re Tracking Today
Economy
Legislation Watch
A Message From Visa
M&a Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Going Green
Calendar

IMF, cabinet are in discussion over the new government policy

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

1

ECONOMY

IMF, cabinet discuss new government policy.
2

LEGISLATION WATCH

El Sisi ratifies Unified Ins. Law.
3

ALSO ON OUR RADAR

We’re getting two more LNG shipments soon.
4

WHAT WE’RE TRACKING TODAY

Suez Canal revenues fell 23% y-o-y during FY 2023-2024.
5

M&A WATCH

MaxAB and Wasoko to merge within weeks -report.
6

WHAT WE’RE TRACKING TODAY

It’s day one of the Egypt Mining Forum.
7

WHAT WE’RE TRACKING TODAY

eSIM services are months away from launching.
8

Going Green

Breaking down the new cabinet’s green goals.

Tuesday, 16 Jul 2024

What We’re Tracking Today
Economy
Legislation Watch
A Message From Visa
M&a Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Going Green
Calendar
1

WHAT WE’RE TRACKING TODAY

eSIM services to launch in Egypt within months

Good morning, folks. We have a brisk issue for you this morning led by fresh discussions with the IMF over the new cabinet’s policy.

WATCH THIS SPACE-

#1- A fresh entry on the EGX? Cairo-based Al Ahly Group for Modern Agriculture filed a request to list its shares on the EGX, the bourse said yesterday. The company is currently working to complete the listing procedures, ahead of listing its 1.5 bn shares, with a capital of EGP 150 mn.

#2- Further confirmation that eSIM services are fast approaching: The government plans to launch eSIM services within two months, CIT Minister Amr Talaat told Asharq Business. This follows reports that the National Telecom Regulatory Authority had been conducting the final technical tests for the service earlier this month and was awaiting the visit of a representative from the GSM Association — a global organization representing the interests of mobile network operators — to ensure the system is in line with international standards.

eSIMs? eSIMs are a digital version of a SIM card that can be put in your phone by scanning a QR code or putting in a code. The newest Apple, Samsung, and Google phones are already eSIM-compatible, and many believe it is only a matter of time before physical SIM cards are tossed into the dustbin of history.

#3- Iraq wants Egyptian investors to tap the country’s recovering economy: Iraq’s Prime Minister Mohammed Al Sudani invited Egyptian and Saudi investors to invest in the country’s real estate sector, according to a statement. His statements came during a meeting with Egyptian and Saudi businessmen, including Egypt’s TMG Holding and Saudi conglomerate Al Muhaidib.

DATA POINTS-

#1- Suez Canal revenues fell 23% y-o-y during the fiscal year 2023-2024 to record USD 7.2 bn, Al Mal reports citing sources with knowledge of the matter. The number of vessels passing by dipped 22% y-o-y, while net tonnage decreased by nearly 30% y-o-y.

#2- Expanding the Takaful and Karama program: Some 73k families were added to the Takaful and Karama social safety program in July, Social Solidarity Minister Maya Morsy said. The program currently includes around 5.2 mn families — 21 mn citizens.

HAPPENING TODAY-

Egypt Mining Forum kicks off: The two-day Egypt Mining Forum opens its doors today at the Nile Ritz-Carlton. The forum will bring together over 4k attendees for 15 sessions with over 50 speakers.

PSA-

We have another long weekend ahead: Public and private sector workers will have Thursday, 25 July off in observance of the 23 July Revolution, Prime Minister Moustafa Madbouly announced yesterday.

WEATHER- Brace for another humid day in Cairo, with a high of 35°C and a low of 26°C, according to our favorite weather app.

It’s almost as hot in Alexandria, with a high of 33°C and a low of 24°C.

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

THE BIG STORY ABROAD-

Donald Trump is still in front pages everywhere — this time after formally taking the Republican nomination. He has named Ohio Senator JD Vance as his running mate — Vance was once a Trump critic and is a sharp populist — in a move that the Wall Street Journal says could be aimed at clinching victory in the Midwest battleground states.

