Inflation hits near-record high in March + NPH ups its bid for Pachin, again

Tuesday, 11 Apr 2023

Inflation hits near-record high in March + NPH ups its bid for Pachin, again

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Today at a glance

ECONOMY

Inflation hit a near record high in March — but has it peaked?

Privatization

The Pachin price war continues as NPH ups its bid once again.

WHAT WE’RE TRACKING TODAY

FM Shoukry is in Athens — and could head for talks in Turkey next.

DEBT WATCH

Aur Leasing and Factoring issues c.EGP 800 mn in securitized bonds.

ALSO ON OUR RADAR

More Chinese investment in our renewables sector?

LAST NIGHT’S TALK SHOWS

We won’t be applying to host the 2030 FIFA World Cup -Sports Minister Sobhy.

PLANET FINANCE

This earnings season could be the worst in the US since the start of the pandemic.

Going Green

UN scientists say global temps will breach 1.5°C warming threshold this decade.

WHAT WE’RE TRACKING TODAY

Shoukry in Athens — then Ankara? + Red Devils clinch the Egypt Cup

Good morning, wonderful people, and a very happy Tuesday. We’re halfway through the last full work week in Ramadan — and looking forward to the coming streak of holidays as the news flow picks up pace again.

PSA #1- The Eid holiday schedule is confirmed: Public sector workers will be off from Thursday, 20 April until Tuesday, 25 April in observance of Sinai Liberation Day and Eid El Fitr, cabinet said in a statement. Expect the Manpower Ministry, central bank, and the EGX to follow up with their own announcements in the coming days.

We have a couple holidays coming up before that: Banks and the EGX will be off next Sunday, 16 April to mark Coptic Easter (the day is not a public holiday), and we’re all off next Monday, 17 April off to mark Sham El Nessim.

PSA #2- We’re bringing back daylight saving time (yet again) on Friday, 28 April. You’ll be losing an hour’s sleep as clocks jump forward one hour until the final Thursday of October.

THE BIG STORY TODAY- Inflation hit a near all-time record of 32.7% in March as the EGP devaluation and a shortage of foreign currency continue to pressure prices. Get the full story in the news well, below

There’s also interesting news on the regional diplomacy front: Turkey’s top diplomat says Egyptian Foreign Minister Sameh Shoukry will head to Ankara later this week — with potential “concrete steps” to reappoint ambassadors on the table. Shoukry is already in the neighborhood after touching down in Athens today for bilateral talks. Scroll on for the details.

AND- Al Ahly was crowned Egypt Cup champion yesterday after beating Pyramids2-1 in the final. Pyramids took the lead in the 72nd minute with a header from Walid El Karti — but their hopes of wresting the Egypt Cup from the nine-season-long dominance of Ahly and Zamalek were scuppered when Mahmoud Abdel-Moneim scored an equalizer just two minutes later. Ahly’s Hamdy Fathy sealed the deal with a goal in extra time. This marks the 38th time Ahly snags the title.

** SO, WHEN DO WE EAT? We’ll be breaking our fasts at 6:19pm CLT today. You have until 4:03am tomorrow morning to hydrate and grab a bite to eat.

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May at Four Seasons, Nile Plaza. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help us build an export-led economy that makes us a magnet for foreign direct investment (FDI).

What’s the Enterprise Exports & FDI Forum? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what we as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories.You can learn more on our conference website here.

Some of the biggest names in business and finance are on board — are you? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

THE REALIGNMENT-

Shoukry to head to Turkey: Foreign Minister Sameh Shoukry will likely visit Turkey later this week, taking steps towards fully restoring ties between the two sides, Turkish Foreign Minister Mevlut Cavusoglu told Turkish TV yesterday.

Normalization imminent? “It is time to take concrete steps,” he said. “During Shoukry’s visit, we can take steps to appoint ambassadors,” he said, adding that President Abdel Fattah El Sisi and his Turkish counterpart Recep Tayyip Erdogan could hold a meeting following the Turkish elections scheduled for 14 May.

REMEMBER- Relations with Turkey are thawing: The two country’s top diplomats pledged to put aside their differences and normalize relations during talks in Cairo last month, after Shoukry became the first senior Egyptian diplomat to visit Turkey in over a decade in February.