Trump made his first public appearance since his assassination attempt — with a big bandage on his ear — at the Republican National Convention, which is still underway at dispatch time.

ALSO- A US judge dismissed a criminal case over Trump’s handling of classified documents, in the latest legal victory for the former president, the WSJ reported separately. The judge in the case is a Trump appointee who has made a series of baffling or unorthodox rulings in the case.

AND- Trump will force Ukraine-Russia peace talks if he’s elected president, says Hungary’s prime minister, Viktor Orbán.

OVER IN FRANCE- The fragile unity within the country’s New Popular Front is fraying as coalitions within the party fail to agree over a new prime minister, France24 reports. The government is set to convene on Thursday for the first time to elect a new president of the national assembly, equivalent to the speaker of the house.

IN THE BUSINESS PRESS- Apple’s shares rose to a record high after Morgan Stanley identified the stock as a “top pick,” giving it a valuation of USD 3.62 tn, attributing the choice to the iPhone manufacturer’s AI efforts, which it expects to help boost sales.

SPEAKING OF APPLE- Fellow iSheep can now download the beta version of iOS 18 (and iPad, macOS, watch OS 18, and macOS Sequoia). (The Verge)

AND IN EARNINGS NEWS- Goldman Sachs saw its net income more than double in 2Q 2024 to USD 3 bn due to a recovery in dealmaking. Morgan Stanley is set to report its earnings today.

*** 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 break down the new cabinet’s green goals, from renewables targets to plans for electricity production and consumption.

Tags:

DISCOVER SOMABAY: Embark on a journey of discovery in the heart of Somabay, where crystal-clear waters meet golden sands and luxury meets serenity. Experience a world of adventure, relaxation, and natural beauty like no other. From thrilling water sports to world-class golf, Somabay offers it all. Explore vibrant coral reefs, unwind in luxurious spas, and savor exquisite cuisine. Your dream destination awaits, where every moment is a discovery.

2

ECONOMY

IMF is in discussion with Egypt’s new cabinet over its policies for the years to come

More discussions with the IMF are underway: The IMF is in discussions with the new Madbouly cabinet over its policy and goals for the coming three years, a government official told Enterprise, adding that these talks should wrap up next week.

ICYMI: The new cabinet, sworn in earlier this month, has big plans for the years to come between protecting national security and Egypt’s foreign policy, building up the Egyptian citizen, building a competitive economy that attracts investments, and achieving political stability. Dive deeper into the econ aspect of the government’s plans here.

On the agenda: The two sides are in discussion over monetary and financial policies, as well as policies related to public spending, our source said. The timeline of slashing fuel subsidies is an important point of discussion, seeing how heavily it weighs on the state budget — the government increased fuel subsidies allocations in FY 2024-2025 to EGP 154.5 bn, up 29.4% from 119.4 bn last fiscal year.

REMEMBER- We are sitting tight waiting for the Fund’s Executive Board to discuss the third review of our USD 8 bn loan program, after its meeting was pushed back to 29 July to “finalize some details,” according to IMF Communications Director Julie Kozack. The greenlight from the board will see the Fund disburse a fresh USD 820 tranche into the state coffers and will allow Egypt to apply for an additional USD 1.2 bn in climate finance. Egypt and the IMF reached a staff-level agreement on the third review early last month.

More details on the delay: Our sources attributed the delay to “technical procedures,” without providing any further detail on the matter.

One of the reasons behind the delay: The IMF likely pushed back its meeting as it adopts a wait-and-see approach regarding fuel subsidy cuts — the government’s fuel pricing committee is expected to meet this month to review pricing. The committee last hiked petrol prices in March, increasing them by 8-10% and diesel prices by 21.2%.

Energy price hikes next: The government is conducting studies to determine the percentage increase to be introduced on electricity and petroleum products, taking the central bank’s inflation targets into account, the source said. The hikes will be carried out gradually and we can expect an announcement of the government’s plan in this regard “very soon,” they added. The government could also raise the natural gas prices for the industrial sector, after holding them steady for years.