The news is receiving wide coverage: Reuters | Al Monitor | The National.

BUT FIRST- Shoukry is in Athens today for talks with Greek Prime Minister Kyriakos Mitsotakis and Foreign Minister Nikos Dendias, according to a Foreign Ministry statement. Shoukry will also meet with Copelouzos Group CEO Dimitris Copelouzos to follow up on the progress of the 3-GW Greece-Egypt Interconnector (GREGY) project, for which Copelouzos is the lead contractor.

HAPPENING TODAY-

Rania Al Mashat is in Washington for the IMF / World Bank Spring Meetings:International Cooperation Minister Rania Al Mashat is in Washington, DC, this week for the IMF / World Bank Spring meetings. Al Mashat is scheduled to participate in a number of talks, including the meetings of the Group of 24 as well as the World Bank Group’s Development Committee and Human Capital Project, according to a ministry statement. She will also hold bilateral discussions with partners including the US government, European Investment Bank, the European Bank for Reconstruction and Development, the International Finance Corporation, and the Rockefeller Foundation. The event kicked off yesterday and runs until 16 April.

** The IMF will be out with its latest global growth forecasts when it publishes its World Economic Outlook in full this afternoon.

The House reconvenes:MPs will discuss and vote on two proposed amendments:

Changes to the nationality law that would allow more Egypt-born children of foreign nationals to become citizens. The amendments would allow foreign-born women who have acquired Egyptian citizenship to pass it down to their children born in Egypt, a privilege that is currently only available to foreign-born men with Egyptian citizenship.
Changes to the Police Academy law that would tighten rules on who is eligible to enroll in the police academy.

Tomorrow at the House: MPs will vote on two USAID grants meant to stimulate trade and investment and improve economic governance.

It’s deadline day for NGOs to register with the government: All local and foreign NGOs have to register with the government by today under the 2019 NGO Law, the Social Solidarity Ministry confirmedyesterday.The ministry in Octoberextended the deadline to give NGOs another six months to comply.

HAPPENING TOMORROW-

Issa to speak at BEBA iftar: Tourism Minister Ahmed Issa will be guest of honor at the British Egyptian Business Association’s (BEBA Egypt) annual Ramadan iftar, which will be held at Salah El Din Citadel.

There’s no one BIG STORY ABROAD dominating the front pages of the foreign press this morning.

WikiLeaks 2.0: Most major outlets are still tracking developments in the Pentagon’s investigation into the leaking of classified US intelligence documents online. (Bloomberg | NYT | WSJ |FT)
Another mass shooting in the US is also making headlines. (Reuters | AP | NYT | WaPo)

CIRCLE YOUR CALENDAR-

EgyptAir is set to launch a new route to Bangladeshi capital Dhaka next month, according to a statementby the Civil Aviation Ministry. The flag carrier will start the new route on 14 May, and will operate two flights a week. The first flights will be offered at a 50% discount.

The Senate will reconvene on Sunday, 7 May after a three-week break. In its final session before the break yesterday, the upper legislative chamber discussed the government’s water management strategy — including a network of new wastewater recycling projects that are set to cost a combined EGP 83 bn.

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

*** 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: Governments around the world are unlikely to keep the globe from warming past 1.5°C, according to UN climate experts, who now expect the key threshold to be breached in the coming decade.

Tags:

aviation DIPLOMACY Egypt-Greece relations Egypt-Turkey relations EgyptAir Middle East politics Rania Al Mashat Sameh Shoukry sports WHAT WE’RE TRACKING TODAY

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For more information, please contact book@somabayholidays.com or 16390.

ECONOMY

Egypt inflation nears record high in March as impact of devaluation bites

Inflation came close to notching a record high in March as prices continued toaccelerate on the back of the series of currency devaluations, the foreign-currency crunch, higher fuel prices, and seasonal Ramadan demand. Figures released on Monday by state statistics agency Capmas showed that annual urban inflation jumped to 32.7% y-o-y in March, up from 31.9% the month before. Inflation is now at its highest since July 2017, when it hit a record high of almost 33%.

This was below analyst expectations: “Inflation came below our expectations which was 35.4%,” Amr Elalfy, head of research at Prime Securities, told Enterprise. The median forecast in a poll of economists conducted by Reuters had inflation accelerating to 33.6% in March.

Food price inflation hit a fresh all-time high: Food and beverage prices — the largest component of the basket of goods and services used to calculate inflation — soared 62.9% y-o-y in March, up from 61.8% the month before.

Core inflation eases but stays near record high: Core inflation — which strips out volatile items such as food and fuel — stood at 39.5% y-o-y in March, down slightly from February’s record high of 40.3%, according to central bank data. On a monthly basis, core inflation slowed to increase by 2.5%, down from a pace of 8.1% in February.

Monthly headline inflation grew at a slower pace of 2.7%, from 6.5% in February.

Have we reached the peak? “We had thought that March would be the peak, which could still be the case if we maintain our monthly inflation estimates…Our adjusted inflation estimate for April is 31.7% for now,” Elalfy told us. “We still think that headline inflation will remain high for the rest of the year, averaging around 30%.”

What does this mean for interest rates? The Central Bank of Egypt (CBE) last month raisedinterest rates by 200 bps to combat the inflationary effects of the EGP devaluation. Currency pressures and soaring prices have forced the central bank to raise rates by 1k bps since March 2022. “For the time being, we are not changing our outlook for interest rates…Our view is still no change through the end of the year,” Elalfy said.

Tags:

CAPMAS Central Bank of Egypt economy inflation interest rates

Privatization

New bid for Pachin from NPH

It’s NPH’s turn: Dubai-based National Paints Holding (NPH) is still in the race to acquire EGX-listed Paint and Chemical Industries (Pachin), yesterday raising its offer by more than 5% in response to Eagle Chemicals’ revised offer last week. The Emirati firm is now offering to purchase up to 100% of state-owned Pachin for EGP 39.80 per share, up from its previous EGP 37.75 bid, the Financial Regulatory Authority (FRA) said in a statement (pdf) yesterday. The new bid values the company at EGP 955.2 mn, according to our math.

Comparing the two offers: NPH’s new bid is 2% above Eagle Chemicals’ latest offer. The local chemicals company has offered to purchase at least 75% of state-owned Pachin for EGP 39.00 per share.

Shareholders get a five-day extension to respond: The FRA has extended the ongoing mandatory tender offer (MTO) by five working days, giving shareholders until 2 May — according to our understanding of when public holidays will fall — to decide whether and to whom to sell their shares.

Is a Compass Capital comeback brewing? Compass Capital is still mulling a rival bid and could reenter the fray within days, Al Borsa reports, citing unnamed sources. Compass in January submitted a non-binding offer to acquire a stake of 51-90% in Pachin for EGP 30.00 per share.

Market reax: Pachin’s shares increased 0.4% to EGP 40.14 yesterday.

ADVISORS- Al Ahly Pharos is financial advisor to Pachin while Shalakany Law Office is counsel. Matouk Bassiouny & Hennawy are acting as NPH’s legal counsel, while Nour Law Office is counsel to Eagle Chemicals alongside Al Tamimi & Company. Marei, Fayez, Dardiry & Partners is legal advisor to Compass Capital. HC Brokerage is brokering the transaction.

Tags:

Eagle Chemicals industry M&A Watch National Paints Holding Pachin privatization watch

DEBT WATCH

Aur Leasing and Factoring raises EGP 790 mn from securitization

Private equity outfit Aur Capital and Al Ahly Pharos have closed an EGP 790 mn securitized bond issuance for Aur Leasing and Factoring, Aur said in a statement (pdf) yesterday. The three-tranche issuance is backed by an EGP 1.1 bn portfolio of receivables and has tenors ranging between 24-52 months. The bonds were rated AA+, AA, and A by the Middle East Rating and Investors Service (MERIS).

Who bought in? The National Bank of Egypt, Banque Misr, CIB, United Bank, Arab Banking Corporation and Attijariwafa Bank all subscribed to the transcation.