Remember: We’ve been anticipating fuel and electricity price hikes for months now, especially after Prime Minister Moustafa Madbouly signaled that we could see more fuel price hikes as the state looks to “restore balance” between cost of production and end price by the end of 2025. He also said that the Electricity Ministry will prepare a plan as to how the government can completely cut its spending on electricity subsidies over the coming four years.

But don’t hold your breath: The government will not move forward with electricity price hikes before September as it works to resolve the electricity crisis, an Electricity Ministry source told us last month.

Oil hedging still in play: The source confirmed that the government intends to continue hedging against fluctuating oil prices during the current fiscal year, adding that the measure could be extended to other strategic commodities.

Refresher: The former government used hedging contracts throughout the fiscal year 2023-24 to hedge against rising oil prices. Additionally, former Assistant Supply Minister Ibrahim Ashmawy first floated the idea of hedging contracts to guard against expected volatility in the price of certain commodities in January, amid the disruption in the Red Sea.

Tags:

This publication is proudly sponsored by

3

LEGISLATION WATCH

Egypt’s El Sisi ratifies Unified Ins. Law

El Sisi ratifies Unified Ins. Law: President Abdel Fattah El Sisi has given the final approval for the Unified Ins. Law, which will draw up new, comprehensive rules for regulating the ins. industry and widen compulsory coverage, according to the Official Gazette.

What it entails: The law will “regulate ins. companies, special funds, obligatory operations such as highway accidents, and state the new supervisory rules for the ins. industry,” House Economic Affairs Committee head Mohamed Soliman said in April.

New capital requirements: Ins. companies will need a minimum issued and paid-up capital of EGP 250 mn or its equivalent in FX, up from EGP 60 mn, under the newly-ratified law. Providers of general and property ins. must increase their issued and paid-up capital by EGP 50 mn if they provide ins. for oil, aviation, or energy ins.

A one-year deadline: Ins. companies have one year to meet the new capital requirements — the Financial Regulatory Authority (FRA) head may extend this deadline for up to two years. The capital increase could bring in EGP 2.9 bn of fresh capital to the market, ins. broker Mohamed Elghatrefy told Enterprise.

Ins. companies operating in the market have sufficient financial solvency to meet the new capital requirements, Ins. Federation of Egypt Chairman Alaa El Zoheiry told Enterprise. Elghatrefy added that it is unlikely that firms will turn to the EGX to raise capital to meet the new requirements as shareholders prefer to retain their shares.

The law allows for the establishment of specialized microinsurance companies with issued and paid-up capital of EGP 30 mn, permitting them to combine general and life ins. activities, which “represents a significant leap towards financial and ins. inclusion,” El Zoheiry told us.

We could be welcoming new compulsory ins. soon: The law allows the FRA to propose a set of compulsory ins. policies, suitable for the Egyptian market, to be enacted by a cabinet decision specifying the categories, conditions, regulations, and prices for each type. That includes professional indemnity ins., ins. against digital risks for NBFS firms, and marital settlement agreements — aka divorce ins.

The key to expanding the sector: Introducing more compulsory ins. to the market is the key to expanding the ins. sector, El Zoheiry told Enterprise, adding that the decision comes after years of ins. companies calling for more mandatory ins. to help them expand and increase the number of ins. customers.

Larger payouts for car accident victims: The law raises the compensation granted for victims of car accidents to EGP 100k, up from EGP 40k, in cases of death or total permanent disability.

Tags:
4

A MESSAGE FROM VISA

Monetizing creativity in the creator economy

Tune into "Access Tomorrow" for a discussion with Leila Serhan, Visa’s Senior Vice President and Group Country Manager for North Africa, Levant, and Pakistan, alongside Shant Oknayan, TikTok’s Vice President, Global Business Solutions, Asia, Middle East, Africa, & Oceania. Together, they navigate how Gen Z's tech-adaptivity is redefining digital commerce.

What’s on the agenda? The dynamics of the creator economy, innovative payment solutions for content creators, and the transformative impact of Gen Z on digital commerce.

You can listen to the full episode here.

Tags:
5

M&A WATCH

E-commerce platforms MaxAB and Wasoko to merge within weeks -report

MaxAB and Wasoko’s merger is fast approaching: Egyptian B2B e-commerce platform MaxAB and Kenya-based Wasoko are set to complete their merger within the next few weeks, Al Mal reports, citing sources it says have knowledge of the matter. The merger will create a new entity named Maxoko, whose annual operations are projected to hit USD 500 mn.

Remember: The two e-commerce platforms inked a preliminary merger agreement back in December with the aim of advancing Africa’s informal retail sector. The transaction — hailed by the two companies as “the largest tech merger in Africa” — is set to create a combined customer base of over 450k merchants serving over 65 mn consumers in eight African countries.

The ownership breakdown: Wasoko shareholders will reportedly hold a controlling 55% stake in the merged entity, with the remaining share going to MaxAB shareholders, according to Al Mal.

The where: Maxoko intends to expand its operations in Egypt, Morocco, Rwanda, and Kenya, according to Al Mal — MaxAB already operates in Egypt and Morocco, while Wasoko is present in Kenya, Tanzania, Rwanda, Uganda, Zambia, and Congo.

Maxoko wants to go public: The company’s long-term plans include listing on a stock exchange.

About the companies: Founded in 2018 by Belal El Megharbel (LinkedIn) and Mohamed Ben Halim (LinkedIn), MaxAB offers a range of e-commerce and fintech services targeting smaller retailers and suppliers. Wasoko was founded in 2013 by Daniel Yu (LinkedIn). The company enables smaller retailers to restock products for their businesses via mobile app.

Tags:

6

LAST NIGHT’S TALK SHOWS

Egypt’s House committee approves cabinet policy

It was a calm night on the airwaves, with most of the nation's talking heads absent from our screens, that includes Kelma Akhira’s Lamees El Hadidi and El Hekaya’s Amr Adib.

The one story worth noting: Salet El Tahrir (watch, runtime: 6:09) and Ala Masouleety (watch, runtime: 7:54) had coverage of the ad hoc committee reviewing the new cabinet’s policy unanimously approving it. The House general assembly will vote on the policy on Thursday.

Tags:
7

ALSO ON OUR RADAR

Egypt is getting two more LNG shipments soon

ENERGY-

Two more LNG shipments on the way: The Oil Ministry is set to receive two LNG shipments — holding a combined 145k tons of LNG — within the coming ten days, Al Arabiya reports, citing an unnamed government official. The shipments will head directly to the Ain Sokhna port where they will be regasified and fed into the national grid.

So far, we’ve welcomed five shipments: State gas firm EGAS has so far received five shipments carrying 155k cubic meters of LNG, the Oil Ministry said in a statement. The shipments are to be regasified on one of the floating storage and regasification units Egypt has access to in Jordan’s terminal in Aqaba and Ain Sokhna port. The remaining 16 shipments will be arriving according to a set timeframe.

Remember: Egypt secured 21 LNG shipments last month as it works to ensure it has sufficient supplies to keep the lights on during the current period of increased demand expected to last till September. The government has announced that it plans to suspend power cuts for the remainder of the summer starting next week.

TELECOM-

Telecom Egypt customers will soon have access to 5G services: Telecom Egypt has partnered with Nokia to bring 5G services to select cities across Egypt — Alexandria, Giza, Luxor, and Aswan — with the service set to be deployed later this year, the company said in a pressrelease(pdf). Nokia will provide 5G radio access network equipment, alongside assistance with integration and system optimization.

Remember: TE, earlier this year, partnered with Chinese tech giant Huawei to deploy 5G networks, allowing Huawei to set up 5G sites in “hotspot areas” throughout Egypt. This came shortly afterTelecom Egypt received the first 5G license in the country from the National Telecommunications Regulatory Authority.