Advisors: Aur Capital and Al Ahly Pharos were the bookrunners and arrangers for the issuance. KPMG acted as the auditor, Banque Misr was the custodian, while Alieldien Weshahi & Partners acted as the legal advisor.

Bullish year for securitization: This latest issuance takes the total value of securitized bond issuances this year to EGP 13.3 bn, up some 34% from the same period last year.

Tags:

Al Ahly Pharos Aur Capital Aur Leasing and Factoring debt watch securitization

LAST NIGHT’S TALK SHOWS

Egyptian talk shows cover the USD-EGP rate + warming ties with Turkey. PLUS: No 2030 World Cup bid from Egypt

It was a slightly more lively night on the talk shows after a run of Ramadan specials, with our talking heads covering the economy and foreign affairs.

The “psychological price barrier:” Amr Adib gave viewers a lesson on why just over 31 feels like a much bigger number than just under it, after the interbank USD-EGP rate — the exchange rate shown through Google search — breached the 31 mark yesterday to trade at around 31.05 (watch, runtime: 8:06). The official CBE rate remains unchanged at 30.94 per USD.

Egyptian-Turkish relations got some airtime after news broke of Foreign Minister Sameh Shoukry’s possible trip to Turkey later this week. Ala Mas’ouleety had coverage (watch, runtime: 3:49). We have all the details in What We’re Tracking Today, above.

AND- We’re not interested in hosting the 2030 World Cup: Egypt will not be submitting a bid to host the 2030 FIFA World Cup, Youth and Sports Minister Ashraf Sobhy told the Al Match program on Sunday (watch, runtime: 42:00). He didn’t rule out bidding for World Cups further down the line or the 2036 Olympics. Sobhy had previously said Egypt would join Saudi Arabia and Greece for a joint bid to host the cup in 2030 or 2034.

Tags:

DIPLOMACY economy EGP LAST NIGHT’S TALK SHOWS sports

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EGYPT IN THE NEWS

Egypt’s inflation in the foreign press on 11 April, 2023

Inflation led the conversation on Egypt in the foreign press this morning. Bloomberg, Reuters, and the National all took note of the near-record price hikes seen in March. Read the full story in this morning’s news well, above.

AND- Egypt gets a mention in apparent US intelligence leak: Foreign Ministry Spokesperson Ahmed Abu Zeid responded to claims in the Washington Post that Egypt covertly planned to supply Russia with weaponry in its war against Ukraine. “Egypt’s position from the beginning is based on noninvolvement in this crisis and committing to maintain equal distance with both sides,” Abu Zeid is quoted as telling WaPo.

Tags:

economy inflation Russia-Ukraine war

ALSO ON OUR RADAR

China’s CTGI eyes Egyptian renewables, desalination projects. PLUS: Accsight to monitor antibiotics use in hospitals + FRA tells ins. firms to build digital databases + Cruise ships get docking incentives at Egyptian ports

ENERGY-

Another Chinese player wants in on our renewable ambitions: Chinese hydropower developer CTG subsidiary CTGI wants to invest in local renewable energy, desalination, water pumping, and green hydrogen projects, the company’s head said during a meeting with Electricity Minister Mohamed Shaker yesterday.

Growing interest from China in Egyptian renewables: China Energy could start working on a USD 5.1 bn green hydrogen facility in Egypt next month. The company is also interested in investing in Egypt’s electricity grid and partnering with the Housing Ministry to manufacture pumps for sewage and water desalination plants.

EGPC to set net zero targets: Norwegian energy advisory firm DNV will help the state-owned Egyptian General Petroleum Corporation set net-zero emissions targets, according to a DNV press release. The MoU signed between the two firms will also see DNV strengthen EGPC’s ESG risk assessment and reporting, support studies into carbon capture projects, and train the oil company’s management on sustainability.

DEBT-

Finance in Motion to deploy USD 5-10 mn in agricultural loans: Impact investor Finance in Motion is in talks with three private agriculture firms to provide them with a total of USD 5-10 mn worth of loans in local currency, country head Mohamed Morsy told Enterprise. The loans will be used to purchase crops from small farms and will be disbursed in 2023 and/or 2024.

The investor has handed NBE USD 25 mn in loans in recent months: Finance in Motion’s Sanad fund has extended USD 25 mn to the National Bank of Egypt (NBE), including a USD 10 mn tranche for on-lending to small, medium, and micro-sized enterprises in January and another 15 mn tranche in December, Al Mal reports.

HEALTHCARE-

Moves to reduce antibiotic overuse: Regional pharma consulting firm Accsight is partnering with the Health Ministry to launch an electronic platform to track the use of antibiotics at participating hospitals, according to a ministry statement. The data will be used to create studies and training programs on how to reduce antibiotic use.

REGULATION-

Ins. providers have six months to link their databases with the FRA: Ins. companies need to get their tech up to scratch so they can link their records with the Financial Regulatory Authority’s (FRA) database within the next six months, according to a decision issued by the regulator yesterday. Firms will have the option to apply to the regulator for a further six-month extension, the decision reads.

REMEMBER- Ins. firms are being asked to share their data with the FRA as part of new regulations designed to mitigate their credit risk. The new regs include establishing an industry-wide online platform listing borrowers who have defaulted on their loans.

TOURISM-

Docking incentives for foreign cruise ships: Foreign cruise ships are getting a 50% discount on service fees and a complete exemption from local port authority fees at the country’s ports, per a Transport Ministry decision published in the Official Gazette. Cruise operators must pay their fees in USD, the decision adds.

Tags:

Accsight ALSO ON OUR RADAR CTG CTGI DNV Egyptian General Petroleum Corporation energy healthcare infrastructure pharma regulation tourism

PLANET FINANCE

S&P 500 companies could post worst earnings since pandemic in 1Q 2023. PLUS: The new energy world order makes for expensive shipping + Careem spins out its super app

Wall Street is bracing itself for a rough earnings season: Companies in the S&P 500 index are forecast to post a 6.8% y-o-y drop in earnings for last quarter — their biggest decline since the outbreak of the covid pandemic in 2Q 2020, the Financial Times reports citing FactSet data. High inflation and weaker demand on fears of recession is likely to dent the performance of most companies. “When you look at the cost of wages and the cost of capital I think margins are coming under a fair amount of pressure,” Cresset Capital CIO Jack Ablin told the FT.

Banking woes may not show up on 1Q balance sheets: Financial firms are expected to post the highest revenue growth of any sector at 9.1%, despite the collapse of several US banks during the quarter. “Since recent bank failures happened in the last few weeks of the quarter, the full impact won’t register in first quarter reports,” Goldman Sachs wrote in a note. Big firms across all sectors are better positioned to insulate themselves from the recent banking volatility, which small- and medium-sized businesses will likely suffer thanks to reduced access to credit.

Up first: Citigroup, JPMorgan Chase & Co and Wells Fargo & Co will kick off 1Q earnings season on Friday.

Redrawn global energy routes are less efficient, more expensive: The EU’s curbs on Russian petroleum products are forcing global fuel tankers to take longer routes, increasing carbon emissions and more than doubling average freight rates, Reuters reports. To make up for lost business in Europe, Russia is sending its fuel cargoes to “far-flung buyers” in Morocco, Brazil, Turkey, and Nigeria, while Europe is resorting to the US, Middle East, and Asia for petroleum imports. The longer, more expensive routes could further fuel global inflation and release mns of tons more CO2 into the atmosphere, analysts say.

Careem spins out its super app: UAE telecoms provider e& will acquire a 50.03% stake in Careem’s super app for USD 400 mn as the Uber-owned firm spins the app out of its core business. (Statement | Bloomberg | CNBC)

EGX30	16,775	+0.6% (YTD: +14.9%)
USD (CBE)	Buy 30.84	Sell 30.94
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	10,905	-0.6% (YTD: +4.1%)
ADX	9,499	+0.4% (YTD: -7.0%)
DFM	3,412	+0.0% (YTD: +2.3%)
S&P 500	4,109	+0.1% (YTD: +7.0%)
FTSE 100	7,742	+1.0% (YTD: +3.9%)
Euro Stoxx 50	4,309	+0.3% (YTD: +13.6%)
Brent crude	USD 84.18	-1.1%
Natural gas (Nymex)	USD 2.18	+0.5%
Gold	USD 2,006	+0.1%
BTC	USD 29,632	+4.1% (YTD: +76.5%)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 1.57 bn. Foreign investors were net sellers. The index is up 14.9% YTD.