AUTOMOTIVE-

Stellantis to assemble more of its models locally? Automotive player Stellantis — the manufacturer of Fiat and Jeep, among others — is looking into expanding its local assembly line to include two new models, an unnamed government official told AlMal. The company is currently in discussions with state-owned Arab Organization for Industrialization over the matter.

DEVELOPMENT FINANCE-

More funds from the EBRD ahead: The European Bank for Reconstruction and Development (EBRD) wants to on-lend some USD 705 mn to a number of local banks this year, EBRD Associate Director Hashem Abd El Hakim told Asharq Business. The funding will be split between SMEs, green energy projects, and bilateral trade.

INFRASTRUCTURE-

#1- Egypt-Saudi electricity linkup is 60% complete: The USD 1.8 bn Egypt-Saudi electricityinterconnection is 60% complete, Asharq Business reported, citing an unnamed government official. The 3-GW project is scheduled to be completed in two phases. The source estimated that the first 1.5-GW phase is set to go live in July 2025 and the second in early 2026.

The Electricity Ministry has more ambitious plans, hoping to have the project generating electricity ahead of next summer to help bridge the gap between heightened energy demand that coincides with the summer and domestic gas production.

#2- Germany’s Siemens to implement automatic train control system on Egypt’s railways after being awarded the EUR 26 mn contract from the National Railway Authority, unnamed sources told Al Mal. The authority is currently in the process of acquiring the necessary funds for the first installment of the project, with the project set to begin implementation once Siemens is paid, the sources added.

#3- Elsewedy Cables Qatar lands QAR 1 bn contract: Elsewedy Cables Qatar is set to supply and install 132kV power cables for “strategic projects” after inking a c. QAR 1 bn (USD 274 mn), three-year engineering, procurement, and construction contract with Qatari state utility company Kahramaa, according to an EGX disclosure (pdf). The company is 73.4% owned by Qatari industrial group Senyar Industries Qatar Holding, which is itself 50% owned by Elsewedy Electric.

ICYMI: Kahramaa in January 2023 awarded Elsewedy Cables Qatar a QAR 1.2 bn 30-month contract to establish a new underground transmission line.

TECH-

Cloudmania enters Egypt: Cybersecurity consultancy Liquid C2 — a subsidiary of the Africa-focused tech firm Liquid Intelligent Technologies — launched its cloud computing and cybersecurity solutions unit, dubbed Cloudmania, in Egypt, according to a press release (pdf).

The big picture: Cloudmania has an extensive network of partners across 35 countries in the Middle East and Africa. Through its strategic partnership with Microsoft, Cloudmania has been delivering cloud computing and cybersecurity services, including Microsoft 365 and Azure solutions, to numerous partners.

CAPITAL MARKETS-

CCS to enter the investment banking game: Cairo Financial Holding’s brokerage arm Cairo Capital Securities (CCS) has received its investment banking license, CEO Ahmed Abu Hussein told Al Borsa. CCS is also looking to enter the NBFS market through setting its own microfinance outfit, he added.

LOGISTICS-

Alex Container to revamp operations: Alex Container and Cargo Handling will carry out a three-phase development plan put forward by a global consultant to help it improve operations and increase competitiveness, it said in an EGX disclosure (pdf). The development plan will take place over the course of five years.

AGRICULTURE-

Homegrown agribusiness company Al Salam International wants to spend EGP 200 mn to cultivate 3k feddans in Beheira and New Valley, Chairman Ahmed Sobhy told Al Borsa.

EARNINGS-

Maridive Oil & Services saw its net income rise 152% y-o-y during 1Q 2024 to USD 20.4 mn driven by favorable market conditions and higher shipping prices, the company said in an EGX disclosure (pdf). Revenues recorded a 35% y-o-y increase during the quarter to USD 56.1 mn.

Tags:
8

PLANET FINANCE

Fed boss continues to (carefully) build a case for rate cuts, saying it looks like inflation is heading to the magical 2% zone

The US Federal Reserve continues to build a case for starting to cut interest rates. Fed boss Jerome Powell said yesterday 2Q 2024 US inflation readings “add somewhat to confidence" that inflation is heading towards the central bank’s 2% target, Financial Times reported. His remarks add to speculation that the Fed could start cutting interest rates as soon as September.