In the green: Qalaa Holdings (+5.8%), Elsewedy Electric (+5.3%) and Palm Hills Development (+5.3%).

In the red: Rameda Pharma (-2.2%), Ezz Steel (-1.8%) and Sidi Kerir Petrochemicals (-1.6%).

It’s green screens so far this morning: Asian markets are almost all up in early trading, and futures suggest both Wall Street and major European indices will open higher later on in the day.

Tags:

Careem e& earnings energy equities Financial Markets oil and gas Planet Finance S&P 500

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

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

Global temperatures to breach key 1.5°C threshold in 2030s, UN climate scientists warn

Governments around the world are unlikely to keep the globe from warming past 1.5°C, according to UN climate experts, who now expect the key threshold to be breached in the coming decade. In its latest downbeat assessment, the UN Intergovernmental Panel on Climate Change (IPCC) predicts that average global temperatures will rise 1.5°C above pre-industrial levels by the first half of the 2030s as governments fail to bring down emissions quickly enough.

1.5°C is key: Countries agreed in Paris in 2015 to reduce emissions to limit global warming to 1.5°C, a limit which the IPCC has warned is necessary to prevent increasingly severe weather events and irreversible climate change.

The planet has already warmed to more than 1.1°C: Average global temperatures reached1.15°C above pre-industrial levels last year, making 2022 the fifth or sixth warmest year on record, according to the World Meteorological Authority.

The IPCC’s assessment is conservative compared to other forecasts: The UK’s weather service said earlier this year that global temperatures could rise beyond 1.5°C as soon as next year should the El Niño weather pattern replace La Niña this year as some experts expect.

The IPCC points the finger squarely on weak commitments and unfulfilled promises: “There are gaps between projected emissions from implemented policies and those from NDCs and finance flows fall short of the levels needed to meet climate goals across all sectors and regions,” according to the report. Under nationally determined contributions (NDCs) announced in the lead up to COP26 in 2021 the world is on track to hit 2.8°C of warming, the report says.

The damage will be worse than previously thought: “For any given future warming level, many climate-related risks are higher than assessed in [the 2014 assessment report], and projected long-term impacts are up to multiple times higher than currently observed,” the IPCC says. Hazards like heat-related human mortality, food and water-borne illness and flooding near coastal regions are expected to be globally felt in the short term.

Dramatic change is needed to avoid surpassing 1.5°C: The world needs to slash greenhouse gas emissions almost in half by the end of the decade and almost all CO2 emissions by 2050 if we’re to avoid breaching the 1.5°C threshold, according to the report. Even in this scenario of dramatic emission cuts, the world would have a 50% chance of limiting warming to 1.5°C.

We have the money to do it: “There is sufficient global capital to close the global investment gaps but there are barriers to redirect capital to climate action,” especially given current economic conditions and the high indebtedness of developing countries, the IPCC says.

Climate flows are rising: Preliminary estimates from the Climate Policy Initiative suggest that climate flows rose to USD 850-940 bn in 2021, up as much as 42% from 2019-2020 and more than double what they were in 2016-2017.

But we’re still way off: The Climate Policy Initiative says that climate flows need to hit USD4.35 tn every year by 2030 to meet climate objectives — almost 5x the estimated figure for 2021.

Government funding will be key: Reducing the barriers to climate finance will require governments to take on a more active role in leading public funding for climate investments, according to the IPCC. Public finances will need to be deployed to reduce the regulatory, cost and market barriers for private capital and improve the risk-return profile for investors, it says.

Adaptation measures may have only limited efficacy as temperatures rise: Adaptation strategies that are feasible today — like building more resilient infrastructure, improving water management practices and developing more efficient agricultural practices — “will become constrained and less effective with increasing global warming,” the report says

Mitigation remains our best bet: A number of mitigation options such as expanding wind and solar energy, accelerating the adoption of green infrastructure, demand-side management and reducing food waste are all increasingly cost-effective and have broad public backing, the IPCC says. In the decade to 2019 unit costs of wind and solar energy decreased by some 55% and 85% respectively, while the lithium ion batteries fell 85%.