What he said: “Our test has been for quite some time that we want to have greater confidence that inflation was moving sustainably down towards our 2 percent target, and what increases confidence in that is more good inflation data,” Powell said at an event at the Economic Club of Washington. “And lately, we have been getting some of that.”

But Powell isn’t calling the ball: “Today I’m not going to be sending any signals one way or the other on any particular meeting,” Powell said. “Just to ruin the fun right at the beginning.”

Powell has been (cautiously) talking up the idea that inflation is cooling: He told Congress last week that he has “some confidence” that inflation is heading toward the 2% mark. He also said that the Fed doesn’t necessarily need to wait for inflation to fall to 2% before moving on interest rate cuts, adding to the speculation that the first cut could come this fall.

AND- Powell said that risks to the labor market were a key focus for the Fed along with elevated. “Now that inflation has come down and the labor market has indeed cooled off, we’re going to be looking at both mandates,” Powell said. “They’re in much better balance.” He said that “an unexpected weakening” in the labor market could stir a reaction by the central bank.

WHY THIS MATTERS- Powell’s comments were the last remarks he is scheduled to make before the Fed meets on July 30-31 at which the bank is widely seen leaving rates unchanged. The earliest most analysts expect a rate cut is at the September policy meeting.

MARKETS THIS MORNING-

Powell’s remarks yesterday were in line with market expectations and did little to move markets: Major Asian benchmarks are mixed this morning, with no big swing to in sight.

Across the pond: The Dow closed at another record high yesterday, gaining 200 points as traders shrugged off the attempted assassination of Donald Trump. Wall Street futures were up in overnight trading, while all of the major European benchmarks we track were down slightly.

EGX30

27,952

-0.3% (YTD: +12.3%)

USD (CBE)

Buy 47.90

Sell 48.03

USD (CIB)

Buy 47.89

Sell 47.99

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,948

+0.6% (YTD: -0.2%)

ADX

9,145

0.0% (YTD: -4.5%)

DFM

4,115

+0.3% (YTD: +1.4%)

S&P 500

5,631

+0.3% (YTD: +18.1%)

FTSE 100

8,183

-0.9% (YTD: +5.8%)

Euro Stoxx 50

4,983

-1.2% (YTD: +10.2%)

Brent crude

USD 84.85

-0.2%

Natural gas (Nymex)

USD 2.17

+0.4%

Gold

USD 2,427

-0.1%

BTC

USD 63,718

+6.0% (YTD: +50.9%)

THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 3.0 bn (28.2% below the 90-day average). Regional investors were the sole net sellers. The index is up 12.3% YTD.

In the green: Ibnsina Pharma (+2.4%), Abu Kir Fertilizers (+1.7%), and AMOC (+0.9%).

In the red: ADIB (-4.2%), EFG Holding (-2.6%), and Orascom Development (-1.9%).

Tags:

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

Published every Tuesday in EnterpriseAM.

Read going Green
9

Going Green

Breaking down Egypt’s new cabinet’s green goals

What’s on the new cabinet’s green agenda? More renewables, more green hydrogen, and enhanced water security are just some of the sustainability goals the new Madbouly cabinet laid out in a 276-page document that details its plans for the three years to come.

It’s all about renewables: The new government sees renewables making up 18.6% of Egypt’s total energy mix by the fiscal year 2026-2027, up from 11.5% last year and 13.8% forecasted for this year.

Long term: The state sees renewables making up 42% of the country’s energy sources by 2030. Meanwhile, earlier this month the Electricity Ministry said Egypt plans to push that number to 58% by 2040.

The road to a greener Egypt: In efforts to reach its goals, the cabinet will be doubling down on the development of hydroelectric and solar projects and increasing the production of green hydrogen and its derivatives for export and increasing its use domestically — namely in the industry and transport sectors.

Remember: Egypt has big green hydrogen ambitions as the government works to transform it into a regional hub for green hydrogen production by 2026 and a global hub by 2030, with plans to produce 3.2 mn tons of green hydrogen a year by 2030 and 9.2 mn tons a year by 2040.

ON THE ELECTRICITY FRONT-

More electricity production: The new cabinet wants to steadily ramp up electricity production from 229 terawatt hours (twh) in the current fiscal year to 242 twh in FY 2026-2027, and 260 twh by 2030.

A recap of the past few years: Electricity production grew at an annualized rate of 2.9% in the ten years leading up to 2023 to settle at some 220.1 twh, according to the Energy Institute’s 2024 Statistical Review of World Energy.

Less waste, consumption: The government wants to cut down on the percentage of energy wasted from 19.4% during the last fiscal year to 12% by 2030. It also wants to reduce energy consumption by 18% by 2035 through developing the electricity grid, promoting the use of energy-saving appliances in households, and putting an end to electricity theft.

ICYMI- Electricity has been a hot topic over the past year or so and all eyes are on the new Electricity Ministry to see how it will tackle rolling blackouts — the ministry began reducing the electrical load in July 2023 to ration the consumption of natural gas production. The power cuts were originally blamed on summer heat waves, but after temperatures have fallen, officials noted that the one-hour cut saves the country some USD 300 mn per month. The government is expected to secure the needed natural gas reserves to keep the lights on 24/7 by the end of next week, cabinet spokesperson Mohamed El Homsani said earlier this week.

ON THE ENVIRONMENT FRONT-

The document details a long list of environment-related goals for the coming three years, from reducing pollution to finding a way to tackle rising sea levels. Among the most notable are:

#1- Pollution: The cabinet wants to continue implementing an integrated plan to curb air pollution in line with Egypt Vision 2030. It also wants to set up more networks to monitor air and noise pollution and find a way to control facilities that funnel waste towards the Nile and other bodies of water.

#2- Municipal waste: The cabinet wants to boost the efficiency of solid municipal waste gathering to 85% by FY 2026-2027 and 95% by 2030, from 70% during the last fiscal year. It also wants to increase the percentage of collected solid waste that is safely recycled to 60% by FY 26-27 from 30% last year.

#3- Natural reserves: The cabinet wants to continue carrying out its plan to manage the country’s natural reserves ahead of offering them to investors. This also includes setting up public private partnerships to take over the servicing of those areas.

#4- Water security: The cabinet wants to reduce water waste, expand the use of smart irrigation systems, ensure its bodies of water are free of pollution, and boost cooperation with Nile Basin countries all in effort to protect our water security.

#5- Food security: As part of its plan to ensure food security, the cabinet wants to roll out an investment plan to ensure the agriculture sector is not impacted by climate change, increase the quality of its agricultural produce, and improve the agriculture sector’s investment environment.

To fund it all: The cabinet plans to raise the portion of green investments to 60% of total public investments during FY 2026-27 from 40% during the last fiscal year.

A whole lotta goals: We previously looked at the new cabinet’s goals for the economy and will be dissecting its goals for infrastructure, logistics, aviation, and more in future issues.

Tags:

CALENDAR

2024

JULY

9-18 July: Act Financial IPO subscription period for institutional investors.

9-23 July: Act Financial IPO subscription period for retail investors.

16-17 July (Tuesday-Wednesday): The Egypt Mining Forum, Cairo, Egypt.

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25 July (Thursday): National holiday in observance of the 23 July revolution.

AUGUST

4-5 August (Monday-Tuesday): Egypt Expat Forum.

SEPTEMBER

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein International Airport.

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

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

25-26 September (Wednesday-Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

30 September (Monday): Ban on sugar exports expiration.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

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

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

DECEMBER

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

EVENTS WITH NO SET DATE

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

November 2024: Egypt to host the World Urban Forum (WUF12).

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

End of 2024: Shalateen Mining Company to launch a gold exploration tender in the Eastern Desert.

2025

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

Now Playing
Now Playing
00:00
00:00