And there’s still good reason for countries to focus on mitigation even if we fail to stay within 1.5°C target: While the risks of breaching 1.5°C of warming are serious and difficult to reverse, they are projected to “escalate with every increment of global warming,” the IPCC warns.

Your top green economy stories for the week:

Red Sea wind farm financed: Orascom Construction, Engie, and Toyota Tsusho reached financial close on their 500 MW wind farm in the Gulf of Suez.
Waste-to-energy: The Madbouly government signeda USD 120 mn agreement with Renergy Egypt and its partners to build and operate a new waste-to-energy facility in Abu Rawash.
The military is building the country’s first biogas-powered plantwith Al Mawarid Industrial Products Company.
President Abdel Fattah El Sisi received an official invitation from UAE President Sheikh Mohammed bin Zayed Al Nahyan to participatein COP28 in Dubai.
Foreign Minister Sameh Shoukry spoke with US climate envoy John Kerry, to follow up on work begun at COP27 ahead of this year’s climate summit.

Tags:

climate change going green IPCC UN

CALENDAR

APRIL

April: SCZone roadshow in China.

April: SCZone to begin providing ship bunkering services in the Suez Canal’s ports.

10-16 April (Monday-Sunday): IMF / World Bank Spring Meetings, Washington DC.

11 April (Tuesday): House to reconvene.

11 April (Tuesday): Deadline for feed suppliers to register on the Egyptian Mercantile Exchange.

11 April (Tuesday): Deadline for NGOs to reconcile their status.

12 April (Wednesday): British Egyptian Business Association (BEBA) annual Ramadan iftar, Salah El Din Citadel, Cairo.

15 April: Lamees El Hadidi’s startup competition show, El Forsa, closes applications.

16 April (Sunday): Coptic Easter. Official holiday for banks and the EGX.

17 April (Monday): Official holiday in observance of Sham El Nessim.

20-25 April (Thursday-Tuesday): Public sector holiday in observance of Eid El Fitr and Sinai Liberation Day.

21 April (Friday): Eid El Fitr (TBC).

28 April (Friday): First day of daylight saving time.

30 April (Sunday): Tenth of Ramadan dry port tender deadline.

30 April (Sunday): Deadline for self-employed to register for e-invoicing.

30 April (Sunday): Deadline for corporate tax returns.

30 April (Sunday): End of Mediterranean, Nile Delta oil + gas exploration tender.

Late April – 15 May: 1Q2023 earnings season.

MAY

1 May (Monday): Labor Day.

1 May (Monday): Deadline to apply to VC funds program by GIZ Egypt, AfricaGrow and Dutch development bank FMO.

2 May (Tuesday): National Paints Holding’s and Eagle Chemicals’ MTOs for Pachin ends.

2-3 May (Tuesday-Wednesday): Federal Reserve interest rate meeting.

3 May (Wednesday): National Dialogue begins.

4 May (Thursday): National holiday in observance of Labor Day (TBC).

4 May (Thursday): IEF-IGU Ministerial Gas Forum, Cairo.

7 May (Sunday): Senate back in session.

9-11 May (Tuesday-Thursday): First edition of the Arab Actuarial Conference, Cairo.

12-15 May (Friday-Monday): Egypt Fashion Week.

14 May (Sunday): Expat car import scheme ends.

15 May (Monday): Enterprise Exports & FDI Forum, Four Seasons Hotel Cairo at Nile Plaza.

16-18 May (Tuesday-Thursday): Egypt will host its first conferenceon cybersecurity and defense intelligence systems (CDIS-Egypt).

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

19 May (Friday): Arab League summit, Riyadh.

20-21 May (Saturday-Sunday): eGlob Expo, St. Regis Almasa Hotel, Cairo.

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

JUNE

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

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.

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

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo debuts at the 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.

18 July (Tuesday): Islamic New Year.

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.

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

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.

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

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

OCTOBER

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

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.

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

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

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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